Student financial aid officers warn of delays as Congress condemns ‘FAFSA fail’

The national college financial aid application process has been hampered by glitches, leading to a reduction in submissions. Officials are urging more graduating high school seniors to submit the FAFSA forms. (William Porter | Getty Images)

When Congress passed the FAFSA Simplification Act in 2020, it was intended to make the process of filing the Free Application for Federal Student Aid form easier and more streamlined for low-income students hoping to attend college. But last week, Republicans and Democrats alike voiced their displeasure with delays and glitches in the U.S. Department of Education’s FAFSA rollout.

Rachelle Feldman , vice provost of enrollment at the University of North Carolina Chapel Hill, told members of the U.S. House Higher Education and Workforce Development Subcommittee that she felt great optimism at how the simplification was originally envisioned.

“My colleagues and I feel discouraged, frustrated, but most of all worried about the impact this will have on students’ ability to attend college and achieve economic and social mobility,” she said.

Feldman testified that colleges have not received sufficient data from the submitted forms and are now struggling to help families at their FAFSA completion events.

Today, six months behind schedule, Feldman said UNC-CH has received only about 60 percent of the records it normally would have at this time of year.

To further complicate matters, the Department of Education recently told the university many files needed reprocessing.

“We have yet to release a single official aid offer despite having released our admissions decisions,” explained the vice provost of enrollment.

Universities and colleges use the FAFSA information to calculate how much aid each student who applies may qualify for.

But this year, the Department of Education has repeatedly reversed or revised its guidance on FAFSA.

“Our financial aid professionals and schools feel like the rug keeps getting yanked out from under them,” said Feldman. “And if they feel like that, imagine how our first-generation families and students feel.”

Implications for both colleges and students

Different institutions will weather the FAFSA storm in different ways, said Justin Draeger, president of the National Association of Student Financial Aid Administrators.

“Some will come out relatively unscathed, but others may never recover. Smaller colleges with fewer resources are not only the least able to work within the compressed time frame the department’s delays have forced on them; they are also the most sensitive to enrollment drops,” warned Draeger.

Completion of the FAFSA is one of the best predictors of whether a high school senior will go on to college, testified Kim Cook, CEO of the National College Attainment Network . In fact, seniors who successfully complete their FAFSA are 84% more likely to enroll in postsecondary education.

Cook said that is why it is critical the glitches are not only fixed, but high school students are actively encouraged to apply for FASFA aid before the school year concludes in a matter of weeks.

“As we enter high school graduation season for a cohort of students who endured high school during pandemic shutdowns, they now must endure the wait of financial aid offers and cross the stage without any certainty of what future awaits them. These students won’t know if they can afford the tuition bill,” Cook cautioned.

“Ms. Feldman, in your years of institutional experience with financial aid, have you ever seen a worse FAFSA process?” pressed Rep. Virginia Foxx (R-North Carolina), chairwoman of the House Committee on Education and the Workforce.

“Well, sadly, I’m old enough to remember when it was all on paper, so hopefully this will be a little better than that when it’s done,” Feldman replied.

Despite this bumpy rollout, Draeger said the Department of Education is addressing concerns, and the bright spotlight of the congressional hearing would further help.

“So, if these FAFSA challenges continue, what are some of the long-term impacts on student enrollment, financial aid packaging, and general institutional stability?” asked Rep. Alma Adams (D-North Carolina).

“I really worry that we will lose the lowest income, high-talent students that they’ll choose not to enroll in college, and that will be bad for the entire economic and social mobility of our state,” responded Feldman.

Rep. Teresa Leger Fernández (D-New Mexico) said FASFA applications from high school seniors in her state are down 28% compared to last year. In rural districts it’s a 40% decrease.

“I don’t want to just be in the blame game. I want to be in the solution game. We need to get those applications back up,” said Leger Fernández.

All hands on deck approach

Cook said it’s still possible to inject momentum into this FAFSA cycle. Leveraging remaining ESSER funds, Cook recommends states double-down on FAFSA completion events and enrollment counseling for the high school Class of 2024.

On Monday, the start of a week-long FAFSA promotion, Wisconsin reported a 35% drop in completed submissions so far this year.

In a press release with the state Department of Financial Institutions and the Wisconsin Higher Educational Aids Board, Gov. Tony Evers urged Wisconsin students and families to complete the FASFA forms.

College Goal Wisconsin , a statewide group of volunteers who help students with their FAFSA submissions, has scheduled a free online submission completion event for Wednesday, April 24.

Some states have gotten creative. College Aim in Decatur, Georgia has coaches working evening hours to complete FAFSAs with parents over the phone and via Zoom. In Columbus, Ohio, the “I Know I Can” organization will be placing $90,000 worth of billboards throughout their school district to encourage FAFSA completion. In New Orleans, College Track is doing a check-in with parents and students while they wait on FAFSA corrections. The idea is to keep the lines of communication open, encouraging young minds that college can become a reality.

In North Carolina, myFutureNC has joined with federal and state partners to announce a “FAFSA Week of Action,” April 15-19, to urge high school students and families in the state to finish the FAFSA to become eligible for Next NC scholarship funds and other free financial aid.

FAFSA completion rates are down about 25 percent compared to this same time last year for North Carolina’s graduating high school seniors.

That’s a problem because the vast majority of jobs in the future will require a postsecondary degree or high-quality credential.

Cecilia Holden, CEO and President of the myFutureNC nonprofit, said completing the FAFSA will ensure families don’t leave money on the table when it comes to attending college.

The state’s new Next NC Scholarship combines the federal Pell Grant and state need-based grants into one award – at least $3,000 per year to attend any North Carolina community college or at least $5,000 per year to attend any UNC institution. Far better than a student loan, these are scholarship dollars that do not have to be paid back.

High school counselors, community college and university leaders, elected officials, and faith-based community members have one unified message this week: go online and apply for financial aid .

For most individuals, it will take less than an hour to complete and review the FAFSA form.

“The new Next NC Scholarship can truly change lives, better prepare students for their careers, and help us meet the demands of our future workforce. But we’re at great risk of missing this opportunity if we can’t collectively get more North Carolinians to finish the FAFSA.”

Wisconsin Examiner contributed additional reporting.

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