Will the FAFSA Disappear if the Division of Training Is Closed?

If the Division of Training now not exists, does the FAFSA disappear, too?

The Division of Training processes the Free Software for Federal Pupil Help and administers federal monetary help applications. Nonetheless, the division might not be round for for much longer, with Secretary of Training Linda McMahon speaking about methods to shut it. The division workers was slashed by almost half this month and the studentaid.gov web site went down for hours. 

“These workforce reductions elevate critical questions concerning the future performance of federal help applications,” pupil mortgage professional Elaine Rubin mentioned in an e-mail. “There was little communication about how the division plans to maintain environment friendly operations and forestall disruptions.”

If you happen to’re frightened about filling out the 2025-26 FAFSA — or have already submitted it — this is what you’ll want to know.

Is the FAFSA going away?

Even when the Division of Training is abolished, specialists don’t assume federal pupil help or the FAFSA goes away. 

“The software program system and name middle are by means of contractors, however there may be nonetheless vital work finished in-house,” pupil mortgage professional Mark Kantrowitz mentioned in an e-mail. “After final yr’s FAFSA fiasco, terminating workers may very well be a catastrophe.”

Each Rubin and Kantrowitz say administration of the FAFSA course of may very well be transferred to a different company. 

Rubin famous the FAFSA is the “set off software” for not solely federal monetary help applications but additionally for a lot of state and institutional help applications. 

“It will be an enormous endeavor to interchange the FAFSA, however that does not imply that sooner or later it may well’t be,” Rubin mentioned. However as a result of a fancy net of applications depend on the appliance, “we do not actually anticipate the FAFSA going away at the moment.”

The place may the FAFSA go?

Specialists say one other federal company is the probably candidate to take over FAFSA processing if the Training Division closes. Potentialities embody the Treasury Division or the Inner Income Service as a result of the FAFSA type already connects to the IRS system to add tax return information. 

Kantrowitz mentioned the US Treasury Division is the probably vacation spot for pupil mortgage applications. He added that regardless of which company takes it, the federal authorities should proceed to manage and handle pupil help.

“The states are incapable of dealing with pupil loans,” Kantrowitz mentioned. “Non-public lenders lack the capability and urge for food for privatizing the federal pupil mortgage portfolio.”

If the FAFSA does transfer to Treasury, Kantrowitz mentioned debtors doubtless would not discover a lot of a distinction.

“Most capabilities [of student loan programs] are carried out by means of contractors,” he mentioned. “Treasury lacks expertise with larger schooling guidelines so there could also be some preliminary chaos.”

Must you nonetheless submit FAFSA?

If you happen to need assistance paying for faculty, specialists say it’s best to proceed to make use of the FAFSA. The shape is used to find out your eligibility for monetary help, together with Pell Grants, scholarships, work-study applications and pupil loans.

Rubin famous one group of people that have added issues about submitting a FAFSA: College students who have to report info from a guardian or partner who’s an undocumented immigrant. Candidates who’re non-US residents with qualifying documentation could also be eligible for monetary help; the standing of economic “contributors” corresponding to dad and mom and spouses would not affect eligibility.

The Privateness Act of 1974 forbids the company from sharing sure figuring out info with out written consent or an specific settlement. Below present agreements, the division shares FAFSA info for candidates — however not contributors — with the Division of Homeland Safety to confirm an applicant’s standing. However this administration’s aggressive stance towards undocumented immigrants has many households frightened about submitting info that may very well be illegally shared with immigration authorities, Rubin mentioned.

She would not have common recommendation for these candidates. “It actually has to return right down to … what’s greatest for the household and what they’re comfy with.”

What to anticipate in the event you submitted your FAFSA software

If you happen to’ve already submitted your FAFSA type, the Division of Training says it can course of your on-line software inside one to 3 days (paper type submissions take longer). 

After your type is processed, you may log in to StudentAid.gov to see your submission abstract and make corrections. Nonetheless, due to the staffing cuts, it’s best to count on delays when you’ve got any questions or points along with your software, specialists warned.

The abstract ought to embody your Pupil Help Index, which the division sends on to the faculties you listed in your FAFSA type. The faculties use your SAI to calculate the quantity of economic help they’re going to give you. If you happen to’re frightened your college hasn’t obtained your info to find out your monetary help bundle, contact your college’s monetary help workplace.