E&W Blog

FAFSA is a critical tool for low-income students seeking financial aid. Congress passed the FAFSA Simplification Act at the end of 2020 with an effective date of July 2023 to implement a more streamlined FAFSA process.

Over three years later, the new FAFSA framework has quickly turned into a FAFSA fiasco. Chairman Burgess Owens (R-UT) opened the hearing by expressing his disappointment that ED bungled the rollout and potentially closed the door to postsecondary education for many students.

“Despite our efforts, the Department of Education’s FAFSA rollout was mired in delays and dysfunction,” said Chair Owens. “Without accountability, Department of Education’s botched implementation threatens to damage students, families, and institutions.”

The hearing featured a panel including Mr. Mark Kantrowitz, President of Cerebly, Inc.; Mr. Justin Draeger, President and CEO of the National Association of Student Financial Aid Administrators; Ms. Kim Cook, CEO of the National College Attainment Network; and Ms. Rachelle Feldman, Vice Provost of Enrollment at the University of North Carolina Chapel Hill.

When the hearing turned to questioning, it became readily apparent that both Republicans and Democrats wanted answers for the failed FAFSA rollout.

As Ranking Member Bobby Scott (D-VA) put it: “No one on this Committee on either side of the aisle is happy with what is going on.” Then, to earlier points about delays, he emphasized, “Actually, it’s a six-month delay after a one-year extension.”

Rep. GT Thompson (R-PA) pointed out that in addition to the delays, the process has been riddled with errors. In an exchange with Mr. Draeger, he asked, “Can you share more about the root cause of these errors?”

“Twenty percent of the errors are pulling over wrong data elements from the IRS,” replied Mr. Draeger. He added, “On top of that 20 percent are an additional 20 percent where the form—the applicant data that is going to the school—is not generating enough information for them to do anything.”

Unbelievably, the futures of 40 percent of students are being held in FAFSA limbo. And these numbers could be even higher at some schools, as Ms. Feldman pointed out nearly 70 percent of data UNC-Chapel Hill currently has is unusable or inaccurate. It follows—who stands to lose the most by these failures?

Chairman Owens posed this very question to Ms. Feldman. She responded, “Clearly, students who really need to know whether they can afford school or not. So, the lowest income students are hurt the most.”

Some Members questioned how ED’s shift in priorities has resulted in such negligence. Rep. Bob Good (R-VA) chimed in, saying, “What they’ve been focused on, as we know, is the student loan transfer scheme.”

Then, Rep. Glenn Grothman (R-WI) prompted a very thought-provoking exchange when he asked two questions. First, has ED taken responsibility for its mistakes, and second, should anyone lose his or her job?

Mr. Draeger responded, “I have yet to hear any sort of apology from the Department of Education and not even to schools but to students and families.”