The rollout of the 2024 Free Application for Federal Student Aid (FAFSA) was intended to simplify the financial aid process, but it has been anything but smooth. Since the form’s release late last December, numerous delays, errors, and technical glitches have plagued students and colleges alike. This situation has caused significant concern among higher education professionals and students who rely on timely financial aid to cover tuition, rent, and other essential expenses.
The latest blow came this Tuesday when the U.S. Department of Education (ED) announced that colleges will not be able to submit corrections to students’ federal-aid records in bulk during the 2024-25 financial-aid cycle. This batch processing feature, which is essential for efficiently handling large volumes of corrections, was initially promised for early August—several months later than usual. Now, with that capability unavailable until at least the 2025-26 cycle, financial-aid officers are left to manually process each correction, a tedious and time-consuming task that further complicates an already chaotic situation.
In response to this setback, ED announced that it would provide “no-cost technical assistance” through a third-party servicer to help institutions submit corrections via the Federal Processing Portal (FPP). Institutions are encouraged to check their eligibility and request support, though assistance will be distributed based on need, the servicer’s capacity, and the availability of funds. However, this solution comes with its own set of challenges. Institutions that are approved for technical assistance may need to update their Application to Participate (E-App) and initiate access to their FTI-SAIG mailbox, a process that ED will clarify in more detail next week. (To see if your school is eligible visit: https://www.ecmc.org/FAFSA-school-support)
Despite these efforts, Beth Maglione, interim president and chief executive of the National Association of Student Financial Aid Administrators (NASFAA), expressed concern about the limitations of ED’s technical assistance. She noted that the lengthy timelines required for institutions to gain system access and execute contracts severely restrict the effectiveness of the assistance. “Time is short, and the Department must implement NASFAA’s numerous requested concessions so financial aid administrators can focus on what counts right now—helping students achieve their dreams of attending college, no matter their financial circumstances,” Maglione emphasized.
The implications of this setback are profound. Vulnerable students, including those with unique circumstances like recent job losses or homelessness, may find themselves without the financial support they need to continue their education. Bryce McKibben, senior director of policy and advocacy at the Hope Center at Temple University, voiced his concern that many students might give up on their education entirely as the start of the academic year looms with no financial aid in sight.
In an attempt to alleviate some of the pressure on institutions, ED has also extended certain flexibilities that were previously provided. This includes the suspension of new program reviews through September 2024, extending recertification deadlines for institutions whose Program Participation Agreement (PPA) expires in December 2024, and adjusting the disbursement reporting timeline. Now, institutions will not be required to report disbursements made for the 2024-25 award year until November 30 or 15 calendar days after the disbursement is made, whichever is later.
As the financial aid community braces for another academic year fraught with uncertainty, the ongoing FAFSA crisis serves as a stark reminder of the critical need for reliable and timely support systems for students pursuing higher education.
By Cat Hollands, Capture Client Trainer, Capture Higher Ed
