FAFSA mess leads to deadline extension for students to apply for state grants

Students hoping for a Pennsylvania state grant to help pay for college have an extra month — until June 1 — to submit the federal form that is needed to be considered for financial aid.

The Pennsylvania Higher Education Assistance Agency (PHEAA) on Thursday announced that it has pushed back the submission deadline for the Free Application for Federal Student Aid (FAFSA), with relation to the PA State Grant Program.

The move comes amid continuing delays nationally tied to the rollout of the revised FAFSA form, including a sharp drop nationally in the rate of high school students completing and submitting the form.

“In a year of unprecedented change with regards to the FAFSA, we believe adjusting our deadline for state financial aid is the right thing to do,” said Sen. Wayne Fontana, chairman of the PHEAA Board of Directors. “Giving students and families a few more weeks to fill out their FAFSA will ensure our PA State Grant dollars get into the hands of the students who need it most.”

Through its FAFSA Simplification Act, Congress in 2020 required the U.S. Department of Education to streamline the form used by 17 million people annually.

But its implementation last fall was delayed by three months. Problems since then have slowed the ability of colleges to provide timely financial aid offers to students deciding between campuses.

FAFSA completion rates are running nearly 40% behind last year’s pace. In Pennsylvania, the rate lags by 34%.

The PA State Grant Program uses the FAFSA form as its primary application point to determine student eligibility for a PA State Grant award. Historically, May 1 was used as the deadline for students to complete their FAFSA for PA State Grant purposes.

Administering the grant has been made more complicated given this year’s confusion over the revised form.

“PHEAA’s ability to project the resources necessary to maintain 2023-24 PA State Grant award levels or even increase awards in 2024-25 is affected by the delays and errors with the transmitted FAFSA data,” said Jim Steeley, PHEAA president and CEO. “To date, we have received significantly fewer FAFSAs compared to the same time in 2023 — including both first-time and renewal applicants.”

Officials said they hope the extra month will boost applications to the state grant program. In addition to filing a FASFA, applicants must complete a state grant application.