A new survey by Debt.com has uncovered ongoing challenges in the federal student aid application process, with 76% of respondents reporting difficulties when filing the Free Application for Federal Student Aid (FAFSA). This comes as the U.S. Department of Education introduces the 'Better FAFSA' program, aimed at simplifying the process, yet the survey indicates that the initiative has not met its objectives.
Key issues identified include an overwhelming number of questions on the application and frequent website malfunctions. Nearly half of the respondents (48%) found the application too lengthy, while 31% encountered website maintenance issues. Alarmingly, 23% of those who faced difficulties spent at least 3 ½ hours completing the FAFSA.
Don Silvestri, president of Debt.com, remarked on the irony of the situation, noting the lack of improvement despite the FAFSA Simplification Act of 2020. The survey also revealed widespread misconceptions about Pell Grants, with 77% of respondents mistakenly believing these grants contribute to student loan debt, highlighting a gap in financial aid education.
Despite these challenges, 58% of respondents benefited from FAFSA by avoiding student loans through Pell Grants, scholarships, or work-study opportunities. However, 42% still had to borrow money, indicating room for improvement in the aid process.
Silvestri expressed optimism about leveraging AI to simplify FAFSA in the future, emphasizing the need to ensure students do not miss out on funding due to application complexities. The Education Department has announced that the 2025-2026 FAFSA will be available from October 1, promising a completion time of just 15 minutes, setting the stage for a critical evaluation of the 'Better FAFSA' initiative.
This survey underscores the urgent need for a more accessible and efficient federal student aid application process, ensuring all eligible students can secure the financial support necessary for their education.
