The “gradual disposition” of the new Free Application for Federal Student Aid is on track for the next academic year, the U.S. Department of Education says.
So far, the 2025-26 FAFSA has been available to limited groups of students in a series of beta tests that began on Oct. 1. It will be available to all students and contributors on or before December 1, the Department of Education he said. (Normally, all students have access to the next academic year’s form in October, but last year’s new simplified form was not available until late December after a months-long delay.)
“I’m confident that we will be able to introduce next year’s form by December 1,” James Kvaal, the undersecretary of education, told CNBC.
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But there are still “a lot of unresolved issues,” some of which also plagued last year’s college aid application cycle, according to higher education expert Mark Kantrowitz.
Since October 29, the govt FAFSA Issues Page lists 22 outstanding issues, up from 25 a few weeks ago, he said.
Last year, some high school seniors said complications with the new form weighed heavily on their college decisions.
“We’ve heard from a lot of students and families who were disappointed,” Kvaal said. “We have made great progress in resolving these issues and are now seeing more students being able to complete their form.”
The impact of the FAFSA on college choices
For many students, Financial aid is vital when it comes to covering the cost of college.
Higher education already costs more than most families can afford, and college costs continue to rise. Tuition and fees plus room and board for a four-year private college averaged $58,600 in the 2024-25 school year, up from $56,390 a year earlier. At four-year public in-state colleges, it was $24,920, up from $24,080, the College Board found.
The FAFSA serves as the gateway to all federal aid money, including federal student aid loans, work-study and especially grants — which have become the most critical type of aid because they usually don’t have to be repaid.
Filing a FAFSA is also one of the best predictors of whether a high school senior will go to college, according to the National College Attainment Network. Seniors who fill out the FAFSA are 84% more likely enroll in college right out of high school, according to an NCAN study of 2013 data.
Freshman enrollment is down
Partly because of problems with the new form, the number of new freshmen sank 5% this fall compared with last year, according to an analysis of early data by the Student Clearance Research Center.
Declines in freshman enrollment were most significant at four-year colleges serving low-income students, the report also found. At four-year colleges where large shares of students receive Pell grants, freshman enrollment dropped more than 10 percent.
The sharp decline was “shocking,” particularly at schools that serve a high percentage of lower-income students, said Ellie Bruecker, director of research at The Institute for College Access and Success.
“It’s very big to see this level of decline,” he added.
Bruecker also said she expects the Department of Education to be able to meet the deadlines they have set for the 2025-26 form.
But even if all goes well, students are still working within a condensed time frame compared to the typical October FAFSA rollout, which can be at a disadvantage, he added.
“Even if everything goes smoothly this time, we’re still working on a shorter timeline – it cuts two to three months off,” he said. For families and students who depend on financial aid, “this could feel very stressful.”