Changes in the US Education Department could impact federal aid
Illustration by Killian Goodale-Porter.
Emily Grinstead, Contributing Writer
Changes in the United States Education Department may affect student aid and debt programs, according to an article published by the Virginia Mercury.
The department announced it would work to “streamline” federal assistance programs, such as Pell Grants, according to an April 3 press release. The department also plans to improve programs such as the Public Service Loan Forgiveness Program.
“Not only will this rulemaking serve as an opportunity to identify and cut unnecessary red tape, but it will allow key stakeholders to offer suggestions to streamline and improve federal student aid programs,” stated Acting Under Secretary James Bergeron in the press release.
The department claimed that Title IV programs may be a factor in the rising cost of higher education, according to the Federal Register. Proposed regulations will be developed through comments and recommendations from the public.
Title IV of the Higher Education Act of 1965 established student financial aid programs at qualifying higher education institutions. These include public, private non-profit and for-profit institutions.
On average, undergraduate students at VCU during the 2023-2024 academic year were awarded $18,734 in financial aid in the form of grants, loans, scholarships and work-study jobs, according to the university’s Student Financial Services website.
Over 30% of students are Pell Grant eligible and 37% are first-generation college students, according to VCU facts and ranking.
Hernan Bucheli, vice president for strategic enrollment management and student success at VCU, wrote an article for the Virginia Mercury ahead of the 2024-2025 academic year about issues with Free Application for Federal Student Aid.
Universities across the nation faced delays in processing FAFSA after the U.S. Department of Education simplified the FAFSA form, according to Bucheli. This particularly impacted VCU since over 70% of undergraduates are enrolled with a FAFSA.
Bucheli stated that low-income and first-generation students are greatly impacted by these delays.
“The FAFSA delay has a greater impact on those groups, but it also impacts middle-income families, who also often rely on need-based financial aid,” Bucheli stated.
“The Better FAFSA,” released by the U.S. Department of Education ahead of the 2024-2025 academic year, was meant to streamline the FAFSA application process and help all students “access the maximum financial aid for which they are eligible,” according to the U.S. Department of Education.
However, the new form had numerous technical issues as well as delays, according to the Government Accountability Office.
State Sen. Ghazala Hashmi, D-Richmond, stated in an article by the Virginia Mercury that cuts within the U.S. Department of Education will make processing federal loan and grant applications less “efficient and effective.” This could also hinder the agency’s ability to address concerns.
Changes made by the U.S. Department of Education will have an adverse effect on students and universities, already frustrated by the issues and delays in FAFSA and the delivery of federal aid packages, according to the Virginia Mercury.
The Office of Postsecondary Education within the U.S. Department of Education will host both in-person and virtual public hearings on April 29 and Thursday, May 1.
