After FAFSA Issues, Education Department Faces ‘Crisis of Credibility’
Katherine Knott
April 8, 2024
Colleges and universities say they need more honesty and transparency from the department to rebuild their trust in the federal financial aid system.
Hard-pressed college administrators got some welcome news last Thursday, when the Education Department announced an abrupt about-face. A few days after saying that it would not reprocess most of the financial aid applications that have been marred by a tax issue—around 20 percent of the millions of applications—the department announced that it would, in fact, do so. It was just one more turn on the roller coaster of mistakes and missed deadlines that have marred the rollout of the new Free Application for Federal Student Aid (FAFSA).
“I wake up every morning cringing about what update we’re gonna get today,” said Eric Nichols, vice president for enrollment management at Loyola University Maryland.
The FAFSA launch, plagued by a series of delays and technical issues, has shaken confidence in the department among college administrators, students and families. At this time of the year, colleges are typically finalizing their incoming classes ahead of the May 1 commitment deadline. But many have pushed off that deadline and are only now sending financial aid awards to students—a process that usually begins in January. At the same time, applications among high school seniors are down, sparking concerns about a potential enrollment drop across the country.
