The Department of Education is addressing concerns after a troubled overhaul of the federal financial aid process led to decreased enrollments at some colleges.
Education Secretary Miguel Cardona has given assurances that households will be able to apply for financial aid starting December 1, following a two-month delay for the 2025-26 academic year’s Free Application for Federal Student Aid (FAFSA). Cardona acknowledged the issues but promised a simpler, more efficient application process.
The 2024-25 delays have already affected enrollment, with 43% of private institutions reporting smaller freshman classes and 27% noting fewer financial aid recipients. Additionally, 18% of colleges reported a decrease in the racial or ethnic diversity of incoming students.
The National Association of Independent Colleges and Universities highlighted that FAFSA issues have disrupted the traditional May 1 decision deadlines, compounding stress for students and administrators.
The Education Department’s efforts to correct the situation include a full-scale review of the Federal Student Aid office and ongoing communication with educational institutions. Cardona emphasized the importance of meeting the new December deadline and maintaining the integrity of the aid process amid ongoing political discussions about the future of the Department of Education itself.
As FAFSA completion rates have dropped, with some reports indicating a nearly 10% decrease, officials are working to ensure that the process is thoroughly tested to prevent similar disruptions in the future. A smooth rollout is critical to restore confidence in the financial aid system.
