By Louisa Woodhouse, Senior Associate, Policy and Advocacy, and Bill DeBaun, Senior Director, Data and Strategic Initiatives
Reading Time: 11 minutes
States and Students Have a Valuable Opportunity by Increasing FAFSA Completion
The high school class of 2024 left almost $4.4 billion on the table by not completing the Free Application for Federal Student Aid (FAFSA). This represents a $400 million increase in unused Pell Grants, compared to the class of 2023. States and college access organizations have a critical opportunity to support students in claiming those federal aid dollars so that they can pursue their best choice for postsecondary education.
The National College Attainment Network's (NCAN) Pell Grants Left on the Table report series estimates the foregone Pell Grants that eligible students could have claimed had they completed the FAFSA. This edition in this series reflects the result of
a cycle that was deeply challenging for students and families across the country but also shows the promise of investing in supports that connect students with financial aid.
As the Trump Administration initiates an aggressive plan to shift education policy and responsibility to states, increasing Pell Grant uptake ought to become a central goal across the country. States can increase FAFSA completion and, by extension, Pell
Grant receipt. Now they must show the willingness to do so. Increasing Pell Grant recipients and postsecondary graduates will provide a substantial boost to state economies.
Key Takeaways and State-Level Insights
NCAN estimates that among class of 2024 high school graduates there were around 830,000 Pell Grant-eligible FAFSA non-completers. Given that the average Pell award for award year 2024-25 was $5,339 nationally, the product of these two
figures yields the estimated $4.4 billion on the table in unclaimed Pell Grants for the class of 2024.
These data and more are available at the state-level for all 50 states and the District of Columbia via an interactive online dashboard, part of which appears below.
State estimates of Pell Grants left on the table are predictably correlated with enrollment. Students in states like California and Texas each had more than half a billion dollars in Pell Grants left on the table while
another 10 (in descending order: Florida, New York, Pennsylvania, North Carolina, Ohio, Illinois, Georgia, Arizona, New Jersey, and Michigan) had more than $100 million to gain from increased FAFSA completion. The average amount left on the table
across states was about $20 million.
Shifts in FAFSA Completion and Pell Grant Policy
This report is the fourth in a series of NCAN analyses on unclaimed Pell Grants by high school graduates. The series started with the class of 2021, which left $3.75 billion unclaimed. In following years, this value dipped for the class of 2022 ($3.6 billion), before climbing again for the classes of 2023 ($4 billion) and 2024 ($4.4 billion).
Two factors tend to shift the amount of Pell Grants Left on the Table in this series: the FAFSA completion rate and the average Pell Grant award. The challenges and changes in the 2024-25 award year help to explain the increase in the class of 2024’s
total Pell Grant dollars left on the table.
The delayed opening and ongoing technical challenges with the launch of the redesigned FAFSA led to a notable decrease in the national FAFSA completion rate. The high school class of 2024 finished the summer with only 51.4% of seniors having completed a FAFSA by August 30, compared to 57.8% for the class of 2023.
The line chart below shows the national FAFSA completion rates for the high school graduates of the classes of 2021 through 2024 as of June 30 of the graduation year. NCAN typically focuses on June 30 FAFSA completion rates in our analyses because FAFSA
completion typically tapers dramatically at the end of the academic year. However, the class of 2024 had an atypical FAFSA completion cycle, and we consider the FAFSA completion rate for the graduating class as of August 30 in this year’s analysis.
This decision acknowledges the delayed opening of the cycle, as well as the tremendous amount of work done by NCAN members and other organizations over the summer, to help students get back on track and make significant gains in applying for and obtaining
federal student aid.
As of June 30, only 50% of seniors had completed a FAFSA, but that rate grew to 57% by August 30. While a notable departure from the completion rates of previous years, that increase over the summer months represents a significant recoup of federal student
aid dollars, including Pell Grants. We examine those gains in a later section.
Declines in FAFSA completion rates increased the number of unclaimed Pell Grants, but changes in the FAFSA also increased the value of each of those unclaimed Pell Grants for students and states.
When FAFSA completion rates have previously stayed relatively similar, shifts in Pell Grants left on the table have been driven primarily by increases in the average Pell Grant award. That is also true this year. The FAFSA Simplification Act expanded
Pell Grant eligibility. Consequently, the average allotted Pell Grant award grew last cycle, despite the maximum Pell award ($7,395) remaining the same, as appropriated by Congress. The national Pell Grant award grew by $365, according to NCAN's analysis,
increasing from $4,974 for graduates in the class of 2023 to $5,339 for those in the class of 2024. The average increase varied at the state level according to states’ income levels.
States Stand to Gain If They Increase FAFSA Completion
While students benefit most directly from the receipt of Pell Grant dollars, states also stand to gain, whether directly or indirectly, when their students complete the FAFSA. When more students receive more federal aid, they are more likely to enroll
in postsecondary education, in turn, gaining the skills to fill gaps in the workforce and strengthen the economy at both state and national level.
This year, NCAN calculated the additional Pell Grant awards that would result from each state having increased its August 30 FAFSA completion rate by a further 10 percentage points. This scenario highlights what states stand to gain by making achievable
improvements in their FAFSA completion performance. NCAN observed the highest high school FAFSA completion rate in 2018. That rate was 10 percentage points higher than the national FAFSA completion rate year.
Our analysis found that the average state would gain an additional $19.3 million in Pell Grant dollars from increasing FAFSA completions by 10 percentage points. The range in the gains among states varies predictably due to factors like
percentage of Pell Grant-eligible students and the number of high school seniors in each state. We assume that additional FAFSA completers would be Pell Grant-eligible at the same rate as FAFSA completers in the class of 2024.
The states that would see the largest gains from Pell Grants are, unsurprisingly, California ($145 million), Texas ($130 million), Florida ($65 million), New York ($61 million), and Illinois ($38 million). 14 states would see gains of more than $20 million,
as a result of an estimated 3,800 to 23,000 Pell eligible students completing the FAFSA for the first time. 28 states would receive more than $10 million in additional Pell Grant awards following a 10 percentage point increase in FAFSA completion.
The Importance of Student Support
While FAFSA completion was undeniably challenging last year, we found that gains in completion rates over the summer months, especially, resulted in a significant increase of recouped Pell Grant dollars. Between June 30 and August 30, students claimed a collective $1.1 billion in Pell Grants which otherwise would have been left on the table.
This finding is a testament to the importance of FAFSA completion support, and particularly, funding for FAFSA completion initiatives.
In May 2024, the US Department of Education (ED) announced a grant competition for an additional $50 million in funding for FAFSA completion initiatives, the “FAFSA Student Support Strategy.” Across the country, NCAN member organizations and other college access programs used these dollars,
working quickly to stand up outreach and programming initiatives during peak summer months, when students are often out of school and considerably harder to reach. The FAFSA Student Support funding had a considerable impact on FAFSA completion, and
the recouping of $1 billion in Pell Grants adds to the argument that funding FAFSA support programs has a significant return on investment. These federal dollars, disbursed directly to programs providing FAFSA completion support, are an efficient
and effective use of funding and help students access grants to pay for college.
How States Can Help
Funding for FAFSA Completion: Federal funding during the Biden Administration provided much needed support for FAFSA completion efforts, and as previously discussed, those efforts
were fruitful. However, with the Trump Administration’s commitment to reducing federal spending, states can, and should, step in to provide much-needed financial support for college access organizations, school districts, and other organizations,
who support students with FAFSA completion. Some states have appropriated funds in their budget for school districts to support FAFSA completion, while others have established statewide FAFSA helplines or organized call-in campaigns. In some cases,
states have looked to their public college and university systems to stand up FAFSA completion and outreach initiatives, such as the Financial Aid Support Team (FAST) at the City University of New York (NY). This strategy can be particularly effective for supporting students once they have transitioned out of a K-12 setting.
Universal FAFSA Policies: Universal FAFSA policies, which make FAFSA submission or completion a high school graduation requirement, are now active in nine states. Adopting states have seen impressive results for students. For universal FAFSA approaches to be successful, FAFSA completion requirements must be paired with adequate support for
all involved in the financial aid application process – students, families, and advisors. Robust training and support are essential for college access professionals, who guide students and families through consideration of available postsecondary
pathways. Effective universal FAFSA policies also include an opt-out system to account for students who may not be able to complete the form due to obstacles surrounding parental financial information or citizenship status.
FAFSA Data Sharing: States agencies should maintain or improve their systems of student-level FAFSA data sharing efforts with their districts, high schools, and communities.
These data help high school counselors and local college access partners better target their outreach and support efforts to students. This approach can improve school participation in FAFSA completion challenges, enhance college-going advising
practices, and ensure that students obtain financial aid. Examples of states with exemplary FAFSA data-sharing processes include California, Colorado, and Washington.
FAFSA Challenges: Statewide “challenges” are a great way for states to incentivize districts and schools to increase the share of their graduating seniors who are submitting a FAFSA. Initiatives like these can help build necessary
P-20 partnerships between all stakeholders in the process—states, school districts, students, and their families. Along with these efforts, college access professionals should receive the requisite funding for, and resources on, financial aid
counseling and the application process. Schools can also host FAFSA completion events and disseminate college readiness-related resources to families, students, and practitioners with state support. Many states have taken concerted steps like
these to drive FAFSA completion. Excellent examples include: Connecticut, Georgia,
Michigan, Mississippi, North Carolina,
and
Oregon.
How the Federal Government Can Help
This data highlights that federal funding makes a meaningful impact when it comes to supporting FAFSA completion efforts, but there are additional steps the government can take to assist students in completing the FAFSA and accessing the aid for which
they are eligible.
Following a tumultuous award cycle last year, many technical bugs and glitches have been resolved, and the FAFSA is functioning smoothly. FAFSA completions for the class of 2025 have improved substantially over the class of 2024 but still lag the class
of 2023 by multiple percentage points through mid-March. Moreover, FAFSA completion rates still have not rebounded to pre-pandemic levels, and some students and families continue to encounter challenges when completing the form.
One of the key functions of the Office of Federal Student Aid (FSA) is operating the FSA Information Center (FSAIC), where call center staff provide timely, critical support for students and families completing the FAFSA. Operators work to resolve technical
challenges – many of which can only be addressed through direct support from the FSAIC. The FSAIC also provides translation services for families, which are especially critical for those who speak languages other than English and Spanish – the only
two languages in which the FAFSA form is produced.
Recent reductions in force (RIFs) at ED impact the number of staff at the call center and the operating hours, which will likely hamper students’ ability to get their questions answered accurately and in a timely fashion. Inadequate staffing will threaten
the progress made across the country. Providing substantial staffing and maintaining the hours of operation at the FSAIC is necessary to continue making progress towards pre-pandemic FAFSA completion rates.
Conclusion
Student aid is a ladder to postsecondary attainment for millions of students every year, helping them achieve their education and career goals after high school. The Pell Grant has been the foundation of federal student aid for nearly 50 years, providing
meaningful financial support for nearly seven million students from low- and moderate-income backgrounds annually.
While students benefit most directly from completing the FAFSA and receiving federal student aid, states, too, stand to gain financially when students receive more Pell Grant dollars. We should help eligible students take their Pell Grant off the table
and put it toward their education beyond high school and, by extension, their futures.
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