For families looking to afford college expenses this year, the COVID-19 pandemic has turned a lot of plans upside down. And as reports of rising pandemic numbers in the U.S. don’t appear to be going away, some financial aid experts say the view isn’t looking anymore clear going into the fall.
With many families experiencing cutbacks in hours, layoffs and other economic challenges this year, the financial outlook for them isn’t what it was a few weeks or months ago.
And now with a lot of schools preparing cautious plans to reopen this fall while also weighing online learning opportunities, many prospective students are determining whether college is a realistic option this year.
“It’s such uncharted territory,” said Marie Batson, associate vice president for enrollment and director of financial aid at University of Mobile. “I’ve been working in enrollment and financial aid for 25 years here at the university … things are just different, just a whole new ballgame.”
Lower numbers
The number of students who typically applied for U.S. federal college aid fell by half in the spring, compared to levels the year before, according to the Associated Press. This raised concerns many students were planning to skip or postpone college education for now to enter the workforce or planning to attend community college.
While the number of applicants has gone up as colleges have ramped up efforts to encourage students to apply for federal aid, AP reported July 5, the numbers are still lower than this time the year before. Overall, the report says, “applications were down by 70,000 as of June 19, representing a 3.7% drop for the entire application cycle.”
To remain eligible for federal loans, students are required to attend school at least half-time, according to studentaid.gov. Most schools offered online teaching to allow students to complete assignments and meet the requirements.
And, according to the Department of Education, work study students were allowed to continue receiving funding as long as work was started or continued through remote work or other arrangements. But payment schedules and policies on this varied from school to school, according to a Fox News report.
Many students are simply trying to figure out what their options are amid rapidly changing outlooks on jobs, the economy and COVID-19.
Increased call volume
“We have had an increased volume in the number of parents or students calling, wanting to know what can they do if their parent(s) have lost their job, or their hours have been cut back as a result of the COVID-19 shutdown,” said Batson, noting that students have also lost jobs as well.
“There were a lot of our students that may have had jobs,” she said, “and because everything shut down, they were laid off or let go for a short period of time so that makes a difference in their money.”
First steps
Before any decisions can be made on financial aid for college, students first need to determine how much federal financial aid is available through the Free Application for Federal Student Aid (FAFSA).
Recipients are required to complete the FAFSA form every year they are enrolled in school
While deadlines and requirements vary for state scholarships, students can begin applying for federal aid as early as Oct. 1 for the following academic year, according to Federal Student Aid office website.
Some of the determining factors on eligibility, the website says, include expected family contributions, the student’s year in school and cost of tuition, fees and books.
Effects of COVID-19
After completing the form, each school’s financial aid department can then help students determine how much aid they are eligible for at that school for that year.
But many families are concerned that their FAFSA information, which is reflective of their 2018 income, does not show an accurate picture of their current situation, said Page Bates, director of financial aid at Union University in Jackson, Tennessee.
“Many families have been highly affected by layoffs and furloughs resulting in a drastic decrease in accessible income,” Bates said. This has resulted in an increase in the number of students and parents requesting “Special Circumstance” consideration due to the change in income as a result of COVID-19,” Bates said.
“In this instance,” she noted, “the students and their parents need to speak with their institutions financial aid department for more information on this process.”
Another significant change has involved the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Since March, federal loan borrowers have been allowed to temporarily forgo making monthly payments to their federal loan debt from March 13 until Sept. 30.
Batson noted that as more students are calling with questions related to the changing financial landscape, the amount of time on the phone has significantly increased.
And since the pandemic caused many financial aid staff to work from home — at least for a time — those calls and texts have come at all hours.
Both Bates and Batson encourage students and their families to not be afraid to reach out to their financial aid office for help.
“We understand how hard this crisis has been and how our students and their families have been impacted,” Bates said. And she noted that “no one knows what a student and their family has endured as a result of COVID-19 unless they ask for help.”
There are an “abundance of avenues that can be explored when searching for educational funding other than federal or state financial aid,” she said.
Serving students
“We are here to serve our students and will do all we can to lessen their burdens,” Bates said. “No student should be forced to give up his or her dream. [Students] should reach out so that their institution is aware they have concerns.”
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What students need to know about the FAFSA during the pandemic
By Anthony O’Neal
Ramsey Solutions
If you have a college-bound teen or current college student, you probably already know filling out the Free Application for Federal Student Aid (FAFSA) is one of the best ways to apply for scholarships and grants to help cash flow that degree. And let’s be real, the FAFSA is already confusing enough on its own, so having to think about COVID-19 on top of that just adds to the stress.
But don’t worry. We’re about to break down what you and your kids need to know about the FAFSA this year.
What to Know About FAFSA Deadlines
The FAFSA form has three deadlines: federal, state and school. Here’s the lowdown:
- Federal: The federal government gives students a deadline of June 30 after the school year in which they need aid — for instance, June 30, 2021, for the 2020–21 school year — to file the FAFSA. They can apply as early as Oct. 1 prior to the school year in which they need aid.
- State: For some financial aid, like in-state scholarships and grants, deadlines vary by state. Certain states may be pushing back their deadlines, so check www.fafsa.gov to see how your state is handling it.
- School: The schools your kids are going to, or applying for, usually have earlier FAFSA deadlines than the federal deadline. But just like the state deadlines, each school might be responding differently to the coronavirus and changing its deadlines as a result.
Bottom line is this: your kids should check with their school’s financial aid office and state guidelines to make sure they have their FAFSA forms turned in on time. And even if your kids have already missed the school and state deadlines, there’s still time to make the federal one.
What to Know About FAFSA When Schools Are Closed
If the college or colleges on your kid’s list are currently closed, don’t stress. The U.S. Department of Education’s Central Processing System will still process your FAFSA info and send it to all the schools you list. That way, your kids will still be able to receive financial aid when schools do reopen. You can also check with each individual school to ensure they’re still processing FAFSA forms and to learn more about their plans for reopening.
What to Know About FAFSA When Your Income Changes
If you or your kids have lost work during this crazy time or your income has dropped a ton, know that you’re not alone. There are plans in place to help with those situations, and your child might be able to have their financial aid adjusted.
Make sure you and your child both answer all the questions on the FAFSA form about income and include any tax documents they ask for. Be sure to reach out to the schools your child is applying to after you’ve submitted the form, so you can talk through any changes in your finances.
Remember, your kids can get scholarships, grants and student loans by filling out the FAFSA. Scholarships and grants are great, but student loans can seriously hurt their future. Be sure they read the fine print in their award letters before signing any agreement. Paying cash for college isn’t easy, especially right now, but it can be done with the help of work study programs, scholarships and other financial aid. Avoid student loans if possible.
If you and your kids need more tips on filling out the FAFSA and graduating debt-free, I’ve got you covered with some free resources. See them at anthonyoneal.com/resources.
EDITOR’S NOTE — Since 2003, Anthony has helped hundreds of thousands of people make smart decisions with their money, relationships and education. He’s a No. 1 national bestselling author of “Debt-Free Degree” and national bestselling author of “The Graduate Survival Guide.” He recently released “Destroy Your Student Loan Debt.” Follow Anthony on YouTube and Instagram @AnthonyONeal and online at anthonyoneal.com or facebook.com/aoneal.
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