Pennsylvania Becomes 14th State to Pass Universal FAFSA Policy

In November 2025, Pennsylvania Governor Josh Shapiro (D) brought together Democrats and Republicans to pass the fiscal year (FY) 2025-26 state budget. Included in the budget is language that requires high school seniors to complete the Free Application for Federal Student Aid (FAFSA) or to opt-out of doing so prior to completing high school. Ultimately, however, no student shall be prevented from graduating high school or be penalized for not doing so.

What's In the Policy?

As with all universal FAFSA polices, students and/or their parents or guardians may opt out of the requirement. The Pennsylvania Department of Education and Pennsylvania Higher Education Assistance Agency (PHEAA) will work together to develop the opt-out form, which includes a statement of FAFSA eligibility, an understanding of the purpose of the FAFSA, a statement they’re declining to complete the FAFSA, and a statement that submitting the FAFSA is optional.

PHEAA will also be responsible for providing schools with information about who has completed a FAFSA, which will allow counselors to follow up with and support students who have not.

If a school determines that a student has neither submitted the FAFSA nor completed an opt-out form, the school must make a “reasonable effort” to contact the student’s parent or guardian and provide them with information about the purpose and benefits of completing the form. Once this occurs, the school will exempt the student from the requirement. The legislation specifically notes, “no student shall be prevented from graduating or be penalized by the school entity or nonpublic school in any way for failing to complete the FAFSA or opt-out form.” This commitment to not penalizing students for not completing the FAFSA or opting out similarly appears in other states that have implemented universal FAFSA policies and has become common in new legislation proposing these policies elsewhere.