Students and parents all over the United States are having major issues with the new Free Application for Federal Student Aid (FASFA). The new FASFA application promised to be a simpler and easier form for parents and students. However, students are now worried if they will meet scholarship and college acceptance deadlines. The forms were supposed to be available in October 2023 but were not available online until December 2023. Once released the forms had to be taken down multiple times due to mistakes. Families reported to the Hill, that they were unable to fix mistakes they made in the erroneous form.
Currently, officials are saying that FASFA information will not be provided to colleges and universities until March. Students and their parents are worried they may miss scholarship deadlines and if financial aid offers will arrive in time for students to make the best decisions for themselves. “Education Secretary Miguel Cardona said that he has also been frustrated with the delays but blames Congress for not giving the Federal Student Aid office the funding it needs to complete all the changes it has asked for.” The Department of Education plans to send experts to some of the colleges and universities to help with delays and processing. The Department of Education will also donate millions of dollars to help rectify these pressing issues. Parents expressed concerns their students may have to take out unnecessary loans if they do not receive scholarship money in time due to the delayed FASFA applications.
Discussion Questions:
- Analyze the economic ramifications of students resorting to loans instead of scholarships due to delayed FAFSA submissions. How do these financial decisions impact students’ debt burden, future economic prospects, and overall economic well-being?
- Propose economic policy reforms that the Department of Education could implement to mitigate the recurrence of challenges associated with delayed FAFSA submissions. How can economic policy interventions streamline the financial aid process, increase accessibility to scholarships, and reduce the need for student loans?
Sources| The Hill: thehill.com/homenews/education/4454353-fafsa-students-parents-college-applications/; Unsplash: Photo by RUT MIIT on Unsplash