AUSTIN, Texas, Nov. 30, 2021 /PRNewswire/ -- A new survey
shows that more than half (52%) of respondents at US higher
education institutions have not yet started to prepare for the
significant changes to the Free Application for Federal Student Aid
(FAFSA) that will go into effect in the 2024-25 school
year. All college students seeking federal financial aid in
the US fill out the application. The study from Oracle and the
National Association of Student Financial Aid Administrators
(NASFAA) found that administrators are anxious about how to handle
major modifications in the financial aid processes and are unsure
of the Department of Education's support in making these
adjustments.
Forty-one percent of respondents are slightly or not confident
that the Department of Education can provide timely, helpful
guidance to help them navigate the changes. As a result, many are
turning to technology and solution providers to adjust. Forty
percent of respondents are completely or fairly confident in their
financial aid management software provider's ability to adapt to
the new requirements.
"Following the passage of the Consolidated Appropriations Act,
financial aid offices across the country are gearing up for
significant federal methodology and FAFSA changes that will require
adjustments to longstanding practices and processes," said NASFAA
President and CEO Justin Draeger.
"As this survey makes clear, there is both optimism and trepidation
about our collective ability to make these changes in a way that
facilitates a smooth transition for schools and students. We look
forward to working with our software provider partners and the
Department of Education on these changes in the coming months to
ensure we have the technical details, training, and resources to
implement these exciting changes seamlessly."
The survey was distributed to primary contacts at NASFAA member
institutions in September 2021 and
received 435 responses. The survey asked respondents about their
institution's preparations for the implementation of the
Consolidated Appropriations Act's (CAA) FAFSA changes coming soon.
Dive deeper into the findings at:
https://www.nasfaa.org/FAA_Surveys
Preparations off to a slow start:
When asked how their
institution is currently preparing for the Federal Methodology (FM)
FAFSA changes authorized by the Consolidated Appropriations
Act:
- 52% of respondents said their institution has not yet begun
preparations. That number grew to 59% among community college
administrators.
- 31% are assessing how current practices will change.
- 30% have begun educating staff on federal methodology
changes.
- 15% have started planning with higher administration within
their institution (e.g., president, provost, vice president,
etc.)
With change comes challenges:
When considering what
aspects of the Consolidated Appropriations Act they expect to
be most taxing:
- 74% of respondents cited the shift from the Estimated Family
Contribution to Student Aid Index as their biggest concern and
challenge.
- 61% anticipated challenges with the new Pell eligibility
formula.
- 35% expressed concern about the simplified Federal Methodology
(e.g., elimination of FAFSA questions and data elements in the
formula).
Institutions are uncertain of the Department of Education's
ability to support:
When asked how confident they were in
the implementation of certain changes and how the Department of
Education would support the transition:
- 24% of respondents said they are completely or fairly
confident—with another 41% only slightly or not at all confident—in
the department's release of timely, helpful guidance.
- 20% are completely or fairly confident—with another 50% only
slightly or not at all confident—in the department's ability to
release of helpful technical specifications.
- 23% are completely or fairly confident—with another 48% only
slightly or not at all confident—in the department's ability to
provide timely training opportunities.
Administrators are looking within and turning to tech
providers:
Administrators were generally more confident in
themselves and their software providers to implement changes
smoothly:
- 40% of respondents were completely or fairly confident in
software providers' ability to adapt to the policy changes.
- 48% of respondents were fairly confident or completely
confident that their financial aid management solution vendor will
be able to keep up with the rapid rate of change to financial aid
processes.
- 68% of respondents were completely confident or fairly
confident in their institution's ability to navigate the
change.
Institutions are seeking more support from software
vendors:
When asked how financial aid management solution
providers can help institutions feel more confident about their
ability to implement changes:
- 69% of respondents want earlier availability of new
functionality.
- 61% want more detailed documentation.
- 54% want more effective training.
"The need for financial aid reform has never been more pressing,
with schools and students still grappling with the economic impacts
of the pandemic," said Vivian Wong,
group vice president of higher education development, Oracle.
"While these provisions are an important first step in expanding
access to education, institutions can't enact this change
alone—they need the right systems and support in place. Teamwork
between the Department of Education, NASFAA, software providers,
and institutions will be key to ensure that schools and students
are set up for success."
The 2024-25 academic year will be here sooner than we think, and
now is the time to start preparing. To get started, visit:
https://www.oracle.com/industries/government/education/higher-education/
About Oracle
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applications plus secure, autonomous infrastructure in the
Oracle Cloud. For more information about Oracle (NYSE: ORCL),
please visit us at oracle.com.
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SOURCE Oracle