The submission rate of the Free Application for Federal Student Aid (FAFSA) among high school seniors has decreased significantly this year, raising concerns that low-income students may be unable to afford to enroll in college this fall. While students still have time to submit the FAFSA to qualify for federal grants, loans, and other financial aid, the approaching May 1 college decision deadline is causing worries among educators and experts. Despite some schools extending deadlines, others are requiring deposits to reserve spots, putting pressure on students.
The introduction of a new version of the FAFSA by 2024 was intended to simplify the financial aid application process. However, the rollout has faced numerous delays, technical glitches, and administrative errors, leading to a decrease in FAFSA submissions among high school seniors. Only 37% of seniors had submitted the form by mid-April, compared to 50% in the previous year at the same point. The Department of Education did not provide the functionality for corrections or updates until mid-April, further adding to the challenges students faced in completing the form.
Data shows that the decline in FAFSA completions has been more pronounced among students from lower-income schools and schools with a higher percentage of minority students. This has raised concerns about the ability of students who need financial aid the most to access it in time for fall enrollment. Department of Education undersecretary James Kvaal acknowledged the challenges faced this year, pointing to the urgent need to address the drop in FAFSA submissions and ensure students have access to the financial aid they need.
The delays in the rollout of the new FAFSA form, technical glitches, and errors in the aid calculation process have further compounded the challenges students and colleges face. Colleges did not receive FAFSA information until March due to backend issues and the aid calculation changes, leading to errors and reprocessing of data. Around 40% of forms received by colleges were unusable, preventing the development of financial aid packages for many students and adding to the confusion and uncertainty surrounding college enrollment for the fall.
Blame for the issues with the new FAFSA rollout has been directed at both the Biden administration and the Department of Education, with accusations of misplaced priorities and lack of funding to address the challenges. Lawmakers have criticized the delays, with the Government Accountability Office launching an investigation into the form’s implementation. Democratic senators Elizabeth Warren and Ron Wyden have scrutinized General Dynamics, the company contracted to modernize the FAFSA system, seeking answers about its role in the process.
Despite the potential benefits of the new FAFSA form, which is easier to fill out and meant to make more students eligible for federal financial aid, concerns remain about its impact on students who rely on financial aid to attend college. The changes were expected to increase Pell grant eligibility for low-income students and expand access to maximum aid amounts. However, the delays and challenges in the rollout have raised questions about the feasibility of college enrollment for students who cannot afford to pay for tuition without financial aid. Lawmakers and experts continue to push for solutions to ensure students can access the financial support they need to pursue higher education.
