Congress acts to repair the flawed FAFSA system
- The FAFSA Modernization and Simplification Act was enacted in 2020 to streamline student aid applications.
- In 2023, the FAFSA was delayed and released with critical errors, creating significant issues for low-income students.
- Congress has passed the FAFSA Deadline Act to ensure the form is properly fixed and released by October 1 annually.
In the United States, the Free Application for Federal Student Aid (FAFSA) is crucial for students seeking financial aid for college. In 2020, Congress enacted the FAFSA Modernization and Simplification Act, which mandated the Department of Education to streamline the FAFSA process by the fall of 2023. However, issues arose when the 2023 FAFSA was delayed and released with numerous errors, including a failure to reflect inflation and incorrect Pell Grant eligibility calculations. This mishap affected students, particularly from low-income families, leading to a significant drop in freshman enrollment at schools serving these demographics. In response, Congress recognized the need for reform and passed the FAFSA Deadline Act, which requires the department to ensure proper functionality and release the FAFSA by October 1 each year, offering a structured timeline for students and educational institutions alike.