James Kvaal, the U.S. under secretary of education, reflects on the challenges faced during last year’s FAFSA rollout and shares a vision for moving forward.
Significant Strides in FAFSA Processing
This year’s Free Application for Federal Student Aid (FAFSA) has made significant strides towards simplicity.
Many families report completing the application in record time—sometimes as quickly as 15 minutes.
Moreover, help is just a call away through a responsive support center.
Remarkably, within the first six weeks after its launch, a whopping 3.5 million students managed to submit their FAFSA applications.
In stark contrast, last December’s introduction of the 2024-25 FAFSA brought to light a series of obstacles.
Applicants struggled with various issues, including software glitches, processing delays, and unclear instructions, all of which complicated the experience for students and their parents.
The surge in inquiries overwhelmed the call center, leaving the U.S. Department of Education ill-equipped to manage FAFSA submissions.
This situation forced many colleges to postpone financial aid offers and adapt their admissions schedules.
Challenges and Legislative Mandates
The FAFSA has historically posed challenges for millions of families.
Each year, approximately 17 million students go through this process, yet close to one million eligible for Pell Grants fail to submit the form.
This gap in submissions reveals that countless potential college students might reconsider their educational plans if only they understood how to access the financial aid available to them.
In December 2020, Congress attempted to address these issues by passing a law designed to redesign the FAFSA, allowing it to pull data directly from federal tax files.
However, implementing this solution proved to be much more complex than anticipated.
The Education Department began an ambitious project to modernize or replace over 20 outdated computer systems—some older than the very parents filling out the FAFSA.
Alongside this transition, new eligibility requirements and privacy measures were introduced, all while operating under tight budget constraints and lacking a contingency plan.
If the FAFSA system failed, it would mean no federal financial aid for countless students.
This situation illustrates a broader challenge faced by the federal government: legislative mandates often overlook the intricacies of implementation.
Typically, federal agencies allocate tasks across various teams and contractors, adhering to lengthy procedural steps before diving into programming.
In contrast, private-sector companies often adopt a more flexible approach, better positioned to adjust strategies based on immediate feedback.
Strategic Initiatives for Success
Adding to the Department’s woes was a reliance on outsourcing for essential functions.
With limited in-house expertise, overseeing the technical project became a struggle, making it difficult to spot issues and track contractor performance.
This led to setbacks, especially when the department sought accountability as deadlines loomed.
To turn things around, four strategic initiatives were launched.
- First, the team’s expansion was vital.
Besides increasing the core Federal Student Aid staff, professionals from the College Board and the U.S. Digital Service joined the effort.
Senior IT experts were also brought onboard to bolster the FAFSA team, dedicating significant time to resolving technical glitches and providing critical support.
Looking back, an earlier, more aggressive expansion could have proven advantageous.
- Second, a robust testing strategy was implemented to quickly pinpoint bugs.
Before the launch of the 2025-26 FAFSA form, a beta test involving over 150,000 students and families sought to evaluate the system from start to finish.
- Third, the lines of communication with students, families, and partners saw a significant upgrade.
Regular press releases and progress updates became the norm, and engaging with external stakeholders turned into a routine practice.
This increased transparency extended to the call center as well, where expanded staffing slashed average wait times from 15-20 minutes down to under a minute.
- Lastly, for the first time, the Department allocated over $50 million to assist colleges, school districts, and non-profits with FAFSA processing, specifically aimed at boosting submission rates among underserved communities.
These combined efforts have shown promising results.
More than 5 percent of students received federal financial aid this fall compared to the previous year, and 94 percent of those who completed the 2025-26 FAFSA expressed satisfaction with their experience.
Despite these advancements, there’s still more to achieve.
While the overall number of students receiving federal aid has increased, recent high school graduates have seen a slight dip in assistance.
The FAFSA needs to continue evolving, including the ability for colleges to submit multiple corrections at once.
It’s also crucial for the Department to launch next year’s application on time, by October 1.
Now, with a team of experts firmly in place, the Department is ready to effectively manage the FAFSA going forward.
The next administration will benefit from a streamlined system, equipped with the time and resources necessary to meet critical deadlines.
Revamping such a complex system, especially one deeply rooted in bureaucracy, is no small feat and often comes with layered challenges.
Nevertheless, these vital improvements will significantly contribute to helping millions of students realize their academic dreams.
Source: Insidehighered