On September 24, 2025, a Dear Colleague Letter (GEN-25-07) was released formally announcing the updates to the federal methodology that determines financial aid eligibility for the 2026–27 academic year.
“The Secretary announces the annual updates to the tables used in the statutory Federal Need Analysis Methodology (Need Analysis) that determines a student’s Student Aid Index (SAI) for award year (AY) 2026-27 for student financial aid programs, Assistance Listing Numbers (ALN) 84.007, 84.033, 84.063, 84.268, and 84.379. The intent of this notice is to alert the financial aid community and the broader public to these required annual updates used in the determination of student aid eligibility.”
This annual update, published in the Federal Register on June 5, 2025, ensures that financial aid formulas stay aligned with changing economic conditions and policy priorities.
The updated need analysis tables are used to determine a student’s SAI. The SAI is the foundation for calculating financial need, and these tables directly impact how much aid students may receive. The updated methodology applies to the following federal programs:
- Federal Pell Grant
- Federal Work-Study (FWS)
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- William D. Ford Federal Direct Loan Program
- TEACH Grant Program
SOURCES: