Senate Passes Bill to Streamline FAFSA Data Collection

The U.S. Senate passed a bill on Thursday to improve the way that the IRS and Department of Education communicate information for FAFSA applications.

man clicking on laptop with data graphic overlay

Currently, 54 percent of Free Application for Student Aid (FAFSA) applications are filed with information received from the Internal Revenue Service by parents or students using the IRS Data Retrieval Tool. On Thursday, the U.S. Senate passed the Faster Access to Federal Student Aid Act on unanimous consent to turn a seven-click process into a one-click process that transfers information from IRS tax filing data to the Department of Education.

"This legislation will make completing the complicated FAFSA much easier for students and families — allowing them to answer up to 22 questions on the form with one simple click, while securing the applicant's data. It is my hope that the U.S. House of Representatives swiftly passes this legislation," said Senator Lamar Alexander (R-Tenn.) who is the bill's primary sponsor and chairman of the Senate Health, Education, Labor and Pensions Committee.

The bill would amend the Internal Revenue Code and Higher Education Act to allow for cross-agency data sharing to improve and streamline the federal student aid system. The legislation also allows for data sharing between the IRS and Department of Education for applicants requesting or renewing eligibility for income-based loan repayment plans.

Almost a third of borrowers who are currently repaying their student loans are in an income-based repayment program. These programs require borrowers to certify their income on an annual basis, but each year 19 percent of borrowers in this program fail to recertify their income on time, which results in payment spikes and interest capitalization for approximately 1.3 million borrowers.

This piece of bipartisan legislation is also sponsored by Senators Patty Murray (D-Wash.), Sheldon Whitehouse (D-R.I.) and Cory Gardener (R-Colo.). The legislation is also supported by the National Association of Student Financial Aid Administrators. 

"The FAFSA Act not only makes the application process easier for students, but does so while preserving the integrity of the student aid programs," NASFAA President Justin Draeger said. "The financial aid community urges swift action on this bill in the new year so that work can begin to reduce the application and data verification burden that continues to overwhelm students and institutions."

The full text of the FAFSA Act legislation can be found here.

About the Author

Sara Friedman is a reporter/producer for Campus Technology, THE Journal and STEAM Universe covering education policy and a wide range of other public-sector IT topics.

Friedman is a graduate of Ithaca College, where she studied journalism, politics and international communications.

Friedman can be contacted at [email protected] or follow her on Twitter @SaraEFriedman.

Click here for previous articles by Friedman.


Featured

  • glowing digital brain above a chessboard with data charts and flowcharts

    Why AI Strategy Matters (and Why Not Having One Is Risky)

    If your institution hasn't started developing an AI strategy, you are likely putting yourself and your stakeholders at risk, particularly when it comes to ethical use, responsible pedagogical and data practices, and innovative exploration.

  • young man in a denim jacket scans his phone at a card reader outside a modern glass building

    Colleges Roll Out Mobile Credential Technology

    Allegion US has announced a partnership with Florida Institute of Technology (FIT) and Denison College, in conjunction with Transact + CBORD, to install mobile credential technologies campuswide. Implementing Mobile Student ID into Apple Wallet and Google Wallet will allow students access to campus facilities, amenities, and residence halls using just their phones.

  • college students in a classroom focus on a silver laptop, with a neural network diagram on the monitor in the background

    Report: 93% of Students Believe Gen AI Training Belongs in Degree Programs

    The vast majority of today's college students — 93% — believe generative AI training should be included in degree programs, according to a recent Coursera report. What's more, 86% of students consider gen AI the most crucial technical skill for career preparation, prioritizing it above in-demand skills such as data strategy and software development.

  • laptop with a neural network image, surrounded by books, notebooks, a magnifying glass, a pencil cup, and a desk lamp

    D2L Lumi AI Updates Add Personalized Study Supports

    Learning platform D2L has announced new artificial intelligence features for D2L Lumi that help provide more personalized study supports for students.