Many financial-aid offices said they changed the way they work because of FSA’s layoffs. About a quarter reported shuffling responsibilities among employees. A quarter said they delayed some tasks. Smaller shares hired more help or turned to external contractors. Respondents who submitted open-ended comments often said employees are working longer hours.
It’s becoming harder for students to access and understand federal financial aid, according to NASFAA. Colleges say students are increasingly asking when they’ll receive their aid, and they’re wondering how delays might affect their access to programs like Public Service Loan Forgiveness.
- Colleges often don’t know how to answer students’ questions.
The context: NASFAA hasn’t been shy in voicing reservations about a slimmed-down Education Department. “Claiming that eliminating half the department won’t affect its services — without any clear plan to redistribute the workload — is, at best, naïve and, at worst, deliberately misleading,” Beth Maglione, who was its interim president, said after March’s layoffs were announced.
“Students need accessible and consistent information about financial aid, and schools need clear guidance and support to effectively counsel their students,” Melanie Storey, NASFAA’s president and chief executive, said in a statement. “The department must act quickly to remedy the situation before the damage to schools and students is beyond repair.”
The findings contrast with sunnier data from the Education Department. James Bergeron, deputy under secretary and acting chief operating officer for Federal Student Aid, said last month that 92 percent of users had reported satisfaction with the FAFSA and 85 percent of questions were being resolved by an improved virtual assistant.
“The Biden Administration completely botched the 2023-24 FAFSA rollout — students faced extreme delays, colleges and universities could not package aid offers on time, and more than 2 million calls were dropped,” the department said in a statement on Tuesday. “In President Trump’s first 100 days, the department has responsibly managed and streamlined key federal student aid features, including fixing identify verification and simplifying parent invitations, while ensuring the 2026-27 FAFSA form is on track. The department will continue to deliver meaningful and on time results for students, families, and administrators.”
The bigger picture: The Federal Student Aid office was sharply hit by March’s layoffs, raising concerns that the recently fixed Free Application for Federal Student Aid could run into new problems or the disbursement of student grants and loans could be interrupted. Today’s survey results could have been much worse. But they’re hardly encouraging.