By Bill DeBaun, Senior Director of Data and Strategic Initiatives
Reading time: Four minutes
Indiana Governor Eric Holcomb signed S.B. 167 into law on April 25, making his state the 8th in the nation to require high school seniors to complete
the Free Application for Federal Student Aid (FAFSA), or opt out of doing so, to graduate. The legislation goes into effect for the high school class of 2024. Kansas became the 7th state to adopt such a policy in January.
“Every year, the state and UU Department of Education give out billions of dollars in loans and grants to FAFSA applicants to help them afford college,” State Senator Jean Leising said in a press release. “Last year, $69 million was not claimed by Indiana students, which is why it is important for students to apply…. Even if students are unsure if higher education is their next step, I hope this law better helps them
see what post-secondary education resources may be available to them.”
Indiana joins Louisiana (implemented class of 2018), Illinois (2021), Alabama and Texas (2022), California (2023), New Hampshire (2024), and Kansas (2028) as a “universal FAFSA” state.
Indiana’s implementation of universal FAFSA will be one to watch given the relatively short window between this legislation’s passage and the 2023-24 and what might be a tricky environment given the forthcoming Better FAFSA [read more about how the National College Attainment Network (NCAN) will help you get ready].
The legislative digest for S.B. 167 notes that the bill, “requires all students, except for students at certain nonpublic schools, in the student's senior year to complete and submit the FAFSA not later than April 15.” There are two exceptions to that
requirement:
A parent of a student or a student, if the student is an emancipated minor, signs a waiver that the student understands what the FAFSA is and declines to complete it; or
The principal or school counselor of the student's high school waives the requirement for a group of students due to the principal or school counselor being unable to reach the parents or guardians of the students by April 15 after at least two reasonable
attempts to contact the parents or guardians.
S.B. 167 builds on legislation passed last year that required the commission to prepare a “model notice” for students and families that includes the following elements:
A statement regarding the existence, availability, and state deadline to complete the FAFSA.
A description that provides parents and students with an understanding of the process for and benefits of completing a FAFSA.
A statement regarding the most recent labor market trends including the number and percentage of state minimum wage jobs that do not require education beyond high school and require additional education or training after obtaining a high school diploma.
A statement that Indiana offers guaranteed financial aid options for all high school graduates, regardless of family income, including information on Indiana's high value workforce ready credit-bearing grants.
A statement that eligibility for many merit based and need based scholarships, grants, and other financial aid opportunities require the FAFSA to be completed by a certain date.
The “model notice” is a novel component of Indiana’s universal FAFSA legislation relative to its peers, but it is an idea that other states should consider as a way to provide greater context around the importance of completing the FAFSA, accessing financial
aid, and pursuing postsecondary pathways.
NCAN endorses universal FAFSA with supports and has identified it as a state policy priority and one of eight college and career readiness policy levers that are a focus of NCAN’s ongoing systems change work.
NCAN’s recommendations to states who are considering universal FAFSA include:
Require FAFSA completion for high school graduation through legislative or other policy vehicles.
Include a robust opt-out system for students who are unable to access parental financial information, have undocumented parents, or whose parents allow them to abstain.
Provide (at minimum) one full FAFSA cycle from the bill passing, or the item being administratively added to a list of requirements before the actual requirement takes effect.
Make the change administratively, if high school graduation requirements do not live in statute.
If not already in place, build and provide robust training and support through school counselors and/or college access advisers to ensure students are helped through the process.
Provide regular data-sharing on completion to high schools and community-based organizations to allow for better-targeted FAFSA completion efforts.
For states considering their own universal FAFSA policy, uAspire recently released “Opportunities & Challenges of Universal FAFSA,” which presents “opportunities created for students, the challenges of implementation, and best practices to inform states seeking to adopt an equitable and effective universal FAFSA policy.”
Kansas and Indiana may not be the only 2023 universal FAFSA adopters; Massachusetts is also considering a similar bill.
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