Study finds students fail to complete financial aid forms

The findings of a recent study left educators across the nation vexed over why millions of undergraduates failed to apply for financial aid they likely would have received.\nThe American Council on Education, an association which represents colleges and universities, released the study last week. It said that in the 1999-2000 academic year about 8 million students who attended schools with federal student aid programs never completed the Free Application for Federal Student Aid. \nJacqueline King, the author of the study and the director of ACE's Center for Policy Analysis, said she believes there are three primary reasons students don't apply. \n"One, is there are students who simply aren't aware about financial aid, they don't know programs exist and are really in the dark," King said. "Then I think there is a group of students who are misinformed about eligibility and deadlines, and don't apply because they assume they wouldn't get anything. But I think there are also students who are really put off by the bureaucracy of having to fill out these financial forms." \nKing said her biggest concern is that 1.7 million of those who didn't file for aid came from low to moderate-income backgrounds and would likely have received aid if they had just completed the FAFSA. Approximately 850,000 of those students could have been awarded Pell Grants, an esteemed federal grant for students of low income.\nSome are skeptical of the study's findings. Bill Ehrich, associate director for Client Services at IU's Office of Student Financial Assistance, said he attributes these high numbers to the fact that more students are applying for aid online. \n"They begin the process and don't finish," Ehrich said. "When everyone completed a paper application, there was no way to tell who started but didn't finish."\nEhrich said he also questioned the study's high estimates of the number of students not applying. \n"We have to remember that there are people out there who do not, under any circumstances, want to put personal financial information onto documents that are read by others," Ehrich said. "Distrust of government is a reason why many people don't complete forms like the FAFSA. If someone does not wish to divulge certain information to be able to qualify for federal, state or university aid, that is there decision and I must respect it."\nThirty years ago, Ehrich said, the FAFSA was extremely complex and hard to navigate. He said the FASFA has been simplified and is now a breeze to complete online.\nThe study also said many don't complete the FAFSA because they have found other ways to fund their education. If they had filled out the form though, King said they could have received more aid.\nWhen sophomore Margie Michna looked into financial aid she decided a deal from her bank was a better option. \n"I didn't apply because I wouldn't have gotten much to begin with because of what my parents make, and it would have all been in the form of loans," Michna said. "The interest I would have had to pay back was greater through financial aid than just taking out loans at the bank."\nKing said she encourages students to apply for aid even if they have doubts.\n"It doesn't make sense to make any assumptions about what financial aid you may receive," King said. "Filling out the form is going to take you an hour or two, but there may be a significant payoff. The only way to find out if you would be eligible is to go ahead and fill out the form."\n-- Contact staff writer Lindsay Lyon at lrlyon@indiana.edu.