Melissa Mieyr, M.Ed.
Founder, InfoQuest College & Financial Solutions, LLC
Paying for college has never been simple, and a wave of recent federal changes makes it even more important to plan ahead. The good news: you do not need to become a financial aid expert. You just need to know what actually affects you right now, while you are filling out the FAFSA and building a college list, versus what matters later, once your student is enrolled and repaying loans.
Here is the breakdown, starting with what to handle during the college list building and application process.
What You Need to Know While You Are Applying
Get Ahead of the New FAFSA Identity Verification
This is the most immediate item on the list. In April 2026, the Department of Education rolled out real-time identity fraud screening on every FAFSA. Most students sail through without noticing. But if a student is flagged as “high risk,” they will be asked to complete a live selfie verification, matched against a government-issued photo ID, on the spot, with only a few minutes to do it, and only one chance to get it right.
Before you and your student sit down to complete the FAFSA:
- Confirm they have a valid, unexpired photo ID (driver’s license, state ID, passport, permanent resident card, tribal ID, or military ID). Student ID cards and temporary licenses do not count, and getting a proper one can take weeks, so check now.
- Have a smartphone or tablet available when the student portion is being completed and submitted.
- Do not wait until the last minute. A verification hiccup can delay the whole financial aid timeline, and if it cannot be resolved online, your student may have to sort it out individually with every college on their list.
Read the full FAFSA identity-verification article.
Borrowing Limits Are Tightening — Build Your College List Around Affordability
This is a change that needs to shape your college list before your student ever applies, not after acceptance letters arrive. As of July 1, 2026, Parent PLUS Loans no longer cover the full cost of attendance. They are now capped at $20,000 per year and $65,000 total per student. Families used to think of the Parent PLUS as a way to close any remaining gap, that safety net is now much smaller.
With the rising cost of college and the new Parent PLUS loan cap, families can no longer rely on Parent PLUS loans to cover the gap between what they can afford and the cost of college.
Graduate and professional students face new caps too: $20,500/year and $100,000 lifetime for graduate programs, $50,000/year and $200,000 lifetime for professional programs like law or medicine. Grad PLUS Loans, which used to cover the full cost of attendance, have been eliminated for new borrowers.
Why this matters at the list-building stage:
- A college that admits your student is not automatically a college your family can finance. Compare net price, renewable scholarship terms, and total likely borrowing before adding a school to the list, not just admission odds.
- If your student is eyeing grad school, law school, or med school down the road, factor that into undergraduate borrowing decisions now. With a $50,000/year federal cap and most professional programs costing $70,000–$100,000+ a year, students may hit their federal loan ceiling well before finishing, and need to plan for private loans or other funding to fill the gap. Undergraduate debt plus a smaller federal ceiling for grad school means the total financing picture needs to be mapped out early, not figured out year by year.
- Students already borrowing before July 1, 2026 get a transition window, up to three more years or through their current program, whichever comes first.
Read the full article on loan limits.
Family Farms, Small Businesses, and Fishing Operations Get Protected Again
As of the 2026–2027 award year, families who own a farm they live on, a small family owned business (100 or fewer employees), or a commercial fishing operation have these assets excluded from FAFSA calculations again.
Takeaway: Do not assume you will not qualify for aid just because you own a business or farm. Run the numbers ahead of time, use Student Aid Index (SAI) estimators or work with a professional to get a preliminary SAI, so you have a realistic sense of where you will land before you file.
Pell Grant Eligibility Is Narrowing—But New Workforce Options Are Opening Up
As of the 2026–2027 award year, students whose Student Aid Index (SAI) is more than double the maximum Pell Grant amount no longer qualify, even if their income looks modest on paper. Foreign income now counts toward eligibility as well.
On the flip side, a new Workforce Pell Grant will help students cover short-term (8–15 week), career-focused training programs in high-demand fields, think healthcare, skilled trades, or tech, as long as the program meets completion and job-placement standards. (Students cannot receive both a traditional and a Workforce Pell Grant at once.)
Takeaway: College planning should include more than just the four-year path. A trade certificate, associate degree, or workforce training program may be a stronger financial fit for some students than a traditional bachelor’s degree.
Read the full Pell Grant update.
Good to Know for Later—Once Borrowing and Repayment Are on the Table
The changes below do not affect how you fill out this year’s FAFSA, but they are worth knowing about before your student commits to a school or takes out a loan:
- Repayment is simplifying to two plans. New borrowers after July 1, 2026 will choose between a fixed Standard Plan or the new income-based Repayment Assistance Plan (RAP), worth understanding before your student borrows.
- The safety net for struggling borrowers is shrinking. For loans made on or after July 1, 2027, hardship deferment goes away and forbearance is capped at 9 months per 24-month period.
- 529 plans and new “Trump Accounts” are more flexible. Higher K–12 withdrawal limits, broader qualified expenses, and a new tax-advantaged account for kids with a federal seed deposit for those born 2025–2028.
- Colleges face new accountability standards. Programs whose graduates consistently underearn can lose federal loan eligibility, and schools must publish clearer cost and outcome data, useful when comparing majors.
Bottom Line
The fundamentals have not changed: you need a plan, file the FAFSA early, respond quickly to any verification requests, and compare actual aid offers, not sticker prices, before committing. The rules around borrowing and repayment are shifting too, so it is worth revisiting these closer once you are past the application stage and weighing how to pay the bill.
Have questions about how these changes affect your family’s specific situation? Reach out to InfoQuest College & Financial Solutions, we stay on top of these updates, so you do not have to.
About the Author
Melissa Mieyr is a college and financial consultant with more than 24 years of experience in public education, including 15 years supporting a high school counseling office and helping students and families navigate the college planning process. A certified school counselor and school administrator, she brings extensive experience in education and college planning to her work with families.
As founder of InfoQuest College & Financial Solutions, LLC, Melissa specializes in college affordability and financial aid, helping families make informed decisions about the financial implications of college. She also serves as a financial aid professional with College Aid Pro, working with families using its financial planning tools and methodology.
Melissa is committed to advancing financial-aid knowledge within the educational consulting profession through her service on affordability committees with Higher Education Consultants Association (HECA) and Independent Educational Consultants Association (IECA), where she helps educate and support fellow educational consultants on college affordability and financial aid.
Want to learn more? Reach out to InfoQuest College & Financial Solutions
