For many families, financial aid is crucial in covering the rising costs of attending college. Like last year, the timeline for starting the FAFSA this academic year has been pushed back to December 1, meaning tighter deadlines for everyone. The FAFSA Simplification Act, introduced last academic year, affected students, families, school counselors, scholarship providers, colleges, and universities. However, it was far from simple, and several issues remain unresolved.
Challenges with the FAFSA Simplification Act
The FAFSA Simplification Act overhauled the FAFSA form, need analysis, and many policies and procedures for schools participating in federal student aid programs. While its goal was to make the process easier and more streamlined, it faced significant challenges:
- Delayed Rollout: The rollout was delayed by three months last year, and this year’s application opening date has been pushed back to December 1 to allow for beta testing.
- Technical Issues: Some students were unable to complete the form due to system errors.
- Insufficient Support: Nearly three-quarters of calls to the Department of Education’s call center went unanswered, leaving many families without the help they needed.
As of October 29, 2024, there are still 22 unresolved issues with the FAFSA.
Implications of FAFSA Delays
FAFSA delays can have widespread implications for students, families, and scholarship providers:
- Even a streamlined version of the FAFSA takes time to complete, requiring information such as FSA IDs, social security numbers, federal tax returns, and records of assets.
- Delays in processing the FAFSA could result in students receiving their FAFSA Submission Summary late, leading to delays in financial aid award offers.
- These delays may affect scholarship providers, especially those with financial need-based criteria, by impacting scholarship determination, communication with scholars, and timing of awards.
Preparing Your Scholarship Program
Many scholarship providers adjusted their scholarship forms last year to accommodate students as everyone navigated the uncharted FAFSA rollout waters. Now having last year to reflect on, many scholarship providers are gearing up for a similar scholarship season knowing there could be delays. Scholarship providers should consider the following items in preparation for their scholarship cycle(s) open for this year:
Review Your Programs
Take time to carefully review your scholarship or grant applications to ensure all information is accurate and up to date.
Determine if Deadlines Need to Be Extended
Some providers may need to extend application deadlines to accommodate delays in the FAFSA process.
Address Timeline Concerns
If the timeline is a concern, consider asking applicants to provide their estimated student aid eligibility using the Federal Student Aid Estimator Tool.
Adjust Review Timelines if Necessary
Consider whether your review and award timelines need to be adjusted to account for FAFSA delays.
Encourage Applicants to Create Their FSA ID Early
Advise both students and parents to create their FSA ID now. This will allow them to apply as soon as the FAFSA opens. The FSA ID can be created here.
Encourage Applicants to Begin Scholarship Applications Earlier
Advise students to start their applications earlier rather than waiting until the last minute. This will allow them ample time to complete the application and gather the necessary supporting documents.
Update FAFSA Steps in Your Scholarship Application
Consider adding guidance on FAFSA steps within your application and be prepared to accept alternative documents, as done last year, to account for potential delays.
Provide Support Resources
Add links to FAFSA support resources within your scholarship application to help students find the assistance they need.
The Path Forward
As of November 14, over 14,000 applicants have completed the FAFSA during its beta rollout, with the form expected to open ahead of December 1. However, delays in processing could still occur, potentially impacting financial aid distribution and scholarship awarding. If there is a delay in processing, this can lead to delays in financial aid award offers, which may affect scholarship providers, particularly those with a financial need component in their award criteria. Such delays can impact the determination of scholarship amounts, hinder communication with scholars about their financial aid offers, and increase the likelihood of scholarship displacement due to timing issues.
According to data from the National Student Clearinghouse Research Center, first-year college enrollment is down by 5%, partly due to issues with the 2024–2025 FAFSA. This represents the steepest drop in first-year enrollment since the COVID-19 pandemic.
The FAFSA Deadline Act, passed by the House on November 15, mandates that starting with the 2026–2027 academic year, the FAFSA must be released and fully operational by October 1.
Supporting Students and Families
Given the overall implications of last year’s rollout, we’re hoping for a smoother FAFSA process this year and are actively helping clients prepare for another FAFSA and scholarship/grant management cycle. Together, we can support students and families as they complete the FAFSA form and pursue scholarship and grant opportunities. We are closely watching any updates related to FAFSA. As of today, November 15th, the FAFSA Deadline Act was passed by the House, which mandates that the FAFSA application must be released and fully operational by October 1, beginning with the 2026-27 academic year.
Feel free to reach out if you have any questions or need assistance navigating your scholarship/grant cycle this year!
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