The Free Application for Federal Student Aid (FAFSA) has long been a cornerstone for families seeking financial assistance for higher education in the United States. However, recent developments surrounding its rollout have raised concerns nationally among parents, students, and universities alike. 

This article aims to shed light on the current situation, its underlying causes, potential implications, and actionable steps parents can take. As recent graduates across the nation navigate these unforeseen challenges, we hope to offer insight and support to help make taking the next step into university easier for students and their families. 

What Is the Situation?

The FAFSA rollout for the 2024-2025 academic year has encountered significant challenges, resulting in delays and frustrations for applicants. Many families have reported difficulties accessing the online application, encountering technical glitches, and experiencing delays in processing times. These issues have created uncertainty and added stress to an already complex process for families navigating the financial aid landscape.

What Has Caused This Issue?

Several factors have contributed to the current issues with the FAFSA rollout.

Active Beta-Testing

The new FAFSA application was not completed before it was rolled out, meaning that it has actively been in Beta-testing since being introduced in December 2023. Moreover, the back-end of the system (where all the information is input and processed) was not completed until mid-April, meaning that applications could not be sent to schools until that time.

Small University Sample Pool

The only schools actively receiving FAFSA applications up to this date are those that were selected to participate in the Beta-testing phase. Meaning, only that small sample of schools has been able to process FAFSAs, while the majority of universities have received little to no FAFSA applications.

Technical Issues

The online platform used for submitting FAFSA applications has experienced technical glitches and system outages, leading to accessibility issues for users. More recently, the IRS extraction tool was incorrectly lined up with the FAFSA application boxes, leading to information being incorrectly transferred to the application; however, there were no systems in place that allowed parents to review that the IRS-extracted information was correct. This particularly affected those with amended tax returns, who could have accidentally had their income doubled on the application due to both their previous and amended tax returns being combined then used as input. 

What Are the Implications of This Issue?

The implications of the FAFSA rollout issues are multi-faceted:

Uncertainty Around Aid-Packages And College Enrollment

The delays and technical issues surrounding the FAFSA rollout have created significant uncertainty for families regarding their aid-packages and college enrollment. Without timely processing of FAFSA applications, families may not receive accurate or complete financial aid offers in time to make informed decisions about college affordability. This uncertainty can influence students’ college choices and enrollment decisions, potentially leading them to reconsider or delay their educational plans.

Universities Left Scrambling

The challenges with the FAFSA rollout have also left universities scrambling to adjust their financial aid processes and timelines. Universities rely on timely FAFSA data to determine students’ eligibility for institutional aid and to allocate their own financial resources effectively. Delays in receiving this information can disrupt universities’ planning and budgeting efforts, forcing them to adapt to changing circumstances and potentially impacting the distribution of institutional aid to students.

Smaller Universities Failing In The Long-Run

Smaller universities, in particular, may face greater challenges in the long run due to the FAFSA rollout issues. These institutions often have fewer financial resources and less flexibility to adapt to changes or delays in financial aid disbursement. As a result, they may struggle to attract and retain students who rely heavily on financial aid to afford college. Over time, this could lead to financial instability and even the closure of smaller universities unable to sustain their operations without a consistent and reliable flow of federal financial aid funds. Our experts warn parents that this could be the final straw for many liberal arts colleges, so they should keep this in mind if their child is planning on attending a small liberal arts college. 

What Steps Can Parents Take?

Navigating the FAFSA process during these challenging times requires proactive measures from parents:

1. Stay Informed: keep up with updates and announcements from the U.S. Department of Education and the Federal Student Aid office regarding the FAFSA rollout. We will actively post updates on our own social media and blog to inform parents of changes and updates to the FAFSA situation. 
2. Choose a college you know you can afford without any financial aid: due to the uncertainty surrounding the FAFSA, our experts suggest this could be the best way to ensure your student attends a university they can afford this fall. 
3. Reach Out to the University: talk to the financial aid office at your child’s school to learn what they can roughly give you based on your income. Alternatively, you can use the school’s net price calculator to give you a rough idea on what financial aid you can qualify for. 
4. Join waitlists and file appeals: our experts expect to see admissions off of waitlists to skyrocket, as many schools struggle to maintain enrollment numbers. Moreover, appeals (and secondary appeals) may be more likely to be accepted, as schools struggle to enroll students. 
5. Seek Alternative Funding Sources: encourage your child to explore scholarships, grants, and other financial aid options offered by colleges, states, and private organizations. This can help supplement federal aid and mitigate the impact of delays or issues with the FAFSA.
6. Retake the SAT/ACT: if your student is interested in schools that offer scholarships based on test scores, they still have until June to take the test to qualify for more scholarships. The tests can also serve as English and Math placement tests at some universities, allowing students to get credit for certain courses.

While the current issues with the FAFSA rollout present challenges for families, proactive planning, staying informed, and seeking assistance can help navigate this complex process successfully. By taking these steps, parents can better position their children to access the financial aid they need to pursue their educational goals.

Stay Up-to-Date With SoFlo Tutors

Our experts are actively following the situation and will be providing updates on developing news related to the FAFSA on our social media as well as our blog. We will also be providing additional resources and advice over the next few weeks in response to the changing circumstances. 

Boost Your Test Score For Scholarships

As mentioned before, if your student is eligible for test-based scholarships or placement classes, consider enrolling them with SoFlo Tutors. Our expert tutors can help your student boost their score, with average score increases of 150 points happening after only 10 hours of tutoring.  All of our tutors attend top universities around the nation and scored in the 99th percentile on their SAT. They will work with you to identify and improve your weak areas and increase your chances of getting your target score. Our tutors schedule sessions to your availability and our costs start at $60/hour. Check out our tutoring services to book a session.

About The Author

Carolyn Handley is an expert SoFlo tutor and graduated from the University of Texas with a B.S. in Communication Disorders and Texas A&M with an M.Ed. in Bilingual Education. She scored a 36 on her ACT and enjoys hiking and reading.