Obama suggests end to FAFSA

Mar 11 2009 - 10:59pm | Chrissy Scott

Change is coming to the U.S Department of Education.

President Obama’s plan entails measures to reform education for all levels. The elimination of the Free Application for Federal Student Aid, or FAFSA form, is at the heart of the plan for college students.

FAFSA has become notorious for its complexity, containing six pages of detailed questions. FAFSA officials request personal information such as the family’s adjusted gross income and the Social Security numbers of both parents.

Obama promised to eliminate the FAFSA during his campaign. According to his 2010 budget proposal, “(The FAFSA) needlessly costs taxpayers billions of dollars,” Secretary of Education Arne Duncan said during his confirmation hearing. “You basically have to have a Ph.D. to figure that thing out.”

The wheels have been set in motion for the elimination of the FAFSA and the initiation of the new higher education program. According to the White House Web site, applying for financial aid will become a part of a family’s tax filing. Filers will check a box on their tax form to have their information automatically applied for deciding aid.

All new federal loans will come through the Direct Loan Program, according to the president’s budget. The program will save the government more than $4 billion a year, which will be reinvested to aid students.

The Direct Loan Program allows the Department of Education to act as a lender, and provides funds for Stafford, PLUS and GradPLUS Loans.

“The FAFSA could be designed, as suggested by a number of professional organizations, researchers and others, in a more simplified fashion,” said Christopher Murr, associate director for the office of financial aid and scholarships. “The more difficult the application process, the greater the difficulty students, especially those from low socio-economic backgrounds, will have in completing it. Also, the complexity of the FAFSA can be intimidating, which results in fewer families even beginning the application process.”

However, the office of financial aid and scholarships takes no official stand on the new education plan.

“Many people fill out the FAFSA and waste their time,” said Alex Howard, marketing junior. “They don’t get anything out of it — we have enough papers due, enough forms for school and scholarships. We shouldn’t have to fill out a form with information the government already has.”

Obama’s education plan includes the American Opportunity Tax Credit. The credit guarantees the first $4,000 of college education free for most Americans.

Recipients of the credit are required to perform 100 hours of community service. The credit will be available only to students whose income is less than $80,000 a year, or $160,000 for joint filers. The American Opportunity Tax Credit is part of the $789 billion stimulus package. Obama intends to increase the discretionary budget for the U.S. Department of Education to $46.7 billion — a 12.8 percent increase — by 2010.

“I think the tax credit is a great idea,” said Rachel Euhus, pre-mass communication sophomore. “College is expensive — so expensive that I’ve even seen kids steal books just to pass the class, being unable to make such a huge purchase. I think the combination of the elimination of the FAFSA and the $4,000 credit is a positive move in education reform.”

The economic slump and rising cost of college has compelled families to file the FAFSA this year, while the form is still used to apply for aid.

Filing the form is the first step toward Pell grants, Stafford loans, Perkins loans, work-study programs and other state aid. The Department of Education received 2,213,408 forms as of Feb. 15. This is 20 percent more than at the same time last year, according to a Feb. 26 press release by the U.S. Department of Education.

According to Obama and Biden’s College Affordability Fact Sheet, students have missed out on money they could have received from government assistance programs because of the complicated financial aid process.

“I believe the FAFSA is ridiculously long and drawn out, and it’s difficult for some people to obtain the required information,” said Rachel Lewis, pre-mass communication freshman. “I think this new education plan will make the financial aid process much less stressful.”

The main sentiment of Obama’s plan for higher education was expressed in his Feb. 24 address to congress: “In this budget, we will end education programs that don’t work.”

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