GAO Reports on Botched FAFSA Rollout Reveal New Failures, Harm to Students

The preliminary findings showed that more than 400,000 fewer students, disproportionately those from low- and middle-income families, did not utilize the FAFSA last year due to the Department of Education's failures, which included an abysmal 25% support call center answer rate, and the application taking on average nearly 700 times longer to complete than the Department had advertised.

Washington, D.C. - Today, U.S. Senator Susan Collins, a senior member of the Senate Health, Education, Labor, and Pensions Committee and the Vice Chair of the Senate Appropriations Committee, responded to the two statements released as part of the Government Accountability Office's (GAO) preliminary findings reviewing the U.S. Department of Education's (ED) failure to roll out the updated and simplified 2024-2025 Free Application for Federal Student Aid (FAFSA). The first statement of the two focused on the impact this failure had on students and schools, and the second reviewed the technical problems that led to this failure. Last month, the ED announced that the 2025-2026 FAFSA form will again not be available nationwide by the traditional release date of October 1.

In January of this year, Senator Collins was part of the bicameral group that called on the Government Accountability Office (GAO) to conduct these investigations into the Department of Education's failure to implement the 2024-2025 FAFSA program. The final report is estimated for release in 2025. Last week, Senator Collins has joined a bipartisan group of her colleagues in introducing a resolution condemning the botched implementation by the Department of Education of the 2024-2025 FAFSA and the requirements mandated by the FAFSA Simplification Act.

"These statements confirm much of what was already assumed, that the failures of the ED and its leadership have led to hundreds of thousands fewer students, many of them from low- and middle-income households, filling out a FAFSA application. The Department's failures have directly led to many young people foregoing a traditional college education, for no reason other than lack of affordability," said Senator Collins. "In my time working at Husson University, I learned firsthand the devastating impact a failure of this sort has on Maine students and families-whose decision of whether to send their children to college, especially for aspiring first-generation college students, is directly tied to the costs of doing so. With these reviews, it is clear that the Department must be held accountable for failing the American people in one of their most fundamental duties as a federal education agency. Maine families cannot make significant financial decisions for their children if they do not know what student aid is being made available to them, and the leadership of the Department must answer for these unacceptable mistakes."

The negative outcomes of the botched 2024-2025 FAFSA rollout described in the GAO statements include:

• Over 432,000 fewer students utilized the FAFSA, a 3% decrease from the previous year.
• • The most significant decrease was amongst households who make between $30,000-$48,000 a year, where FAFSA applications were down 11%.

• The ED has reported and advertised that the new FAFSA form would only take between 15-20 minutes to complete. The actual average completion time for dependent first-time applicants was 5 days. The longer it takes for a student to complete a FAFSA, the less likely students and families are to finish it.

• 74% of calls made to the Federal Student Aid (FSA) Call Center went unanswered.
• • Additionally, the FSA waited 5 months before increasing call center staffing after the delayed launch.

• For those who submitted a paper FAFSA, FSA did not confirm receipt of forms. Those who submitted paper FAFSAs had to wait between 7 and 8 months before knowing if FSA had even received their application.
• ED mistakenly did not allow an applicant whose parent did not have a social security number to complete a FAFSA until 2 months after the form was launched. Then, ED grossly underestimated the work to verify the identity of parents who are non-citizens, required by law by 63 times. As a result, they suspended the requirement. It also did not allow for the automatic transferring of tax information for non-citizens with Individual Tax Identification Numbers (TIN). ED still has not timeline for fixing this issue.
• 34,000 students who submitted paper FAFSAs did not receive confirmation of the receipt of their FAFSA until 7 months after it was submitted.
• ED does not have any comprehensive communication plan that includes steps to provide FAFSA applicants with timely updates on the status of their application and solutions to technical barriers.
• There are over 20 technical issues with the FAFSA processing system as of August 2024.

• The online form submission system was demonstrated to have an extremely high rate of defects. After deploying the system, 7 of the 55 discovered defects were categorized as "critical."

In 2020, Senator Collins co-sponsored the bipartisan FAFSA Simplification Act, whichpassed Congress, and required the Department of Education to roll out a new simplified FAFSA program by January 1, 2024. Despite having three years to prepare, the application was only made available for borrowers for 30 minutes on December 30, 2023 and then one additional hour on December 31, 2023. The application was then only accessible for sporadic periods until it became fully live on January 6, 2024. After the FAFSA went fully live, it was still plagued with issues, including delivering incorrect applicant data to colleges.

In April of this year, Senator Collins questioned Secretary of the Department of Education Miguel Cardona on the Department's failure to implement the FAFSA Simplification Act during an Appropriations hearing. Following the hearing, Senator Collins and a bipartisan, bicameral group of 10 Committee leaders in the U.S. Senate and U.S. House of Representatives sent a letter to Secretary Cardona urging the Department to prioritize the timely rollout of the 2025-2026 FAFSA form. Yet still, In August, the ED again announced that the release of the 2025-2026 FAFSA form will also be delayed, this time, until December 1, 2024.

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