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Student financial aid applicants experience issues with new FAFSA form

Maryland agency working to guide students through the process
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Posted at 6:00 AM, Jan 09, 2024
and last updated 2024-01-18 11:52:52-05

BALTIMORE — Changes to the way students apply for federal financial aid has had an impact on who can apply and when. The new Free Application for Federal Aid (FAFSA) form, which became available December 30, is only available at certain times during the day.

The U.S. Department of Education is referring to it as a “soft launch,” while they work to resolve the remaining issues.

The long awaited updated has brought lots of questions from families and students trying to navigate the financial aid process. And with the December release, the Maryland Higher Education Commission (MHEC) worked through the holidays to understand the new form to better assist students who will need to fill it out.

“We have met with the school systems, we have met with hundreds of nonprofits that help students access these funds, we are already providing them with the information that they need,” said Dr. Sanjay Rai, Acting Secretary for the Maryland Higher Education Commission.

MHEC handles over $100 million in financial aid annually, yet not everyone knows about this agency.

“We have people that call us and say, I've received an email from you, and it says MHEC. Are you real? And it's amazing, because, yes, we're real,” said Al Dorsett, director of MHEC’s Office of Student Financial Aid.

And they’re working to ease the transition to the new FAFSA form, however, it hasn’t been without bumps. The application impacting financial aid for the next school year is only available periodically. And the frustration is apparent on social media.

“Let me assure them, to all residents of Maryland, we will do everything to make sure they have access to these funds,” said Dr. Rai.

Until functionality is fully available, MHEC is educating students on the changes and what they'll need to apply.

“Our previous FAFSA form used to ask for parents information, now it's contributor. The previous FAFSA form was kind of just one form, you could print it as a PDF. This one is more savvy, electronic, has features with smart options where you kind of click on a button and based off your answer, other questions will populate or not populate,” Dorsett said.

Questions have been scaled back from 108 to just 36. The student and the contributor individually fill out their sections. And once applicants authenticate themselves, IRS information is directly imported.

“How necessary was this simplification?” WMAR-2 News Mallory Sofastaii asked Dorsett.
“I think it was necessary because in the long run, as much as people may feel that it seems complicated now, in the long run, it's really going to simplify everything,” Dorsett responded.

There are new deadlines. March 1 is the priority deadline to receive notification of eligibility by April 15, however, the official deadline isn't until June 1, 2024.

“So individuals who do the FAFSA, even after that March 1 deadline, they still can be awarded. And we'll keep awarding after that big initial one but the push again, do it as early as possible,” Dorsett recommended.

While state scholarship amounts are capped, students eligible for Federal Pell Grants will receive that aid regardless of when they apply.

And this year, more students are eligible for Pell Grants. The U.S. Department of Education estimates around 610,000 new students nationwide will be eligible with nearly 7,400 new recipients in Maryland.

“The average amount of aid students received for the current 2023-2024 academic year was between $19,000 and $20,000,” said Dorsett.
“That’s significant,” Sofastaii commented.
“That is, it's huge,” Dorsett replied.

If you're still unable to access the form, you have time. While you wait, gather all the necessary documents. Create your Federal Student Aid (FSA) ID. Create your MDCAPS account. And check MHEC’s website for commonly asked questions and answers.

Dorsett added that one of the most common mistakes is not creating a MDCAPS account, which is the state financial aid system. There you can apply for multiple state aid opportunities.

The state is also launching the MHEC One App so individuals who cannot complete the FAFSA, such as undocumented students, can still apply for state financial aid and scholarships.

Click here for the latest information from MHEC on the FAFSA delay.

For additional assistance completing the FAFSA, check out the information sessions below:

An upcoming event will feature nationally renowned financial aid and college access experts discussing how to navigate the 2024-2025 FAFSA changes. Save the date for February 19, 2024, from 1 - 3 p.m. and gain valuable insights by participating in the free virtual FAFSA Information and help session sponsored by Central Scholarship.

A FAFSA Completion Event will take place on Wednesday, January 31, 2024 from 6:00 pm - 8:00 pm at Seneca Valley High School Cafeteria. Students and families can get assistance completing the FAFSA & Maryland State Financial Aid Application (MSFAA) Workshops facilitated by the Educational Opportunity Center. Click here for more information and to register.