Category Archives: Financial Aid

FAFSA Update: More Students File for Aid

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Will the FAFSA’s earlier filing date result in increased access to higher education?

New federal data is promising.

After a four-year decline, FAFSA completions are up for the high school class of 2017, the first cohort of students who were able to file for aid starting on Oct. 1 — a full three months earlier than previously allowed.

Continue reading FAFSA Update: More Students File for Aid

Maryland Outlaws Scholarship Displacement at Public Colleges

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A new law prohibits scholarship displacement at Maryland’s public colleges and universities.

The state is the first in the nation to pass legislation limiting the practice, which can spur financial aid reductions for students who are awarded private scholarships.

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Report: New Technologies Could Help Improve Financial Aid Process

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Financial concerns cause nearly 3 million students to drop out of college each year.

Researchers at Tyton Partners believe a student-centered approach to financial aid could help reduce those numbers. In a recent report, the Boston-based advising firm chronicled the challenges posed by the current system and examined potential solutions through a survey of more than 1,800 higher ed administrators.

Their take? Targeted communication could help improve the process for both students and colleges.

“According to administrators, the biggest challenges preventing students from accessing aid are lack of student engagement, lack of awareness, and insufficient financial aid,” the report notes. “All three of these issues are addressable through improved communication between the institution and the student.”

Continue reading Report: New Technologies Could Help Improve Financial Aid Process

DRT Now Available for Income-Driven Repayment Plan Applicants

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The IRS Data Retrieval Tool (DRT) is now available to student loan holders applying for an income-driven repayment plan, the Department of Education announced last week.

According to a press release, “new encryption protections” have been added to the tool. However, the DRT will remain out-of-service for FAFSA filers until Oct. 1.

Continue reading DRT Now Available for Income-Driven Repayment Plan Applicants

Lawmakers Examine Factors Behind Suspension of DRT

The Internal Revenue Service Data Retrieval Tool (IRS DRT) was suspended on March 3, with Federal Student Aid (FSA) and IRS citing security and privacy concerns. On  May 3,  the House Committee on Oversight and Government Reform held a hearing to get a better understanding of the problems that caused the tool to be taken out of service and the steps FSA and the IRS are taking to restore this critical tool.

James Runcie, the Chief Operating Officer of the office of Federal Student Aid (FSA), confirmed that the DRT will continue to be suspended for 2017-2018 FAFSA; it will return Oct. 1, 2017 for the 2018-2019 FAFSA. This solution, according to a memo from FSA, will “limit the information that displays to the applicant” to enhance security. Taxpayer information will be encrypted and hidden from view on both the IRS DRT page and the FASFA page. Continue reading Lawmakers Examine Factors Behind Suspension of DRT

New Flexibilities for FAFSA Filers Affected by DRT Outage

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Institutions now have more options when it comes to verifying FAFSA information.

Last week, Secretary of Education Betsy DeVos announced that colleges and universities would be granted new flexibilities due to the extended outage of the IRS’s Data Retrieval Tool (DRT).

Continue reading New Flexibilities for FAFSA Filers Affected by DRT Outage

YesU: New App Helps Families Navigate the Financial Aid Process

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New York Times bestselling author Wes Moore launched BridgeEdU with one goal in mind: To increase college access and completion rates for low-income and first-generation students.

The program, which began in Baltimore in 2014, uses a high-tech, high-touch academic support model to help students transition during their first year of college. But as Moore and his staff quickly discovered, the complex process of applying for financial aid can create roadblocks for even the most motivated students.

Case in point? Although all members of the inaugural class of BridgeEdU scholars reported that they had applied for financial aid, the staff soon discovered that a whopping 75 percent hadn’t completed the FAFSA, and most of the students had not created accounts with Maryland’s state grant agency.

The experience inspired BridgeEdU staff to create YesU —  a mobile app released in 2016 that offers customized step-by-step support to students across the nation as they apply for financial aid.

Continue reading YesU: New App Helps Families Navigate the Financial Aid Process

Reminder: Beware Potential FAFSA Scams

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The Department of Education has always advised caution when working with third-parties on FAFSA completion, and is urging additional vigilance going forward given the unavailability of the IRS Data Retrieval Tool (DRT).

Representatives from the IRS and the Office of Federal Student Aid suspended the service in March out of concern that it could be misused by identity thieves. The tool, which many students use when applying for federal aid, is not expected to be restored until fall 2017.

There are reports that some students and families have been scammed by individuals seeking to take advantage of this situation by charging families for help filing the FAFSA and/or stealing the families’ personal information for illicit use.

Continue reading Reminder: Beware Potential FAFSA Scams

Survey: Cost Influences College Choice

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A new study confirms what many admission professionals already know —students are cost-conscious when selecting a college.

Nearly 19 percent of students who turned down the chance to attend their top-choice school in 2016 did so because of the cost of attendance, according to new data from Royall & Company, a firm that assists colleges with enrollment management and fundraising.

“I think enrollment leaders and the public in general have had a suspicion that cost factors were driving a lot of enrollment decisions,” Royall’s Managing Director Peter Farrell told Inside Higher Ed. “This verifies it in an empirical way.”

Continue reading Survey: Cost Influences College Choice

Learn More about Financial Aid Award Letters

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Reviewing and comparing award letters is an important part of the decision-making process for college-bound students.

Learn how to help families understand and interpret financial aid offers next week during a Twitter chat organized by the National College Access Network and the American Council on Education.

The hour-long discussion kicks off at 3 p.m. (ET) on Tuesday, March 28. Follow along and ask questions using #AwardLettersChat.

Continue reading Learn More about Financial Aid Award Letters