Many students feel overwhelmed when it’s time to apply and pay for college. One of the main stressors is the financial cost of paying for college. Even students from middle class families will rely on financial aid to attend college. Each year millions of students will complete and submit the Free Application for Federal Student Aid (FAFSA®).
This year, the 2024-2025 FAFSA season has been a trying time. It has added complication to the already complex world of higher education. Starting with a late kick off, further complicated by a soft launch period filled with glitches, and for those who were able to navigate through it all—processing delays. Industry experts were going against their typical advice and advising students to wait to complete the application if they can. While state and school financial aid deadlines tried to accommodate the new FAFSA, there were issues they couldn’t foresee, and they were able to push deadlines further.
The result, FAFSA completions are down this year. The bumpy roll-out of the FAFSA created challenges which could have significant impacts on this generation. While there is always a focus on limited time to pick a college by a decision deadline, there could be further issues. If high school senior FAFSA completions are down, that could mean that there will be fewer incoming freshman this year. And that one result could have lasting consequences.
Breaking Down the 2024-2025 FAFSA Release
The release of the 2024-2025 FAFSA in December 2023 was a big change from the usual timeline, with a planned three-month delay. Despite this change, students, families, and schools are still waiting for the FAFSA to be fully processed for that period. Originally, students thought there would be a processing delay until January 2024 during the soft launch. Due to another setback, they later found out that their FAFSA applications wouldn't be processed until March 2024.
This year has left students puzzled. While the FAFSA has a long history, the processing delays and challenges this year are more noticeable than in the past. The FAFSA Simplification Act aimed to make the application process smoother, removing obstacles for students seeking education. The U.S. Department of Education had asked for more time for the updated FAFSA, which was granted until the end of 2023. Even though the deadline was met, the FAFSA application wasn’t in a place where the release would be smooth for the users. Some users have also been met with obstacles they can’t overcome, and that alone has created several problems as well.
Unraveling the Issues at Hand
One major concern is how these delays affect students' crucial financial timelines. With FAFSA submission rates dropping significantly by 38% year-over-year for high school seniors, the impact is clear. This decrease in completions means many future college students are facing uncertain financial aid prospects.
Inability to Complete the FAFSA
There are several issues students are facing with FAFSA completion. The U.S Department of Education has compiled a list of known FAFSA issues and provided information when a workaround has been created.
Examples of issues include: a parent unable to access FAFSA despite starting on behalf of the student, inability to move past the first page for users with a foreign address, a student unable to save or submit a FAFSA form if they enter an A-Number that ends in zero, a student born in 2000 is continuously looped to student unusual circumstance page, or a parent is unable to create a required FSA ID because they do not have a social security number (SSN).
While only a few highlights from the list, it’s clear that some students may face confusion as they attempt to go through the form. Some of the issues have workarounds, some do not, and some will not prevent the completion of the FAFSA but may require clean-up once FAFSA applications are processed.
FAFSA Workarounds
The workarounds are not impossible to find, but they can be challenging to find. Generally, students walk away once they believe they are done with the FAFSA, and only realize there was an issue after they receive contact from the school. Schools aren’t receiving their information until March, so it may take a bit of time before they are able to reach out and help resolve the problems.
Prior to them receiving a student’s Institutional Student Information Record (ISIR), the summary of each student’s FAFSA information, they likely won’t be able to proactively help. However, reaching out to financial aid to discuss an issue may help a student identify a workaround to help them through their issue.
The Gravity of the FAFSA Paralysis
For one of the first times ever, many experts in the field are suggesting that students wait before completing the FAFSA—if they can. If a student's FAFSA deadline isn't until April, it's advisable to hold off and let any issues get resolved instead of rushing. However, not everyone has the luxury of time. Avoiding the FAFSA and facing penalties from state and school financial aid programs due to late submission isn't a risk worth taking.
The focus has mainly been on students heading to college. Yet, some high schools mandate FAFSA completion as part of seniors' graduation requirements. The rationale behind this move is simple: seniors who finish the FAFSA are more likely to pursue higher education. With FAFSA submissions down by over 34%, as per the National College Attainment Network's FAFSA Tracker, fewer seniors have completed their applications.
The reason for this decline remains uncertain. Could the FAFSA issues causing submission problems play a role? Probably. Will FAFSA submission rates gradually increase? Most likely. However, certainty will only come once these issues are addressed.
Will FAFSA Completions Recover?
Thankfully, schools are stepping up. Many schools are extending their decision deadlines and giving students time to handle their FAFSA issues. But let's not forget, the FAFSA Simplification Act aimed to make the FAFSA simpler and remove barriers for students from underprivileged backgrounds.
For many in the Latinx community, having a family member without an SSN has caused anxiety. Dealing with a federal form won't ease their fears; it might even make them worse, leading them to avoid completing their FAFSA.
The FAFSA serves as a gateway for many. If the gateway's faulty or requires double the effort to navigate, some may give up. This poses a risk of decreased college enrollment in 2024-2025.
Navigating the Path Forward
Schools are aware of the issues and are prepared to assist. Students are still awaiting their financial aid offers from their school, but it could be intriguing to observe how schools structure their financial aid packages. Understanding that students are under time constraints, they might strive to offer generous aid packages to those they wish to enroll. Ultimately, colleges must generate revenue to function. This revenue is derived from the students enrolled in their programs.
Moving forward may present challenges for some individuals. However, many will encounter no obstacles, and completing the FAFSA may take only 15-20 minutes. Despite the extremes, it is beneficial to complete the FAFSA and all necessary steps to succeed on your college journey.