As financial aid applications lag, state urges college counselors to double their efforts

Published Feb 13, 2025 2:43 PM

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With the statewide March 2 deadline less than three weeks away, the California Student Aid Commission is urging counselors to double down on outreach to students who haven’t submitted an application for financial aid. Completion rates are down across the board — whether it’s for federal or state-based support.

How it works: The U.S. Department of Education and the California Student Aid Commission use student data to make determinations about financial aid. That data gets forwarded to colleges, who use it to calculate how much students will pay to go to their campus. Colleges then make offers to prospective students, which can be composed of grants, loans, scholarships, and work-study.

Why the lag matters: Low completion rates are harbingers of future enrollment, said Daisy Gonzales, the commission’s executive director. “We need to be clear: We now have a crisis on our hands,” she said.

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Why now? The state agency said low completion rates can be attributed to a number of factors, including the ongoing debate about the value of a college education, as well as the late release of the Free Application for Federal Student Aid (FAFSA), which became available in December, instead of October. The political climate is also affecting completion rates, Gonzales said. Students who have at least one undocumented parent have expressed fear about how their personal data might be used by the Trump administration, which has promised to deport “millions and millions” of people.

How else is the Trump administration a factor? The U.S. Department of Education is bracing for a slew of cuts under the administration’s Department of Government Efficiency. Plus, as CalMatters reported, the University of California's undergraduate student association recently sued the Trump administration to halt DOGE access to student financial aid files. A federal judge overseeing the case temporarily approved the move.

Good to know: Due to the recent wildfires, students in L.A. and Ventura counties have an extra month to apply for financial aid for college. Their deadline is April 2, 2025.

Where can I apply for financial aid? FAFSA is open to students who are U.S. citizens. Some noncitizens, including permanent residents, are also eligible. Undocumented students can access state-based financial aid by submitting the California Dream Act Application. This application is also open to students in mixed status families who are wary of completing the FAFSA.

Need help applying? The state hosts Cash for College workshops in-person and online.