Another FAFSA Delay… Now What?

The long-awaited new FAFSA is here. Well, kind of. On December 31, 2023, the new form made its first full-day public debut with a soft launch designed to help the Department of Education “monitor and respond in real time to any potential issues impacting the applicant experience.”?

However, the much-anticipated release of the new FAFSA was met with frustration, both from students and families as well as from colleges and universities. Long periods of downtime made it difficult for students to access the form, while others stalled in virtual waiting rooms. And many who did gain access to the system were kicked out before they could complete their FAFSA.

And just days ago, the situation became even worse. News from ED that ISIRs would not be transmitted to their institutions until “the first half of March” is causing even more angst for both families and financial aid offices. While acceptance letters are rolling in, financial aid packages will lag until April or possibly even May, leaving students missing a critical piece of the decision-making puzzle.?

Updates to the numbers in the Income Protection Allowance tables to account for inflation and other economic changes are contributing to the delays. These updates, while necessary, were not implemented before the 2024-25 FAFSA opened. In fact, the income table update reflects a reversal of course, as ED originally indicated that constraints in both time and data would make it difficult to update these tables in advance of the December 31, 2023 deadline. But correcting these errors is imperative, as not doing so could cost some low-income and first-generation students aid for the next school year.?

The launch of the new FAFSA is causing headaches, that’s for sure. Students feel like they are on hold, unable to make a decision until they know what financial aid support they've received. And colleges can’t release financial aid packages until they receive ISIR data sometime in March.?

But the impacts of the delays reach even further. Many colleges and universities are questioning whether or not their traditional May 1 commitment deadlines can stand, while others have already announced adjusted timelines. And if they can’t, the impacts will stretch well beyond admissions, enrollment, and financial aid offices. University budgets rely on accurate admissions data, and without it, budgets could remain in limbo until the summer. A delay in enrollment decisions would also stall institutional planning for student services, including class schedules and housing.?

ED is offering some relief in the form of “concierge” services and financial aid advisors and counselors to support understaffed campuses, especially HBCUs, tribal colleges, and other low-resource campuses. They also announced their intent to send test versions of ISIRs this month, something institutions have been asking for since the fall. But many feel this support is both too little - and too late.?

What is clear is that when ISIRs do finally arrive, financial aid offices, already overworked and understaffed, will be scrambling to deliver financial aid packages to admitted students. So the question becomes, how can you help students navigate through these challenges to avoid more chaos??

6 Ways to Navigate FAFSA Delays

First and foremost, it’s important to remember that every student and every institution is suffering from the same challenges. It’s how your institution handles the challenges and supports students through these delays and frustrations that will set you apart from the rest. Below are six ways to help you navigate the chaos.

1. Communicate, communicate, communicate

Financial aid and college affordability are sensitive topics during the best of times. But when college decisions hang in the balance, these topics become fraught with even more emotion. That’s why ongoing communication and engagement with admitted students and their families is key.

Use this time to communicate with your students and their families. Reinforce messaging from the Department of Education regarding when you (and every other institution) will receive ISIR information. And if that information changes again, update students and families immediately. Don’t assume they are following news and updates about the new FAFSA.

You should also communicate a realistic timeline for when families can expect to receive financial aid package information from your institution. Estimate how long you believe it will take to build and distribute financial aid packages once you receive the ISIRs, and share that with students and families (example: X-Y weeks from the time you receive ISIRs). That way, families know when they can expect to hear from you, and they won’t panic if they haven’t yet received a package.

Distribute these communications via email to enrolled and admitted students. You may want to consider sending this information multiple times between now and when you deliver financial aid packages to ensure it hits your intended audiences. You could even record short videos that provide transparency into the process, explaining what happens from now until the time they receive their financial aid package.?

You should also leverage portals and other internal sites where students and families go for information. Add a notification banner that reiterates your message and timeline. And finally, for new admissions letters going out this year, include a message that addresses the revised financial aid timelines. Let them know that delivery of financial aid package information will be delayed, and estimate when they can expect to receive it.

2. Be accessible

Students and families are going to have a lot of questions, ranging from “when will I receive my financial aid package” and “are you going to adjust deadlines for scholarships that require the FAFSA?” to “are you extending the May 1 decision deadline?”?

Having a dedicated resource available to respond to these inquiries and reassure families in a timely manner is critical. We suggest holding open office hours, either in-person or virtually, throughout this period to address the myriad of questions that are sure to come up. You could even brand them “FAFSA Fridays!”

By setting aside dedicated time, students and families know they have a place to go where they can speak with a financial aid counselor who can answer their questions and reassure them while they wait. And when financial aid packages do come out, you can repurpose the time to answering questions and explaining the nuances of the aid packages you’ve delivered.?

3. Educate and coach

We all know that families have a lot of questions when it comes to financial aid. But many of them stem from a lack of knowledge about the process and how to interpret financial aid package information. In the weeks leading up to the release of the ISIRs, have your financial aid staff host virtual webinars where they walk through a sample financial aid package, including the various types of awards students can receive. Then, using an example, help families navigate through the decision-making process so that when they receive their own student’s package, they know how to interpret it.?

In addition, many students and families are unaware of the various scholarships available from your institution. Use this time to highlight available scholarships, including the process to find and apply for them.?

By keeping students and their families engaged, you help to set your institution apart from others they may be considering. That way, when financial aid packages finally do come out, your institution will be top-of-mind in their decision-making process.?

4. Be transparent

While we mentioned this above, it bears repeating. This admissions year will be unlike others. Processing delays are adding pressure to an already stressful process, leaving students and families anxious and frustrated. Even worse, families who are questioning if they can even afford a college education for their student may decide to forgo the enrollment process altogether.?

“For many students who are taking a real leap by even applying to college, uncertainty is as big a factor as the actual dollar amount in aid,” said Jon Fansmith, senior vice president for government relations at the American Council on Education. “That’s the whole reason we moved the deadline to October [in 2016] … The more uncertainty there is, and the shorter the decision window, the less likely they are to enroll.” (source)

This is why transparency is more important than ever before. As stated above, communication is key to keeping students and families informed as the situation evolves. If further delays emerge - or if deadlines change - make sure you communicate them clearly and frequently. You can’t over communicate this year! While students and families may not like the news you’re delivering, they’ll appreciate your efforts to keep them up-to-date and informed.?

5. Stay consistent

During this time of uncertainty, it’s critical that everyone across your campus who interfaces with students and families shares a consistent message relative to financial aid. Not only will consistency help to reinforce your messages, but it will also give families peace-of-mind that everyone at your institution understands the current situation and is there to support them.?

Create talking points that outline what’s happening with the new FAFSA, what students and families need to do, when the institution is expecting to receive ISIR information, and finally when students and families can expect financial aid package information. Share this information with colleagues in recruiting, admissions, and retention. And include the information in any admission letters that go out in the coming weeks.?

6. Be flexible

Giving families flexibility during times of uncertainty will go a long way to soothe their frazzled nerves and provide reassurance that your institution is doing everything they can to make college affordable for their students. In their recent Letter on FAFSA Rollout and Delays, NASFAA urged colleges and universities to consider extending deadlines for enrollment, scholarships, and financial aid, including delaying the traditional May 1 decision day. Regent Education supports this recommendation, also encouraging institutions who haven’t already done so to consider adjusting their timelines to better support families and students impacted by the FAFSA delays.?

To say the next few months will be challenging is an understatement. As soon as the ISIR data is released, the pressure will be on to package and deliver financial aid and institutional scholarships so that students can make informed decisions about where to enroll. But know you’re not alone.?

At Regent Education, financial aid is all we do. And we’re keeping our finger on the pulse of the delays associated with the new FAFSA rollout so we can provide you with the guidance, resources, and advice you need to support students and families through this process. We’re dedicated to the success of our clients - and to everyone in financial aid - as you navigate this challenging year, and are here as your partner to help guide you through it.