FAFSA & Pell Grant Changes
The Free Application for Federal Student Aid (FAFSA) is required for Federal aid eligibility consideration.
The One Big Beautiful Bill Act (H.R.1) was signed into law by President Trump on July 4, 2025. For students, families, and institutions like NLU, this bill is significant because it changes some rules related to the federal aid (Title IV) programs.
As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026-27 Free Application for Federal Student Aid.
FAFSA Changes Effective July 1st, 2026
- Family farms and family-owned small businesses will no longer be counted as assets (reverting to rules before FAFSA Simplification).
- Family Farm: Farms on which the family resides
- Small Business: 100 or fewer full-time (or full-time equivalent) employees
- Family-owned commercial fisheries are now also exempt from asset reporting.
Foreign Income Reporting
- Foreign income must now be included in Adjusted Gross Income (AGI) for Pell Grant eligibility.
This removes the need for financial aid staff to decide whether foreign income affects Pell Grant eligibility.
