For students seeking higher education, financial aid can often be the deciding factor in whether they can afford to attend college. The Free Application for Federal Student Aid, or FAFSA, serves as the gateway to various forms of financial assistance, including grants, loans, and work-study programs. However, for many students that were eager to make college decisions for 2024-2025, they were met with aid obstacles that have caused a more scrutinized look at educational disparities among low-income and students of color. Read on for important information about what happened and how to overcome potential future barriers, presented in partnership with Ed Trust. 

Why is the FAFSA important?

The FAFSA is a crucial tool for prospective college students who are seeking financial aid in the US. It determines eligibility for grants, loans, and work-study programs along with additional resources like state and college-based aid. For many students, especially those from a low-income household and students of color, they cannot attend college without this support.

What are the current issues surrounding FAFSAs?

The “new and improved” FAFSA rolled out on December 30, 2023 and since the latest model’s inception, many students and their families have been plagued with issues surrounding how much financial assistance they would be able to receive and most importantly, when. These delayed FAFSAs have been a rampant problem for upcoming college freshmen within these communities in the last few months. 

While FAFSA decisions are usually communicated in March or April, many students received their information months later, and others are still waiting. The Office of Federal Student Aid confirmed that there were seismic errors regarding the data that was used to calculate the Student Aid Indexes (SAI), the replacement for FAFSA’s former “Expected Family Contribution” formula. 

The SAI was engineered to be adjusted for inflation, but the Department of Education mistakenly forgot to account for said inflation. The financial aid numbers erroneously indicated that these students qualified for much less assistance than they had anticipated. Parents, students, and higher education advocates were sent into panic mode.

Recently, the Department of Education has announced this school year’s FAFSA application opening will also be delayed.

Equity Challenges Faced by Low-Income and Students of Color

While the Department of Education is taking measures to rectify the issue, this miscalculation has once again spotlighted the glaring education discrepancies that exist for low-income families and students of color, especially in the realm of higher education.

The delays have created additional issues alongside the obstacles many face each year during the college application process.

• Limited Choice and Accessibility: While some states and institutions proactively extended college acceptance timelines due to these issues, others did not, creating an environment where those who could afford to go to specific colleges and universities without financial aid have an unfair advantage.
• Limited Awareness and Access: Many students from low-income backgrounds may not have adequate access to information about FAFSA or the resources needed to complete the application, like students in rural communities who have limited internet access, for example. This lack of awareness can lead to further delays and missed deadlines.
• Complexity of the Application Process: FAFSA requires detailed financial information from both the student and their parents or guardians. For students whose families may have limited experience with financial paperwork or English proficiency issues, completing the FAFSA accurately can be daunting.
• Dependency Status Issues: Students who are estranged from their parents or who do not have parental support may face challenges in determining their dependency status, which impacts their eligibility for financial aid.
• Financial Disparities: Minority communities, on average, have lower household incomes and wealth levels compared to white households. Delayed FAFSA applications can further widen the financial gap by delaying access to crucial financial aid packages. The issues have also sparked a sharp decrease in FAFSA completion rates, especially in lower income communities and those with a large share of Black and Brown students.
• Issues for Non Citizens: Students and parents of students who have no Social Security number due to their permanent residency status, green card status, or their undocumented status are also facing pressing issues. Without an SSN, many families received rejection messages, an issue which has since been resolved by further delayed aid notifications and required additional steps to seek support.

Ways to Combat Future Issues

It’s important to do as much preparation to mitigate these issues, and we encourage families to start your FAFSA process as soon as possible. While it is difficult to halt issues from the Department of Education, having a plan can make the process more streamlined. Strengthening timely FAFSA completion rates in all communities across the country is one of the best ways to combat ongoing issues and ensure those who need the aid the most, receive it. Check out these resources for school system leaders pulled together by our partners at Ed Trust and things parents can do to prepare for applying for financial aid.

For School System Leaders

Cultivate a college-going environment in your district. Research shows that intentional, grade-level specific campaigns can significantly increase the number of students completing the FAFSA and/or seeking support to do so. The links below include resources to support student knowledge and completion of the FAFSA and the tools to run student-focused campaigns:

• Support FAFSA completion through peer-to-peer strategies
• Creating a school-specific FAFSA completion challenge (focused on pre-implementation challenges)
• WEBINAR: Using Social and Traditional Media to Increase FAFSA Completion

Support school administrators and counselors. Due to FAFSA delays this year, some colleges and universities have changed their enrollment deadlines and financial aid priority dates for students planning to enroll in the fall of 2024. The National Association of College Admission Counseling (NACAC) created this public directory of fall 2024 enrollment commitment deadlines submitted by member institutions.

College support school staff may also benefit from the following tools:

• Navigating Better FAFSA Resource Page 
• FAFSA Steps for Contributors without an SSN (Survey Monkey) 
• Student Training Webinar Recording

Anticipate parents and student barriers to FAFSA completion. College advisors serve as a trusted resource for parents and students. They are the lynchpin to providing assurance to parents that their information will remain confidential, and explaining the FAFSA application, why it is needed, and the specific consequences of non completion is key to secure funding. Ensuring that counselors are aware of barriers and have a network and resources to support families is key! Check out this resource from the National College Attainment Network: 3 Common Roadblocks To FAFSA Completion & How to Solve Them.

For Parents and Students

Begin Early

During the summer, start your research for the type of financial aid that aligns with your needs. Weigh the pros and cons of each option and select the one that is the most suitable.

Also, start to gather all of the necessary documentation you’ll need and make any essential copies. Keep tangible copies and digital copies on hand. If you need to correct any information on these documents or order copies, this is the best time to do so to account for arrival time. Here is a basic list of must-have information:

• Driver’s license, state-issued ID, or passport
• Social security numbers (if any)
• Student Alien Registration Number for eligible non-citizen students
• Documents for your immigration status
• Most recent tax returns
• Documents of other income (Social Security benefits, welfare, etc.)
• Documents for non-taxable income (child support, veteran’s non-education benefits, etc.)
• Six months of bank statements
• List of investment accounts (stocks, bonds, mutual funds, etc.)

Consult With a Financial Aid Advisor

Reaching out now to an advisor within your child’s school or an independent entity can help alleviate misunderstandings and missing information. Align your to-do list with them, ask pressing questions about any of the aid that is available, confirm the information you need, and stay in touch with them throughout the financial aid application process. 

Create Your FAFSA ID Online

Once you have gathered your materials, create your FAFSA username and password if you are submitting the FAFSA online. Store your username and password in a secure location and create copies of your information to share with anyone who is listed on the application.

Fill Out Your Application Timely

Don’t wait to start filling out the FAFSA. Once you have the paperwork you need, we encourage you to start as soon as you can to avoid rushing and potential mistakes that could arise. The additional time also allows you to have the space to correct any unforeseen issues without being pressured by deadlines. 

Delayed FAFSA applications have far-reaching implications for students from low-income communities and students of color, impacting their ability to access higher education and achieve their academic and career goals. Addressing these challenges requires a multi-dimensional approach that includes education, policy reform, and advocacy. By supporting timely and equitable access to financial aid, we can work towards a more inclusive and accessible higher education system that empowers all students to succeed.