INDIANAPOLIS — This is the time of year when early college applicants might start getting their financial aid letters.
But this year, families may be waiting longer.
That is because the Free Application for Federal Student Aid release date was delayed this year, so colleges and universities are waiting on FAFSAs, too.
Randy Stegemoller, who owns Class 101 franchises in Bloomington, Carmel and Tampa, Florida, said some families fear filling out the application.
"It's kind of like a tax form," Stegemoller said. "If you're comfortable with a tax form, you're probably comfortable with the FAFSA. But most of us, I don't think are comfortable with a tax form."
That is in part why the Department of Education overhauled it.
The goal: to make it simpler.
But the overhaul pushed the form's release date from the typical Oct. 1 to around Jan. 1. While the department said they began the soft launch on Dec. 30, 2023, many could not access the application.
"We're now in a situation where the colleges are feeling a pinch, too. They're trying to tell everybody how much they're going to be getting as an offer letter, but they don't have the information yet," Stegemoller said.
Melissa Smurdon, who is the executive director of financial aid at Butler University, can confirm that pinch.
"We do not have results of a single FAFSA yet," Smurdon said.
The Department of Education said schools will receive FAFSA eligibility information starting in late January.
But it is late January and Smurdon said they have not been provided an exact date yet. She added what is more alarming to her is the lack of software testing.
"Our vendors, all of the vendors of all the schools, we've not had the test of being able to receive them, the test of the new format, and the test of our systems," Smurdon explained. "Being able to load those and do all the things, and edit and review."
That means they are preparing for what could be a tight turnaround.
"We may even have some extra part time help because it is a massive amount of work to do," Smurdon said.
So what can parents do?
If you have filled out the FAFSA, the short answer is nothing.
If you have not filled out the FAFSA, families can get the ball rolling by requesting a Federal Student Aid ID. Sometimes, that can take a few days.
While you have until June 30 to fill it the application, experts typically say the sooner the better because funds and aid typically go down with time.
Other changes to FAFSA
Stegemoller said a big change this year is removal of the multiple child discount.
"We used to call the EFC, the expected family contribution," he said. "If you had one child, it was a $20,000 EFC. If you had two children, it was $10,000 per child. And that was a nice discount for families that had multiple children. That has gone away."
On the flip side, the Department of Education said an estimated 610,000 new students will be eligible for a Pell Grant.
The maximum Federal Pell Grant award is updated every year. For the 2023-24 award year, the maximum Pell Grant award is $7,395. The maximum Pell Grant award amount for the 2024–25 award year will be announced in 2024.
Another change, Federal tax information will automatically be transferred from the IRS into the FAFSA form.
Stegemoller said while this is a great thing, there is a hard part.
"You won't be able to see what they (IRS) transferred in," he said, "you will be blind to that."
Once schools receive your FAFSA, Stegemoller said it is important families touch base with the financial aid offices in the colleges to confirm things are correct.
"If I were a parent, and I questioned that I wasn't receiving aid, and I thought I should have received aid, I would definitely go to the colleges. They're very receptive, the financial aid office, very receptive to you coming in and talking to them about potential mistakes in the form."