Yesterday, the Department of Education released updated timelines for 2024-25 FAFSA reprocessing and when students will be able to make corrections to their applications. Approximately 30% of applications potentially affected by known processing or data errors and approximately 16% require a student correction (these groups overlap). The timeline for reprocessing ranges from April 15th to May 1st. Below is a summary of the announcement (GENERAL-24-37).
What are some of the most recent developments?
- Federal officials believe that they have corrected all of the recently discovered errors in the formulas for the FA-DDX and FPS systems
- They estimate that about 30% of FAFSA forms were impacted by inaccurate SAI calculations
- FSA is testing a recently developed code that will allow students to make corrections to their 2024-25 FAFSA applications.
- This is still in the testing phase and their goal is to make student corrections broadly available early next week.
- Approximately 16% of FAFSA applications need immediate corrections for items like missing signatures
- Other corrections may include students who choose to be Provisionally Independent or only considered eligible for Direct Unsubsidized Loans
What should we expect on the week of April 15th?
- FSA will be reprocess approximately 10% of eligible ISIRs through FPS; particularly those impacted by the dependent student asset issue in the SAI formula
- Institutions will receive a new ISIR transaction for each reprocessed record; however, financial aid offices should exercise their judgment to use the ISIR that will provide greater eligibility for students. The Department expects the vast majority of these reprocessed ISIRs to reduce student aid eligibility.
- The ability to make corrections to the FAFSA application will be publicly available.
- Students can make additional updates to their applications through studentaid.gov once this goes into effect.
- To make corrections, students must select the “2024-25 FAFSA”, then the “FAFSA Submission Summary”, and finally the second tab “FAFSA Form Answers” to navigate to the corrections button
What should we expect on the week of May 1st?
- By May 1st, the Department of Education plans to reprocess and transmit ISIRs impacted by tax data issues to institutions
- About “20% of all FAFSA forms” need to be reprocessed through the FA-DDX for corrections related to tax information.
- Institutions will receive a new ISIR transaction for each reprocessed record; however, financial aid offices should exercise their judgment to use the ISIR that will provide greater eligibility for students.
What does FSA recommend that we do with our current ISIRs?
- For records unaffected by known processing or data errors:
- “We encourage schools to move forward expeditiously with all unaffected records where possible.”
- For records requiring student corrections:
- “We expect to make student corrections broadly available early next week.”
- For records that will be reprocessed through FPS:
- “We expect to reprocess these records during the week of April 15. The Department expects the vast majority of these reprocessed ISIRs to reduce student aid eligibility.”
- “For the purposes of packaging and disbursing aid expeditiously, schools and states may, based on data provided by the Department, use their judgment and rely on the original ISIR—not the reprocessed record—if the original ISIR results in greater financial aid eligibility for students.”
- “If the reprocessed ISIR results in greater financial aid, schools may make estimated offers now but must use the more accurate, reprocessed record for final offers and disbursement of funds.”
- For records that will be reprocessed through FA-DDX:
- “We are currently targeting to reprocess these records and begin sending them to schools by May 1. We will keep you updated on our progress as we get closer to this goal. The Department expects most, but not all, of these reprocessed ISIRs to reduce student aid eligibility.”
- “For the purposes of packaging and disbursing aid expeditiously, schools and states may, based on data provided by the Department, use their judgment and rely on the original ISIR—not the reprocessed record—if the original ISIR results in greater financial aid eligibility for students.”
- “If the reprocessed ISIR results in greater financial aid, schools may make estimated offers now but must use the more accurate, reprocessed record for final offers and disbursement of funds.”
SOURCE: (GENERAL-24-37) Updates on Timelines for Corrections and Reprocessing and What it Means for Partners