In Uncharted Waters: Navigating the Uncertainties of the New FAFSA Rollout

While the simplified FAFSA was intended to streamline the application process and reduce student confusion, the new rollout has been far from calm. Not only was the rollout itself delayed, but institutions received the institutional student information records (ISIRs) almost six months later than usual. According to a poll conducted by the National Association of Student Financial Aid Administrators (NASFAA), 28% of colleges had not begun preparing financial aid offers as of May 7. These numbers were also reflected during a Community Conversation session at JAM 2024.

The Community Conversation, which focused on how institutions were addressing financial aid challenges on their campus, highlighted the uncertainty that many institutions are facing. But insights from participants also offered some valuable takeaways. Below, we explore some of the session’s highlights.

Takeaway #1: Institutions Are Treading Water

One of the most prominent themes that emerged from the conversation was the deep sense of uncertainty surrounding the accuracy of the new Student Aid Index (SAI) calculations. Many institutions expressed a lack of confidence in the numbers, leading them to hesitate in awarding aid packages.  

Adding to the uncertainty is the unexpected increase in Pell Grant eligibility for some students. “We are afraid to send out award letters because so many people are PELL eligible,” stated one participant. “We are afraid if these awards are wrong, the institution will be responsible for awarding incorrectly.” The biggest worry: If institutions award incorrectly, they’ll be required to repay the government. But would this ever happen?

Steve Kerge, Jenzabar’s Vice President of Enrollment Management and Co-Founder of enrollment marketing firm Spark451 reflected that miscalculations are not unprecedented. In fact, there was a case in New York state a few years ago where miscalculations in HESC (higher education services corporation) funds led to state government efforts to reclaim money from schools. But, Kerge allowed, state governments are bound to behave differently than the federal government.  

Takeaway #2: Delays and Technical Issues Have Created Unprecedented Swells

Many institutions reported challenges with missing Self-Supporting Index (SSI) data and dependency status inconsistencies. These data discrepancies obstruct the award process, requiring additional time and resources to resolve.

Returning students have also reported issues with the form, in particular with the high school graduation question. Issues with the skip logic mean that when a student answers the question incorrectly and tries to return to it, they can’t. This inability to answer the question about high school graduation correctly can potentially jeopardize their Title IV aid eligibility and their willingness to return to school.

Takeaway #3: Just Keep Swimming

While the Community Conversation session provided institutions a much-needed space to reflect on their challenges, these challenges shouldn’t stop financial aid offices from continuing business as normally as possible.

“I know we’re all very frustrated,” said one of the participants, “but we as financial aid professionals have valid, fundable ISIRs. We need to move forward with awarding and just make sure we use the electronic announcement published by the Department of Education as backup documentation.”

Jenzabar Financial Aid Senior Product Manager Debbie Parrish agrees that there’s nothing for institutions to do but to press forward. One of her biggest takeaways from the session: It is vital for financial aid offices to keep openly communicating with Jenzabar. “Jenzabar is committed to supporting and collaborating with institutions to navigate these evolving challenges,” said Parrish. “Attend our office hours, request releases early, and report any issues encountered. This way, institutions can contribute to ongoing improvements and ensure a smoother process for everyone involved.”

Takeaway #4: Start Charting Next Year's Course

Based on what information vendors have received (or not received) from the federal government, launching next year’s FAFSA in October may not happen on schedule. Institutions should prepare for yet another year of uncertainty. With so many factors outside of their control, what actions can institutions take that will make a difference? Kerge suggests getting creative, especially with financial aid communication.

One of the services Spark451 provides is helping institutions create marketing campaigns around the FAFSA. This includes dynamic email workflows that remind students and parents to file and a full-color, personalized mailer to complement their official award letter. This can be both printed and hosted on a secure microsite, and the additional communication makes it easier for students and families to understand the aid they are being offered. For one institution, this approach saw deposits increase by 34%.  

“I recommend institutions go beyond the basics,” said Kerge. “Provide students with a clear understanding of their financial aid options and the specific reasons behind their award amounts.” While this may add more work onto financial aid staff’s already full plate, clear communication can go a long way toward alleviating student anxiety during this uncertain time.