New FAFSA launches after a long delay, but with issues

A simplified Free Application for Federal Student Aid is finally online after a significant delay.

However, as part of a “soft launch,” the new FAFSA form has only been periodically available. It’s likely few, if any, of the millions of students applying to college for the 2024-25 academic year have been able to successfully submit an application, according to higher education expert Mark Kantrowitz.

“I am convinced that nobody has been able to submit the form,” he said.

“Congress required the FAFSA to be available before Jan. 1, 2024. They missed that deadline,” Kantrowitz said.

More from Personal Finance:
This strategy can help you meet New Year’s resolution goals
Student loan borrowers won’t face missed payments penalties
Fewer students are enrolling in college

“Leading up to and as part of the soft launch, we have identified some minor issues,” the U.S. Department of Education said in a statement Sunday . “We are aware of these issues and are working to resolve them.”

For now, Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College,” advises students and families not to panic. “If you are having access issues, it is better to wait,” he said.

“They had to have something available even if it wasn’t ready for prime time.”

Even if students do submit a completed 2024–25 FAFSA form early this year, that information won’t be sent to schools until late January, the Department of Education also said, “so you will have ample time to fill out the form and do not need to rush to complete the form during the soft launch.”

With the delayed timeline, colleges might still be able to get financial aid award offers done by late March or early April, according to Kantrowitz. “Otherwise, it will be a complete disaster,” he said. “Families will not be able to get financial aid offers in a timely manner. Already, students who applied early action or early decision do not have award offers.”

Not only has the…