FAFSA Rollout Hiccups Prompt Late Start Date in 2021

  • College Financial Aid Applications Delayed for Second Straight Year
  • Education Department plans Dec. 1 rollout to avoid a repeat of last year’s troubles
  • FAFSA technical glitches caused confusion and delays in 2020
  • About 250,000 fewer high-school seniors completed the form this year compared to last year

The Education Department has announced that the Free Application for Federal Student Aid (FAFSA) will be available to a limited number of students and schools from October 1st, with a full rollout on December 1st. This is to avoid technical glitches and inaccurate calculations that plagued last year’s application process. College-access advocacy groups had urged the Department to delay the start date to prevent disruptions similar to those experienced in 2020. Last year, about 250,000 fewer high school seniors completed the form compared to the previous year due to technical issues and delays. Education Secretary Miguel Cardona said, ‘We listened, we learned, and we’re taking action.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about the issues faced with the Fafsa form last year and the changes being made to avoid similar problems this year. It includes quotes from relevant sources and explains the reasons behind the decision-making process.
Noise Level: 3
Noise Justification: The article provides relevant information about the delay in the availability of the Fafsa form and its impact on students and schools, as well as the Education Department’s efforts to address technical issues from last year. It also includes quotes from relevant sources. However, it could provide more context and analysis on the long-term consequences or solutions for students affected by these delays.
Key People: Miguel Cardona (Education Secretary), MorraLee Keller (NCAN’s senior director of strategic programming)

Financial Relevance: Yes
Financial Markets Impacted: Colleges and universities
Financial Rating Justification: The article discusses the impact of technical issues with the Free Application for Federal Student Aid (FAFSA) on families, students, and educational institutions. The delayed start date and technical glitches affected financial aid packages and decision-making processes for students. This has implications for colleges and universities as they process FAFSA forms and provide financial aid to their students.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but the issues with the Fafsa form’s rollout caused technical difficulties and confusion for students and parents. However, the impact was minor as it mainly affected the process of filling out the form and did not result in significant consequences.
Move Size: No market move size mentioned.
Sector: Education
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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