Better FAFSA®? Not So Much.
The Free Application for Federal Student Aid (FAFSA) is a crucial step for millions of US students seeking financial assistance, including Pell grants, work-study programs, and federal student loans, to pursue higher education. However, the 2024 FAFSA overhaul, which was supposed to simplify the application, has instead brought headaches for parents and admissions officers alike. The significant delays in both the release of the new Better FAFSA® and its turnaround to the schools are causing frustration and anxiety among families and universities.
Impact on Students
The delays in processing FAFSA applications have far-reaching consequences for students, particularly those from low-income families who rely heavily on federal aid. One immediate impact is the uncertainty surrounding financial aid packages, making it difficult for students to plan their education expenses. Delayed FAFSA processing can also impact students' ability to make informed decisions about where to enroll. Many colleges and universities rely on FAFSA information to determine eligibility for institutional aid, and delays may prevent students from comparing financial aid packages and choosing the most affordable option. Students may be forced to commit to a college without knowing the full extent of the financial assistance they will receive, leading to uncertainty about their ability to afford tuition, fees, and other associated costs.
National College Decision Day
The delays in FAFSA processing can have significant implications for the May 1 commitment date, also known as National College Decision Day. This is the deadline for students to inform colleges of their enrollment decisions and submit deposits to secure their spots in the incoming class. However, with FAFSA information playing such a crucial role in determining a student's eligibility for federal financial aid, these delays are impacting this critical May 1 deadline. Colleges and universities are aware of the challenges posed by FAFSA delays, and in response, some schools are extending this May 1 deadline for enrollment commitments or providing flexibility for students facing financial aid uncertainties. Even as I wrote this blog, two Big Ten universities sent emails alerting students they are moving their decision date to May 15.
The Department of Education’s Response
On February 13, the U.S. Department of Education announced additional steps to help colleges prepare to process student financial aid forms as efficiently as possible. According to the Dept of Education’s website, “The new steps should make it easier for schools to process records.” The department also announced “the deployment of federal personnel to support under-resourced colleges and the allocation of $50 million in funding for technical assistance and support to help institutions prepare.” Although nothing is expressly stated about the current delays and underlying concerns, the department did get specific about how these new steps will help schools process student records faster and more efficiently by reducing verification requirements, suspending new routine program reviews, and providing schools additional flexibility on recertifying their eligibility for the Department’s federal student aid programs. Only time will tell if this will be enough to prevent a debacle as May 1 approaches.
Communication with Colleges
Regardless of what the Department of Education is promising, students facing FAFSA delays should proactively communicate with the financial aid offices of the colleges they are considering. Institutions may offer guidance, flexibility, or temporary solutions to support students during this challenging time. It's crucial for students and their families to stay informed about the status of their FAFSA applications and regularly check for updates from colleges. While the delays present challenges, taking these steps can help students navigate the uncertainties surrounding financial aid and make more informed decisions as they approach the May 1 (or later!) commitment date.