FAFSA IRS data exchange issue requires reprocessing - school just notified me

I got the exact same message yesterday. I called my financial aid office in a panic and the lady told me it's affecting thousands of students nationwide. Something about the IRS data not transferring correctly to the FAFSA system. She didn't sound too concerned and said my aid package would likely stay the same, but that final SAI numbers might change slightly for some students.

Yes, this is a known issue affecting many FAFSA applicants this cycle. The Department of Education identified a problem with how tax information was being imported from the IRS into the FAFSA system. According to their press release, approximately 14% of all FAFSA applications are affected. The good news: if your school already issued a financial aid package, it's unlikely to change dramatically. The reprocessing usually results in minor adjustments to your SAI (Student Aid Index), not complete reversals of eligibility. The May timeline should still allow for processing before fall disbursements. Your best action is to stay in contact with your financial aid office and make your May 1 decision based on current information. If significant changes occur, you can appeal.

Same!!!! Got the email yesterday and freaked out. This FAFSA rollout has been a complete train wreck. First they launch months late, then the website keeps crashing, now this IRS mess. Seriously why cant they get anything right?? My brother is in college too and he DIDN'T get this email. So i guess not everyone is affected?

I've been trying to call Federal Student Aid for THREE DAYS about this issue and can't get through. Always get disconnected or stuck on hold for hours. Anyone found a way to actually talk to a human being there? I'm about to lose my mind!!

Financial aid counselor here. This is indeed a widespread issue affecting many 2025-2026 FAFSA filers. The Department of Education identified an error in how tax information was being processed when transferred from the IRS to the FAFSA system. What you need to know: 1. This affects approximately 14-16% of all FAFSA applications submitted 2. Reprocessing will begin in May and continue through June 3. The majority of students will see minimal or no changes to their aid eligibility 4. Students near certain thresholds (particularly Pell Grant eligibility) may see adjustments 5. Schools are being instructed not to make significant aid package changes unless SAI shifts dramatically My recommendation: proceed with your May 1st decision using current information. If your recalculated SAI significantly impacts your aid package, you'll have grounds for a formal appeal with documentation of this systematic error. While frustrating, this issue is not likely to completely upend your financial aid situation.

My cousin works in financial aid at a community college and she said they're swamped with calls about this. Apparently the IRS data transfer system (whatever it's called) has been glitching all year. Some people had incorrect income info pulled in, others had their parent's info mixed up. Complete mess. She said most people won't see changes over $500 in their aid packages though.

@profile4 - To answer your follow-up question: In most cases, if your SAI changes significantly (typically more than 10-15%), schools will automatically review your package. However, it's always best practice to be proactive. If you see a substantial change in your SAI after reprocessing, I'd recommend: 1. Immediately contact your financial aid office 2. Request a review based on the FAFSA IRS data exchange error 3. Document the before/after SAI numbers 4. Be prepared to provide any supplemental information they request Schools have been instructed by the Department of Education to be accommodating with appeals related to this specific issue.

is anyone else FURIOUS about this???? like we did everything right, submitted everything on time (even with their delayed launch) and now suddenly there's a "problem" with the IRS data?? I don't trust any of this. They're probably just looking for ways to give us all less money. Every year there's some new excuse.

Just to provide an update: The Department of Education released additional information today. They've confirmed that the reprocessing will begin May 15th and they expect to complete all affected applications by June 10th. They've also established a dedicated hotline for this specific issue: (833) 945-3278 This line is separate from the general Federal Student Aid number and should have shorter wait times for those specifically affected by the IRS data exchange error.