Preparing for Financial Aid: Key Updates on FAFSA and Debt Relief

FEDERAL STUDENT AID

On August 7, the Department announced that 2025-26 FAFSA® form will be launched through a new process. Starting October 1, a limited group of students and institutions will begin testing the form, with full access available to all students by December 1.

This approach, informed by feedback from students and stakeholders, aligns with software industry best practices. The phased rollout allows the Department to address issues and incorporate user feedback to ensure the form is user-friendly and effective.

The Department will provide regular updates throughout the testing period and continue to seek feedback to enhance the process. The goal is to ensure students have access to the maximum possible federal financial aid to achieve their educational goals.

Thanks to investments in the FAFSA Student Support Strategy and community partnerships, 2024-25 FAFSA submission rates have significantly increased, closing the submission gap from 40% to under 4% in just six months.

REMINDER: STUDENT DEBT RELIEF

The Biden Administration emailed all borrowers with at least one outstanding federally held student loan to provide updates on potential student debt relief.  The Department expects that all proposed forms of relief would be provided to eligible borrowers without requiring any action from them (no application required).  Otherwise, they have until August 30 to call their servicer to opt out.  The rules that would provide such relief are not yet finalized, and receiving the message does not guarantee specific borrowers will be eligible.  The Department will provide additional information to borrowers once these rules are settled this fall (video).

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