FAFSA Changes: Why Every Family Should Pay Attention — Even If You Don’t Need Financial Aid

When it comes to paying for college, few forms create more confusion—or carry more importance—than the FAFSA (Free Application for Federal Student Aid).

Many families assume the FAFSA only applies to those seeking need-based financial aid. But that’s one of the biggest misconceptions out there. Whether your student is applying for academic scholarships, state-based grants, or institutional merit aid, completing the FAFSA can open more doors than you might think.

And this year, there’s good news: the FAFSA for the 2026–2027 academic year is now open at FAFSA.gov.

What’s New and Why Timing Matters

The FAFSA typically opens each fall for the following academic year, and after a series of delays in recent years, the U.S. Department of Education has returned to a more predictable schedule. That means families can now complete the 2026–27 FAFSA as early as October 2025—and should plan to do so as soon as possible.

While the official federal deadline is June 30, 2027, many colleges, universities, and states set their own priority deadlines months earlier. Some even award funds on a first-come, first-served basis—so waiting too long can mean missing out on grants, scholarships, or campus-based aid.

Bottom line: Even if you don’t expect to qualify for need-based aid, filing early keeps every financial option open.

For a full list of state deadlines, visit SavingForCollege.com: FAFSA Deadlines.

Why File the FAFSA If You Don’t Need Financial Aid?

Even families who feel financially comfortable can benefit from submitting the FAFSA. Here’s why:

Academic and Merit Scholarships: Many colleges use the FAFSA to determine eligibility for scholarships that aren’t based on financial need.
Access to Federal Loans: Even high-income families may choose to use low-interest federal student loans to preserve liquidity or investment flexibility.
State and Institutional Requirements: Some states and private colleges require a FAFSA for any form of aid consideration—even merit or athletic awards.
Early Filing Advantage: Students who file early are often first in line for limited funds such as Federal Work-Study or Supplemental Educational Opportunity Grants (FSEOG).

Think of the FAFSA as your passport to opportunity—it doesn’t commit you to borrowing or accepting aid, but it ensures you’re eligible if needed.

Tips for a Smooth FAFSA Process

A little preparation can make the process much easier:

Get your FSA ID early. Both the student and a parent need one to sign electronically. You can set it up before starting the application.
Gather your documents. Have tax returns, W-2s, and current asset information ready.
List your schools. You can include up to 20 schools on your FAFSA, even if you haven’t finalized your college list.
Submit early. The earlier your FAFSA is processed, the better your chances of qualifying for school- and state-based funds.

Why Early Planning Matters

The FAFSA doesn’t just determine federal aid—it often serves as the foundation for institutional financial planning. Schools may use it to shape merit offers, assess eligibility for state programs, or verify continued enrollment funding. If you're unsure about filing, check with the school's financial aid office to see if the FAFSA is suggested for these non needs based opportunities.

Filing early gives you more clarity and flexibility—and ensures your student isn’t shut out of opportunities because of timing.

Final Thoughts

Filling out the FAFSA may feel like another item on a long college checklist, but it’s one of the simplest ways to protect your family’s options and potentially save money.

At Birch Street Financial Advisors, we help families plan for education expenses as part of a broader, values-driven financial strategy—so that decisions around college, savings, and giving all align with your long-term goals.