Student Aid Uncertainty: Colleges Struggle with FAFSA Processing Backlog, Expected Resolution by May

student aid uncertainty FAFSA processing backlog colleges May resolution

By E.Baloyo , Parent Herald Apr 11, 02:55 am

Photo: (Photo : Paul Morigi / Getty Images)

The FAFSA processing backlog may continue to delay numerous student aid uncertainty until May resolutions.

Leaders of the college financial aid system assailed the Education Department over this year's FAFSA debacle, warning that ongoing delays are extending institutions' timelines for offering packages that many students' decisions hinge on.

FAFSA Processing Delays: Colleges Face Extended Timelines

The U.S. Department of Education described the implementation of the new Free Application for Federal Student Aid (FAFSA) as a significant challenge, citing recent setbacks.

This statement followed a hearing by the GOP-led House Subcommittee on Higher Education and Workforce Development, which occurred shortly after Education Department officials revealed that approximately 30% of FAFSA forms submitted this year may contain errors due to widespread application glitches.

These forms are slated for reprocessing in the coming weeks, with many expected to reach schools by May 1, according to the agency. However, unlike the usual quick turnaround for FAFSA information, delays this year have stretched for months.

The flawed overhaul of the application process, intended to simplify and often increase aid, has instead left millions of households and campus officials grappling with bureaucratic challenges.

As of March 29, FAFSA completion rates have plummeted by 40% compared to the same period last year, as reported by the National College Attainment Network (NCAN).

Congress estimates that these complications have impacted around 18 million students planning to enroll in college next year.

Kim Cook, chief of NCAN, highlighted the delayed aid offers for high school seniors, particularly affecting low-income and minority students who are trailing behind the national FAFSA submission rate.

Cook said, "most high school seniors have yet to receive an aid offer." With many still awaiting decisions by the May 1 deadline, there are concerns that some students may opt out of pursuing higher education due to financial uncertainties.

Bipartisan Frustrations and Calls for Accountability

Justin Draeger, the head of the National Association of Student Financial Aid Administrators, emphasized to lawmakers on Capitol Hill the significant consequences that financial aid delays could have on college campuses.

He pointed out that if a financial aid director or college president caused a six-month delay in financial aid, the professional repercussions would be severe.

Representative Brandon Williams from New York echoed these sentiments, labeling the rollout of the Free Application for Federal Student Aid (FAFSA) as disastrous and inexcusable during a hearing on Wednesday.

This frustration was part of a larger bipartisan discontent surrounding the chaos surrounding FAFSA processing, with much of the criticism directed at the Education Department, which Draeger suggested was facing a crisis of credibility.

The FAFSA form plays a crucial role for schools and scholarship programs in determining additional aid beyond federal government assistance.

Delays in processing have already pushed households to make difficult choices, such as dipping into retirement savings to cover tuition or settling for less expensive backup schools instead of waiting for support from top-tier universities.

Even if reprocessed FAFSA forms reach schools in the near future, many institutions will still require additional time to finalize their own aid packages.

Mark Kantrowitz, an expert in student financial aid, highlighted this challenge during his testimony on Wednesday, indicating that some students might not receive aid offers until after the traditional May 1 decision deadline-or even later if schools extend their deadlines to manage the fallout.

To cope with these delays, schools are adopting strategies. Some are issuing estimated aid offers, while others are delaying offers altogether until the situation stabilizes.