FAFSA Inflation Adjustment Error to be Fixed, Freeing Up $1.8 Billion in Student Aid

Late Implementation Could Lead to Delays in Financial Aid Offers, Experts Warn

The U.S. Department of Education plans to fix an error in the Free Application for Federal Student Aid (FAFSA) that failed to adjust financial aid tables for inflation, potentially limiting students' financial aid.
The fix, which is expected to free up an additional $1.8 billion in federal student aid, could lead to delays in students receiving financial aid offers.
The error emerged after a congressional mandate in 2020 to simplify the FAFSA form.
Financial aid experts warn that the late implementation of the fix could result in further delays in financial aid offers and compressed decision-making timelines for students.
Despite the fix, a group of Republican lawmakers have requested an investigation into the Department of Education’s handling of the FAFSA rollout.