FAFSA problems persist —
While Congress is on recess through early September, financial aid teams at SCICU member institutions and other colleges and universities throughout the United States are dealing with the ongoing FAFSA fiasco.
Rollout delays for the new FAFSA continue to be compounded by myriad problems, including issues ranging from incorrect calculations of the Student Aid Index to not allowing financial aid teams to batch process corrections. Batch corrections were promised by mid-August, and on July 30, the U.S. Department of Education announced that the correction capability would not be available until the 2025-26 FAFSA is rolled out.
One week after announcing the batch correction processing delay, the Education Department added insult to injury by announcing the postponement of the full rollout of 2025-26 FAFSA form to Dec. 1, two months later than the originally-expected Oct. 1 launch.
The impact of FAFSA delays is tremendous. From NAICU’s July survey of more than 400 private nonprofit colleges and universities, three-quarters of the respondents reported issues related to FAFSA availability and processing changed the composition of their incoming class. More than half of the responding institutions also reported that their incoming class was more difficult to fill and nearly half reported a smaller incoming class. Two-thirds of the schools reported the lack of accurate data had a significant impact on the ability to offer aid, including Pell Grants, to the most disadvantaged students.
FY 2025 Spending Bills: House versus Senate education funding —
On July 10 the House Labor, Health and Human Services, and Education Subcommittee passed their FY 2025 appropriations act that significantly impacts higher education funding:
- $11 billion cut to the U.S. Department of Education
- $1 billion reduction to student aid that cuts in half funding for the Supplemental Educational Opportunity Grants (SEOG) and Federal Work Study (FWS) programs
- Pell Grants funded at current level of $7,395 maximum per recipient
In contrast to the House’s dramatic cuts, the Senate Appropriations Committee’s bill is kinder to higher education:
- Increases Pell Grant $100 to $7,495 maximum
- Sustains current funding for SEOG and FWS
- Increases funding for TRIO, GEAR UP, and other aid programs
- Provides an additional $100 million to support student aid program administration, such as implementing the FAFSA.
What happens next with higher education funding is anybody’s guess with the expectation of a continuing resolution for funding the government past September 30. Then add to the mix the Nov. 5 presidential election.
Stay tuned.
SCICU back to campus photo highlights – August 2024