The Free Application for Federal Student Aid (FAFSA) for the 2027-28 academic year becomes available starting Oct. 1, providing students and families with the opportunity to secure financial support for college expenses. The federal government, as well as many states and colleges, use the information submitted through FAFSA to determine eligibility for various aid programs.

While the federal deadline to submit the form is June 30, 2028, many states and individual institutions set earlier priority deadlines. In some cases, financial aid is awarded on a first-come, first-served basis, making early submission highly advantageous.

To complete the application, both students and parents need to create separate online accounts through studentaid.gov. The recommended process starts with the student filling out their section, followed by an email invitation to the parent to complete their corresponding portion. For married parents filing jointly, either spouse may complete the parent's section. Unmarried parents can use a specific online tool to determine who is responsible for filling out the application.

FAFSA relies on tax and income data from two years before the academic year in question. For the 2027-28 application, tax information from 2025 will be used. Tax data can be transferred directly from the IRS to the FAFSA form, streamlining the process. Applicants also report current assets such as checking and savings account balances, as well as non-retirement investment accounts.

When it comes to asset assessment, the formula counts 20% of a student’s assets and up to 5.64% of parent assets toward the expected family contribution. Therefore, minimizing assets held in the student's name can help maximize aid eligibility. For example, 529 college-savings plans owned by parents or students are treated as parent assets. However, a 529 plan owned by a grandparent does not appear on the FAFSA and has no impact on aid eligibility.

Financial experts suggest strategies to reduce reported assets, such as using surplus cash to pay down unsecured debts like credit cards or auto loans, while maintaining sufficient liquidity for emergencies. Additionally, lowering income in the relevant tax year can increase eligibility for aid. For instance, avoiding capital gains by not selling appreciated investments or offsetting gains with losses can reduce adjusted gross income. Withdrawals from both traditional and Roth retirement accounts are counted as income on the FAFSA and should generally be avoided when possible.

Completing the FAFSA promptly and strategically managing financial and tax matters can significantly influence the amount of aid awarded to students pursuing higher education.