New Jersey has introduced a new requirement for high-school graduates: completing the Free Application for Federal Student Aid (FAFSA). But a significant drop in the number of students who applied this year poses a challenge as the state begins enforcing the new mandate.
The FAFSA law – signed in January – requires students graduating in 2025, 2026, and 2027 to complete the application so they can receive their diplomas. The FAFSA form is crucial in determining eligibility for college financial aid, and state officials are encouraging its completion so more students can pay for higher education.
Despite the new requirement, only 54.7% of the state’s high-school seniors submitted their FAFSA forms this year, a 6% decrease from last year, according to the National College Attainment Network, which amounts to 6,204 fewer students.
“That’s a lot of money that we know students are leaving on the table, either because they don’t think it’s safe, because it’s too hard to do, because they aren’t aware or because they’ve given up,” Audrey Fisch, president of a nonprofit focused on access to higher education in Passaic, told NJ Spotlight News.
The drop in FAFSA submissions coincides with delays in the federal government’s release of a new form. The forms are typically available on Oct. 1, but the new version’s delay has caused frustration for students and families trying to navigate financial aid. The U.S. Department of Education has announced that most students will again face a delay of three months for the updated application.
The National College Attainment Network has expressed concern over the ongoing issues with FAFSA processing. It reported that the significant decline in applications this year highlights the critical need for the form to be available on time and emphasized that FAFSA is a crucial gateway to college.
The delay has left many New Jersey students without crucial financial-aid information, causing some to redirect their college choices. According to Alejandro Guiral, president of the New Jersey Association of Student Financial Aid Administrators, students who completed the FAFSA late have had to wait longer to learn their aid eligibility.
The new graduation requirement is part of a pilot program that allows for exemptions through a waiver process or consultation with a school counselor. Undocumented students ineligible for federal aid can fulfill the requirement by completing the New Jersey Alternative Financial Aid Application.
State officials remain optimistic that the new law will boost FAFSA completion rates in the coming years. To support students and families, New Jersey’s Higher Education Student Assistance Authority (HESAA) has been offering free, online and one-on-one sessions with financial aid experts to help students with initial applications, correcting errors or providing additional information requested by the federal education department.
In light of this year’s challenges, Guiral’s association is advocating for better rollout and preparation in the new school year. It also encourages seniors and their families to set up accounts with the education department in advance, so they can apply when the forms are available.
