Education Department Cuts Cause Financial Aid Confusion for Students
Credit: Bloomberg / Getty Images- President Donald Trump’s administration has recently overseen massive cuts to the Department of Education.
- Those cuts appear to be having a trickle-down effect on college students.
- Many institutions report an increase in confusion among students regarding financial aid.
Cuts at the Department of Education (ED) are seemingly increasing student confusion about federal financial aid.
A July survey of financial aid administrators from the National Association of Student Financial Aid Administrators (NASFAA) found that the share of institutions reporting student confusion or concern rose from 32% in May to 51% in July. Additionally, 3 in 5 respondents (60%) now say there has been an increase in student inquiries, up from 45% in May.
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Still, NASFAA says it’s unclear exactly why there has been an increase in student inquiries.
“While inquiry volume often increases during the summer, the timing may also reflect growing student awareness of federal changes, including recent legislation and reports of ED-related disruptions,” NASFAA’s report states.
“Institutions did not always indicate whether inquiries were directly tied to the [reduction in force], but several noted student confusion about FAFSA processing and federal aid systems.”
Struggles related to the Free Application for Federal Student Aid (FAFSA) seem to be a sticking point. The FAFSA is the primary way students qualify for financial aid and the only way college students can access federal financial aid, such as Pell Grants and federal student loans.
Of the 239 respondents who answered an open-ended question about students’ experience with the financial aid process, 46 respondents said students have struggled with the FAFSA. Problems involve submitting the form, correcting applications, and a general lack of clarity on required actions.
More than half (51%) of institutions said there have been delays in or a lack of communications to students from ED or Federal Student Aid (FSA).
That’s up slightly from 47% in NASFAA’s May survey.
Like in May, the potential impact on students’ access to federal student aid remains the top concern among financial aid offices regarding ED’s reduction in force. Approximately 48% of respondents ranked this as their top concern, practically level with May (48%).
Melanie Storey, CEO and president of NASFAA, previously told BestColleges that downsizing at ED could impact financial aid administrators’ ability to access necessary supports. This could have a trickle-down effect on students.
“When you look at the numbers, the largest part of the department is in federal student aid,” she said in May. “So when you see this dramatic reduction in force, it’s hard to imagine how you won’t see impacts on the schools and how they can support students.”