Earlier in February, the U.S. Department of Education announced several major updates regarding the Free Application for Federal Student Aid (FAFSA®) process, including modifications to the current form, improvements for the 2025-26 cycle, and the development timeline for the 2026-27 application. These updates come as part of the Department’s effort to ensure a timely and efficient FAFSA experience for students and families.
On Track for an October 1, 2025, Release of the 2026-27 FAFSA
The Department has initiated the public development process for the 2026-27 FAFSA by publishing an information collection notice in the Federal Register. This marks the first step toward launching the form on schedule, in compliance with the FAFSA Deadline Act. The public will have 60 days to provide feedback on potential improvements, after which a revised draft will be made available for further review. The Department aims to meet statutory deadlines to give students and families adequate time to complete and submit their applications.
Changes to Gender Identification on FAFSA Forms
A notable policy shift includes the removal of the “nonbinary” gender identification option from the FAFSA form. Moving forward, the form will recognize only two sex identifiers: male and female. The Department states this revision aligns with the administration’s commitment to biological accuracy in federal data collection.
Addressing 2024-25 FAFSA Processing Challenges
The Department is actively working to resolve issues with the 2024-25 FAFSA, including a significant backlog of incomplete features. Among the key improvements in progress:
- Batch Correction Capability: Colleges and universities will soon be able to make batch corrections to FAFSA submissions, reducing the administrative burden and expediting updates to student records. The full release of this feature is expected by the end of February.
- Post-Screening Data Updates: The Department will implement changes to ensure institutions receive up-to-date eligibility information from the National Student Loan Database System (NSLDS).
- Additional System Enhancements: Other technical updates will be made to address lingering deficiencies left unresolved by the prior administration.
Upcoming Adjustments for the 2025-26 FAFSA Form
As part of an effort to align FAFSA terminology with Executive Order 14168, the Department will revise the “gender” question to collect data on applicants’ sex. This change reflects a broader shift in federal data collection policies.
Proposed Reforms for the 2026-27 FAFSA Form
A major focus for the 2026-27 FAFSA revision is improving the contributor invite process, which has been identified as a key factor in students failing to complete their applications. The Department plans to redesign this feature to streamline the process, increase user satisfaction, and reduce the number of support calls.
Implications for Financial Aid Professionals
These changes signal a renewed focus on improving FAFSA accessibility and efficiency. Financial aid offices should prepare for adjustments to processing workflows, particularly with the introduction of batch corrections and updates to student eligibility notifications. Institutions are encouraged to participate in the public comment process for the 2026-27 FAFSA to help shape a more user-friendly application experience.
Please keep in mind, due to the evolving nature of the issues discussed, the information contained in this post may no longer be relevant at the time you are viewing it. Please also keep in mind that nothing in this blog post should be considered legal advice; if you have legal questions, please consult with your attorney. Please email info@heag.us if you have any questions.
As the Department continues to refine the FAFSA system, stakeholders should remain engaged with ongoing developments to ensure a smooth transition into future application cycles. HEAG is committed to helping financial aid professionals stay up-to-date in navigating these changes. For questions or guidance, we encourage you to email info@heag.us for further support.