FAFSA applications at risk due to financial aid office layoffs?

Don't panic about your approved FAFSA award. Once your SAI (Student Aid Index) has been calculated and your financial aid package awarded, layoffs at your school's financial aid office won't change your eligibility or award amount. Your federal aid is guaranteed through federal funding, not your school's staffing situation. The court order about the SAVE plan is completely separate from your school's layoffs. That applies to loan repayment plans for borrowers who have already graduated, not current financial aid awards. Your current FAFSA award is secure. Regarding your work-study position - that could potentially be affected if there are significant departmental changes. I'd recommend speaking directly with your supervisor about the status of your position. Work-study funding comes from federal allocation, but how those positions are distributed is a school decision.

The media is making these layoffs sound way worse than they really are. My cousin works in financial aid at State University and she says this happens EVERY year after the main FAFSA rush. They hire extra staff during peak processing times (January-April) and let them go once the main batch is processed. It's normal seasonal adjustment, not some crisis that'll affect your aid.

OMG I'm in the same boat!!! My school (Western Michigan) laid off like 8 people from financial aid last week. I went in to ask about my Parent Plus loan and literally saw people cleaning out their desks crying. Super awkward. They told me to "check back in 2-3 weeks" because they're "transitioning systems" whatever that means. I'm supposed to register for classes next week but can't until my aid is finalized... this is such a mess!

This is a complex situation with several separate issues: 1) School financial aid office layoffs: This affects processing speed and customer service, but NOT your eligibility or approved aid amounts. 2) The court order regarding SAVE/IDR plans: This affects repayment options for existing borrowers, not current financial aid awards. 3) Work-study positions: These could potentially be affected by departmental restructuring, but the overall federal funding allocation to your school won't change mid-year. Your concern about already-processed aid is understandable but unnecessary. Once your aid has been approved in the federal system, it's secure. The only things that could change your aid package would be: - Academic performance issues (failing to maintain SAP) - Enrollment status changes (dropping below required credit hours) - Changes to your financial situation that you report - Discovery of significant errors in your original application Staffing changes at your school cannot affect your aid eligibility or amounts.

I've been trying to reach FAFSA for THREE DAYS about this exact issue!!! Keep getting disconnected or wait times of 2+ hours. This is absurd. Our entire financial future hangs in the balance and they can't even staff a proper call center. I submitted my FAFSA in October and it STILL says "processing" - how long does this take??? And now with layoffs? We're screwed.

I work part-time in our university's bursar office (connected to financial aid), and I can tell you that layoffs usually don't affect currently processed aid. The actual PROCESSING might slow down for new applications or changes, but aid that's already in the system stays there. The funds for your federal aid come from the Department of Education, not your school's operating budget. For your work-study position though - that could potentially be affected if they're consolidating roles or cutting hours. I'd recommend talking directly with your supervisor about that.

Here's what you need to know about the court order you mentioned: In February 2023, a federal court issued an injunction that blocked implementation of parts of the SAVE (Saving on a Valuable Education) plan and certain other IDR (Income-Driven Repayment) plans. This only affects REPAYMENT options for people who have already graduated and are paying back loans. This has NOTHING to do with your current financial aid award or FAFSA processing. They are completely separate systems. Your current aid package won't be affected by this court order at all. As for the layoffs - that might slow down processing for NEW aid applications or changes, but cannot impact aid that's already been approved and processed in the system.

anyone else notice that financial aid offices seem to be the FIRST place schools cut when they have budget issues??? my community college did the same thing last year - laid off 4 financial aid counselors and suddenly FAFSA verification was taking MONTHS instead of weeks. they clearly don't care about students who need aid to attend. it's all about the rich kids who can pay full price 🙄

Update: I managed to talk to someone at my school's financial aid office today (had to wait almost 2 hours). They confirmed that my aid package IS secure for the upcoming year! The layoffs are affecting processing times for new applications and changes, but not existing approved aid. Also, they said my work-study position should be safe through the end of the semester at least. Such a relief! Thanks everyone for your help and advice!