Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Education Department error could lower U.S. students’ financial aid amounts

by January 10, 2024
January 10, 2024
Education Department error could lower U.S. students’ financial aid amounts

An error in how the Education Department calculates financial aid threatens to leave some U.S. students with lower subsidy amounts for their secondary schooling this fall.

The mistake, first reported in December by The Washington Post and again this week by NPR, stems from the department’s apparent failure to update a key part of its aid calculation index for inflation, which has surged by some 20% since the onset of the Covid-19 pandemic.

At issue is the amount of a family’s income that is deemed ‘protected’ from the overall adjusted gross income calculation. That income amount is used to determine how much financial aid a student needs.

Unless the inflation adjustment is fixed, a family will be considered to have more resources at its disposal than is actually the case, said Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators.

And that means less money for students in need.

‘The fact that [the department] did not do these updates artificially lowers someone’s aid eligibility,’ McCarthy said.

The Education Department did not release a statement to NBC News by the time this article was published. NPR reported Tuesday that the department is still assessing how to handle the mistake.

McCarthy’s organization was among the first to flag the inflation issue in October to the Education Department. She said it appears the department initially decided to not address the issue for the 2024-25 academic year, but that it is now considering doing so as news reports of the error have gained momentum.

The department’s error is further complicated by the rollout of the new, simplified Free Application for Federal Student Aid (FAFSA) mandated by Congress at the end of 2020.

The FAFSA usually becomes available to students and their parents in October, but the new form has been beset by delays. A ‘soft launch’ of the form finally went online Dec. 31, but was not widely accessible at the outset. Only this week has the form been fully available.

The chairwoman of the House Committee on Education and the Workforce, Rep. Virginia Foxx, R-N.C., blamed the Biden administration for the error. ‘The administration should have been implementing bipartisan FAFSA legislation passed by Congress,’ Foxx said in a statement.

‘As a result, chaos with the FAFSA rollout is making life miserable for families attempting to determine if they can afford college.”

In a statement to CNBC, the Education Department said 1 million students had already submitted a FAFSA form.

But as it processes the new form, the department has not yet begun forwarding applications to schools.

Now, the department is deliberating whether to punt the update of students’ aid eligibility calculations for inflation into the next academic year — effectively shortchanging this year’s cohort — or take time to perform the update now but shorten the overall window students may have to communicate with their schools of choice.

‘The spring is going to be a little rough no matter what,’ McCarthy said.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Hezbollah claims it doesn’t want expanded war with Israel after launching drone attack on Israeli army base
next post
Galena Mining Limited (ASX: G1A) – Trading Halt

Related Posts

As Trump eyes more tariffs, South Korea remains...

February 15, 2025

WeWork, once valued at $40 billion, warns of...

August 11, 2023

Hertz says 2024 hack exposed some customers’ driver...

April 16, 2025

UAW leadership holds off on new strikes as...

October 11, 2023

Amazon owes $525 million in cloud-storage patent fight,...

April 16, 2024

Why it seems like everyone you know is...

May 29, 2024

Feds announce nationwide crackdown on robocalls and telemarketing...

July 19, 2023

Supreme Court Justice Samuel Alito sold Bud Light...

May 22, 2024

The IRS’s new, free ‘Direct File’ service for...

February 28, 2024

Inflation ticks upward to 3.7% in August as...

September 14, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved