New FAFSA Filings Jump 20.2% In First 6 Months of 2008

New FAFSAs received by schools in first six months of 2008 increased by 20.2% to 8.45 million from 7.03 million for the same period of 2007, according to data recently released by the Department of Education.  This figure includes only original FAFSAs received by schools through electronic, paper or web-based methods and excludes FAFSA renewals.  The percentage of FAFSAs received by schools from students via the web increased to 95.0% in 2008 from 87.0% in 2007. 

The increase in FAFSA filings would appear to be driven by several factors:

• Demographically, the number of high school graduates in 2008 was the largest on record leading to projected record increases in the number of incoming college freshman for the fall of 2008. 

• With many colleges reporting a record number of applications for the 2008-09 class, it seems apparent that students are applying (and therefore sending their FAFSA) to multiple schools.

• Given the difficult economic situation, more incoming students and their parents are recognizing their need for federal aid and/or loans which requires a completed FAFSA.

• With the credit crunch and student loan availability in the headlines, students and parents may have completed their FAFSA earlier than normal, leading to higher volumes in the first half of the year. Since the FAFSA relies on some data from individual 1040 tax returns, most FAFSAs tend to be filed in March and April.