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☆ Federal Student Aid head Richard Cordray, tasked with FAFSA rollout, to step down
▼ + stars: | 2024-04-26 | by ( Katie Lobosco | ) edition.cnn.com time to read: +7 min

Washington CNN —The head of the Federal Student Aid office, which has faced criticism for the botched rollout of this year’s college financial aid form, will be stepping down. The announcement of Cordray’s departure comes as his office has been under fire for problems with a new version of the Free Application for Federal Student Aid, or FAFSA, released late last year. “If there was a financial aid director, or even a college president, that delayed financial aid on their campus for up to six months, the professional price that would be paid for that would be pretty steep,” Justin Draeger, president of the National Association of Student Financial Aid Administrators, told lawmakers. Cordray’s tenureAs the head of FSA, Cordray oversaw not only the FAFSA but also the entire $1.6 trillion federal student loan system. It also sued Navient, one of the biggest federal student loan servicers, for allegedly processing payments incorrectly.

Persons: Richard Cordray, Cordray, Justin Draeger, Virginia Foxx, Miguel Cardona, Cordray’s, Rich Cordray’s, ” Cardona, “, Rich, Obama, ” Cordray, Pell, Biden, Trump, Massachusetts Sen, Elizabeth Warren —, Navient, “ I’m, ” Warren Organizations: Washington CNN, Federal, Aid, CNN, Department of Education, Federal Student Aid, Education, Workforce, National Association of Student Financial, Republican Rep, Consumer Financial Protection Bureau, Democratic, National College, of Education, Public, Consumer Financial, Massachusetts, Corinthian Colleges Locations: North Carolina, Ohio

☆ FAFSA is still having major issues and delaying financial aid decisions—how students and families can cope
▼ + stars: | 2024-04-05 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

Numerous hiccups in the rollout of the updated Free Application for Federal Student Aid have upended this year's financial aid award season. By now, most of the problems with submitting the form have been resolved, but getting the FAFSA information from the ED's Federal Student Aid office to colleges has introduced another slew of issues. "Continually taking two steps forward and one giant step back is not a sustainable pathway toward getting financial aid offers out to students and families." Outside of those erroneous forms being reprocessed, FSA said as of April, schools should start receiving students' financial information within one to three business days of the student submitting their FAFSA. Still, some students may feel the pressure to commit to a school before they've seen all the financial aid offers available to them or skip the FAFSA — and potentially college — process altogether.

Persons: Justin Draeger, they've Organizations: Federal, Education, National College, Aid, Internal Revenue Service, IRS, National Association of Student Financial

☆ 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

☆ 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

☆ 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

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