With the Better FAFSA still in limbo, here's what to do as college decisions loom

When the U.S. Department of Education rolled out the "Better FAFSA" at the end of last year, the intent was to make the Free Application for Federal Student Aid a simpler process for the millions of college students hoping for financial help for the 2024-25 school year.

But so far, the new FAFSA has created a series of headaches for students, their families and higher education institutions across the country after ongoing technical glitches and delays. And time is running out: Most college decisions come out imminently in late March, with students needing to commit in a month, around May 1.

That's a $10,000 to $50,000 choice to make — on tuition alone, depending on public vs. private and in-state vs. out-of-state — with many students still unclear about their financial plan for the year, as FAFSA applications also allow students to access state and institutional aid.

"There's been nothing simple about the FAFSA Simplification Act," said Kim Frisch, vice president for enrollment management at Gustavus Adolphus College in St. Peter, Minnesota. "All around: It is problematic."

If you're one of the many dealing with the frustrations from this new system, here is some help on how to persist through the process until you feel ready to head into the next school year with monetary confidence.

These changes are the first for the FAFSA program in more than 40 years, with Congress originally passing the FAFSA Simplification Act in December 2020. Despite challenges this year, university financial aid staffers believe the new FAFSA will ultimately be an essential tool for students.

FAFSA forms previously had 108 questions and were only available in English or Spanish. With the new FAFSA application, some students might have as few as 18 questions while others might have as many as 49, depending on their family situation. The application is now available in the 11 most common languages spoken in the country. Students can also now list up to 20 colleges on their applications, up from 10.

Eligibility for federal Pell Grants, which do not require repaying, has also expanded to more students. Pell Grants are for undergraduate students who "display exceptional financial need," according to the Department of Education, with the maximum amount for the current school year set at $7,395.

"Once we can get past this year, it really is going to be easier for most families and students to complete," said Amanda Burgess, director of financial aid for Minneapolis-based Augsburg University.

FAFSA applications are typically available in October, but with the Department of Education delays, the new FAFSA applications were two months behind that typical deadline. So that's the first reason why students will receive financial offers much later than normal and thus have less time to make decisions.

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