The 2025-26 Free Application for Federal Student Aid (FAFSA) is now open! High school seniors and returning college students who plan to attend college next fall will need to complete their FAFSA as soon as possible. When you submit your FAFSA for the 2025-26 school year, the data you enter will be sent to the processing system at Federal Student Aid, operated by the U.S. Department of Education. An automatic calculation will be done to determine your eligibility for federal and state student aid. The end result of this calculation will be a number that can range from -1,500 to 999,999. This number, called the Student Aid Index, or SAI, will be used to help financial aid offices at your schools of interest decide how much aid they can offer you to help you pay for college. There are many factors that go into the SAI formula, but one of the primary factors is your family income. To simplify this a bit: The higher the income, the higher the SAI.
A lower SAI can increase your eligibility for need-based aid, such as grants, work-study and subsidized student loans. If your SAI is in the -1,500 to zero (0) range, you will automatically qualify for the maximum Pell grant award, which is $7,395 for the current 2024-25 school year. The Pell grant is often called “free money,” because it’s gift aid that usually doesn’t have to be repaid. Keep in mind that as you renew your FAFSA each year you’re in college, the SAI will likely change from year to year, and the amount of need-based aid you may be eligible to receive can increase or decrease.
You’ll be reporting 2023 income on your FAFSA. If you had a much better year in 2023 than you’re having now, be sure to talk to someone in the financial aid office at your school after your FAFSA has been processed. It’s possible that they can adjust your income to reflect your current financial situation rather than what it was two years ago, which could result in a lower SAI. Only a financial aid officer can make this adjustment.
If you’re a high school senior or you will be attending college for the first time in Fall, 2025, be sure to create an account at StudentAid.gov several days before you submit your FAFSA. When you set up your account, you’ll create a username and password, which will serve as your legal electronic signature. Your new account must be created 5-7 days before your username and password can be used to electronically submit your FAFSA. Create your account today at https://studentaid.gov/fsa-id/create-account/launch.