FAFSA Delays Create Uncertainty for Students Seeking Financial Aid

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ICARO Media Group
News
05/04/2024 21h56

The updated Free Application for Federal Student Aid (FAFSA) has faced multiple challenges during its rollout, causing disruptions in this year's financial aid award season. Technological issues during the soft launch of the application in late December made it difficult for many students and their families to submit the form until mid-January. As a result, FAFSA submissions have decreased by approximately 29% compared to the previous year.

While most of the submission problems have been resolved, transferring FAFSA information from the Department of Education's Federal Student Aid office to colleges has presented a new set of issues. The Federal Student Aid office identified problems with the information received by some schools, including inconsistent student tax information from the Internal Revenue Service (IRS), which could affect a student's eligibility for aid. It is estimated that around 5% of processed FAFSA applications were impacted by these errors.

To rectify the situation, the Department of Education and the IRS announced that all affected FAFSA forms will be reprocessed in the first half of April. However, this process will result in further delays for students waiting to receive their financial aid offers. Justin Draeger, President and CEO of the National Association of Student Financial Aid Administrators, expressed concern about the continued setbacks, stating that current delays are not sustainable for students and families.

Despite the challenges, experts in higher education stress the importance of completing the FAFSA for students in need of financial aid. Bethany Hubert, a financial aid specialist at Going Merry by Earnest, urges all high school seniors and returning college students to prioritize filling out the FAFSA, particularly those from low-income, minority, and first-generation backgrounds who stand to benefit the most from financial assistance.

Once the application is submitted, Hubert advises students to keep track of the commitment deadlines set by institutions, remain patient, and communicate any issues with the relevant parties, such as schools or the FSA office. Proactive communication, especially in cases where an appeal or correction is necessary, can help ensure a smoother process.

Hubert also emphasizes that students should not feel pressured to commit to a school before receiving their aid package if they are uncertain about affordability. Waiting for decision deadlines and receiving award letters can provide crucial information for making an informed decision. If students feel their aid packages are smaller than anticipated, they have the option to appeal the decision with their school's financial aid office. Additionally, informing the financial aid office of any changes in family circumstances that were not reflected in the FAFSA, such as a decrease in income or caretaking responsibilities, may result in receiving more need-based aid.

For students facing significant delays in financial aid decisions, Hubert suggests considering alternative pathways, such as enrolling in community college to reduce overall education costs. She emphasizes that skipping college altogether should not be the go-to solution, as obtaining a degree typically leads to better job prospects and higher earning potential.

While the FAFSA turmoil has caused uncertainty for students, exploring cost-reducing options like searching for affordable housing or adjusting meal plans can help alleviate financial pressures. It is crucial for students to remain informed, communicate effectively, and explore available options to navigate the current challenges caused by the delayed FAFSA process.

In conclusion, despite the setbacks in the FAFSA application process, students are advised to prioritize completing the form, maintain communication with relevant parties, and explore alternative pathways to afford higher education. The Department of Education is working to resolve the errors and reprocess impacted FAFSA forms, but delays are expected to persist. Students are encouraged to stay proactive and informed while they await their aid packages and make important college decisions.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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