In 2010, the federal government eliminated the bank-based student loan program (formerly the Federal Family Education Loan Program, or FFELP) in favor of originating loans directly from the Department of Education). The move saved the federal government more than $10 billion in payments to banks—funding that has since been used to increase student aid. While the department serves as the loan originator, the role of servicing student loans was left to external entities.
You completed the Free Application for Federal Student Aid (FAFSA) and submitted all the needed paperwork.
Now you are enrolled in school and your friends are talking about getting a refund check. An email sent from your college says the funds will be available soon. Spring break is coming up and some of your friends are talking about going to the beach. Then you get another email from the campus housing office. They are asking you to save a few hundred dollars for the housing deposit for the upcoming fall semester.
Now you are curious. Is a refund going to be in your bank account? You may be wondering: “Is this extra money for me to spend?”
Let’s review how this works.
The aim of #DoublePell is simple. Supporters want to double the maximum Pell Grant, a move that would allow a student’s annual award to top out at $13,000.
A new website, doublepell.org, offers more information about the proposal and includes a customizable letter that students, families, and others can send to their members of Congress to communicate support for the increase.
You’ve been accepted to college? Perhaps more than one? Congratulations!
Now it’s decision time, and determining financial fit is part of the process. Here are eight things to consider as you review your award letters.
New features unveiled this week on StudentAid.gov are designed to help students better understand the process of borrowing for college and choose a repayment plan that’s right for them.
Both the website and myStudentAid mobile app are now equipped with enhanced entrance and exit counseling modules.
Last week, the Department of Education wrapped up its four-day virtual Federal Student Aid (FSA) Training Conference. The conference mainly serves as an annual training for financial aid professionals who disburse federal aid to students on campus.
COVID-19 has created a great deal of uncertainty among students and families, as well as admission and financial aid professionals. Foremost among these uncertainties is the fact that there has been a 15 percent decline in FAFSA submissions from high school seniors nationwide compared with the same time last year.
Now, more than ever, students and families need information and support to complete the financial aid process.
Has your school district successfully moved the needle on FAFSA completion? Are your students engaged in counselor-led initiatives to increase college and career readiness?
Share your story! Applications for the Power of Hope Awards are being accepted through Dec. 15.
Applying for financial aid can be a complicated task that requires significant time and effort for students and their families. According to recent data from the National Center for Education Statistics, although 65 percent of students who were high school freshmen in 2009 ultimately reported completing the Free Application for Federal Student Aid (FAFSA), 24 percent did not. Those who did not submit a FAFSA cited lack of awareness, lack of understanding of FAFSA requirements, and lack of time as barriers to completion.
On Sept. 17, the Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing titled “Time to Finish Fixing the FAFSA.” Chairman Lamar Alexander (R-TN) and ranking member Patty Murray (D-WA) have both sponsored FAFSA simplification legislation.
COVID-19 has set back the financial situations of many college students and created a tough learning environment for everyone. There’s been a lot of media attention highlighting that students can request more aid if their financial circumstances change.
So what’s the deal?
Yes, you can appeal your financial aid.
During this global crisis, many students already are facing significant economic hardships and challenges and need additional financial aid to stay in school. Let your college know how you’ve been affected by filing a “special circumstance appeal” to communicate a job loss or significant change in financial situation. You can also request support for dependent care, child care, or disability-related expenses.
Historically, Black and Latinx students have been at significant educational disadvantages. These inequities have crossed into many facets of higher education, from access to quality K-12 education to enrollment rates at selective institutions. Unfortunately, the coronavirus pandemic has deepened these inequities, as the virus has disproportionately affected low-income Black and Latinx students’ ability to receive a quality education.
Researchers at EAB wanted to determine if these inequities extended to enrollment deposits and financial aid at colleges and universities. To do so, they analyzed enrollment data and the Free Application for Federal Student Aid (FAFSA) deposit information of 500,000 students admitted to four-year colleges across the United States for the Fall 2020 semester.
Results of the study indicate a widening equity gap. According to deposit submission rates, low-income and minority students are not submitting deposits as much as in previous years. While deposits are down across all low- and middle-income households, they are lowest among Pell-eligible households. When broken down by race and ethnicity, Black students were significantly more likely not to submit deposits when compared to other ethnic groups.
Also, of significant concern is the percentage of low-income students who have not filed a FAFSA form even though they qualify for financial aid. Eighteen percent of Black students and 15 percent of Latinx students have not yet filed their FAFSA form for the Fall 2020 year, rates much higher than white and Asian students. While minority students usually file at lesser rates than white students, the heightened rates for the Fall 2020 semester indicate that the coronavirus pandemic may be disproportionally affecting the minority student population.
As a result of the findings, EAB encourages colleges and universities to act swiftly to ebb the impact of coronavirus on low-income and minority students. They suggest that the first step involves identifying and contacting students who have made a deposit, but have yet to complete and submit their FAFSA. Colleges can then provide FAFSA completion support to help students submit their financial aid information. EAB urges colleges to be consistent, persistent, and clear in their messaging to relate the significance of filing these important documents.
Read more about FAFSA filings and enrollment declines.
NACAC Research Associate Cameron Hair welcomes comments and story ideas at email@example.com