Federal college financial aid revamp is ‘abject failure,’ Sonny Perdue says

The head of the University System of Georgia blasted federal education officials for a troubled new financial aid process, a “deployment debacle” he said has created a massive workload for colleges and left students worried about how to pay for school.

Chancellor Sonny Perdue issued the sharp rebuke against the U.S. Department of Education during Wednesday’s Georgia Board of Regents meeting. He repeated his criticism Friday in a letter to U.S. Secretary of Education Miguel Cardona.

Numerous delays and glitches with the recently revised Free Application for Federal Student Aid (FAFSA) have caused consternation for colleges and students, who must fill out the form to qualify for federal student loans and need-based Pell Grants.

“By almost all accounts, the launch of the simplified FAFSA can only be categorized as an abject failure. It has had unprecedented levels of ongoing and new issues that will delay aid and negatively impact students and campuses in ways we do not yet fully know,” Perdue wrote in the letter.

He asked Cardona to extend a key reporting deadline for schools and questioned how audits can be performed for this school year given the challenges.

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The financial aid application typically opens Oct. 1, but it was delayed by three months as the Education Department worked to revise and simplify the process. Operational and technical issues have made completing the application an ongoing challenge.

It’s unclear how many of the University System’s more than 340,000 students have been impacted. Colleges across the state are scrambling to assist students so they can begin the fall semester .

Perdue wrote that financial aid staffers are working nights and weekends, but “it’s still not enough.”

He wrote: “We’re now at that time of year when students should be ready for fall classes. This year’s federal college financial aid process was supposed to be easier. Instead, students trying to go to college, many for the first time, are stuck.”

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At Georgia Gwinnett College, where classes began Aug. 12, students with unresolved FAFSA issues were still encouraged to start school, said Michael Poll, vice president of enrollment management. The college is working to sort out any issues before Sept. 20 “to avoid having schedules dropped.” Poll noted that the school may be able to extend that deadline “on a case-by-case basis.”

Some Kennesaw State University students have found other ways to pay their tuition and fees while they wait to be reimbursed once they receive their financial aid, officials said. Students have been able to start classes, and the school said it’s working with those impacted “to determine the best solution to allow them to remain enrolled for the fall semester.”

The University of Georgia also said it’s striving to “minimize any problems.”

A “handful of students” at Georgia College & State University in Milledgeville are still trying to complete the FAFSA process, said financial aid director Shannon Simmons, in a statement. Staffers are working overtime hours to assist each student so they can start classes as planned Monday.

Statewide, 52% of the high school class of 2024 completed a FAFSA as of Aug. 2, or about 7,000 fewer applications than last year, according to the National College Attainment Network . There have been 66,914 completions in Georgia, a 9.6% decline compared to the prior academic year, according to the network’s figures.

Nationally, some experts have predicted the financial aid hurdles could lead to lower college enrollments. The University System typically releases enrollment data in October.

The problems are numerous. Only a tiny percentage of students fill out a paper application instead of doing it electronically. But the Education Department only began processing those paper forms in early August, Perdue wrote.

And two weeks ago, colleges learned of one more issue. They can’t submit batch corrections for student financial aid records, meaning schools must manually send individual updates to reflect when a student’s income or family situation has changed. Those details can shift how much money a student will receive.

The National Association of Student Financial Aid Administrators has said that means colleges must undergo “a slow and laborious” process to make sure students get their financial aid in time for the 2024-2025 school year. The association noted that the delays in paying out aid “will disproportionately affect the most vulnerable students who need these funds to pay their bills and begin classes.”

The Education Department, in a statement to The Atlanta Journal-Constitution, acknowledged “the challenges” for schools and students waiting for their aid. It is offering some technical assistance to schools using third-party services to submit corrected financial aid records. The agency said it’s also giving colleges more time to comply with other requirements so that they “can focus on getting aid into the hands of students.”

Current high school seniors and returning college students also should brace for another slower-than-usual FAFSA rollout next school year. The Education Department has said it will launch the 2025-2026 application on Oct. 1 but only for a limited group of students and schools. All students will have access by Dec. 1, the agency said .

Perdue, in his letter, said next year’s FAFSA should be delayed until all systems and services “are fully functional.”

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