Education Department opens FAFSA ahead of schedule — it’s a ‘huge win’ for college-bound students, expert says

The U.S. Department of Education opened the Free Application for Federal Student Aid form on Wednesday — one week before the anticipated Oct. 1 launch date. The early start may help more students gain college access, experts say.

Completing the FAFSA is the only way to tap federal aid money for higher education, including federal student loans, work-study and grants.

“Given the previous glitches, delays, and confusion, having the FAFSA delivered not only on time but early is a huge win,” said Rick Castellano, a spokesperson for Sallie Mae. 

More from Personal Finance:
As some colleges near $100,000, these schools are free
These college majors have the best job prospects
Student loan forgiveness may soon be taxed again

In part because of previous complications with the new form, which initially launched in late December 2023 after a months-long delay, completion rates fell last year.

Only 71% of families submitted the FAFSA for the 2024-25 academic year, down from 74% in the previous cycle, according to Sallie Mae’s recent How America Pays for College report, which surveyed 2,000 college-aged students and their parents.

“Hopefully we’ll see those numbers begin to tick in the right direction,” Castellano said.

Further, the earlier college-bound students and their families fill out the form, the better their chances are of receiving aid, Castellano said. That’s because some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds.

“Filing early also means students and families may receive financial aid offers from schools earlier, which can help them make more informed decisions about planning and paying for college,” he said.

For many families, financial aid is key when it comes to covering the cost of college, which has jumped significantly in recent decades. Grants — including federal ones such as the Pell Grant — have become the most crucial kind of assistance, because they typically do not need to be repaid.

Submitting a FAFSA is also one of the best predictors of whether a high school senior will go on to college, according to the National College Attainment Network, or NCAN. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data. 

Subscribe to CNBC on YouTube.