FAFSA Filings Rise 20.8% To 6.6 Million In First Quarter of 2009

Here is a link to the data provided today by the Department of Education.  Here is a summary of the data as analyzed by Student Lending Analytics:

	1Q 2008		1Q 2009	Change
Dependent Students
Original	1,584,420		1,806,812	14.0%
Renewal	1,611,887		1,912,395	18.6%
Other	4,999		3,879	-22.4%
TOTAL Dep. Students	3,201,306		3,723,086	16.3%
Independent Students
Original	821,741		1,076,171	31.0%
Renewal	1,402,405		1,770,006	26.2%
Other	24,322		16,744	-31.2%
TOTAL Indep. Students	2,248,468		2,862,921	27.3%
All Students
Original	2,406,161		2,882,983	19.8%
Renewal	3,014,292		3,682,401	22.2%
Other	29,321		20,623	-29.7%
TOTAL All Students	5,449,774		6,586,007	20.8%

Note: 1Q08 data reflects period from 1/1/08 to 3/30/08 while 1Q09 data reflects data from 1/1/09 to 3/29/09. 
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So, what does this data tell us, other than the fact that more students are applying for financial aid? 

• The sharp increase in the number of original FAFSAs by independent students, 31.0% vs. 14.0% for dependent students, may reflect more adults returning to school to hone or enhance their job skills. 
  
  • Note also that the ratio of FAFSA filings made by dependent to independent students stands at 57%/43% in 1Q09 vs. 59%/41% in 1Q08.
• Several other trends may be at work here:
  • More students may be heeding the advice of financial aid professionals to apply early for financial aid
  • 2008 and 2009 high school graduating classes are among the largest on record (the "Echo Boomers") so more students are applying to post-secondary education
  • Given the economy's ills, more families than normal are applying for financial aid

Below are the states who saw the largest annual increases in FAFSA filings.  Interestingly, three of the top four (Arizona, Nevada, Florida) have seen the sharpest declines in home prices too:

	1Q 2008	1Q 2009	Change
AZ	61,135	87,759	43.5%
NV	21,865	31,364	43.4%
GA	129,897	170,588	31.3%
FL	239,448	314,091	31.2%
AL	52,318	67,447	28.9%
MI	239,659	301,985	26.0%
SC	63,995	80,571	25.9%
IN	209,971	263,463	25.5%
TN	123,840	153,889	24.3%
UT	25,650	31,815	24.0%
DC	9,557	11,852	24.0%