On Monday, the U.S. Department of Education (ED) announced additional steps to expedite submission of the 2024-25 FAFSA form.
Since the form was released on December 30, ED estimates that approximately 4 million forms have been successfully submitted and the time it takes to complete the form has been significantly reduced to 15 minutes. Last week, ED announced $50 million in funding for staffing and resources, including technical assistance and support, to support institutions, students, and their families with Better FAFSA®. Earlier this week, the Biden-Harris administration announced new measures to make it easier for colleges and universities to process records and spend more time helping students.
These new measures include reducing verification requirements, suspending routine school compliance reviews, and providing flexibility for renewing participation in federal student aid programs. The intention is to specifically support under-resourced institutions.
In a teleconference with the media, Secretary of Education Dr. Miguel A. Cardona said the ED will roll out a test version of the Institutional Student Information Record (ISIR) by February 16. This will give universities time to prepare and implement the system. A better FAFSA. The goal is that this will make a difference to hundreds of thousands of additional students.
“These steps are a direct response to the feedback we have received from financial aid administrators and college presidents who are struggling to implement a better FAFSA and what specific methods and steps can help them process this information more easily and efficiently. “It’s simpler.” Cardona said. “Our top priority is to ensure that students receive the maximum amount of financial aid to help them achieve their higher education goals.”
A letter will be sent to college administrators, including leaders of Historically Black Colleges and Universities (HBCUs) and Tribal Colleges and Universities (TCUs), outlining the steps and providing ongoing support and direct communication from ED.
ED officials said they were aware of delays in overhauling what Cardona called a “broken system.”
The first step is to significantly reduce verification requirements while continuing key actions focused on reducing identity fraud.
“Better FAFSA will pull income information directly from your tax records through a data exchange with the Internal Revenue Service,” Cardona said. It primarily serves as a source of income data for ED and therefore does not require verification in most cases.
Additionally, new regular program reviews will be suspended until June 2024, except in cases of suspected fraud or serious breaches of fiduciary duty. Institutions currently undergoing program review may also request an extension. This allows colleges to focus on implementing Better FAFSA.
Finally, additional flexibility is provided for recertification. ED is waiving the 90-day requirement for institutions whose program participation agreements expire between now and September 2024. Schools must submit a recertification application by the expiration date.
“The bottom line is this: Fewer requirements for college this spring means we have more time and resources to provide financial aid to students and make the most of the Better FAFSA,” Cardona said. “These steps are in addition to the Better FAFSA college application strategy we announced last week. Our concierge service is now operational and we are prepared to deploy financial aid specialists to assist colleges.”
In a Monday videoconference with media outlets, senior department officials answered questions, including one about students whose parents do not have Social Security numbers. These students are currently unable to complete required forms online, but paper versions of the new forms are available. Online forms have a variety of interactive checks at every step, which is a problem that needs to be addressed.
“Our goal is to make the online form available to all families in the coming weeks, including parents who do not have a Social Security number,” a senior department official said. “While paper forms are currently an option for families, waiting for online forms is another alternative that may be easier for many families.”
These fundamental changes to the FAFSA include new terminology and methodologies for providing student aid, which will make Pell Grants available to approximately 600,000 more students. This requires new, time-consuming technologies and approaches.
A senior department official said Congress has set deadlines for three large modernization projects: repayment returns, FAFSA and a transition to a new student loan servicing agreement.
“Congress has not provided the significant increased funding we requested to implement these three bipartisan projects,” officials said. “It’s very difficult to provide the level of service that we want to provide to our borrowers.”
For over a year, ED has been training college counselors, guidance counselors, high school students and financial aid officers on the new form. We have also worked with colleges, universities and professional associations who advise students and families on how to complete the FAFSA. That work is still ongoing.