2026-2027 FAFSA Changes

Beginning with the 2026–27 award year, the OBBBA updates the Student Aid Index (SAI) asset calculation to exclude, the following from current net worth of business and farms and should not be reported as assets on the FAFSA form:

• The net worth of a family-owned business with 100 or fewer full-time (or full-time equivalent) employees.
• The net worth of a farms on which the family resides.
• The net worth of a commercial fishing business and related expenses, owned and controlled by a family.

The OBBBA made the following changes to the Pell Grant eligibility criteria, beginning with the 2026–27 award year:

• The foreign earned income exclusion amount reported on the FAFSA form will be added to the adjusted gross income (AGI) when determining Pell Grant eligibility.
• An applicant with an SAI equal to or greater than twice the maximum Pell Grant award amount for the award year are ineligible for a Pell Grant.
• For the 2026–27 award year, this threshold is $14,790.

Note, this limit does not apply to students who qualify for a Pell Grant under the Special Rule (dependents of certain deceased servicemembers and Public Safety Officers).

These Pell Grant eligibility changes will be implemented with the official launch of the 2026–27 FAFSA form by Oct. 1, 2025.

• New federal loan limits: As of 2026, new federal loan limits have been introduced, including annual and lifetime caps for graduate, medical and Parent PLUS Loans