And so, the investigations begin. In a critical oversight hearing before the Higher Education and Workforce Development Subcommittee, the United States Congress listened to a disheartening tale of mismanagement and botched delivery of a key financial-aid tool for college aspirants—the Free Application for Federal Student Aid, or FAFSA®. With testimony from industry experts and college representatives, the session not only highlighted the disastrous rollout of the revamped FAFSA but also underscored the far-reaching implications of this operational failure. The U.S. Department of Education did not have a representative present to testify.
The 2024-2025 FAFSA has been a headache for students, parents, and colleges. The root of the issue, the FAFSA delivered to students in December 2023 didn’t simplify the purpose as intended by the FAFSA Simplification Act of 2020.
The “Botched” FAFSA
The 2024-2025 FAFSA cycle hit a rough patch, facing some big delays and problems. FAFSA is supposed to make it easier for students and parents to apply for financial aid, but this time, things didn't go as planned because of some bumps in the road. Even though the FAFSA Simplification Act of 2020 was supposed to make things clearer, it didn't really work out that way. The testifying experts clearly explained that, in hindsight, they should have foreseen the issues. The FAFSA Simplification Act originally asked for the FAFSA to be simplified for award year 2023-2024, however, the U.S. Department of Education asked for an extension early on. With the last-minute announcement of the soft launch, and the first delay in processing, experts began to worry. Unfortunately, the issues and problems have yet to resolve themselves. However, experts did acknowledge the efforts by the U.S. Department of Education to offer more transparency about the identified issues and offering daily updates in their 2024-2025 FAFSA Fast News webpage.
The House of Representatives Committee on Education & The Workforce heard testimony from Mark Kantrowitz, President of Cerebly, Inc., Justin Draeger, President and CEO of the National Association of Federal Student Aid Administrators, Kim Cook, CEO of the National College Attainment Network, and Rachelle Feldman, Vice Provost of Enrollment at the University of North Carolina Chapel Hill. Representative Brandon Williams (R-NY) asked the experts to grade the FAFSA roll-out. Two experts, Mr. Kantrowitz and Mr. Draeger both gave an F, Ms. Cook gave a C, and Ms. Feldman offered a D grade.
Here's the scoop in a simpler way:
- The FAFSA cycle for 2024-2025 had some big problems and delays.
- It was supposed to make applying for financial aid easier, but it missed the mark.
- FAFSA completions are down over 30% year over year.
- The long-term consequences may be worse than any consequences of the COVID-19 pandemic.
- Experts are working with the U.S. Department of Education to help resolve the issues.
- Schools and financial aid offices are working extremely hard to pick up the pieces.
Consequences of the FAFSA’s Botched Launch
Students and colleges are feeling the pressure. Some students have avoided completing the FAFSA altogether after facing too many obstacles. Schools are working long hours and are at the mercy of the U.S. Department of Education and their processing and re-processing of FAFSA forms. Students and colleges are both worried about their enrollment next year.
Mr. Draeger noted that he has yet to hear an apology from the U.S. Department of Education to the students and the community. This is causing the American people to lose faith in the organization. And the lasting effects could result in lower enrollment for the upcoming year. This will create a ripple, that may have more of an effect than the entire COVID-19 pandemic.
Has Student Loan Forgiveness Been a Distraction?
The argument that initiatives like student loan forgiveness have detracted focus and resources from the critical task of FAFSA rollout cannot be overlooked. Amidst calls for comprehensive student loan relief, the Federal Student Aid (FSA) office found itself at the crossroads of balancing act—prioritizing between long-term policy shifts and the immediate operational needs of FAFSA administration.
Some experts say that the government spent too much time thinking about student loan forgiveness and not enough on making the FAFSA process smooth. They think this made it harder for students to apply for financial aid when they really needed it. Supporters of loan forgiveness counter that addressing student debt is a parallel priority that can transform the financial realities for millions, suggesting that a more robust approach could accommodate both objectives efficiently. Nonetheless, the fallout from the FAFSA deployment has reignited discussions on federal priorities and the necessity of maintaining a balanced approach to education policy and administration.
Confidence Federal Student Aid
Congressional members clearly explained that they have lost confidence in the U.S. Department of Education. And the American people worried. the whole system for getting student aid is working. It's not just about small mistakes; it feels like a big problem that's making students and their families doubt if they can count on this help for college.
People are finding it hard to deal with the stress of paying for college. They're starting to think that the problems with FAFSA are just the beginning, and it's making them question everything about how student financial aid is handled.
This worry goes beyond just being upset about paperwork. It's about whether everyone has a fair shot at going to college. The hope of getting help from the government to go to college is getting lost in all this confusion and red tape. For a lot of folks, this feels like a big roadblock to getting the education and opportunities they've been dreaming about.