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☆ Some Good FAFSA News: There’s a Loophole for Grandparents
▼ + stars: | 2024-02-17 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

It is a miserable year to be applying for financial aid. Millions of families probably won’t get a final price tag for college until at least April, because of a series of Education Department delays in rolling out the new FAFSA financial aid form. But if you’re applying for aid and have grandparents who want to help, you may be in luck. But now, thanks to a 2020 law that went into effect this year, those questions about money and income are gone. That means that at most schools, help from a grandparent will no longer count against you.

Persons: Pell Grant Organizations: Education Department, Federal Student Aid

☆ Some student-loan borrowers have just 2 months left to benefit from temporary debt relief. Here's what they need to do.
▼ + stars: | 2024-02-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Time is running out for some student-loan borrowers to benefit from a limited-time debt cancellation reform. AdvertisementBorrowers who will receive the account adjustment automatically must be in the federal direct loan program or the Federal Family Education Loan program with loans held by the Education Department. Other borrowers who have loans in the FFEL program that are commercially held would need to consolidate into the direct loan program to receive relief. AdvertisementAt the same time, the Education Department is in the process of crafting its second attempt at more expansive relief for borrowers. On February 22 and 23, it will meet with stakeholders for the fourth time to negotiate the text of debt relief under the Higher Education Act of 1965.

Persons: Joe Biden's, Biden, Biden's Organizations: Service, Joe Biden's Education Department, Public, Business, Aid, Family Education, Education Department, Higher

☆ Amid the many problems with the new FAFSA, 'every student' should appeal for more financial aid, one expert says
▼ + stars: | 2024-02-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Above all else, the new Free Application for Federal Student Aid was designed to improve college access. As of the last tally, nearly 4 million students have submitted the 2024-25 FAFSA form so far. That’s a fraction of the 17 million students who use the FAFSA form in ordinary years, according to the U.S. Department of Education. For most students and their families, the amount of financial aid offered and the breakdown between grants, scholarships, work-study opportunities and student loans are key to covering the tab. “Every student should anticipate doing an appeal this year,” said Bethany Hubert, a financial aid specialist with Going Merry by Earnest.

Persons: ”, Bethany Hubert, Earnest Organizations: Federal Student, U.S . Department of Education, Finance, Biden, College Board

☆ The new FAFSA rollout has faced several obstacles and delays—what students and families can do
▼ + stars: | 2024-02-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Since its rollout at the end of December, the 2024-25 Free Application for Federal Student Aid has run into a number of speed bumps. All of which has culminated in delayed financial aid packages for current and incoming college students. To help alleviate some of the issues, ED announced this week it will deploy a "FAFSA College Support Strategy." The department will send resources, including funding and personnel, to college campuses to support financial aid administrators processing incoming FAFSA forms. "Students and families should keep in mind that, although the current circumstances are certainly stressful, everyone applying for financial aid is in the same situation."

Persons: they're, they'll, Jill Desjean Organizations: Federal, Aid, Department of Education, The Department, National Association of Student Financial, CNBC

☆ FAFSA Delays Make Affording College Even Harder - The New York Times
▼ + stars: | 2024-02-08 | by ( Justin Draeger | Ted Mitchell | ) www.nytimes.com time to read: +2 min

Each year, more than 17 million students complete the Free Application for Federal Student Aid, or FAFSA, hoping to secure the financial support they need to afford college. But this year, operational glitches and repeated delays in the U.S. Department of Education’s “Better FAFSA” rollout threaten to harm the very students and families that financial aid is intended to help. Despite promises of an easier, more straightforward application process, students and families so far have been met with glitches and delays, and still today, there are entire groups of students blocked from even completing the form. Students may not receive financial aid offers until April and are typically expected to make a decision about where to attend college by May 1. Others may delay enrolling in college for another year, once the aid application process is running more smoothly.

Organizations: Federal Student Aid, U.S . Department

☆ Some Colleges Are Pivoting as FAFSA Delays Drag On
▼ + stars: | 2024-02-08 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

At least 25 schools will no longer require commitments by May 1, since they may not be able to send admitted students financial aid offers until April. A few schools have created new aid forms or processes on the fly to award their own grants and scholarships. In 2020, Congress passed a law that required enormous changes to the processes used to award federal aid. The first was to the Free Application for Federal Student Aid, or FAFSA, form to make it easier to complete. Another was to the formula that doles out federal aid, which was made in part to offer more help to lower-income students.

Organizations: University of California, California State University, Federal Student Aid

☆ Student-loan borrowers who have faced repayment errors should get a 'personalized' explanation on how their account is being corrected — but it'll take time, the Education Department says
▼ + stars: | 2024-02-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers have encountered a range of repayment issues, and any mistakes in their accounts will be fixed — but it'll take some time. The Education Department posted guidance for borrowers on what to expect if they found mistakes in their accounts. "It might take several weeks for your loan servicer to send this communication and to make corrections to your account," the guidance said. "You might receive an updated billing statement before you receive the above communication about corrections. According to a notice reviewed by BI in November, student-loan company MOHELA told some borrowers that it was "in the process of updating your account.

Persons: servicers, MOHELA Organizations: The Education Department, Public, BI, Federal, Department

☆ Amid rocky FAFSA rollout, Education Department looks to smooth the so-far bumpy debut — 'too little, too late,' expert says
▼ + stars: | 2024-02-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education announced Monday it is introducing a "FAFSA College Support Strategy" with additional personnel, funding, resources and technology to help colleges process the new Free Application for Federal Student Aid forms after the rollout was repeatedly complicated by a number of setbacks. "We are determined to get this right," U.S. Secretary of Education Miguel Cardona said in a statement. However, the consensus among college financial aid administrators seems to be that it is "too little, too late," said higher education expert Mark Kantrowitz. It will also offer a "concierge service" to answer questions from colleges about the new form and help schools drive FAFSA completion so students can get their aid packages in time. Last week, the Department of Education said colleges won't receive FAFSA applicant information until early March, instead of late January as initially estimated, potentially delaying financial aid award letters until April or later.

Persons: Education Miguel Cardona, Mark Kantrowitz, Biden Organizations: U.S . Department of Education, Federal, Education, Finance, Department of Education

☆ How Supreme Court affirmative action decision is impacting college applicants. 'The barriers are already so high,' one legal expert says
▼ + stars: | 2024-02-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

The percentage of first-year applicants identifying as Black or Latino jumped 12% and 13%, respectively, year over year, outpacing other groups. At the same time, colleges are seeing an increase in first-generation applicants and international students, the Common App found. The financial aid factorFor many families, the price tag is the most significant sticking point when it comes to college access. Black households also tend to borrow more than households to finance a higher education. And because of historic racial and economic inequities, Black student loan borrowers struggle to repay their debt more than their white peers.

Persons: it's, Cara McClellan, Biden, Bryan Cook, Cook, Elise Colin, Colin, McClellan, Wells Organizations: Racial, Civil Justice Clinic, University of Pennsylvania Carey Law School, Finance, Urban Institute, Urban, University of California, University of Michigan, Federal Student Aid Locations: Wells Fargo

☆ Why college applicants will have to wait months longer to find out how much financial aid they're getting this year
▼ + stars: | 2024-02-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The latest delay means financial aid awards might not come until April. AdvertisementThe sole application for receiving college financial aid has had a rocky rollout this year — and it means reward letters will be delayed by months. AdvertisementThe latest delay in receiving financial aid awards can be attributed to the department's efforts to update FAFSA qualifications to expand families' financial aid eligibility. However, that'll take time — and could leave some families in a time crunch when it comes to evaluating their financial aid packages. "Updating our calculations will help students qualify for as much financial aid as possible."

Persons: —, That's, they'll, that'll, Education James Kvaal, Justin Draeger, Draeger, Virginia Foxx, Burgess Owens, Secretary Miguel Cardona, Sen, Bill Cassidy, Biden, Cassidy, Foxx, Richard Cordray Organizations: Education Department, Service, Federal Student Aid, Education, U.S . Department of Education, National Association of Student Financial, Republican, Secretary, Department, Office, Aid

☆ FAFSA inflation fix may delay financial aid letters, Education Department says
▼ + stars: | 2024-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education says it recently updated a key part of the new Free Application for Federal Student Aid formula, but, as a result, colleges won't receive FAFSA applicant information until early March, instead of late January as initially estimated. "These continued delays, communicated at the last minute, threaten to harm the very students and families that federal student aid is intended to help," said Justin Draeger, president of the National Association of Student Financial Aid Administrators. At launch, the new FAFSA relied on old consumer price index figures from 2020, before the recent runup in inflation. Just last week, the Department of Education said it planned to update this part of the new FAFSA formula, which will mean an additional $1.8 billion in aid for college-bound students this year. That update has now been completed, the Department of Education said Tuesday, and, as a result, 1.3 million students will see larger Pell Grants, a type of aid available to low-income families.

Persons: Justin Draeger, TikTok Biden Organizations: U.S . Department of Education, Federal, Aid, Department, National Association of Student Financial, Finance, Department of Education Locations: Pell

☆ Fahmi Quadir, short seller nicknamed 'The Assassin,' takes aim at for-profit college giant Adtalem
▼ + stars: | 2024-01-30 | by ( Eamon Javers | ) www.cnbc.com time to read: +4 min

Quadir told CNBC she has a short position in the stock, meaning she is betting that the share price will decline. "We believe that Adtalem is completely uninvestable, the number of existential risks that exists today should cause alarm for any investor that's looking into this company," Quadir said. In 2017, DeVry Education changed its DV ticker symbol to Adtalem's current ATGE, completing the rebranding of DeVry into Adtalem. Quadir's report found that among Adtalem's properties, the online college Walden University has a graduation rate of just 29%. Adtalem's stock price has soared over 75% in just seven months, from just over $33 a share in late June, to more than $60 a share at Monday's open.

Persons: Quadir, Safkhet, Bridget Bennett, Rafael Henrique, Lightrocket, DeVry, Adtalem Organizations: Bloomberg, Getty Images WASHINGTON, Walden University, Chamberlain University, Ross University School of Medicine, CNBC, Safkhet, Netflix, Education, DeVry University, Cogswell Education, Blackrock, Vanguard, Department of Education, Higher Locations: Las Vegas , Nevada, U.S, Barbados, Quadir, Adtalem

☆ How Some Families Are Breaking the Rules to Apply for Financial Aid
▼ + stars: | 2024-01-27 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

Here’s the good news: The Free Application for Federal Student Aid, or FAFSA, website is now open 24 hours a day, seven days a week after a yearslong effort to simplify the process of seeking financial assistance. This month, I watched two high school seniors and their college counselor start the forms from scratch and submit them in just over an hour. But in doing so, the teenagers made a false statement that broke the law. In this case, safeguards are necessary to protect private financial information. But any new login requirements might also trigger an impulse for many families with complicated lives to bypass them.

Persons: ’ Organizations: Federal Student Aid

☆ Education Department's FAFSA inflation fix will free up $1.8 billion more in aid for students
▼ + stars: | 2024-01-24 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowThe U.S. Department of Education says it plans to update a key part of the new Free Application for Federal Student Aid formula, which will result in $1.8 billion more in aid for college-bound students this year. The announcement comes weeks after the simplified FAFSA soft launched Dec. 30 after a monthslong delay. As a result, more middle- and higher-income students could qualify for a Pell Grant, a type of aid available to low-income families, added higher education expert Mark Kantrowitz. Currently, the maximum Pell Grant award is $7,395. "Students on the edge of Pell Grant eligibility could be most affected," Kantrowitz said.

Persons: Justin Draeger, Pell Grant, Mark Kantrowitz, Kantrowitz Organizations: U.S . Department of Education, Federal, Aid, National Association of Student Financial

☆ Department of Education makes another fix to the FAFSA, unlocking an additional $1.8 billion in financial aid
▼ + stars: | 2024-01-24 | by ( Katie Lobosco | ) edition.cnn.com time to read: +4 min

Washington CNN —The Department of Education said this week that it is making an additional adjustment to this year’s Free Application for Federal Student Aid, known as the FAFSA, that will make $1.8 billion more available in financial aid. The FAFSA determines eligibility for federal Pell Grants and federal student loans – and in most cases, the financial aid provided by colleges as well. But initially, the Department of Education did not tie the new FAFSA calculation to the latest inflation data, as required by law. It remains to be seen whether colleges can announce financial aid awards on their usual timeline. FAFSA overhaul will make more students eligible for financial aidSeparate from the inflation adjustment, the overhaul of the FAFSA makes the form easier to fill out and increases the number of families eligible for financial aid.

Persons: ” Justin Draeger, ”, Pell Organizations: Washington CNN —, Department of Education, Federal Student Aid, CNN, NPR, The Washington Post, of Education, National Association of Student Financial, The, Republican, Department of

☆ Some student-loan borrowers could get extra money from their school under a new Education Department proposal
▼ + stars: | 2024-01-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewPresident Joe Biden's Education Department has kicked off another round of negotiations to craft new rules for higher education — and it could get some student-loan borrowers extra cash. One of the department's proposals concerns how schools manage students' meal plans. AdvertisementThe department will continue negotiations on these regulations in February and March sessions with stakeholders, with the opportunity for public comment. Along with the cash management proposals, the department is also in the regulatory process of crafting its second attempt at student-debt relief for borrowers. "Failing to finalize a proposal to provide relief for borrowers experiencing hardship would result in millions of borrowers — including most recent graduates, many low-income borrowers, borrowers of color, and borrowers with disabilities — being left out of the necessary debt relief," nearly 70 advocacy groups sent to Education Secretary Miguel Cardona last week.

Persons: —, Joe Biden's, They're, Biden's, Education Secretary Miguel Cardona Organizations: Service, Joe Biden's Education, Business, Education Department, Higher, Education Secretary

☆ All 4 major student-loan companies have now gotten punished for customer service issues as borrowers struggle with repayment — and it might not be the end
▼ + stars: | 2024-01-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Read previewIt hasn't been easy for student-loan borrowers since payments restarted a few months ago — and for the companies that manage their debt. The Education Department is aware of those errors and highlighted them in an internal Federal Student Aid memo in November. AdvertisementIn the past fiscal year, Congress did not boost funding for Federal Student Aid, which oversees all student-loan operations. And in the current round of budget negotiations, House Republicans have proposed steep cuts for Federal Student Aid. One servicer, MOHELA, told Democratic lawmakers in response to queries on repayment preparation that "millions of borrowers resumed repayment simultaneously after a multi-year pause."

Persons: —, Joe Biden's, MOHELA, servicers, Miguel Cardona, that's, servicer, I'm, Harris, Cardona Organizations: Service, Business, Joe Biden's Education Department, Education Department, Department, Education, Federal, Aid, The Education, Federal Student Aid, House Republicans, Democratic, Biden, Harris Administration

☆ Why Is Paying for College So Complicated?
▼ + stars: | 2024-01-18 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

Saving and paying for college is an endurance test, a forced march on an often 50-year parade, where strange numerical codes and senseless jumbles of letters mark a route that Waze can’t map. Begin at age zero or earlier with a 529 college savings plan for your child, born or not yet so. Then, fill out the FAFSA, which stands for “Free Application for Federal Student Aid,” and determine your student aid index (S.A.I.). or other data or the figures that another form, the CSS Profile, belches out is probably not enough to make college affordable. So you could apply for a federal PLUS loan for parents, which might take you 25 years to repay.

Organizations: Federal Student Aid, CSS

The departure of Election Assistance Commission executive director Steven Frid, confirmed by the agency on Tuesday, comes just as voting begins in the U.S. presidential election. Frid held the position for less than a year and was the agency’s third executive director in three years. The EAC's chief information officer will serve as acting executive director while a search for a permanent replacement is underway, the EAC commissioners said in a statement. The executive director, along with the general counsel, are the agency’s top two staff positions and have experienced heavy turnover since 2019. The EAC now heads into a major election year without an executive director or general counsel.

Persons: Steven Frid, Frid, chad ” Organizations: U.S, EAC, U.S . Department of, Secret Service, U.S . Coast Guard, Personnel Management, Help, Associated Press, AP Locations: Florida

NEW YORK (AP) — Student and legal advocacy groups are petitioning the U.S. Department of Agriculture to lift the interview requirement for Supplemental Nutrition Assistance Program (SNAP) applicants to receive food aid. The groups argue the interview requirement is burdensome and prevents those who qualify for food aid from receiving it. Political Cartoons View All 253 ImagesEligible households next receive a notice indicating their certification period, or how long they'll receive SNAP benefits. But interviews are not mandated by the federal statute governing the SNAP program, the organizations petitioning the government note. A 2021 review of enrollment data in California found that 31% of SNAP applicants in Los Angeles County were denied SNAP due to missing their interview, compared to just 6% who were denied for failing to meet eligibility requirements.

Persons: Aviana Kimani, Kimani, it’s, ” Kimani, “, you’re, Allan Rodriguez, Ty Jones Cox, ”, Aaron Ament, Charles Schwab Organizations: U.S . Department of Agriculture, Nutrition Assistance, SNAP, Student Legal Defense Network, Center for Law, Social, California, Aid, Department of Agriculture, West Los Angeles College, Agriculture Department, Center for Budget, Student, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: California, Los Angeles County

☆ The new FAFSA form for 2024 was supposed to streamline the process. It took me 13 hours to complete — and only thanks to Reddit.
▼ + stars: | 2024-01-11 | by ( Erika Ebsworth-Goold | ) www.businessinsider.com time to read: +5 min

The Department of Education says the FAFSA overhaul will improve and streamline the application process. AdvertisementFirst, I started my son's application. It couldn't handle specific questions and simply referred me back to the general FAFSA site. It took another hour of trying before I could finally, blessedly, file the form — after 13 hours of trying. I'm glad my family got through what was a frustrating experience — although I'll feel better once we get confirmation that my son's application is processed successfully.

Persons: —, I'd, Aidan, Reddit, Aidan couldn't, it's Organizations: Service, US Department of, Federal Student Aid, of Education, Internal Revenue Service, Business, Social, Google, Department of Education, DOE

☆ The new FAFSA will be available by Dec. 31 — what families need to know about the college financial aid form
▼ + stars: | 2023-12-04 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

The earlier families fill out the form, the better their chances are of receiving aid, since some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds. However, that shouldn't prevent families from completing the FAFSA in the days that follow, he added. "While there may be some hiccups along the way, students and families should do what they need to do to file as soon as possible," he said. Up until now, "the multiple student adjustment has been the single most important data element affecting one's eligibility for federal student aid," Chany said. At the same time, the new FAFSA will raise the family income threshold, making more students eligible for federal need-based aid.

Persons: Rick Castellano, Sallie Mae, Castellano, What's, Kalman Chany, Chany, Pell Grant, Mark Kantrowitz Organizations: IRS, slims, Department, Education, Princeton, CNBC

☆ Student-loan borrowers are facing 'serious risks' to their credit scores following the 'chaotic' payment resumption, 4 Democratic lawmakers say
▼ + stars: | 2023-12-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Four Democrats recently wrote a letter that raised concerns about student-loan repayment challenges. They said they're worried servicer errors could hurt borrowers' credit scores. AdvertisementIt's been just over two months since federal student-loan payments resumed and millions of borrowers have already faced a range of difficulties with the transition. Elizabeth Warren, Bernie Sanders, Richard Blumenthal, and Chris Van Hollen sent a letter to Education Secretary Miguel Cardona expressing concerns about challenges student-loan borrowers have faced over the past few months. "For example, we are concerned that ED's credit reporting processes may expose borrowers' credit scores to unanticipated consequences," the letter said.

Persons: they're, —, It's, Elizabeth Warren, Bernie Sanders, Richard Blumenthal, Chris Van Hollen, Secretary Miguel Cardona, it's Organizations: Education Department, Service, Democratic, Secretary, Department, Democrats, Federal Student Aid, House Republicans Locations: Sens

☆ Meet the typical student-loan borrower: a millennial woman with a $35,000 balance who wants debt relief
▼ + stars: | 2023-11-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Millennials hold the most student debt, with an average balance of about $35,000 per person. Most student-loan borrowers want Biden to deliver broad debt relief. Take Helena, a 58-year-old borrower with $145,000 in student debt who previously had to sell items on eBay to afford her payments. That amount varies by generation: the average Gen Z borrower holds $24,472 in student debt, the average millennial holds $42,637 in student debt, and the average Gen Xer holds $48,733 in student debt, according to TransUnion. A Morning Consult and Politico poll in June 2022, right before Biden's first debt relief plan was announced, found that of 2,000 registered voters, 65% of respondents aged 18 to 34 supported $10,000 in debt relief, with 61% of respondents aged 35 to 44 feeling the same.

Persons: Millennials, Biden, —, Helena, Joe Biden's, Theresa Teders, that's, it's, Xer, Zers, millennials, Gen Xers —, Biden's Organizations: Service, eBay, Education Department, Higher, American Association of University Women, Federal Student Aid, Politico

☆ My son is applying to 17 colleges. The stress is becoming too much for both of us.
▼ + stars: | 2023-11-18 | by ( Erika Ebsworth-Goold | ) www.businessinsider.com time to read: +4 min

My son is applying to 17 colleges, and the application process is causing us both stress. My son is staying up late to get it all done, but I'm trying to make sure he stays healthy. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . Thankfully, we've gotten some great advice from his school's college counselor. AdvertisementAs intense and emotional as applying to college is, I know this will all be worth it in the end.

Persons: —, he's, He's, we've, who've, We've Organizations: Service, International, Federal Student Aid, College Locations: It's

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