Department of Education Finishes FAFSA Reprocessing Task

The U.S. Department of Education has recently completed the reprocessing of FAFSA applications to address various issues related to the calculation of the Student Aid Index and financial aid eligibility. This reprocessing included updates to critical financial data such as education tax credits, Adjusted Gross Income (AGI), and filing status for taxpayers who had amended returns or updates to their tax information.

While all known issues have been resolved, the Department of Education highlighted that only 8.2 million FAFSA forms have been processed and sent to institutions, significantly lower than the usual 17 million forms processed each year. This drop in FAFSA applications is concerning as it may impact students’ ability to access financial aid for their education.

Moving forward, the Department has successfully transmitted approximately 8.2 million FAFSA ISIRs to educational institutions, states, and designated scholarship organizations. They have also processed nearly one million corrections to FAFSA submissions, reducing the turnaround time for updates to ISIRs to one to three days after submission.

To ensure that all students have the opportunity to secure the financial aid they need, the Department is actively reaching out to those who need to make corrections to their applications or who have not completed their FAFSA forms. They are also urging states and schools to continue their outreach efforts to students who have not yet submitted a FAFSA or have started but not completed the application process.

It is crucial for students to complete their FAFSA forms to access potential financial aid and support their educational pursuits. Regular communication efforts are underway to encourage completion and ensure that all students have the opportunity to receive the financial aid they need.