Mar 26, 2022 3 min read

Applications for federal college financial aid are significantly lower this year.

The Pennsylvania Higher Education Assistance Agency on Friday hosted a press conference addressing the drop in applications and urging students and families to complete the Free Application for Federal Student Aid (FAFSA) as soon as possible to qualify for student aid funding.

FAFSA applications have declined 10.4% in Pennsylvania this year compared with the same time last year, with nearly 31,000 fewer Pennsylvania students submitting the 2022-23 FAFSA since it became available last October.

“It’s concerning to see the drop in applications,” said Elizabeth McCloud, PHEAA Vice President of State Grant and Special Programs.

The FAFSA is a federal form that must be completed for students to be considered for federal aid, including the PELL grant and lower-interest federal loans, and state student aid, including PHEAA’s need-based PA State Grant Program.

It also is the most common way for students to apply for scholarships and grants from the college or university they are attending.

McCloud said that many students who do not apply for FAFSA revert to private student loans, which often have high interest rates and lack the consumer protections that federal student loans include.

College students “are leaving money on the table” that could be the difference between attending college or not, or reducing student loan debt, said McCloud.

In Washington County, FAFSA applications have dropped 10.22%. In Fayette County, completed FAFSAs have fallen 12.86%, and in Greene County, 2.94% fewer FAFSA applications have been submitted.

A decline in FAFSA completion could mean a lower college enrollment rate this fall.

Pennsylvania’s overall college enrollment fell by 2.1% in the fall of 2021 compared to the prior fall, when enrollment was down 5% from 2019.

McCloud said the COVID-19 pandemic has had some impact on student enrollment, and since the start of the pandemic, school financial-aid offices have reported some students have postponed enrolling because they didn’t want to attend classes online or didn’t have the tools for online learning, or had other pandemic-related responsibilities, such as child care.

State Sen. Wayne Fontana, vice chair of the PHEAA board of directors, noted, too, that students are seeking career alternatives that don’t require a college degree.

“There are a lot of good-paying, blue-collar jobs available, and demand for those is high. When you talk about the high cost of college, there are alternatives to the four-year degree,” said Fontana.

William Lindsey, PHEAA Pennsylvania School Services Manager, said completing the FAFSA form has become easier for parents and students.

He emphasized that PHEAA staff is available to assist students and families at no cost in filling out the FAFSA.

For more information, go to www.PHEAA.org and look under the headings for Partner Access and Tools.

PHEAA also offers webinars that walk parents and students through the FAFSA process. The next webinar is scheduled for April 18. To register for the free webinar, visit PHEAA.org/virtual.

The FAFSA application deadline for the 2022-23 academic year is June 30 at 11:59 p.m.

The PA State Grant deadline is May 1. Many colleges and universities set their own deadlines for aid applications, so students are encouraged to check with their school.