ED Reneges on Batch Institutional Corrections Commitment, Forcing Schools to Rely on Manual Corrections

By Maria Carrasco, NASFAA Staff Reporter

The Department of Education (ED) announced that institutional batch corrections will not be available for the 2024-25 FAFSA and that institutions will need to submit manual corrections via the FAFSA Partner Portal (FPP) on an individual student basis.

This guidance reverses the department’s initial pledge that batch corrections would become available in the first half of August, which is already months behind schedule. The batch corrections functionality allows for financial aid offices to more efficiently and accurately submit  FAFSA corrections in bulk. In a normal FAFSA cycle, this functionality is available when the form goes live – which is typically on October 1.

Batch corrections will not be made available because, according to ED, institutions would not be able to utilize the functionality before they begin their fall semesters. Instead, ED said it is prioritizing the development of a fully functioning 2025-26 FAFSA system. 

“We know this decision creates additional burdens for institutions that are already experiencing a heavy workload and increased demands during this extraordinary FAFSA processing cycle,” ED wrote in the electronic announcement. 

Beth Maglione, interim NASFAA president & CEO, said in response that Tuesday’s announcement is “beyond frustrating” and will disproportionately affect the most vulnerable of students who are waiting on their final aid offers.  

“The Department's poor planning has led to a stunning failure: Some college students might not have financial aid dollars in their hands in time to start classes in the next few weeks,” Maglione said in a statement. “And for schools, the impact of today's announcement means more than a few extra hours of work. It's the difference between pushing a button versus making thousands of keystrokes in terms of administrative burden.”

Because of Tuesday’s decision, ED also announced that it will make available a “no-cost technical assistance” through a third-party servicer for institutions to submit corrections via the FPP. Institutions interested should check their eligibility and can request support. ED noted that this assistance will be available to institutions based on need, servicers’ capacity, and availability of funds.

ED clarified that for institutions whose request for the technical assistance is approved, some will need to complete the process to update their Application to Participate (E-App) and initiate access to their FTI-SAIG mailbox. ED will provide additional information on this process next week. 

However, Maglione noted in her statement that ED’s technical assistance is “severely limited by the lengthy timelines common at most institutions to attain system access and execute a contract.”

“Time is short, and the Department must implement NASFAA's numerous requested concessions so financial aid administrators can focus on what counts right now — helping students achieve their dreams of attending college, no matter their financial circumstances,” Maglione said

The announcement also extended some existing flexibilities that the department previously provided. This includes further suspension of new program reviews through September 2024, extending the flexibilities on recertification deadlines to include institutions whose Program Participation Agreement (PPA) expires in December 2024, and extending the disbursement reporting timeline. Now, institutions will not be required to report disbursements made for the 2024-25 award year until November 30 or 15 calendar days after the disbursement is made, whichever is later, ED wrote. 

Stay tuned to Today’s News for more updates on this announcement. 

 

Publication Date: 7/30/2024


Jeff A | 8/1/2024 9:47:51 AM

David, KH's leaders will be synonymous with Cardona...or likely push even worse policy.

Sheree T | 7/31/2024 8:15:46 PM

David

The DOE is just the administrative agency that administers federal aid. It's elimination has no impact on the aid programs.

Prior to Carter, federal student aid was administered through the Department of Health, Education and Welfare.

Quite frankly, if people like Cardona can mess up this badly and still be employed, perhaps the DOE is not a very effective agency.

Regardless, politicians have been threatening to do away with it since 1981. I doubt this is the time they really mean it. Once a bureaucracy is established, good luck trying to get rid of it.

David S | 7/31/2024 3:59:01 PM

Jeff, please provide a link to any information that indicates that VP Harris would keep Cardona on as Secretary of Education. New Presidents, even if previously the VP, almost always completely overhaul the cabinet.

As to whether what I said about the GOP plan is fear mongering, read it yourself - https://static.project2025.org/2025_MandateForLeadership_CHAPTER-11.pdf.

Jeff A | 7/31/2024 3:49:20 PM

David, that is fear-mongering that will not happen. And yes, the election will determine whether this all continue 'all of this' for four more years. No question about it. The same people will be leading this under KH.

Kimberly L | 7/31/2024 1:11:06 PM

"No-Cost Technical assistance" through a third-party servicer? Really? Sorry, not sorry, ED I don't trust your judgement. The fact that changing the needs analysis formula, the FAFSA, new comment codes, etc., all in the same academic year, is reckless. In addition, it is cruel to both families and financial aid administrators to try and wade through this abject failure. I see many class-action lawsuits in EDs future. If ever there were a prime example of dereliction of duty, this is it.

David S | 7/31/2024 1:6:55 PM

Jeff A - As for your 4 more years hysteria, a) Biden is not running for re-election, and b) the opposing party has pledged to eliminate the Department of Education. If you think that will happen but all federal programs that support students will continue and be funded, I think you’re in for a surprise. That party is committed to fewer Americans attending college, and it sure isn’t the full payers they want gone.

Holly S | 7/31/2024 12:46:52 PM

I currently work at a small private college, and we make corrections manually anyway, so this does not affect us. This would be a nightmare at my last employer-a major state university with thousands of students. There seems to be systemic issues throughout this administration. The DOE is the tip of the iceberg.

Korinne P | 7/31/2024 12:41:43 PM

The Department of Education (ED) seems to be taking calculated risks by choosing to let the financial aid community be the sacrificial lamb in this debacle, anticipating the least repercussions for offending and upsetting us. They have always relied on our unwavering commitment to students to "smooth over" any of their machinations. However, what they don't realize is that this bridge is burned. ED is reluctant to publicly acknowledge and rectify the issues they have caused, knowing that we act as a buffer between them and the upset students and families. Consequently, they leave us to manage the fallout.

I think ED will be surprised next year when they find out they have lost the support of the financial aid community. As far as I am concerned, I am done with them. I'd pay for a front-row seat at the next in-person FSA Conference. It will be interesting.

Laura M | 7/31/2024 12:29:32 PM

We have 10 more months of 24-25! All of us in the field are worn to the bone and frankly,at our wits end. We could have used all of June and July making manual corrections, if it wasn't ever going to happen. Every technical tool and advancement has been set back 20 years or more. Shame on ED for making empty promises. Their poor planning, lack of transparency, awful communication timing is unacceptable. What a nightmare. And our institutions, staff and students are all suffering because of it.

Andres M | 7/31/2024 12:4:23 PM

Failure on top of failure. This should be blasted all over the news.

Jeff A | 7/31/2024 11:45:15 AM

Do you want 4 more years of this? That will be determined at election time. The gang that can't shoot straight. I can tell you exactly why ED is not delaying FVT/GE reporting. Of more importance than serving students is a resolute focus on producing data on GE programs under this administration and declaring many GE programs as failing with a completely flawed, arbitrary and capricious formula that does not measure the quality of a program. All of the regulations they are promulgating has that focus, and to such an extreme they will lose them all in court challenges.

Students are being used as pawns. Again, 4 MORE YEARS? Is that what we want to deal with?????

Michael B | 7/31/2024 11:29:20 AM

The Department of Education's latest about-face on batch institutional corrections is nothing short of a bureaucratic debacle. What was promised as a streamlined solution for financial aid processing has devolved into a manual nightmare, thrusting an undue administrative burden upon schools already grappling with a chaotic FAFSA cycle.

This reversal is emblematic of a profound lack of foresight and planning by the ED. The decision to prioritize a future FAFSA system over addressing immediate needs shows a disconnect from the pressing realities faced by institutions and students alike. The result? Financial aid offices will be bogged down with inefficient manual corrections at a time when efficiency is crucial.

Beth Maglione's frustration is entirely warranted. The delay in providing batch corrections not only hampers administrative efficiency but jeopardizes timely aid disbursement for students, potentially delaying their ability to start classes. And let’s not even get started on the so-called "technical assistance"—a bandaid that won’t come close to addressing the deep cuts inflicted by this ill-conceived policy shift.

The Department's lack of preparedness and failure to meet its commitments is a glaring failure of leadership. Institutions are left scrambling to mitigate the damage, all while the ED promises future fixes that are, frankly, too little, too late.

Joshua M | 7/31/2024 11:17:44 AM

adding insult to injury on us.. I hope we can get GE and FVT delayed. not holding my breath though. some higher ups need to be held responsible.. would love to seem some resignations.

Sheree T | 7/31/2024 11:16:10 AM

In a completely and sadly unsurprisingly turn of events, ED makes everything even worse.

How the people in charge of the ED still have jobs is beyond the realm of basic human understanding.

Timothy D | 7/31/2024 10:55:02 AM

Just when you think the Department of Education cannot make things any worse, someone says, "hold my beer" and they do something to make it worse.

Darren C | 7/31/2024 10:48:56 AM

This is just another absolute failure to add to the list for ED. The only thing I personally am focused on now is accountability. On one side, the FAFSA debacle has made it harder to get aid to students and made things miserable for many financial aid offices. On the other side, the administration keeps giving false hope to borrowers by coming out with headlines spouting more student debt relief regardless of the fact they likely know it will not pass the supreme court. With an election coming up in 4-months, it's clear the motivation.

At this point I'd assume we're are living in the twilight zone if we weren't so used to this kind of corrupt government action. I second Linda K's sentiment on suing ED, but additionally holding specific individuals accountable in that process, not just ED as whole.

Jeffery F | 7/31/2024 10:19:43 AM

In my 36 years of financial aid administration, I have never seen such a logical, procedural or technical mess as has been created by the extreme lack of planning on the part of so many and needless to speak of the total lack of leadership. As we have and will obviously continue to struggle to keep going and provide service to our students, it would be great to have some good news and find some way to ease the burden placed on so many hard working financial aid professionals.

Kim J | 7/31/2024 10:5:47 AM

True leadership recognizes faults and then goes about to resolve. Lack of accountability leads to a lack of leadership and this is what we have experienced with Secretary Cardona. What happens if institutions are unable to complete the FISAP, FVT/GE, FWS reporting, etc. by the due deadline? We run the risk of L, S, & T (limitation, suspension, and termination). This is leadership OVER the people, not working WITH or FOR the people.

Laura T | 7/31/2024 10:3:46 AM

I'd like to wash my hands of the 24-25 FAFSA and forget it ever happened, but I can't. Apparently, ED can do just that, while schools have to deal with 24-25 for at least another 10 months.

I have zero faith that 25-26 will be any better - their promises are empty.

So, 24-25 is a disaster, fine. There are numerous things ED could do to ease the burden and make things better, but thus far, they've refused to do much of anything. It's like a criminal blaming the victim for the crime.

Christopher H | 7/31/2024 10:1:42 AM

Just to put this atrocious news in some type of perspective. Approximately thirty years ago the first automated processing came to aid offices. I was charged at my school with the first onboarding of automated processing. At that time we defined the process in “stages.” I am not sure if “stage” was a Department term or not, but I believe it was. Stage 0 (zero) was the process of entering hard-copy FAFSA data manually into a software package. This FAFSA information would then transmit via EdConnect (or some prior version EdConnect) to CPS. Two or three days later the college would have a valid ISIR. “Stage 1” processing was the process of corrections after verification, conflicting information, or professional judgment. Akin to “Stage 0,” corrections in “Stage 1” would go to CPS via dial up, and a correction would result with a valid EFC. Lack of preparation and urgency from DOE and FSA has, literally, set our operations back over thirty years. We are right now creating a paper worksheet to track corrections so we can manually enter them. Just incredible.

Linda K | 7/31/2024 9:51:55 AM

Has anyone thought about suing the Ed or is that out of the question?

David S | 7/31/2024 9:28:50 AM

No. 24/25. Program. Reviews. Ever.

A Program Review team showing up on a campus to review records to make sure the Financial Aid team did everything right, and then reporting and punishing them if they did not, would, for 24/25, be the ultimate in chutzpah. You want to do Program Reviews, fine. But look at pre-24/25 only, then (maybe) 25/26 afterwards, but ED made the 24/25 mess, schools and aid professionals shouldn’t have to pay the price for it (it might be worth reminding ED that financial aid professionals losing their jobs as a result of program reviews is not unheard of).

I’m retired now, so I don’t really have skin in this game, but I’m dying on this hill. 24/25 should be off limits in perpetuity.

Linda K | 7/31/2024 9:22:14 AM

It's even worse for the schools that still do not have access to even to manual corrections.

Andrew F | 7/31/2024 9:21:37 AM

Just when I start to pick myself back up from the bus that ED ran over me... they run over me again. How gracious of them. I feel super supported.

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