The ongoing government shutdown has left many federal services in a state of uncertainty, including the Free Application for Federal Student Aid (FAFSA). While some critical programs have continued to operate, others are facing significant disruptions due to a lack of funding. The Department of Education (DOE), which oversees FAFSA processing, has been forced to furlough a large portion of its workforce.
According to Marca, a nonprofit organization focused on higher education, this could lead to delays in financial aid processing. Below, we’ll break down exactly how the shutdown could impact FAFSA and what students should expect moving forward.
Government Shutdown and FAFSA: What’s Happening?
The government shutdown officially began on October 1, and since then, several key federal agencies have been forced to furlough workers. In the Department of Education (DOE), 87% of staff will be furloughed, including 632 of the 747 employees working in the Office of Federal Student Aid, which manages the Free Application for Federal Student Aid (FAFSA).
While these cuts are significant, the DOE has assured the public that essential functions, including FAFSA processing, will continue without interruption.
Importantly, the Department of Education had already released the FAFSA forms on September 24, a week ahead of the October 1 deadline. By the time the shutdown took effect, 125,000 students had already started submitting their FAFSA applications.
This early release means that, for many, the immediate impact of the shutdown on FAFSA submission will be minimal. However, experts are warning that delays in the processing of FAFSA applications are expected, due to the reduced workforce in the DOE.
Delays in FAFSA Processing and Financial Aid
While FAFSA processing will continue, the staffing cuts caused by the shutdown will likely lead to delays. As the workforce at the DOE is reduced by nearly 90%, experts in education policy are cautioning that the time it takes to review and approve applications could be longer than usual. While your FAFSA will still be processed, if you’re expecting your financial aid package soon, you might need to prepare for some delays. These delays could also affect the timing of student loan disbursements and the processing of other forms of federal financial aid.
For students depending on timely financial aid to pay for tuition, the possibility of delayed FAFSA processing is a significant concern. Financial aid disbursements, including federal loans, grants, and work-study funds, are also likely to experience slower processing. The Department of Education has confirmed that they will still disburse these funds, but the reduced staff may slow down the process, potentially leaving students waiting longer than expected.
Essential Federal Programs Like FAFSA Continue to Operate
Despite the furloughs, the government shutdown has not halted all federal services. Crucial programs such as Medicare, Medicaid, and FAFSA will continue operating, although at a reduced capacity.
The assurance that FAFSA will still process applications and continue its essential functions provides some relief for students who rely on federal financial aid. However, as mentioned earlier, delays are inevitable due to the reduced staffing, so students should expect longer wait times than usual for both application reviews and financial aid disbursements.
Nonprofits and educational organizations are also stepping in to help mitigate the effects of the shutdown. Groups like the National Association of Student Financial Aid Administrators (NASFAA) are continuing to operate normally, and experts from these organizations have stressed that any potential disruptions to FAFSA or other student services will be communicated quickly.
What You Should Do: Stay Informed and Prepare for Delays
Given the uncertainty surrounding the government shutdown, students and applicants should remain vigilant about potential delays in FAFSA processing and financial aid disbursements. Here are a few steps you can take:
- Expect Delays: While FAFSA applications are still being processed, the reduced workforce at the Department of Education means that approval times will likely be slower. Students should be prepared for longer-than-usual wait times.
- Stay Informed: Keep an eye on any updates from the Department of Education and your financial aid office. If there are significant delays in processing or disbursement, these offices will likely notify you as soon as possible.
- Leverage Nonprofit Resources: Many nonprofit organizations, such as Toledo Tomorrow and NASFAA, are available to assist with FAFSA-related questions or concerns. They remain unaffected by the shutdown and can offer valuable support throughout the financial aid process.
