FAFSA delays may cause some students to choose lower cost colleges, or not attend this fall
HOUSTON - Many students are still waiting to determine which college they will attend, as FAFSA problems have delayed schools from sending out financial aid award letters.
The delay is causing some students to choose different schools than planned, while others may not attend school at all.
As of May 7, 28% of colleges still had not started sending financial aid offers to accepted students, according to the National Association of Student Financial Aid Administrators.
Others, including the University of Houston, have just recently been able to start sending out financial aid award letters, about a month later than usual.
"For several weeks, we didn't know when we could start the process. But now we’re here, we're starting the process and getting award letters out to students and families," said Benjamin Montecillo, Executive Director of UH Scholarships & Financial Aid.
UH offers admission on a rolling basis, but many colleges have had to extend enrollment deadlines from May 1 to mid-May or June 1.
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The Federal Application for Student Financial Aid was streamlined last year. But the launch was delayed for months, followed by website crashes, and a high number of errors in student data.
A survey by the education resource site Study.com found many students, particularly low-income and first-generation college students, struggled with the new application process.
"What we found were 47% of students were unable to complete the FAFSA on the first initial submission, and almost 28% spent over seven hours on FAFSA related tasks," said Alexandra Manuel, education advisor with Study.com.
Data shows 24% fewer students filled out the FAFSA form this year. Many educators are concerned that could mean many students, particularly low-income or first-generation college students, may not attend college this fall.
"That gap year could be one year, could be two, three, or four. We want to eliminate that. We want to get students here to start their education," said Montecillo.
Lower enrollments could hurt colleges financially.
"This is going to impact their budgets. All of their budgets were done last year, and they’re going to be readjusted. Enrollment pays the bills," explained student loan debt expert Jack Wallace of Yrefy.
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While some students are simply opting for lower-cost colleges, which could potentially benefit more affordable schools.
"As we’ve been watching trends and metrics, we’re seeing enrollment is about where we thought it would be, and in many cases we’re seeing that we’re increasing the number of applications we have," said Montecillo.
"This year, more than ever before, the student and the parent need to be educated consumers. In the past, safety school meant applying to a school you could get into. This year, because of this mess, it's one that you can get into, and two, the family can afford," said Wallace.
Students who are still waiting for financial aid information are advised to find out if their target schools have extended enrollment deadlines. And they should stay in touch with the financial aid office so that the school knows they're interested in attending, but are waiting for the financial aid information.
Students who have not yet filed a FAFSA form can still file. It can help students get federal, state, or school financial aid. 85% of those who file the FAFSA receive at least some aid.