College-Bound Students in Limbo as Federal Aid Delays Cause Havoc
April 3, 2024
College Money Matters May 2024 Newsletter
May 5, 2024
Here’s how to make key college decisions amid FAFSA delays
Problems with the new Free Application for Federal Student Aid have left many students in a bind.
In an early April update, the U.S. Department of Education said the delivery of some FAFSA applications would be further delayed due to ongoing issues with applicants’ tax data.
“We are working hard to address these challenges and ensure schools have the information needed to package and make aid offers as quickly as possible,” Rich Cordray, chief operating officer for the Education Department’s Office of Federal Student Aid, said in a statement.
However, these latest setbacks may mean it will take colleges even longer to get financial aid award letters to students, shortening the time those college hopefuls have to make informed enrollment decisions about next year.
“Continually taking two steps forward and one giant step back is not a sustainable pathway toward getting financial aid offers out to students and families,” said Justin Draeger, president of the National Association of Student Financial Aid Administrators.
In ordinary years, financial aid award letters are sent around the same time as admission letters, meaning students have several weeks to compare offers ahead of National College Decision Day on May 1, the deadline to decide on a college for most admitted students.
Higher education already costs more than most families can afford, and college costs are still rising. Tuition and fees, plus room and board, for a four-year private college averaged $56,190 in the 2023-2024 school year; at four-year, in-state public colleges, it was $24,030 per year, according to College Board.
For most students and their families, the college they choose hinges on the amount of financial aid offered and the breakdown between grants, scholarships, work-study opportunities and student loans.
“For many of our students, it’s less about comparing offers and more about, ‘Can I go at all?’” said Charles Welch, president and CEO of the American Association of State Colleges and Universities.
To that end, the AASCU is encouraging colleges and universities to extend their decision deadlines to give students and families more time to assess their financial aid picture.
Some schools have already postponed those enrollment deadlines to May 15 or later.
“Our number one concern is making sure we give students every opportunity they can to make determinations about financial eligibility,” Welch said.
FAFSA delays don’t have to mean rushed decisions
This could also be an opportunity to weigh your options before factoring in aid, according to Nancy Goodman, founder of College Money Matters, a nonprofit focused on helping high school students and their families make informed decisions about paying for college.
“It’s not unexpected that people would feel the FAFSA delays are forcing them into a rushed decision about something that has a major financial impact on their lives,” she said. “But this waiting time can be an opportunity, because it gives students and their families the chance to step back and consider their options from a more clear, objective and unhurried point of view.”
Consider also your choice of major and future earnings potential, Goodman advised. Often, a good rule of thumb is not to borrow more than you expect to earn as a starting salary, other experts also say.
“This time is best used to objectively evaluate each school on the basis of how well they serve the student’s future — as opposed to how much aid they may offer in student loans,” Goodman said.
To determine which schools may be the more affordable options, the U.S. Department of Education’s college scorecard and each school’s net price calculator can help.
Tap private scholarships
In the meantime, students should also be exploring other sources of merit-based aid.
“I recommend being laser focused on applying for scholarships,” said James Lewis, co-founder of the National Society of High School Scholars.
In fact, there are more than 1.7 million private scholarships and fellowships available, often funded by foundations, corporations and other independent organizations, with a total value of more than $7.4 billion, Lewis explained.
Many don’t require a completed FAFSA, Lewis added, and there are free resources that can match you to available scholarships based on your skills and interests.
“There are students who have paid for their entire college education through scholarships, it’s just dependent on the amount of effort and time put in,” Lewis said.
Check with the college or ask your high school counselor about opportunities. You can also search websites like Scholarships.com and College Board.
