FAFSA Overhaul Could Raise Costs for Some Students

"The Free Application for Federal Student Aid (FAFSA) makeover aimed at streamlining the application process and altering the formula for eligibility, could also mean that some families may be facing extra costs, according to two recent reports," Fox Business reports.

..."Only 28% of financial aid offices said they are on track to implement the updated FAFSA, according to a recent National Association of Student Financial Aid Administrators (NASFAA) survey

Of the survey respondents not yet ready to implement the FAFSA, 59% said the lack of time and 58% said lack of guidance from the Department of Education was the most significant barrier to successful implementation.

Additionally, of the financial aid offices surveyed, 56% said that the requirement to report Federal Work-Study earnings to the Department of Education would place more burden on financial aid offices, including 48% said the same of the change to the treatment of multiple family members in college and 42% highlighted the federal authority to regulate the cost of attendance as a complicating aspect of the new form.

'Financial aid professionals are often the first responders when students and families have questions about paying for college, and with such monumental changes to student aid eligibility and the FAFSA looming, they need to be well-prepared to ensure a smooth transition and well-versed in communicating how those changes will impact their students,' NASFAA President and CEO Justin Draeger said in a statement. 'What the financial aid community needs now are clear timely training opportunities and a transparent implementation roadmap between now and when the 2024-25 FAFSA will go live.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 4/24/2023

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