HARRISBURG (TNS) — Pennsylvania students will have an extra month to complete the federal aid application that determines eligibility for grants to attend college this fall.
The Pennsylvania Higher Education Assistance Agency’s board on Thursday voted without discussion to push back the Free Application for Federal Student Aid deadline to June 1. This decision grows out of the high number of errors and delays associated with the federal government’s introduction of a simplified FAFSA.
Completing the FAFSA is the first step to determine eligibility for federal, state and institutional financial aid.
Students who submit their applications by the new deadline and meet the state grant program’s criteria for receiving an award will be assured of getting one, according to PHEAA officials. Grant amounts vary based on family income and the cost of attending a post-secondary institution. The need-based grants do not have to be repaid.
Not knowing how much financial aid students will receive is expected to result in a decline in college enrollments next year, with more students taking a gap year following their high school graduation, which runs the risk of some students never attending college, college officials say.
The National Association of College Admissions Counseling is estimating the delays in the FAFSA process could reduce student enrollment next year by more than 500,000 with a disproportionate number of students being those who have the greatest financial need.
Many colleges and universities announced delays in their deadlines for students committing to enrolling in the fall as a result.
Penn State, Pitt and the 10 Pennsylvania’s State System of Higher Education universities announced they were pushing back their deadline for new student to commit to at least May 15. Temple University this week announced it is extending its deadline to July 15.
Joseph Howard, Widener University vice president for enrollment, sent a letter to Gov. Josh Shapiro on April 10 imploring him to call for a delay in the traditional May 1 deadline for FAFSA submissions for state grants.
“We risk leaving tens of thousands of students from across the commonwealth without the vital support the PA State Grant program affords them,” Howard stated.
PHEAA relies on the number of FAFSA form completions in its formula for calculating the size of maximum grant awards, which this year were as high as $5,750.
Earlier this week, Elizabeth McCloud, PHEAA’s vice president for state grant and special programs, reported to the board’s need analysis and aid committee the number of first-time and renewal students who completed the FAFSA was 251,961 as of April 5. That is down 68,231 applicants at the same time last year.
Extending the FAFSA completion deadline provides an opportunity for more students to meet the grant eligibility requirements, she told the committee. However, she noted If more students qualify for a grant, that could lead to a need for more grant money given the board’s goal of maintaining the maximum award at $5,750.
Shapiro proposed increasing the $347.3 million in state funding to $378.3 million in his 2024-25 budget. He anticipates PHEAA using earnings from its student aid business lines to supplement that with $15 million, for a total of $393.3 million. The governor’s request included an expectation that the maximum grant award would increase to $6,750 as part of his higher education reform plan which is still taking shape.
Yet another wrinkle that could affect the amount of money needed for the grant program resulted from the federal switch to the Student Aid Index to determine eligibility.
McCloud said that change likely will increase the number of students who fall under the income limits to qualify for a state grant. PHEAA estimates that change could require $40 million more in funding for the program to maintain the maximum grant award at the current level.
On the other hand, PHEAA’s president and CEO Jim Steeley told the committee the decline in FAFSA completions and expected reduction in college enrollments could offset the need for more funding.
As a result of the confusion surrounding the FAFSA errors and delays, he said, “There are a lot of people who are very frustrated.”