This week, the National Association of Student Financial Aid Administrators (NASFAA) released the results of its second national survey of college financial aid administrators focused on how the Education Department’s March 2025 reduction in force (RIF) has impacted federal student aid. The survey included responses from more than 500 NASFAA member institutions.
Since the RIF:
- More than half (53%) of institutions reported issues with federal call centers.
- 47% cited issues with the National Student Loan Data System (NSLDS), ED’s database that tracks financial aid history and ensures accurate distribution of federal student aid.
- More than one-third (36%) reported disruptions with student loan servicing.
- 72% of institutions have noticed significant delays in FSA processing and responsiveness.
- 51% of institutions said students are not receiving clear, timely information from ED or FSA regarding their FAFSA processing and aid eligibility.
The Education Department dismissed the report as “inaccurate,” pointing out that the sample size represented just a fraction of institutions FSA works with, and that the institutions surveyed (predominantly nonprofit or public institutions) are likely biased against the Trump administration. [Higher Ed Dive]
Why it matters: Fewer federal staff in the FSA Office to resolve aid issues may be leaving institutional financial aid administrators with an increased workload and waning ability to provide direct service to students. With institutional trust tied to affordability, ensuring students have access to their federal student aid is essential to keeping them on the path to degree completion. [Inside Higher Ed]
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