Government watchdog faults Education Department for troubled FAFSA rollout
The college financial aid process faced numerous challenges this year, hitting low-income students and immigrant families the hardest.
WASHINGTON – This year, many American families found the application process for college financial aid to be particularly challenging. On Tuesday, the extent of these difficulties was starkly highlighted.
For instance, a student born in 2000 couldn’t finish the Free Application for Federal Student Aid (FAFSA) until March, which was several months later than anticipated.
If the same student tried to reach out for assistance, they likely faced more frustration, as approximately four million calls to the federal Education Department’s help line went unanswered from January to May.
In essence, for every four attempts made to contact the government regarding financial aid concerns, only one call was answered.
These instances are just part of a broader collection of issues that disrupted the implementation of significant changes to federal college financial aid this year. The Government Accountability Office (GAO), an independent federal watchdog, released two critical reports on Tuesday that uncovered additional details on how this initiative went off track.
The reports reveal a government agency that had ample warning about the potential for serious problems yet proceeded without addressing them adequately, compelled by a congressional directive.
Investigators placed the responsibility on the Federal Student Aid office, which is part of the Education Department and is responsible for assisting individuals with college financing, including managing the FAFSA and student loan policies. They highlighted a “lack of consistent and effective leadership” as a significant factor in the issues and errors encountered by families this year.
In summary, both the Education Department and the external contractors it engaged made numerous errors.
During a congressional hearing on Tuesday morning, the criticism was harsh. Melissa Emrey-Arras, a GAO investigator, referred to some of the Education Department’s failings as “unconscionable.”
“College costs a lot,” she stated. “If students receive an inaccurate financial aid estimate, they are left in a difficult situation.”
The Education Department responded, stating that compared to last year, over 500,000 more students are now eligible for Pell Grants (which are free financial aid awards for low-income individuals) as a result of the changes made to the FAFSA.
In a correspondence to college presidents, Secretary of Education Miguel Cardona noted that efforts have been made to remedy the FAFSA application delays. He mentioned that more than 700 new agents have been added to the call center since January and that most of the technical issues that affected families earlier in the year have been resolved.
“We’ve also made significant changes to our internal processes and systems that contributed to these challenges and delays,” he said.
GAO: Lack of supervision over contractors caused FAFSA delays
Usually, the FAFSA is available to students and their families by October 1. However, last year’s launch was delayed by several months. The application only opened in brief periods just after Christmas.
There are various reasons for this setback, but the GAO has indicated that a primary factor was the insufficient management of an external contractor that the Education Department hired in March 2022 to assist with the FAFSA overhaul.
The GAO found, “Within months, the system faced development challenges that ultimately led to the delays and problems applicants encountered.” They noted that timelines for 25 of the contractor’s obligations were delayed by several months.
The report does not specify the contractor’s name, and many vendors typically engage in large government projects.
Public records indicate that General Dynamics Information Technology, a firm that has faced some internal discontent at the Education Department, has initiated a contract worth millions to enhance the federal student aid system since March 2022. A representative from General Dynamics redirected inquiries regarding the GAO’s conclusions to the Education Department.
“The department acknowledged that the contractor contributed to the delays,” remarked Marisol Cruz Cain, a GAO investigator, while addressing Congress (though she didn’t specify which contractor was responsible). “It seems there’s accountability on both sides.”
Leadership Instability and Misjudgments
The reports also pointed to frequent changes in leadership at the Education Department as a key issue affecting the FAFSA.
More specifically, the investigation identified a consistent turnover in one senior role: the chief information officer. Since 2021, the department has had six individuals in this position. Just days before the release of the findings, a new chief information officer was appointed.
“This kind of turnover highlights the disarray that’s characterized this process,” stated Rep. Bob Good, a Republican from Virginia.
Moreover, other issues with the launch included instances where the government significantly miscalculated figures. For example, they had estimated that 3,500 individuals from mixed-status families would require manual identity verification.
However, the actual figure turned out to be over 219,000. Ultimately, immigrant families were likely the group most adversely impacted by the flawed rollout.
“As a result, many faced hardships,” noted Emrey-Arras.
Concerns for Next Year
The upcoming financial aid cycle has already experienced some delays, but they are not as severe as those of last spring.
During the fall, FAFSA will gradually become available to more students in stages, as the Education Department conducts testing aimed at preventing further glitches and errors. The form is expected to be fully accessible by December 1, according to the agency.
When asked on Tuesday if boosting staff at call centers might ease burdens for families this year, Emrey-Arras stated that it’s too soon to determine.
“We will see how the new FAFSA rollout goes,” she added.
Zachary Schermele covers education and breaking news for YSL News. You can follow him on X at @ZachSchermele.