New Government Watchdog Report on Effectiveness of the FAFSA Simplification Act
WASHINGTON – Today, the Government Accountability Office (GAO) released a new report on the impact of the effectiveness of the Free Application for Federal Student Aid (FAFSA) Simplification Act. Requested by House Committee on Education and Workforce Ranking Member Robert C. “Bobby” Scott (VA-03), the report revealed that in the 2024-25 school year, more students were eligible for the Pell Grant, and an increased proportion of those students were eligible to receive the maximum Pell Grant.
In 2020, Democrats passed the FAFSA Simplification Act to make it easier for students to apply— and qualify— for federal student aid by streamlining the FAFSA and expanding outreach and awareness to encourage FAFSA completion, with a focus on low-income students and families.
Despite initial difficulties with implementation, GAO found that after FAFSA simplification, Pell eligibility increased by about 570,000 students, and eligibility for the maximum Pell increased by almost 2 million students. Additionally, the report found that over 90 percent of students in vulnerable populations, such as those who were homeless or in foster care, were eligible for a Pell Grant last year.
"A college degree remains the surest path to economic mobility. College graduates earn more, experience lower unemployment rates, and are better positioned to support their families and contribute to their communities. In 2020, Congress took decisive action to reform the financial aid process and expand access to higher education for students across the country,” said Ranking Member Scott. “Today’s report confirms that those reforms worked. Pell Grants break down economic barriers and open pathways to higher education for those who need it most. I was proud to work with former Senate HELP Committee Chair Lamar Alexander to pass the FAFSA Simplification Act, which was an important first step to expand access for students and families. Congress should continue this work and do more to improve students’ access to Pell Grants."
Pell Grants are the largest source of federal grant aid to education and are critical to expanding students’ access to a college degree. Pell eligibility is decided when a student fills out the FAFSA.
To read the full report entitled, “Pell Grants: Overall Student Eligibility Increased After Free Application for Federal Student Aid Simplification,” click here.
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