May 11—The U.S. Department of Education announced last week that it is launching a multi-million dollar program to accelerate completion of the FAFSA.
College students and prospective college students fill out the FAFSA to see if they qualify for federal and some state and institutional financial aid. However, the overhaul of the FAFSA, which was meant to simplify the application process and expand eligibility for aid, resulted in a technical glitch. This makes it difficult for many people to complete their applications.
The new FAFSA became available in December, two months later than expected. Although 8.95 million forms were successfully filed, the FAFSA completion rate remains lower than last year.
In New Mexico, the number of high school seniors completing the FAFSA is down 23% from last year. Last school year, 68% of high school seniors completed the FAFSA, but by early May, only 36% had completed the FAFSA.
Meanwhile, up to $50 million in federal grants will be used to support organizations that work with schools and school districts to increase FAFSA submissions.
“We are determined to close the FAFSA completion gap,” said U.S. Deputy Secretary of Education Cindy Marten. “The funding we are announcing will help states, school districts, and community-based groups build and leverage their capacity to help all students who need help paying for college complete their FAFSA form. We will support you.”
At the University of New Mexico, about 60 percent of students receive some kind of federal financial aid to help pay for their education, said Elizabeth Amador, director of student financial aid.
Other types of financial aid, such as state and institutional grants, also rely on some information from the FAFSA to determine eligibility. Although the FAFSA is used to determine eligibility for need-based aid such as Pell Grants, this application can also help students qualify for non-need-based financial aid.
Following national trends, UNM's FAFSA application rate for freshmen is significantly lower than the same time last year. Last year, the university's FAFSA application rate for freshmen was 53%; as of last week, it was 39%.
“We know there are a significant number of students who have not yet applied, and they may be missing out on important federal, state, or institutional funding that we could be able to provide to our students.” Amador said.
Current students have also been affected, Amador said, but it has become easier to assist them because they have been through the FAFSA process before and know when to ask for help. That's what it means.
Although tedious, filling out the FAFSA may still be worthwhile for students.
More UNM students may qualify for need-based aid than in the past. The purpose of updating the FAFSA was to streamline the process and expand eligibility for federal financial aid. UNM's Pell Grant eligible population is expected to nearly double under the new federal eligibility guidelines, Amador said.
“Don't give up. Please try submitting your application. If a student is facing any issues, please contact UNM. Contact the schools you are interested in for help.” Mr. Amador said. .