The Department of Education has identified another issue with the college financial aid forms, potentially impacting about 1 million FAFSA forms. This error involves inaccurate tax data transferred from the Internal Revenue Service, which could lead to delays in students receiving their financial aid awards. This is the latest problem in a series of complications with this year’s FAFSA process, including a recent calculation error affecting hundreds of thousands of forms.
Students and families are still waiting for information on their financial aid awards, which is typically received in March. Many colleges have extended their enrollment decision deadline to accommodate these delays, but students are still uncertain about the cost of attending college next year and whether they can afford their preferred school. The Department of Education has acknowledged the importance of resolving these data inaccuracies promptly to provide students and schools with the necessary information.
Late last year, the Department of Education introduced significant changes to the FAFSA form to make it shorter, simpler, and expand eligibility for financial aid. However, the release of the new form was plagued with issues, with sporadic availability and delays in processing due to amendments tied to inflation data. Glitches and limitations in making corrections to submitted forms have further complicated the application process, leading to delays in sending accurate financial information to colleges.
Lawmakers have criticized the Department of Education for the delays in FAFSA processing, prompting an investigation by the Government Accountability Office into the implementation of the new form. In response, the department announced measures to assist colleges in processing the FAFSA forms and developing student aid awards. The FAFSA changes, approved by Congress in 2019 and 2020, aim to streamline the application process, reducing the number of questions and relying more on tax return data to simplify the process for applicants.
The updated FAFSA form, released at the end of last year, reduces the number of questions from 108 to as few as 18, making it quicker and easier to complete. The Department of Education estimates that the changes will make an additional 610,000 students eligible for Pell grants annually, providing more financial help to students from low-income families. Additionally, approximately 1.5 million more students will qualify for the maximum Pell grant amount, which is set to be $7,395 for the 2024-25 school year. The FAFSA updates aim to increase accessibility to financial aid and reduce barriers for students seeking higher education.
