Freezing student grants and loans through the FAFSA will impact millions of students and give a major advantage in education to the rich
A temporary freeze on all federal grants and loans is set to go into effect Tuesday, January 28 at 3:00PM PST. This freeze will effect all federal grants and loan programs with the exception of Medicare and Social Security. The Free Application for Federal Student Aid (FAFSA) is a program through which the government awards students with financial aid for studying at US colleges and universities.
The FAFSA awarded $114.1 billion in federal financial aid in the form of grants, loans, and word-study programs in 2023 (US News), which helped educate 9.7 million students. A freeze, even a temporary freeze, would greatly impact millions of students and throw financial-aid offices into a downward spiral.
What will a freeze to FAFSA mean
Student grants and loans through FAFSA are used to cover tuition, books, housing, and all costs associated with studying.
Freezing FAFSA would create significant barriers for students, particularly those from low- and middle-income backgrounds, undermining their ability to afford college and pursue their academic goals. At its core, FAFSA is the vehicle through which the U.S. Department of Education determines eligibility for federal financial aid. This includes Pell Grants, Direct Subsidized and Unsubsidized Loans, and federal work-study opportunities. If FAFSA were frozen, students would no longer have the means to access this vital support. The ripple effect would not only impact federal funding but also private scholarships and state aid programs that rely on FAFSA information to make determinations of financial need.
Here is a likely scenario facing many students if FAFSA is frozen:
- FAFSA funds are frozen
- Tuition bill goes unpaid
- Students are unable to register for classes due to lack of payment
- Unable to register for classes due to lack of payment till FAFSA reinstituted
Worsening inequality in access to higher education
The freezing of FAFSA would disproportionately impact low-income and first-generation college students. For these individuals, federal financial aid is often the only feasible way to afford higher education. In 2020, about 31% of students attending public four-year institutions received a Pell Grant, which is specifically targeted to those from low-income households. Without FAFSA to assess need, these students would face severe obstacles in their pursuit of higher education.
Students who come from families with the means to self-pay for tuition are at an advantage, because their tuition bills will be covered as normal from their parents. Self-funded students or students who come from families who cannot afford the cost of education, are greatly affected because these are the students who will not be able to register for classes as long as an outstanding balance remains.
Go get a job
Go get a job! That’s the advice given to student impacted by the FAFSA freeze. The average price for one year of studies at a public four-year institution is $11,610 (CollegeBoard). Let’s do the math. The federal minimum wage is $7.25 per hour which is about $1,218 take home per month working 40 hours per week.
$14,616 take home per year = $1,218 take home x 12 months
$11,610 cost for one year of college/university
$ 3,006 remaining funds
A student would need to work a full 40 hours per week in order to come close to covering their cost of education for one year. Is it possible for a student to work 40 hours per week while studying? Yes. Will their grades suffer? Also, yes.
Threat of predatory student loans
As students are unable to register for classes due to an outstanding balance, predatory student-loan vendors will target students desperate to pay their tuition bill and resume classes. These student-loan vendors do not need to follow laws that protect students while studying. The biggest protection is in the terms of repayment – students loans taken through FAFSA do not need to be repaid as long as the students are enrolled in classes. This allows students to focus on their studies without needing to find the means to make payments till after graduation.
“I got money from FAFSA, and it’s what made it where I could pay for college,” says Amber Yancey of Portland State University. “If I didn’t have grants from FAFSA, there’s no way I would be able to pay for college.”
The FAFSA is part of what makes America great
I’ve been in international higher education for over 13 years, and traveled to over 60 countries. One thing that always strikes me as awesome about the US is simply opportunity. The US is the land of opportunity – anyone willing to work hard can have a better life through opportunities. The FAFSA makes higher education an opportunity for millions of students each year, and not every country has programs like this.
The US is awesome, but freezing the FAFSA will take away the opportunity to seek quality education for millions of students – making education a program for the wealthy. The FAFSA is a part of what makes America great and must be protected.