Cost & Financial Aid

FAFSA Simplification Act

FAFSA Academy of Art University

Let Us Help You Make Sense Of The Free Application for Federal Student Aid (FAFSA)

The FASFA Simplification Act makes significant changes to the way federal student aid eligibility is determined.  The Academy is here to help you navigate the changes. We have equipped a specialized team of Student Financial Services Representatives with an in-depth knowledge of the updated system to guide you through the new application process.

Let us help you FASFA Academy of Art University

Free Application for Federal Student Aid (FAFSA)

Student-friendly updated application

  • As of 2024-2025, FAFSA will feature fewer questions and retrieves tax information using a direct data exchange from the IRS instead of the IRS Data Retrieval Tool.

Understanding the FAFSA terminology and information

  • The Expected Family Contribution (EFC) has been replaced with a new formula and will now be referred to as the Student Aid Index (SAI).
  • The FAFSA is introducing the new term “contributor,” which refers to anyone who is required to provide information on a student’s FAFSA form, including the student, the student’s spouse, a biological or adopted parent, or the parent’s spouse. Note: Being a contributor does not imply responsibility for the student’s college costs.

Expanding Pell Grant eligibility

  • The adjustments to the new Student Aid Index (SAI) calculation will expand Federal Pell Grant eligibility to more students.
Free App FAFSA Academy of Art University

Federal Financial Aid Policy Changes for 2026–2027

Federal legislation (HR 1 – Public Law No. 119–21, passed July 2025) introduces significant updates to federal student loan programs effective July 1, 2026. The U.S. Department of Education is developing implementation regulations.

Good News: No Changes for 2025–2026!

  • Federal grants and loans continue under current rules.
  • Undergraduate borrowing limits and Pell Grant eligibility remain unchanged.
  • Graduate students who begin their current program on or before June 30, 2026, may continue using Grad PLUS Loans for up to three additional years or until program completion. (students must have already used loans in current program before June 30,2026).

Changes Effective July 1, 2026

Graduate Student Financing

  • New graduate/professional students will no longer be eligible for Grad PLUS Loans. We encourage students to investigate private alternative loans or utilize our monthly payment plan that is interest free!
  • Federal Direct Unsubsidized Loans will continue with revised limits:
Degree Type New Annual Limit New Lifetime Limit
Professional licensure (e.g., medicine, law) Up to $50,000 Up to $200,000
Other graduate programs Up to $20,500 Up to $100,000

Additional federal guidance will clarify how programs are classified and how limits apply to part-time enrollment.

Undergraduate Aid & Parent Loans

  • Undergraduate loan limits and Pell Grant awards remain unchanged!
  • Parent PLUS Loans will have new limits starting July 1, 2026:
    • Up to $20,000 per student per year
    • Up to $65,000 total lifetime
  • Parents using Parent PLUS Loans before July 1, 2026, may continue under current limits for up to three additional years or until their student completes the program.

Repayment Options
For loans first disbursed on or after July 1, 2026:

  • A new Repayment Assistance Program (RAP) will replace existing income-driven repayment plans.
  • Borrowers may choose between RAP, the Standard 10-year, or Standard 25-year repayment plans.
  • Borrowers with existing loans can remain in current income-driven plans if enrolled by June 30, 2028.
  • We encourage our students to reach out to their loan servicer to discuss the repayment plans!

 

Financial Aid FAQs:
Supporting Your Creative Journey

  • Absolutely! Federal Unsubsidized Loans will continue to be available, and new private lending opportunities are being developed to help you invest in your creative education. You’ll still have ways to fund your studies and keep your artistic goals within reach.

  • Yes! As long as you remain in the same program and continue borrowing before July 1, 2026, you’ll retain eligibility for Grad PLUS Loans during the transition period. Staying on track with your current program means you can keep focusing on what matters most — your growth as an artist.

  • We expect students will continue to have access to funding that supports the full cost of attendance. Final terms will depend on updates from lenders, but our priority is ensuring you have the financial tools and guidance needed to stay focused on your creative development and professional success.

  • You’re not alone — the Office of Student Financial Services at Academy of Art University is here to help you every step of the way by calling 415-618-6190 or email us at sfs@academyart.edu. Whether you’re exploring new options or planning for next year, our team is ready to help you build a smart financial path toward your artistic future.

Pro Tips for the FAFSA Form

To fill out the FAFSA Form more efficiently:

  • Create a StudentAid.gov (formerly an FSA ID) account before filling out the FAFSA form.
  • Gather the required documents ahead of time.
  • Have your contributor (student) information easily accessible.
  • Complete your (the student’s) section of the form first.
  • Make sure to read all questions and definitions carefully.
  • Don’t forget to review, sign, and submit the form.

Read more about tips for preparing to fill out the FAFSA form

Helpful Resources at the Academy:

Financial Aid FAQs

Types of Financial Aid

Important Forms and Dates

FASFA Tips Academy of Art University