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Friday, December 6, 2024

FAFSA Fiasco: Can Next Year’s Rollout Avoid Disaster?

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FAFSA Rollout Delays Continue as Department of Education Prioritizes Functionality Over Speed

The rollout of the new Free Application for Federal Student Aid (FAFSA) for the 2024-25 academic year has been riddled with issues, leaving many college students uncertain about their financial aid status just weeks before the start of classes. To avoid a repeat of this “stunning failure,” as Beth Maglione, interim president and CEO of the National Association of Student Financial Aid Administrators (NASFAA), puts it, the Department of Education has announced a delayed launch for the 2025-26 FAFSA.

Key Takeaways:

  • The 2025-26 FAFSA will be available to applicants on or before December 1st, following a phased rollout starting October 1st.
  • This delayed launch aims to prevent the system errors that plagued the 2024-25 FAFSA rollout, ensuring a more reliable experience for students and families.
  • While the delay may be inconvenient, experts agree that a functional FAFSA is crucial for students’ ability to plan and fund their education.
  • The impact of the FAFSA issues is being felt as more students and families are relying on loans to cover college costs.

A New Approach for the 2025-26 FAFSA: Prevention Before Cure

The Department of Education, recognizing the extensive challenges faced during this year’s rollout, is implementing a “new approach” for the upcoming FAFSA cycle. This approach, they hope, will minimize technical glitches by prioritizing functionality and stability over a quick launch.

The phased rollout, starting on October 1st, will allow the department to “identify and resolve the kind of system errors that can derail millions of students,” according to the Education Department‘s statement. Typically, students have access to the coming academic year’s FAFSA in October, but this year will see a two-month delay to ensure a smoother and more reliable experience.

U.S. Secretary of Education Miguel Cardona emphasizes the department’s commitment to addressing the concerns raised by students, families, and higher education institutions. He states the department has made “substantial changes to leadership and operations at Federal Student Aid” and is committed to improving the FAFSA experience.

Skepticism Remains

However, not everyone is convinced the Department of Education can overcome the challenges that have already plagued the 2024-25 FAFSA. Higher education expert Mark Kantrowitz highlights that there are still “more than two dozen unresolved issues” from the current year’s form.

He expresses skepticism about whether the 2024-25 FAFSA will be fully implemented by October 1st, let alone the 2025-26 FAFSA, adding that “Just because the U.S. Department of Education says that it will get it done by December 1 doesn’t mean that they will get it done in time.”

Families Turning to Loans as FAFSA Woes Persist

The FAFSA’s importance lies in its role as the gateway to federal financial aid, including loans, work-study, and especially grants, crucial for students who may not be able to repay loans. However, the issues with the FAFSA are contributing to a growing reliance on loans among students and parents.

Recent research by Sallie Mae shows an increase in the share of parents taking out federal parent PLUS loans to help cover their children’s education costs. This trend is echoed by other studies as well.

Jennifer Berg, vice president of public affairs for Ipsos – the market research firm that partnered with Sallie Mae on the “How America Pays for College” report, states that “We’ve really seen that in times of economic hardship, [families] are falling back on borrowing for college.”

The situation highlights the critical need for a functional FAFSA, as Berg points out, “That’s when the FAFSA really plays a role.”

Addressing Student Needs Requires a Reliable FAFSA

Experts emphasize the urgency of having a fully functioning FAFSA for the upcoming year. NASFAA’s Maglione underscores the gravity of the situation: "The fact that we are still, to this day, dealing with the aftershocks of this year’s FAFSA rollout shows just how imperative it is that the process is thoroughly tested from end to end.”

While the delay may seem inconvenient, both NASFAA’s Maglione and Kim Cook, CEO of the National College Attainment Network agree that a fully operational FAFSA by December 1st is critical: “We acknowledge this is a difficult trade-off between functionality and the release date,” Cook says, but “Our students need to know they can afford college and stay on track to enroll.”

The Department of Education’s commitment to addressing the FAFSA issues is a step in the right direction. However, the impact of these failures on students and families underscores the urgency of ensuring that the 2025-26 FAFSA is stable and reliable. A functioning FAFSA is not merely a technical matter; it is a critical element in making higher education accessible and affordable for all.

Article Reference

Amanda Turner
Amanda Turner
Amanda Turner curates and reports on the day's top headlines, ensuring readers are always informed.

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