Department of Education Expedites FAFSA Process Amid Delays

The Department of Education (ED) is rolling back oversight requirements to expedite the processing of new Free Application for Federal Student Aid (FAFSA) forms.

ED announced Tuesday that it will lighten the load for college financial aid offices still waiting to receive FAFSA student data. Aid offices likely won’t get student data until April. In the meantime, ED will “significantly reduce” verification requirements so institutions can process those forms and send out financial aid award offers to students as quickly as possible.

The department also promised to suspend most program reviews until July so that financial aid offices can focus on FAFSA processing.

“The steps we’re announcing today build on the Better FAFSA College Support Strategy by making it easier for colleges and universities to get financial aid packages to students and families as quickly as possible,” ED Secretary Miguel Cardona said in a statement. “We will strive to leave no stone unturned to make this FAFSA process easier and simpler for colleges, universities, and students.”

These changes come amid a hectic half-year for ED and Federal Student Aid (FSA).

Students typically can access each year’s FAFSA by Oct. 1, but because ED was launching a new version of the form — dubbed the Simplified FAFSA — the application wasn’t available to students until Dec. 30.

Meanwhile, FSA did not take inflation into consideration in its financial aid formula, so ED later announced that it would not send student data to colleges and universities until mid-March so that it could adjust its formula.

Financial aid experts said this means students likely won’t get award letters until April.

ED also announced Tuesday that it will begin releasing test versions of Institutional Student Information Records (ISIRs) to financial aid offices by Friday. This will allow schools to practice processing new FAFSA applications, hopefully allowing them to process real applications quickly once they receive student data in mid-March.

Still, the most notable announcement is seemingly the easing of verification requirements.

Colleges and universities are often asked to verify that the information students submit through their FAFSA application is correct to prevent fraud. The verification process can slow down processing, so ED promised to cut down on the verification requests it asks of schools.

“This year’s significant reduction in verifications will reduce the burden for colleges and students while continuing to protect against fraud,” ED said in a statement.

ED also promised to suspend routine program reviews. ED typically reviews institutions regularly to make sure they comply with oversight rules, including:

These reviews, however, can be time-consuming and likely involve financial aid offices. By suspending routine reviews until July, financial aid offices can focus on FAFSA processing.

ED said it will continue programmatic reviews of institutions where there is suspected fraud or a “severe breach of fiduciary duty.”

The department added that it will also provide extensions to institutions expected to renew their Program Participation Agreements in March, June, or September.

“Providing this flexibility will give time back to institutions at a critical moment and enable them to focus their resources on getting students the aid they need,” ED said.

ED’s leniency may help financial aid offices, but many colleges are making their own preparations for delayed student data. According to a database maintained by admissions counselor Danny Tejada, at least 50 institutions have extended their enrollment deadline to mid-May or early June.

College Decision Day is May 1 each year, but many worry students won’t have enough time to review financial aid offers and commit to a college or university by that date due to FAFSA delays.