Key Points
- Republicans in Congress have introduced bills to make the FAFSA available on October 1 each year.
- The FAFSA has typically been available on October 1 since 2016, despite a legal mandate for January 1.
- The recent botched FAFSA rollout highlights the need for a reliable and timely application process.
Republican lawmakers in both the U.S. House of Representatives and Senate have introduced legislation aimed at ensuring the Free Application for Federal Student Aid (FAFSA) is consistently made available to students on October 1 each year.
This move seeks to formalize a practice that has been in place since 2016 but is not yet mandated by law.
This all comes after a completely botched FAFSA rollout this year which saw the deadlines moved multiple times, and processing delayed until March. The impact has been fewer families filling out the FAFSA, reducing financial aid, and burdening college financial aid teams across the country.
What Happened
The FAFSA, a crucial tool for students seeking financial aid for higher education, has typically been released on October 1 each year since 2016, several months earlier than the legally required January 1 release date.
This discrepancy between common practice and the legal mandate became particularly significant during the problematic rollout of the updated “Simplified FAFSA” form at the end of December 2023.
The incomplete and delayed release caused significant confusion and frustration among students and educational institutions. FAFSA completions are significantly lower than past years, which means families will receive less aid for college.
Looking Ahead
Karen McCarthy, Vice President of Public Policy & Federal Relations at the National Association of Student Financial Aid Administrators (NASFAA), expressed support for codifying the October 1 launch date into law, just not for the upcoming year in order to make sure the form is fully functioning and tested.
In a statement, McCarthy emphasized that an earlier release date enables colleges and universities to provide financial aid information to students much sooner, facilitating better planning and decision-making for prospective students.
The ultimate goal is to ensure that the FAFSA system is not only available on time but also fully functional and reliable, allowing students to access the financial aid they need without unnecessary delays or complications.
Editor's Note: This article has been updated to reflect that NASFAA clarified that they support the FAFSA launch on October 1 being codified into law, but not for this year in order to ensure the product is fully functioning and running smoothly.
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Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications, including the New York Times, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.
Editor: Colin Graves