Universal FAFSA: Learnings from Other States
Massachusetts decision-makers are contemplating adopting a universal FAFSA policy, mirroring the initiatives of thirteen other states. The primary goal of this policy is to enhance college enrollment, persistence and completion rates and maximize the financial aid for which students qualify from federal sources. This strategy also aims to extend the reach of our state financial aid programs, thereby increasing college affordability for students.
In this insight, we present evidence-based best practices that are crucial for ensuring the efficacy of the policy in converting the surge in FAFSA applications into higher college enrollment and completion rates and an increased number of Pell Grant recipients.
BACKGROUND
The introduction of the Free Application for Federal Student Aid (FAFSA) in 1992 significantly boosted financial aid applications, resulting in increased college attendance and retention. This positive impact of financial aid is most notable for students from low-income families and students of color.
Despite its role as a crucial gateway to federal, state, and institutional financial aid, many students are either misinformed, unaware, or mistakenly believe they don't qualify for such assistance. Consequently, they often overlook filing their FAFSA, thereby missing out on essential financial support.
The high school class of 2023 left more than $4 billion in Pell Grants on the table by not completing the FAFSA. In Massachusetts, $53 million was left on the table in 2023.
According to the National FAFSA Tracker, the completion rate for Massachusetts in 2022-23 was 61%, which is higher than the national average of 54% and ranks 16th in the nation in terms of FAFSA filings. Regarding year-over-year percentage change in filings, Massachusetts ranks 45th nationally, showing no change at 0%.
MAIN FINDINGS
Louisiana was the first state to require FAFSA completion for high school graduation in 2018, and they now lead the nation with FAFSA completion, with 77% of high school seniors filing the form in its best year.
Thirteen other states have adopted some form of universal FAFSA, though none have replicated the success of Louisiana. Tennessee is the only other state with an annual FAFSA filing rate over 75%.
FAFSA mandate alone will not move the needle on enrollment and completion. It must be paired with other initiatives, programs, services and funds. School counseling is imperative for students to make the right choices for them.
Leveraging federal financial aid will be important as Massachusetts implements last- dollar grant programs with MASSReconnect and MassGrant Plus expansion. This ensures federal grants are applied before state grants.
RECOMMENDATIONS
Universal FAFSA initiatives can increase FAFSA filings, create college-going awareness, start a conversation between students and school councelors, introduce students to their options regarding financial aid and close gaps in access between low-income and higher income students. Below are some recommendations to keep in mind:
Support students and families with financial aid form submission and begin educating students about financial aid prior to their senior year.
Provide easy pathways for students to opt-out without giving a reason or any self-identifying information and provide K-12 incentives to ensure that opt-outs aren’t granted too easily.
Ensure resources are available to increase staff capacity, and training.
Partner with nonprofit organizations, Massachusetts Educational Financing Authority (MEFA), and outreach staff to establish a robust framework that supports and reinforces guidance for filing a FAFSA.
Make funding available to support school districts and target districts with lower-income high schools and/or lower financial aid form submission rates.
Require schools to publicly report the number of completions and waivers annually.
Encourage data-sharing through MEFA/EDWIN Analytics to report on FAFSA filings so that school counselors can follow up with students who have not filed.
Access the full Policy Insight here.