The Future of FAFSA and the Department of Education: What You Need to Know
Will the FAFSA Disappear if the Department of Education is Abolished?
The Department of Education plays a crucial role in processing the Free Application for Federal Student Aid (FAFSA) and managing federal financial aid programs. However, recent developments have raised concerns about the department’s future. Secretary of Education Linda McMahon has discussed plans to potentially close the department, and significant staffing cuts have already been implemented. This has led to questions about the FAFSA’s future. While experts do not believe the FAFSA will disappear, they do think that its management could be transferred to another federal agency. The FAFSA is not just a tool for federal aid but also a critical application for state and institutional financial aid programs, making it unlikely to be eliminated entirely. However, experts warn that the transition could be complex and may lead to initial disruptions.
Potential New Homes for the FAFSA
If the Department of Education is abolished, the FAFSA and federal student aid programs could be transferred to another federal agency. The Treasury Department or the Internal Revenue Service (IRS) are considered the most likely candidates due to their existing connection with the FAFSA. The FAFSA already links to the IRS system to upload tax return data, making the transition somewhat smoother. Student loan expert Mark Kantrowitz suggests that the Treasury Department is the most probable new home for student loan programs. While borrowers may not notice significant changes in the short term, the transition could lead to some initial chaos, as the Treasury lacks experience with higher education regulations.
Should You Still Submit the FAFSA?
Despite the uncertainty surrounding the Department of Education and the FAFSA, experts strongly advise students to continue submitting their FAFSA applications. The FAFSA remains the primary tool for determining eligibility for federal financial aid, including Pell Grants, scholarships, work-study programs, and student loans. Elaine Rubin, a student loan expert, emphasizes that the FAFSA is the "trigger application" for many state and institutional aid programs, making it essential for students seeking financial assistance. Rubin also highlights concerns for families with undocumented immigrants, as the FAFSA requires reporting information from parents or spouses. While the Privacy Act of 1974 protects certain identifying information, the current administration’s stance on undocumented immigrants has raised fears about data sharing with immigration authorities. Rubin advises families to carefully consider their comfort level when deciding whether to submit the FAFSA.
What to Expect if You’ve Already Submitted Your FAFSA
If you’ve already submitted your FAFSA for the 2025-26 academic year, the Department of Education will continue to process your application. The online application typically takes 1-3 business days to process, while paper submissions take longer. Once processed, you can log in to StudentAid.gov to view your submission summary and make any necessary corrections. However, due to recent staffing cuts, delays in resolving issues or answering questions about your application are likely. Your Student Aid Index (SAI), which is calculated based on your FAFSA information, will be sent to the schools you listed on your application. These schools will use your SAI to determine your financial aid package. If you’re concerned that your school hasn’t received your information, it’s recommend reaching out to their financial aid office directly.
Implications of Department of Education Staffing Cuts
The recent staffing cuts at the Department of Education have raised concerns about the department’s ability to efficiently manage federal financial aid programs. Elaine Rubin warns that these workforce reductions could lead to significant disruptions, particularly after the challenges faced during last year’s FAFSA processing. While much of the FAFSA system and call center operations are handled by contractors, a significant portion of the work is still done in-house. Rubin emphasizes that there has been little communication about how the department plans to maintain efficient operations moving forward. This lack of transparency has left many stakeholders, including students and financial aid administrators, uncertain about the future of federal student aid.
Conclusion: The FAFSA and Federal Financial Aid Are Here to Stay
While the Department of Education’s future remains uncertain, experts agree that the FAFSA and federal student aid programs are unlikely to disappear. The FAFSA plays a critical role in determining eligibility for financial aid at both the federal and state levels, making it a cornerstone of the higher education system. Even if the Department of Education is abolished, the FAFSA is likely to be transferred to another federal agency, with the Treasury Department or IRS being the most probable candidates. Despite the potential for disruptions during a transition, the federal government has a vested interest in continuing to administer and manage student aid programs. For now, students and families should continue to submit their FAFSA applications to ensure access to the financial assistance they need to pursue higher education.
