The form, crucial for accessing various federal aid programs, experienced limited availability, leading to submission challenges. Despite these hurdles, significant changes in the FAFSA aim to streamline the process and potentially expand aid eligibility, although concerns about the new formula’s reflection of current economic realities remain.
The U.S. Department of Education’s launch of the revised Free Application for Federal Student Aid for the 2024-25 academic year has been fraught with delays and technical difficulties. The form, which is vital for accessing federal financial aid including grants, student loans, and work-study programs, faced intermittent availability issues, causing concerns among applicants and financial aid experts.
The new FAFSA, delayed past the mandated Jan. 1 deadline, briefly opened on Dec. 30 and 31, 2023, and more consistently on Jan. 1, 2024. However, its limited availability led to difficulties in submitting applications, raising alarms in the higher education community. Despite these challenges, over 30,000 applications were filed by Tuesday, reflecting the high demand and necessity of the program.
Mark Kantrowitz, a renowned higher education expert, expressed skepticism about the form’s successful submissions due to its restricted access. Similarly, Kalman Chany, a financial aid consultant, advised patience and emphasized the extended submission window, as data won’t be transmitted to schools until late January.
The Education Department acknowledged the issues and is actively working to resolve them. The FAFSA’s revised form is a product of the Consolidated Appropriations Act of 2020, aimed at streamlining a process that serves over 17 million students annually in the United States.
Significant changes
The new FAFSA introduces significant changes, including the “Student Aid Index” to assess a family’s financial capability. This new metric is poised to increase federal grant access for low- and moderate-income students while potentially reducing it for wealthier families. A critical removal is the “sibling discount,” which previously aided families with multiple children in college simultaneously.
However, the new calculation, based on the 2020 consumer price index, fails to account for recent inflation, potentially leading to reduced aid for many students. This oversight especially impacts families with an adjusted available income over $35,000. According to Kantrowitz, a family earning $100,000 might now contribute nearly $4,000 more towards college costs.
The form’s redesign, initially intended for simplification, has inadvertently introduced complexities, as noted by Mary Morris, chief executive officer of Virginia529. The updated formula will directly incorporate federal tax information from the IRS, significantly reducing the number of questions. Furthermore, the income threshold for federal need-based aid eligibility has been raised, enabling more students to qualify for Pell Grants.
Tips for students, families
In light of these changes, students and families are advised to organize their financial records, set up necessary online accounts, and stay informed through Federal Student Aid’s social media channels. Rick Castellano of Sallie Mae highlights the importance of filing the FAFSA early, as aid is often distributed on a first-come, first-served basis.
Families are encouraged to explore other merit-based aid sources, such as private scholarships. There are over 1.7 million private scholarships available. Virginia529’s Morris urges families to utilize available resources and assistance to navigate the updated FAFSA process, emphasizing the long-term benefits of persevering through these changes.
