The U.S. Department of Education recently opened the Free Application for Federal Student Aid for the 2025–26 academic year.
The FAFSA is reportedly providing students and their families with a smoother experience than last year’s notoriously botched rollout, although this marks the second year in a row that the government missed its planned Oct. 1 launch date.
It’s critical for students planning to attend college to fill out the FAFSA form, says Laura Lallos, managing editor of Morningstar magazine. They may qualify for other non-federal grants even if they come from higher-income households, she notes.
It’s also important to fill out the form as soon as possible, Lallos explains in a recent blog.
First, this can help students compare aid packages before accepting an offer. Second, some schools provide aid on a first-come, first-served basis, so submitting the FAFSA early can raise a student’s chance of receiving both need-based and merit aid.
Here’s a brief rundown of what financial advisors may want to highlight for clients with children preparing to start or return to college in the 2025-25 school year.
Step 1: Getting Started with FSA ID
Applicants must set up a verified Federal Student Aid Identification, Lallos says. A separate FSA ID is also necessary for all “contributors,” such as parents, a spouse and possibly parents’ spouses.
Each FSA ID should be set up at least a week before filling out the application. This is because it can take several days for the ID to be verified before this data can be pulled from the Internal Revenue Service’s database.
