Low-income students faced challenges applying for college financial aid this school year due to issues with the updated Free Application for Federal Student Aid (FAFSA). The FAFSA is crucial for accessing federal Pell grants, student loans, and other forms of financial aid, making college more affordable for many students.
According to a recent analysis by the Government Accountability Office (GAO), total FAFSA submissions were down by 3% compared to the previous year, with the largest drop seen among families earning between $30,001 to $48,000 and individuals with incomes of $30,000 or less.
Congress mandated a new version of the FAFSA to be released by 2024 to simplify the financial aid application process. However, the rollout of the updated FAFSA was marred by delays, technical glitches, and administrative errors, leading to a delayed availability of the form and challenges for students.
The Department of Education acknowledged the decrease in FAFSA applications, particularly among lower-income students, but noted a slight improvement over the summer. Despite the ongoing issues, students can still submit the FAFSA for the current school year, although many may have already made enrollment decisions.
One of the key findings from the GAO analysis was that students had fewer days to complete the FAFSA this year, impacting their ability to secure financial aid in a timely manner. Additionally, the Department of Education's call center faced challenges with understaffing, resulting in a high volume of unanswered calls during the initial rollout period.
To address the issues and prevent further disruptions, the Department of Education plans to open the 2025-2026 FAFSA in phases, allowing a limited number of students and families to access the form initially for testing purposes before full availability on December 1.
The delays and setbacks in the FAFSA application process have raised concerns among lawmakers from both parties, with calls for improved oversight and support for students navigating the financial aid system.
