With the 2027-28 financial aid application now available, Granada Hills Charter (GHC) seniors are preparing to compare college costs as changes to federal student aid alter some grant eligibility and borrowing rules.
The Free Application for Federal Student Aid (FAFSA), is used to determine eligibility for federal grants, work-study, and student loans. The application, supplied by the U.S. Department of Education, helps determine students’ eligibility for financial aid for college, graduate, and vocational school.
The federal deadline for the 2027-28 application is June 30, 2027, although state and college deadlines may be earlier.
For students weighing college offers, GHC college and career counselors Melisa Jimenez and Tania Torossian emphasized the importance of comparing costs after financial aid.
“When comparing colleges, students should not only look at tuition but also calculate their estimated out-of-pocket costs after grants and scholarships,” Jimenez and Torossian said.
Changes to the federal program stem from the “One Big Beautiful Bill Act,” signed into law on July 4, 2025. Some provisions went into effect immediately, while others began on July 1, 2026., or will be implemented in the coming years, according to the Federal Student Aid website.
Among the changes are restrictions on Pell Grants, which generally do not have to be repaid. Students whose nonfederal grants and scholarships cover their complete cost of attendance are generally no longer eligible for a Pell Grant. Receiving a scholarship that covers only part of those costs does not automatically disqualify a student, however.
If a student’s Student Aid Index, which decides whether a student can receive federal aid, is above $14,790, they will also not be allowed a Pell Grant. Meaning, students with low SAI scores are more likely to accept Pell Grants.
The amount students can borrow also depends on their enrollment. Under the schedule of reductions, annual federal loan limits are reduced for students enrolled l ess than full time. This means that students taking a lighter course load ay have less federal loan funding available to cover their expenses.
Newer borrowers have only two repayment options: the new Standard Payment Plan and the new Income-Based Repayment Plan.
The Standard Payment Plan is the default, the term length can reach up to 10 years and the monthly payment is divided into 120 equal installments. The payments are higher, but entails less interest.
The Income-Based Replacement Payment calculates a monthly plan based on a combination of the size of an individual’s income and family size. New and existing borrowers can qualify for this plan. Interest progressively rises as income increases. If the person’s income is over $100,000, the monthly payment will not exceed 10% of their Adjusted Gross Income, which is their total gross income that excludes deductions.
As students weigh their options, Jimenez and Torossian emphasized that financial planning involves more than tuition and loan amounts.
“One of the most important things students and families should understand is that the cost of college goes beyond tuition. Students should consider the total cost of attendance, including housing, food, books, transportation, and personal expenses, when comparing colleges,” Jimenez said.
“Students are encouraged to apply for scholarships and grants before accepting loan offers. If and when borrowing is necessary, students and families should understand the loan terms, interest rates, borrowing limits, and repayment obligations before making a decision” Torossian said.
