Welcome to Extreme Investor Network, where we provide expert advice on personal finance to help you make the most of your money and investments. Today, we want to discuss an important topic for students and families preparing for higher education: the 2025-26 Free Application for Federal Student Aid (FAFSA).
The Education Department has announced that the FAFSA for the 2025-26 academic year will be available on or before December 1. This is a delayed release compared to previous years, as the 2024-25 FAFSA cycle had reported issues that needed to be addressed. Beth Maglione, interim president and CEO of the National Association of Student Financial Aid Administrators, highlighted the importance of this extended testing period, but also noted that it creates a compressed timeline for students and families to submit their financial information, potentially leading to missed opportunities for financial aid.
To help you prepare for the 2025-26 FAFSA, Maglione suggests taking five key steps:
1. Set up a studentaid.gov account: Students and parents can create a username and password (FSA ID) to access and complete the FAFSA electronically.
2. Gather personal information: Have Social Security numbers, driver’s license or state ID numbers, and Alien Registration numbers ready.
3. Prepare federal tax information: Have tax returns from the prior-prior tax year (in this case, 2023 tax returns) on hand.
4. Organize financial records: Document bank accounts, investments, and any untaxed income.
5. Compile a list of schools: Have a list of schools the student is applying to or attending.
The FAFSA is crucial for students seeking financial aid to cover the rising costs of higher education. College expenses continue to increase, with the average cost for a four-year private college at $58,600 and a four-year, in-state public college at $24,920 for the 2024-25 school year.
Completing the FAFSA is essential for accessing federal aid, including grants that do not need to be repaid, making it a key indicator of college enrollment for high school seniors. FAFSA completion increases the likelihood of enrolling in college directly after high school by 84%, according to the National College Attainment Network.
Last year’s FAFSA complications highlighted the importance of financial aid in college decisions, with a 5% decline in new first-year college students and significant drops in enrollment at four-year colleges serving low-income students.
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