Officials Are Hopeful After Federal Financial Aid Problems Cost RI Families Millions Last Year

Officials Are Hopeful After Federal Financial Aid Problems Cost RI Families Millions Last Year

Last year, the federal government rolled out a new financial aid application process, and by all measures, it was a disaster and the impact is still being felt by families in Rhode Island and at colleges across the country.

The application, the so-called FAFSA, was revised by the Biden Administration’s Department of Education, and the higher education industry is still trying to recover.

Stacy Crooks, Director of the College Planning Center at Rhode Island Student Loan Authority (RISLA), said, “Sadly, $9 million in Pell Grant money was left on the table in Rhode Island.”

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Impact on Colleges - 5% Drop in First-Year Students

Inside Higher Ed reports, "Higher ed institutions this fall experienced the steepest drop in first-year enrollment since the COVID-19 pandemic, according to the latest data from the National Student Clearinghouse Research Center. While overall postsecondary enrollment is up by 3 percent—the second straight year of growth—first-year enrollment fell by more than 5 percent, a drastic change from last fall’s small 1 percent increase. Enrollment among 18-year-olds declined by 6 percent, slightly more than for first-year applicants of all ages."

“Yes, the FAFSA debacle played a big role in the decline of the number of students entering college. The FAFSA season opened late, and the numerous glitches and technical difficulties continued until April, which resulted in delayed award letters from the colleges that extended beyond the May 1st admission deadline,” said Crooks.

 

Optimism About Improvements

According to Crooks, families should feel confident that the new revisions have corrected the problems and made the FAFSA application process easier and faster.

“Yes, last year's FAFSA cycle was incredibly challenging and frustrating for families and financial aid administrators at the colleges. We are much more optimistic for the 25/26 cycle. We have been encouraged with what we have seen so far since the rollout in early December. The FAFSA form has full functionality and we are not seeing the technical glitches that we did in the prior year. The intended goal of simplifying the form has been successful and has made it easier for families to complete,” said Crooks.

The improvements are significant.

“Last FAFSA season delays and errors caused so much anxiety in an already very stressful time and process for students and their families. This season, we have been able to fill out the form with ease,” said Crooks. “Moreover, colleges and universities are reporting fewer issues getting records, whereas last year, the delay drastically impacted the financial aid process. The functionality of the form itself is so much smoother. We haven't seen any issues with direct data exchange with the IRS, which in turn makes the verification process much easier for families and the colleges.”

 

Important Issues 

“We want Rhode Islanders to know that completing the FAFSA is a critical step for anyone considering education after high school. The financial aid application is the first step to access dollars in scholarships, grants and loans from the federal government, the state of Rhode Island and the colleges. RISLA’s College Planning Center is here to help you fill out your form, and we will do it all for free,” said Crooks. 

In addition, the College Planning Center offers additional resources to Rhode Island students and families.

“The College Planning Center is available to assist parents and students with preparing, planning, and paying for college. Again, all our resources are free. At this time of year, we dedicate our time to assisting families with the FAFSA application, as well as the CSS Profile. Soon, we will be reviewing financial aid award letters and helping families navigate through the process of understanding their offers and paying for college. During FAFSA season, we have extended hours and are open 7 days a week,” added Crooks.

 

To make an appointment, families can book online at www.collegeplanningcenter.org.

For questions, email [email protected] or call 401-736-3170