The fate of FAFSA

With the Trump Administration trying to disband the Department of Education, the opportunities provided by FAFSA, or Free Application for Federal Student Aid, are in jeopardy.

Rich Nickel, President and CEO of Education Forward Arizona, joined “Arizona Horizon” to talk about the fate of FAFSA.

The Department of Education currently manages the federal student loan system through its Office of Federal Student Aid (FSA), which handles loan disbursement, servicing and borrower assistance. FAFSA applications cover Pell Grants as well, not just student loans.

Nickel explained the department has authority over financial lifelines that so many campuses and students rely on.

“The FAFSA was created, decades ago now, to consolidate a messy system of applying for federal financial aid,” Nickel said.

FAFSA now unlocks financial aid in states and at universities, and it’s the “free” part that is really important, Nickel said. It’s also the only application for federal student aid available today.

“Without that application, students literally can’t apply for Pell Grants, which you don’t have to pay back, can’t apply for federal student loans and work study,” said Nickel.

Further than that, FAFSA opens doors to institutional scholarships, which are helpful because most students and families don’t understand what their financial situation may be in relation to approval of an application.

“FAFSA is literally the key to unlocking the money needed for almost everybody to attend one of our colleges and universities certainly here in Arizona,” Nickel said.