Tag: FAFSA

  • Education Department mulls using AI chat bot for FAFSA help

    Education Department mulls using AI chat bot for FAFSA help

    The Education Department is considering terminating its contracts for thousands of call center employees hired to answer families’ questions about federal student aid, and may replace them with an artificial intelligence–powered chat bot, The New York Times reported Thursday.

    Elon Musk’s Department of Government Efficiency apparently suggested the move, the Times reported, as part of a broader effort to reduce federal spending—which has already led to dozens if not hundreds of layoffs at the Education Department and the cancellation of hundreds of millions of dollars in contracts at the Institute for Education Sciences.

    The call centers employ 1,625 people who answer more than 15,000 calls per day, according to an Education Department report. The department greatly increased staffing at their call centers after last year’s bungled launch of the new FAFSA led to an overwhelming influx of calls. 

    Last September, a Government Accountability Office investigation found that in the first five months of the rollout, three-quarters of calls went unanswered. Last summer, the department hired 700 new agents to staff the lines and had planned to add another 225 after the launch of the 2024–25 FAFSA in November.

    One of the helplines DOGE is closely scrutinizing, according to the Times, is operated by the consulting firm Accenture. Accenture also operates the studentaid.gov website, which houses the online platform for the Free Application for Federal Student Aid. The department’s contract with the firm expires Feb. 19. According to sources in the Education Department who spoke with Inside Higher Ed, the department is considering significant reductions to its Accenture contract ahead of its renewal.

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  • FAFSA Update (US Department of Education)

    FAFSA Update (US Department of Education)

    In preparation for another High School Senior 2025-26 Free Application for Federal Student Aid (FAFSA®) Week of Action (Jan. 13-17), the U.S. Department of Education (Department) is encouraging high school counselors, principals, and other school leaders; superintendents; parent and community groups; and local and state education organizations to take action raising awareness about the FAFSA, especially focusing on helping students complete the FAFSA application.

    In support of critical student and family outreach, the Federal Student Aid (FSA) office is publishing a set of FAFSA guides for non-English speakers in the 10 most spoken languages in the U.S. outside of English and Spanish, as well as making interpretive services available in these languages. Users may access the guides from the FAFSA Support in Other Languages page. Some guides (in Cantonese, Mandarin, Tagalog, Vietnamese, French, Korean, and Russian) are available now, and remaining guides (in German, Arabic, and French Creole) will be published in the coming months.

    In addition, FSA shared updated resources, including:

    Pro Tips for Completing the FAFSA Form — information for preparing to complete and submit the FAFSA form.
    Federal Student Aid YouTube Channel: FAFSA Videos — videos to help students and families understand the importance of the FAFSA form, who is a FAFSA contributor, and what happens after submitting the form.
    2025-26 Counselor Resource for Completing the FAFSA Form — a tool for counselors and other advisors with information and resources to help guide students and families through the FAFSA form.

    The Department published a new report, The Impact: Fighting for Public Education, demonstrating what can be accomplished by investing wisely in public education. If leaders at every level of government continue to embrace what works for students, we won’t just continue to raise the bar in education—we will create prosperity and lead the world for generations to come.

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  • New Might Not Always Mean Improved: The Benefits and Drawbacks of the New FAFSA

    New Might Not Always Mean Improved: The Benefits and Drawbacks of the New FAFSA

    Title: Chutes and Ladders: Falling Behind and Getting Ahead with the Simplified FAFSA

    Authors: Jonathan S. Lewis and Alyssa Stefanese Yates

    Source: uAspire

    Prior to the 2024-25 academic year, the Free Application for Federal Student Aid (FAFSA) underwent significant changes, mandated by Congress through the FAFSA Simplification Act. A recent uAspire survey of 274 students, parents, counselors, and financial aid administrators found the changes to the FAFSA entailed a number of “chutes,” or drawbacks, and several “ladders” that allowed for a more streamlined financial aid filing process.

    Key survey findings regarding the simplified FAFSA’s benefits and challenges include:

    Benefits:

    • Students appreciated the reduced number of questions within the new FAFSA form.
    • The office of Federal Student Aid improved help text and resources, which aided those accessing the form in answering common questions.
    • Some populations had easier experiences with FAFSA, such as those with relatively straightforward finances, and individuals without overwhelming extenuating circumstances.
    • Those with previous FAFSA experience noted a generally easier experience with the changes.
    • Students with access to high school or college counselors often found greater success with the changes, demonstrating the importance of accessibility to help during the process.

    Challenges:

    • More than half of those surveyed reported experiencing technical problems.
    • The delayed FAFSA timeline heightened stress among students and counselors.
    • Insufficient communication and customer service left approximately 4 million calls to the Department of Education’s call center between Jan. 1 and May 31 unanswered.
    • The issues above often compounded, forming intersecting challenges for students and counselors.
    • Individuals without a Social Security number and English language learners felt the challenges with FAFSA more severely, struggling in particular with technical problems and communication barriers, demonstrating that some populations had more difficult experiences than others.

    The authors conclude by recommending several additional changes to the FAFSA. To minimize the compounding negative effects of the chutes, financial aid processing should be completed faster; technical glitches should be fixed; and communication, wording, and form accessibility should be improved. The authors also recommend fortifying the ladders by finding additional opportunities to reduce the time spent and frustration felt by those filing.

    Overall, the survey highlights how the FAFSA changes produced diverse and polarizing effects. Many students found the process to be simple, securing their financial aid with just a few clicks; other students felt extreme stress caused by technical roadblocks and delays, which left them uncertain about how to pay for school.

    To read the full report from uAspire, click here. For additional information and to read about the Jan. 16 webinar with the authors of the report, click here.

    —Julia Napier

    If you have any questions or comments about this blog post, please contact us.

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  • Good News About the FAFSA

    Good News About the FAFSA

    Millions of current and prospective college students were let down last year when the federal rollout of the new FAFSA form was badly bungled and delayed for months. The fallout from the resulting chaos and uncertainty was well-documented and widespread, including a drop in over 5 percent in first-year enrollment for fall 2024 linked at least in part to the FAFSA problems.

    But now, there is some good news for students, their families, and the institutions working hard to ensure that low- and middle-income students have a path to higher education.

    While we have been harsh critics of the Department of Education’s failed FAFSA rollout, it is important to recognize when they’ve done well. The department committed to making the new FAFSA form work as intended for the next academic year—and they not only have accomplished that, but they have also done it faster than promised, and faster than many expected.

    Education Secretary Miguel Cardona announced Nov. 21 that after four successful rounds of beta testing, the 2025-26 FAFSA form is now available to all students and families. While we would have preferred for the 2025-26 FAFSA to have been available on Oct.1, we applaud that the department’s announcement came 10 days ahead of the promised Dec. 1 date, and the system appears to be performing as expected. In addition, this fully opens the gateway to the other benefits of the new FAFSA form, including allowing hundreds of thousands more individuals to access Pell Grants, the cornerstone of college affordability for so many students.

    This success is mirrored by a rare bipartisan moment in Congress that underscores how important it is to get federal student financial aid determinations to low-income students as early as possible. During the lame-duck session of Congress–and despite the partisan polarization and acrimony of the election season—the House and Senate approved and sent to President Biden legislation  aimed at streamlining the application process for federal student aid by making Oct. 1 the official FAFSA launch date each year.

    ACE and other higher education associations identified how critical this change in date was, and Congress listened. The FAFSA Deadline Act, introduced earlier this year, gives students and families more time to make crucial financial decisions and institutions adequate time to provide clear and transparent aid offers. We pushed Congress to move the legislation as quickly as possible, and lawmakers acted quickly—and in a bipartisan manner—to approve it.

    Passage of this legislation is a vital step toward improving access to financial aid, particularly for low-income students. Ensuring a properly functioning FAFSA form is another.

    There has been much consternation, rightfully so, about the flawed FAFSA roll out, and the consequences remain serious. All of us—the government and colleges and universities—will have to work hard to bring back the students who were not able to attend college this year because the financial aid system failed them.

    Campus leaders can do their part by ensuring that current and prospective students are well informed about the FAFSA and how to best navigate the new form and process. In its Nov. 21 announcement about the release of the 2025-26 FAFSA, the department also included an array of resources that institutions can share with students and their families and college counselors.

    In a difficult political climate, it is great to see both the legislative and executive branches of the federal government working in tandem to better support low- and middle-income students. These twin successes are extremely important and long overdue. We’ll keep urging policymakers to build on this progress in 2025, and we know that our institutions will do their part as well.

    If you have any questions or comments about this blog post, please contact us.

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  • Troubled FAFSA Rollout Linked to Sharp Decline in First-Year College Enrollment

    Troubled FAFSA Rollout Linked to Sharp Decline in First-Year College Enrollment

    Title: Fewer Freshmen Enrolled in College This Year Following Troubling FAFSA Cycle

    Author: Katharine Meyer

    Source: Brookings Institution, National Student Clearinghouse Research Center

    The rollout of the new FAFSA form last year triggered cascading consequences across the higher education community. The launch was delayed, customer calls remained unanswered, and the number of filings decreased by about three percent. As the form’s issues compounded, experts predicted that the fumbled rollout would likely negatively impact the higher education sector across several metrics, particularly new student enrollment.

    The National Student Clearinghouse Research Center collected data at the beginning of the academic year to begin painting the updated enrollment picture and will follow up with final enrollment numbers for the 2024-25 academic year. The Brookings Institution analyzed the preliminary data and observed large declines in FAFSA filings, followed by a decrease in first-year enrollment.

    Across all institutions, first-year enrollment is down 5.8 percent among 18-year-olds and 8.6 percent among 19-20-year-olds. At public four-year institutions, first-year enrollment declined 8.5 percent, and it declined 6.5 percent at private four-year institutions. White freshman enrollment declined the most (11.4 percent), followed by multiracial (6.6 percent) and Black (6.1 percent) first-year student enrollment. Enrollment at HBCUs, however, increased 5.9 percent from last year and has cumulatively increased 12.6 percent since fall 2022.

    First-year enrollment at four-year schools declined across all levels of Pell Grant recipience. Institutions that experienced the largest declines in first-year enrollment, though, were public and private four-year institutions with the highest shares of students receiving Pell Grants (-10.4 and -10.7 percent, respectively). First-year enrollment at four-year colleges is also down across all levels of selectivity, with the largest decline occurring at very competitive public four-year institutions (-10.8 percent), followed by competitive public four-year institutions (-10.3 percent).

    Despite declines in first-year enrollment, total college enrollment increased three percent, due in part to a 4.7 percent increase in community college enrollment. Interestingly, this increase occurred at certain types of two-year institutions but not all of them. At colleges that predominantly award associate degrees and some bachelor’s degrees, freshman enrollment increased 2.2 percent, and at two-year institutions that enroll a higher proportion of low-income students, first-year enrollment increased 1.2 percent. At community colleges only awarding associate degrees, however, enrollment decreased by 1.1 percent.

    The author notes these insights come with caveats; many factors have contributed to enrollment decline over the last decade, notably falling public confidence in higher education and the ever-growing cost of attending college. The sharp decline in first-year enrollment, however, correlates with the troubled FAFSA launch. Continuing to collect data over time will provide more insight into the implications of recent disruptions to enrollment trends, particularly following the COVID-19 pandemic and the FAFSA rollout. The 2025-26 FAFSA form will be available this December, and its functionality will determine the gravity of the past year’s enrollment decline.

    To view the National Student Clearinghouse Research Center data dashboard, click here. To read the Brookings Institution analysis, click here.

    —Erica Swirsky

    If you have any questions or comments about this blog post, please contact us.

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