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HomePersonal FinanceGAO Warns of Future FAFSA Failures After Botched Launch

GAO Warns of Future FAFSA Failures After Botched Launch


GAO Report Uncovers Flaws in FAFSA Rollout | Source: The College Investor

Supply: The Faculty Investor

  • Delayed Launch Regardless of Warnings: The Division of Training knew as early as August 2022 that the FAFSA type wouldn’t be prepared for its October 2023 launch however waited seven months to announce the delay.
  • Insufficient Buyer Assist: Of the 5.4 million calls acquired by the Division’s name middle, 75% went unanswered, contributing to confusion and frustration amongst college students and households.
  • Untested Processing Techniques: Essential FAFSA processing elements have been left unfinished on the time of the shape’s launch, resulting in widespread calculation errors in pupil help estimates.

In a pair of scathing reviews, the U.S. Authorities Accountability Workplace (GAO) has revealed the essential missteps taken by the Division of Training throughout final yr’s Free Utility for Federal Pupil Help (FAFSA) rollout. 

The reviews, launched right this moment (you could find them right here and right here), particulars how systemic failures within the Division’s planning, communication, and testing led to a disastrous implementation of the brand new FAFSA type, which has left hundreds of thousands of scholars and households struggling to entry important monetary help. One report focuses on the technical implementation of the simplified FAFSA type and the opposite on the monetary help facet of the FAFSA rollout.

The findings additionally elevate alarms concerning the upcoming FAFSA cycle for the 2025-2026 tutorial yr, with GAO officers warning that except vital reforms are made, comparable points might come up. Officers from the GAO might be testifying right this moment earlier than the Home Subcommittee on Greater Training to debate the suggestions specified by their report.

Missed Warnings And Delayed Motion

The GAO report describes a sample of warning indicators that have been ignored by the Division of Training and the Workplace of Federal Pupil Help (FSA), the company tasked with managing FAFSA.

In keeping with the report, by August 2022, FSA officers had already adjusted their schedules for the 2024–2025 FAFSA cycle, pushing contractor deadlines from October to December 2023. But it wasn’t till March 2023 that they publicly admitted to the delay, a transfer that disrupted school planning timelines for college kids throughout the nation.

Regardless of these warning indicators, FSA launched the brand new FAFSA type in December 2023 with out adequately addressing main system deficiencies.The outcome to households was that even when the shape launched on December 28, many households could not file the shape till as late as March 2024.

The GAO revealed that 18 out of 25 key system necessities, together with the flexibility to finalize help eligibility and distribute outcomes to colleges, had not been met earlier than launch. These delays in processing led to prolonged wait instances and created vital obstacles for college kids and households attempting to use for monetary help.

Buyer Service Points

The GAO report additionally highlighted the extent that households struggled to get assist.

In the course of the first 5 months of the appliance interval, the Division of Training’s name middle acquired greater than 5 million calls—4 million of which went unanswered (that is 74% of calls went unanswered).

With fewer name middle employees than in earlier years and 200,000 fewer calls answered in comparison with the prior FAFSA cycle, the system buckled beneath the amount of inquiries.

The GAO report highlights this customer support failure as a essential subject, stating that many households have been left with out steerage on resolving technical issues. The FAFSA web site typically left college students to “attempt once more later” when confronted with errors, including confusion and additional delaying their skill to finish functions.

Some of the vital communication breakdowns concerned the failure to tell over 500,000 college students that their federal help estimates had modified as a consequence of corrections in calculation errors.

Technical Failures

The Division of Training’s failure to correctly check the brand new FAFSA processing system compounded the difficulties. A number of technical errors endured effectively after the shape’s launch, with many households counting on incorrect monetary help estimates to make essential school choices. These “unresolved defects” have been categorized by the GAO as among the many most damaging points of the failed rollout, eroding public belief within the FAFSA system and federal monetary help.

In a single essential defect found post-launch, the system overestimated some college students’ help eligibility by failing to think about household belongings, an error that left many college students scrambling to regulate their school plans on the final minute.

The report additionally factors to extreme management deficiencies inside the Division of Training, notably in its Workplace of the Chief Data Officer (CIO). The workplace, which is answerable for overseeing IT tasks like FAFSA, had six totally different CIOs for the reason that FAFSA overhaul started in 2021. In keeping with the GAO, this lack of constant management hindered efficient oversight and contributed to the mismanagement of the mission.

Suggestions For The Future

The GAO has made six suggestions to the Division of Training on the expertise entrance to keep away from a repeat of this yr’s errors. In addition they made seven suggestions to the Division of Training to enhance the precise FAFSA course of based mostly on this yr’s issues. These suggestions embrace:

  1. Establish and join with college students who didn’t submit a FAFSA software this cycle (2024-25) as a consequence of delays and technical points, and to offer them with the data they should apply through the upcoming cycle (2025-26).
  2. The Chief Working Officer of the Workplace of Federal Pupil Help ought to assessment the FAFSA software course of to determine methods to scale back the burden on college students and households by addressing the remaining technical points and streamlining the method for father or mother or partner contributors to scale back the full time it takes to finish the FAFSA type.
  3. The Chief Working Officer of the Workplace of Federal Pupil Help ought to overhaul its submission course of for college kids whose father or mother or partner contributors would not have Social Safety numbers to handle extra
    software obstacles.
  4. The Chief Working Officer of the Workplace of Federal Pupil Help ought to enhance translation companies by offering a transparent path to assist for languages aside from English and Spanish by means of the decision middle menu
    and progress towards making the FAFSA software out there in languages aside from English and Spanish.
  5. The Workplace of Federal Pupil Help ought to plan for and guarantee hiring of enough employees to extend capability on the Federal Pupil Help Data Heart name middle to have the ability to meet name demand and enhance customer support.
  6. The Chief Working Officer of the Workplace of Federal Pupil Help ought to develop a complete plan for offering FAFSA candidates with well timed updates on the standing of their software and options to technical
    obstacles.
  7. The Chief Working Officer of the Workplace of Federal Pupil Help ought to develop insurance policies to speak key milestones of the 2025-26 FAFSA and future cycles to schools and stakeholders in a well timed and dependable
    method.

With out addressing these systemic points, the report warns, the 2025-2026 FAFSA cycle is more likely to face comparable delays and technical challenges.

Richard Cordray, former Chief Working Officer of the FSA, resigned in April following backlash over the troubled rollout. The Division has since introduced a December 2024 launch for the subsequent FAFSA type, pushing again the timeline to permit for additional testing and enhancements. Nevertheless, as college students and faculties put together for the subsequent software cycle, the GAO’s report casts doubt on whether or not sufficient has been finished to forestall one other chaotic yr for monetary help candidates.

The Division of Training is anticipated to answer the GAO’s suggestions within the coming weeks as scrutiny from Congress intensifies. With hundreds of thousands of scholars relying on FAFSA to afford school, it is vital that the Division of Training resolves these points rapidly.

Do not Miss These Different Tales:

2025-2026 FAFSA Kind: Issues To Know
2025-26 FAFSA Set For Full Launch December 1
2025 – 2026 Pupil Help Index Chart (EFC/SAI Chart)

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