Students in need of financial aid hardest hit by FAFSA meltdown

The rollout of the new federal financial aid form FAFSA was marred by delays and technical problems, impacting economically disadvantaged students the most. Congress attempted to streamline the process, but the changes led to outages and delays when the form became available in December 2023. Schools serving low-income students saw a 48% drop in processed applications compared to a 34% drop in high-income schools, highlighting a significant disparity. The Education Department has since addressed some issues, but overall completion rates remain worse than last year, with concerns about widening equity gaps and impacts on enrollment numbers for low-income students. Students like Jesse Johnson from northeastern Kentucky faced uncertainty and delays in their college plans due to the FAFSA issues. Progress on FAFSA completions varies across states, with rural and impoverished states like Alabama and Mississippi reporting the steepest declines. Organizations are working to help students navigate the process, as millions of dollars in need-based financial aid have been left untapped this year. The impact of the FAFSA mishap on low-income students and institutions will require a long-term assessment by policymakers and advocates to address the disparities and ensure equitable access to financial aid for all students.

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