Pennsylvania students have been given an additional month to finish the federal aid application that determines if they qualify for grants to attend college this autumn.
The Pennsylvania Higher Education Assistance Agency’s board voted on Thursday to extend the Free Application for Federal Student Aid deadline to June 1 without discussion. This decision is a result of the high number of mistakes and delays linked to the federal government’s introduction of a simplified FAFSA.
Finishing the FAFSA is the initial step to ascertain eligibility for federal, state, and institutional financial aid.
Students who submit their applications by the new deadline and fulfill the state grant program’s criteria for receiving an award will be guaranteed to receive one, according to PHEAA officials. Grant amounts differ based on family income and the cost of attending a post-secondary institution. The need-based grants do not need to be repaid.
The uncertainty about the amount of financial aid students will receive is predicted to lead to a decrease in college enrollments next year, with more students taking a gap year after their high school graduation, which raises the possibility of some students never attending college, according to college officials.
The National Association of College Admissions Counseling estimates that the delays in the FAFSA process could decrease student enrollment next year by over 500,000, with a disproportionate number of students being those who have the greatest financial need.
Many colleges and universities have announced delays in their deadlines for students committing to enrolling in the fall as a result.
Penn State, Pitt, and the 10 Pennsylvania’s State System of Higher Education universities have announced that they are extending their deadline for new students to commit to at least May 15. Temple University this week announced it is extending its deadline to July 15.
Joseph Howard, Widener University vice president for enrollment, sent a letter to Gov. Josh Shapiro on April 10 urging him to request a postponement in the traditional May 1 deadline for FAFSA submissions for state grants.
“We risk leaving tens of thousands of students from across the commonwealth without the vital support the PA State Grant program affords them,” Howard stated.
PHEAA relies on the number of FAFSA form completions in its formula for calculating the size of maximum grant awards, which this year were as high as $5,750.
Earlier this week, Elizabeth McCloud, PHEAA’s vice president for state grant and special programs, reported to the board’s need analysis and aid committee that the number of first-time and renewal students who completed the FAFSA was 251,961 as of April 5. That is down 68,231 applicants at the same time last year.
Extending the FAFSA completion deadline offers a chance for more students to meet the grant eligibility requirements, she informed the committee. However, she noted If more students qualify for a grant, that could lead to a need for more grant money given the board’s goal of maintaining the maximum award at $5,750.
Shapiro suggested increasing the $347.3 million in state funding to $378.3 million in his 2024-25 budget. He expects PHEAA to use earnings from its student aid business lines to add $15 million, making a total of $393.3 million. The governor's request also includes an assumption that the maximum grant award would rise to $6,750 as part of his higher education reform plan. higher education reform plan which is still being developed.
However, another factor that could impact the amount of money needed for the grant program is the federal switch to the Student Aid Index to determine eligibility. Student Aid Index to determine who is eligible for aid.
McCloud stated that this change is likely to increase the number of students who qualify for a state grant based on income limits. PHEAA estimates that this change could require an additional $40 million in funding to maintain the maximum grant award at the current level.
Alternatively, PHEAA's president and CEO Jim Steeley informed the committee that the decrease in FAFSA completions and expected reduction in college enrollments could balance out the need for more funding.
Due to the confusion surrounding the FAFSA errors and delays, he said, “Many people are feeling very frustrated.”
Jan Murphy may be reached at [email protected]. Follow her on X at @JanMurphy.
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