Delays in the rollout of the revamped Free Application for Federal Student Aid (FAFSA) are causing widespread disruptions at colleges and universities across the United States, with some institutions seeing significant declines in FAFSA submissions from students. The federal government’s overhaul of the FAFSA process, intended to streamline the application and expand financial aid eligibility, has instead led to technical issues and delays, leaving many students and colleges scrambling as the fall semester approaches.
Slippery Rock University, a state-owned institution in Pennsylvania, is feeling the impact of the delays. Although the university anticipates a third consecutive increase in first-year student enrollment, a significant concern remains: the number of students who have submitted FAFSA forms is running 18% behind last year’s pace. That translates to 640 fewer students having completed the necessary paperwork to secure financial aid.
Mike May, vice president for enrollment management at Slippery Rock, noted that while other key indicators, such as housing deposits and freshman orientation sign-ups, are on track, the lag in FAFSA submissions could pose a challenge as the new academic year approaches. “If we were lagging in any of those, my salt-and-pepper hair would be completely white,” May said, acknowledging the unpredictable nature of this year’s admissions cycle.
Nationwide impact of FAFSA delays
The delays are not limited to Slippery Rock. Colleges across the country are reporting similar issues, with some seeing a sharp drop in FAFSA completions. At Seton Hill University in Greensburg, Pennsylvania, the number of FAFSA forms received from incoming first-year students is half of what the school typically sees, although deposits from accepted applicants remain steady. Brett Freshour, vice president for enrollment management at Seton Hill, described the process as “vastly delayed,” with many students likely to make their enrollment decisions later than usual this summer.
The University of Pittsburgh also reported a 5% decline in FAFSA submissions compared to last year, though university officials noted that this figure is still better than the national average. Despite the delays, Pitt’s first-year student enrollment is expected to surpass the 4,560 students who enrolled for Fall 2023.
Why the delays?
The FAFSA revamp, mandated by a 2020 act of Congress, was intended to simplify the application process by reducing the number of questions from 108 to 46. However, technical issues and data problems have plagued the rollout, significantly slowing the rate of FAFSA submissions. In March, the number of students nationwide who had completed a FAFSA was 40% behind last year’s pace, according to the National College Attainment Network (NCAN), which tracks FAFSA submissions.
Although the pace of submissions has since improved, the numbers are still below last year’s levels. By early June, 45% of high school seniors had completed a FAFSA, down from 52% in 2023. In Pennsylvania, the FAFSA completion rate is 12% lower than it was at this time last year.
These delays have created a ripple effect across college admissions offices and high schools. FAFSA data is crucial for determining financial aid packages, and the delays have left many students and families unable to compare financial aid offers from different schools in a timely manner. This has led to concerns that some students may make ill-advised decisions or, worse, become discouraged and decide not to enroll in college at all.
Financial Crisis for some colleges
Angel B. Pérez, chief executive of the National Association for College Admission Counseling (NACAC), said the FAFSA delays are contributing to a financial crisis for many small regional colleges and universities, particularly those that are already struggling with declining enrollment and financial pressures exacerbated by the COVID-19 pandemic.
“I’m hearing that some schools are running 20% to 30% short of their enrollment targets,” Pérez said. “And that is a financial crisis for most campuses.” Smaller private colleges, which rely heavily on tuition revenue, are particularly vulnerable.
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The delays have already had consequences. Delaware College of Art and Design, which recently announced it would close, cited enrollment challenges worsened by FAFSA problems as a contributing factor to its decision.
Hope for a better process
Despite the current challenges, many college officials remain optimistic about the revised FAFSA itself, once the initial rollout issues are resolved. The changes are expected to simplify the process and expand access to financial aid for more students. At Slippery Rock University, May expressed disappointment over the delays but remained hopeful about the benefits of the new system.
“The real shame of it is we were all excited at Slippery Rock, and I’m sure at every school, when the better FAFSA was announced,” he said. “More students were going to qualify for more aid… and students who didn’t qualify for Pell Grants last year would qualify this year.”
As colleges continue to work through the challenges caused by the FAFSA delays, officials urge students and families to stay in close contact with their schools to ensure they receive the financial aid they need to attend college this fall.
