Our new report looks at the policies of states that have had, currently have, or will soon implement universal FAFSA policies and examines the impact of these policies on FAFSA submission and completion rates and enrollment among Pell Grant recipients
College enrollment has increased over the years but so has the cost. The total cost of attending college — including tuition, room and board, necessary books and supplies, and more — would be prohibitive for most students if not for financial aid. Yet, many students still cite financial barriers as the top reason for opting out of college. Boosting access to financial aid, and thus, access to postsecondary education is essential and hinges not only on increasing the amount of aid for which students are eligible but on increasing students’ awareness of the aid that’s available to them. Completing the Free Application for Federal Student Aid, or FAFSA, is often an important first step for students and their families. Students who fill out the FAFSA are more likely to go to college. Unfortunately, members of the high school class of 2023 who didn’t complete the FAFSA left more than $4 billion in Pell Grants unclaimed.
Recent concerns over data privacy and political uncertainty have added new barriers to accessing financial aid. A federal ruling recently blocked the Department of Government Efficiency (DOGE) from accessing student records at the U.S. Department of Education due to potential privacy violations. But the recent firing of student aid officials at the Department of Education, and the Trump administration’s threats to dismantle the department and cut federal support for student borrowers, and fears that the DOGE team is feeding sensitive personal data into AI have left many students and families on edge. Additionally, the looming threats of deportation are only increasing the likelihood that students from mixed-status families will forgo completing the FAFSA this year, out of fear that their information could be used for immigration enforcement purposes.
This has raised alarms for lawmakers and is prompting more discussions about universal, or mandatory, FAFSA completion policies and the need for additional state support. Twelve states — including Alabama, Indiana, and New Jersey — now require students to fill out a FAFSA to graduate, while others — such as Michigan and Massachusetts — are planning to adopt similar policies, hoping to spur more students to seek financial aid and attend college.
This report analyzes the policies of 14 states that have had, currently have, or will soon implement universal FAFSA policies. It also examines the subsequent impact of these policies on FAFSA submission and completion rates, as well as on enrollment among Pell Grant recipients, where data is available.
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