The New FAFSA – What Comes Next?

The launch of the new FAFSA has been -insert you’re preferred adjective.

To say it’s been a wild ride would be a serious understatement.

What Happened?

Launching a brand new and not fully tested platform on a holiday weekend was an invitation for disaster.

Disaster accepted the invite.

The system was barely accessible in the first few days.

Users were held in waiting rooms sometimes for hours.

When users were finally admitted to the system, many found the experience glitchy or they were kicked out.

It was the perfect storm.

• Maximum number of users
• Minimum available personnel
• Untested platform

No Apology Issued

Given all that has gone so terribly wrong, it would have been prudent for the ED to issue an apology.

It wouldn’t have fixed anything, but at least, it would have acknowledged and given respect to the frustration and headaches of students, their families, state agencies, and schools.

Perhaps we missed it, but we certainly haven’t seen it.

Troubling Developments

On March 1, the FSA issued a fix for the newly released EDConnect software that institutions use to access and process student data.

The last release was on February 27, which means less than a week later a new fix was needed because some users couldn’t access the system due to file corruption.

 At this stage, all but the most minor details should be resolved.

Congress Giveth | Congress Taketh Away

Congress passed a new Continuing Resolution that will not provide full funding for the expansion of Pell Grant eligibility. More students will qualify for grants, but not as many as expected by the 2020 FAFSA Simplification Act.

This move appears inconsistent with the original legislation and the ED’s pledge to fix the income tables.

According to information we’ve received the FSA has incorporated the new adjustments.

The positive impacts for low-income students will not be as broad as intended by the original bipartisan legislation, which is disappointing, but not surprising given the current political environment.

Current Timeline

If the Department of Education sticks to its revised timeline, colleges, and state agencies will receive student information by the second week of this month.

Once state agencies and schools receive the data, packages should start going out to students as soon as possible.

If all goes well and without further delay, students will start to receive their packages by the end of March or the beginning of April.

Given recent events with FAFSA, these are very big ifs, but we remain hopeful.

Additional Reading

Financial Aid Archives – (teshley.com)

US Department of Education supports colleges and students amid FAFSA delays | Fox Business

FAFSA delays prompt feds to audit fewer students, schools (msn.com)

The Loophole for Grandparents in the New FAFSA Rules – The New York Times (nytimes.com)

The Fallout from FAFSA Isn’t Over

The fallout from the new FAFSA launch continues to impact many people.

Of course, all college students, who rely on financial aid are stressed not knowing how much aid they will receive this year, but incoming students are the most seriously affected.

The class of 2028 is in limbo because schools won’t receive student information until next month – probably mid-March. This means students won’t receive their financial aid packages until April, which doesn’t leave adequate time to make an informed decision.

What that information will look like and how college financial aid administrators will process it remains unknown.

The U.S. Department of Education has pledged to aid in the processing of student data by dispatching personnel to help.

There’s also been an easing in the verification process.

Given the disastrous launch and subsequent delays caused by department errors, it’s difficult to be optimistic. 

See updated information on FAFSA processing progress.

Giving Students a Little Breathing Room

In response to the ongoing situation, some colleges and universities have already announced an extension to the usual May 1 commitment/deposit date.

Here are the ones that have come to our attention. They have been reported by more than one media outlet. If you are aware of others, please comment below.

We will continue to update the list as new information comes in, but it will not be in real-time and is not represented as a full accounting of all schools with adjusted dates.

FAFSA Isn’t Just for Federal Aid

If you’re attending school in your home state and haven’t filed your FAFSA, now is the time to file your app.

States rely upon FAFSA data for their financial aid awards. Most states have priority consideration deadlines. Many states have extended these deadlines, but the clock is ticking.

If you sat out the early round logjam it’s understandable, but don’t miss your best opportunity for state funds to go along with the federal dollars.

You don’t want to leave money on the table – every dollar counts to avoid taking out loans.

Moving Forward

We will keep you posted on further developments, as information is released.

With pressure mounting from all directions on the ED, we remain hopeful that the road ahead will be smoother.

Time will tell.

We’ve been blogging about the changes to FAFSA since 2022. You can read all that has happened with FAFSA by reading our previous financial aid posts. 

Another FAFSA Delay

In case you missed it, the U.S. Department of Education announced another FAFSA delay earlier today (01/30/24).  

Student information will not be sent to schools/stares until mid-March.

Potential Impact of This FAFSA Delay

***Updated information is in this post.***

This is concerning for all students dependent on financial aid, but especially for incoming students, who must weigh aid packages from each school before making a final decision.

Students and their families will have very little time to carefully evaluate the merits of each received package against the family budget,

Assuming the DOE sticks to the new date, schools must scramble to assemble and send out packages, which means students probably won’t receive until sometime in April.

The national deadline for securing a spot at college is May 1.

Inquiries have been made to a few schools to see if an extension is under consideration, but it’s too early for a determination to be made.

Under the circumstances, it is unlikely that extensions will be granted because of all the other considerations that institutions have at this time of year.

Update:  Some schools have granted deposit deadline extensions. The continually updated list is maintained on “FAFSA Fallout Continues.”

If extension announcements are made, updates will be posted on the blog and “Education Unpacked” YouTube channel.

What’s next?

It would have been wonderful to report that the DOE was ahead of schedule with its reporting rather than pushing the date back, again.

Knowing this now, at least, allows families to set aside time in April for review. It may be necessary to skip a get-together or some other event to devote sufficient time to this most important decision.

Plan accordingly and check back here for updates.

The 2025-25 FAFSA application should be a smoother experience.

Additional Reading:

What’s Missing from the 2024-25 FAFSA? – (teshley.com)

Scholarships for Younger Students – (teshley.com)

FAFSA 2024-25 Rundown – (teshley.com)