Typically, the FAFSA for the upcoming academic year opens on October 1. However, due to changes to the 2024-2025 FAFSA, there were significant delays in the process. Instead of being available in the fall, this year’s FAFSA wasn’t available until January, and further glitches made it difficult for students and families to submit their FAFSA. 

Worse, the U.S. Department of Education (ED) announced that schools wouldn’t receive the submitted FAFSA information until March. As a result, many colleges were unable to give students financial aid details at the time of admissions notifications, and students faced tight admissions deadlines without all the necessary information. 

To address these issues, the ED has made some key changes, but students should also take their own measures to ensure they get all the financial aid they’re entitled to receive.

What FAFSA Changes Occurred?

The 2024-2025 FAFSA was three months late because the ED made substantial changes to the form. The FAFSA was shortened to make it faster and easier to complete, and the Expected Family Contribution (EFC) was renamed because the term confused families; the Student Aid Index (SAI) replaces the EFC to make its purpose easier to understand. 

The new FAFSA also expanded access to Pell Grants, a form of federal financial aid available to low-income students, and it allows students and families to make corrections to the FAFSA after submitting it.

Why Is the FAFSA Delay Such a Big Problem?

To institute those changes, the ED announced that the FAFSA would be delayed until the end of 2023. And in February, it announced that it wouldn’t release students’ application details to schools until March. 

Those delays were serious problems for several reasons: 

• State and school deadlines: Many states and schools require the FAFSA to be submitted in January through March. Because the FAFSA wasn’t available prior to January, the delay gave students very little time to submit their information. 
• College admission delays: Colleges can’t access the FAFSA information to calculate financial aid packages, so they’re unable to tell students what scholarships, grants, or loans they’re eligible for during the upcoming academic year. The best-case scenario is that students will begin to receive financial aid details in late March or early April. 
• College acceptance timelines: Typically, students have to make a decision about which college to attend by May 1, though some schools have much earlier deadlines. But since financial aid information won’t go out until at least April, students have tough choices to make; they basically have to make one of the biggest decisions of their lives — where to go to college — without having the pivotal financial details they need. 
• Current student aid delays: The FAFSA delay doesn’t just impact high school seniors; current college students are affected too. Many students won’t find out what aid they’re eligible for until late spring or early summer. 

How Is the U.S. Department of Education Responding to the FAFSA Delay?

The FAFSA delay presents huge problems for colleges and students alike. Financial aid administrators and lawmakers have lobbied the ED for changes to speed up FAFSA processing and reduce delays. 

In response, the ED announced that it was relaxing some of its requirements for the 2024-2025 FAFSA. It will reduce how many FAFSA applications it chooses for verification, a lengthy and time-consuming process, and temporarily suspend reviews of school financial aid compliance. It also grants more power to schools to make their own judgments about financial aid decisions. Hopefully, these measures will help speed up the process for colleges so they can get out financial aid details to students. 

What Can I Do to Maximize Financial Aid?

Some colleges have taken steps to reduce the impact of the FAFSA delay on students, such as releasing their own financial aid applications or pushing back deadlines. But there are steps you can take right now to maximize your financial aid options: 

• • Fill out state aid applications: Many states operate their own financial aid programs, including grants, scholarships, work-study programs, and even student loans. They typically require separate applications, so visit your state education agency to find out what aid is available and what the application process is.
  • Contact your college financial aid office: Your selected college’s financial aid website has likely been updated with new information regarding the 2024-2025 FAFSA and submission and acceptance deadlines. If you need additional details, contact the financial aid office. 

• Apply for independent scholarships and grants: You can apply for independent scholarships and grants while waiting for the FAFSA to be processed; you can find opportunities through FastWeb. 

• Research private student loans: While waiting for more information, you can research available private student loan options and get quotes. 

The FAFSA delay significantly affected colleges and students, and the impact will continue for several months. Although the delay can be stress-inducing, focusing on actions you can take in the meantime can help you get through this difficult time. Proactively apply for financial aid from third-party organizations and states to get as much gift aid as you can, minimizing the need for other forms of assistance. 

The post What the FAFSA Delays Mean for You appeared first on Education Loan Finance.