The Department of Education recently announced that around 30% of FAFSAs that had been submitted contained errors and would need to be reprocessed. This has caused delays in the processing of financial aid award letters, leaving many families unsure of the cost of college as enrollment deadlines approach. The errors have arisen due to various issues, including miscalculations within the FAFSA processing system and data errors related to the IRS import of tax data from previous years.
In response to the errors, the Department of Education has begun reprocessing FAFSAs with system-related errors starting in mid-April, with the hope of resolving the issues caused by IRS imports by late April. However, the Department has warned that this may affect financial aid eligibility for some families. The reprocessing of FAFSAs with errors related to the IRS system is expected to be completed by May 1, although there is a possibility of delays.
With Decision Day historically falling on May 1, families are facing the challenge of making enrollment decisions without knowing their full financial aid picture. Some colleges have delayed their Decision Day deadlines, but families should check with their specific institution to see what the new deadline is. It is recommended that families wait until they receive their financial aid award letters before making a final decision on college enrollment to ensure they have a clear understanding of the costs involved.
If families find themselves in financial limbo due to FAFSA reprocessing delays, they should reach out to their college to see if they can be granted an extension to make a decision once they have their financial aid award. College is a significant investment, and it is important for families to have a complete understanding of the costs involved before committing to a school. By staying informed and communicating with their college, families can navigate the challenges caused by FAFSA errors and delays in financial aid processing.
