FAFSA and Financial Aid 2027-28: What You Will Actually Get
Families routinely plan for the sticker price and then discover the aid formula works nothing like they assumed. The FAFSA does not ask what you can afford — it computes a number, and that number drives everything. Here is what actually determines your award for 2027-28.
Key dates and figures
| Item | 2027-28 |
|---|---|
| FAFSA opens | Expected by 1 October 2026 |
| Federal deadline | Expected 30 June 2028 |
| Maximum Pell Grant | Not yet published (2026-27: $7,395) |
| Minimum Pell Grant | 2026-27: $740 |
| Maximum SAI for Pell eligibility | 2× the maximum Pell award |
The Student Aid Index, explained
The SAI replaced the old Expected Family Contribution. Despite the name, it is not what you will pay — it is an eligibility index schools use to allocate aid. Two properties surprise people:
- It can be negative, as low as −1500, which signals exceptional need and can unlock more aid than a zero.
- It is not a bill. Your actual cost depends on each school's own aid policy, which varies enormously between institutions with identical SAIs.
What the OBBBA changed: the One Big Beautiful Bill Act capped the Student Aid Index for Pell eligibility at twice the maximum Pell Grant for the relevant year, and changed the income definition so the foreign earned income exclusion is added back to AGI on the FAFSA. Families with overseas income who previously qualified may no longer — this is the change most likely to catch people out.
What the formula actually looks at
- Income, overwhelmingly. Assessed from the tax year two years prior — for 2027-28, your 2025 return. It is already fixed; you cannot change it now.
- Assets, but unevenly. Retirement accounts and your primary residence are excluded from the federal formula. Cash, taxable investments and 529 plans count.
- Family size. The number in your household, taken from your tax return.
- Whose assets they are. Student-owned assets are assessed far more aggressively than parent-owned ones — which is why money sitting in a student's own account can cost more aid than it is worth.
Note what is absent: the number of children in college simultaneously no longer reduces the index the way it once did. Families with twins or close siblings were hit hardest by that change.
Reading an aid offer without being misled
Aid letters are notoriously inconsistent, and some present loans as though they were aid. Work through them in this order:
- Separate gift aid from loans. Grants and scholarships never repay. Loans always do. Only gift aid reduces the real cost.
- Find the true net price: total cost of attendance minus gift aid only. Ignore loans and work-study for this calculation.
- Check whether the award renews. Some scholarships are first-year only, so the four-year cost is far higher than year one suggests.
- Compare net price across schools, never sticker price. The expensive private college is regularly cheaper than the state flagship after aid.
Three things worth doing early
- File as soon as it opens. Some state and institutional aid is first-come, first-served and runs out.
- Mind the base year. 2027-28 uses your 2025 income — so decisions about capital gains or Roth conversions matter two years ahead of enrolment.
- Hold assets in the parent's name where you reasonably can. The assessment rate is substantially gentler than for student-owned assets.
Work out the real four-year cost
Model tuition, living costs, aid and loan interest across the full degree.
Try the College Cost Calculator →Frequently asked questions
When does the 2027-28 FAFSA open?
It is expected to open by 1 October 2026, with a federal deadline expected of 30 June 2028. Filing early matters because some state and institutional aid is awarded first-come, first-served.
What is the Student Aid Index?
The SAI replaced the Expected Family Contribution. It is an eligibility index that schools use to allocate aid, not a bill. It can be as low as −1500, and a negative SAI signals exceptional need which can unlock additional aid.
What is the maximum Pell Grant?
The 2027-28 maximum has not yet been published. For 2026-27 the maximum scheduled award is $7,395 and the minimum is $740. Under the OBBBA, Pell eligibility now requires a Student Aid Index no greater than twice the maximum Pell award.
Which tax year does the 2027-28 FAFSA use?
Your 2025 tax return — income is assessed from the year two years before the award year. That means decisions about capital gains or Roth conversions affect aid roughly two years before enrolment.
Related
- College cost calculator
- College inflation planning
- The true cost of college
- 529 plans explained
- Student loan repayment plans in 2026
Sources
- Federal Student Aid — 2027-28 Student Aid Index (SAI) and Pell Grant Eligibility Guide
- Federal Student Aid — 2026-27 Pell Grant maximum and minimum award amounts
- One Big Beautiful Bill Act — Pell eligibility and FAFSA income provisions
Figures compiled September 2026 from public sources and not individually verified; the 2027-28 Pell maximum had not been published at the time of writing. Aid rules change — confirm on studentaid.gov and with each school financial aid office before relying on them. General information, not financial advice.
Cite this article
Randive, A. (2026). FAFSA and Financial Aid 2027-28: What You Will Actually Get. DecisionsCalc. https://decisionscalc.com/articles/fafsa-financial-aid-guide/