U.S. Education Department Discovers Calculation Error in Student Financial Aid Applications
Error Affects Hundreds of Thousands of Applications
The U.S. Education Department has discovered a calculation error in hundreds of thousands of student financial aid applications sent to colleges this month. The error was caused by a vendor working for the federal government incorrectly calculating a financial aid formula for more than 200,000 students.
Applications Need to be Reprocessed
The information was sent to colleges to help them prepare financial aid packages, but now needs to be recalculated. The department is working through a backlog of more than 4 million other financial aid applications.
Statement from the Education Department
A statement from the Education Department says the problem won’t affect 1.3 million applications that were processed correctly and distributed to colleges this month. Officials said they have fixed the error and it “will not affect future records."
Impact on Students
It’s unlikely that many students, if any, received financial aid offers based on the incorrect information since the department only began sending records in the last two weeks. Once colleges receive that information, it usually takes several weeks to assemble financial aid packages.
Delays and Chaos in College Application Process
Students applying for college have been left in limbo this year as they await the Education Department’s overhaul of the Free Application for Federal Student Aid (FAFSA). The form, known as FAFSA, is used to determine eligibility for federal Pell Grants, and colleges and states use it to award their own financial aid to students.
Experts Concerned About Delays
Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, said, “This is another unforced error that will likely cause more processing delays for students. Every error adds up and will be felt acutely by every student who is counting on need-based financial aid to make their postsecondary dreams a reality.”
The Latest Misstep
The latest misstep has to do with the Student Aid Index, a new formula used to determine students’ level of financial need after they submit the FAFSA application. For some students, the department forgot to factor in certain financial assets, including investments, savings, and total cash.
Colleges Encouraged to Make Tentative Aid Packages
While the department fixes those students’ records, it’s encouraging colleges to make their own calculations and craft “a tentative aid package." However, Draeger pushed against that idea, saying colleges can only work with “valid and correct data."
Chaos and Concerns
Advocates fear that the chaos of this year’s process could deter students from going to college at all, especially those for whom finances are a key part of the decision. Senate Republicans are requesting a hearing with Education Secretary Miguel Cardona to discuss their “serious concerns” about the FAFSA rollout.
Conclusion
The U.S. Education Department’s latest mistake is just another example of the chaos and delays that have plagued this year’s college application process. Students and families are counting on accurate and timely financial aid information to make informed decisions about their future. It’s time for the department to get it right and provide the support that students need.
FAQs
Q: How many student financial aid applications were affected by the calculation error?
A: More than 200,000 applications were affected.
Q: Will the error affect 1.3 million applications that were processed correctly?
A: No, according to the Education Department, the error will not affect those applications.
Q: What is the Student Aid Index?
A: The Student Aid Index is a new formula used to determine students’ level of financial need after they submit the FAFSA application.
Q: Why did the department forget to factor in certain financial assets?
A: The department forgot to factor in certain financial assets, including investments, savings, and total cash, which resulted in a lower Student Aid Index for some students.
Q: What is the Education Department doing to fix the error?
A: The department is reprocessing the affected applications and encouraging colleges to make their own calculations and craft “a tentative aid package."
