Editor’s note: This weekly update from the government relations office at the American Association of Community Colleges (AACC) provides the latest on what’s happening in Washington and how AACC is advancing policies to support community colleges and students. Send questions, feedback and more to: kgimborys@aacc.nche.edu.
- Office of Federal Student Aid releases more information on FAFSA corrections
- Department of Education issues additional guidance on certification rules
Department of Education releases updated timeline for FAFSA processing as frustrations continue to build
This week, the Department of Education (ED)’s Office of Federal Student Aid (FSA) issued an electronic announcement (EA) with additional details on the agency’s plan to help students and colleges correct and complete Free Applications for Federal Student Aid (FAFSAs) that had been rejected due to errors.
As a reminder, after a student completes and submits a FAFSA, ED transmits information to colleges in the form of Institutional Student Information Records (ISIRs). Colleges use these records to package and issue financial aid offers. Over the past few weeks, colleges and universities have been reporting a higher than usual error rate – receiving ISIRs where a Student Aid Index (SAI; the new needs analysis measure) could not be generated due to an error or incomplete information. The EA confirms this, noting that at least 16 percent of FAFSA applications – or over one million students – will have to submit a correction to generate an SAI.
After a series of delays and glitches, the Department announced this week that students are finally able to correct their submitted FAFSAs. The agency will be sending emails to applicants and their contributors informing them that they have “Action Required” on their forms. These communications will detail the most common issues requiring corrections, including missing signatures, missing consent to access federal tax data, only indicating interest in unsubsidized loans, and incomplete submissions.
In the same EA, the Department announced that they will begin reprocessing 10 percent of ISIRs impacted by known system errors in small batches. In total, more than 30 percent of submitted FAFSAs – over two million students – have been impacted by system, processing, and vendor errors. In previous announcements, the Department has promised that all ISIRs will be reprocessed by May.
Department of Education issues additional guidance on certification rules
This week, the Department of Education released a new Dear Colleague Letter (DCL) clarifying new limitations for Gainful Employment (GE) programs under the final Certification Procedures regulations published in October of 2023.
Under the new regulations, GE programs must limit their hours to either the minimum number of clock hours, credit hours, or the equivalent required for training in the recognized occupation that the programs prepare the student for or is established by the state – whichever is greater. Institutions will need to reduce the number of hours in a GE program by July 1, 2024 in order to remain in compliance and continue participation in Title IV, though the Department is providing flexibility for those facing challenges in meeting the effective date. AACC’s David Baime and Alexis Gravely have more information on the final rule and previously-issued guidance in the Community College Daily.
The new DCL clarifies expectations for program compliance and details flexibilities in program length and program reporting for students who are already enrolled in currently-eligible programs.