FAFSA May Be at Risk—ABC News Interviews Expert on What Families Should Do Now

What a Department of Education Shutdown Could Mean for Your FAFSA and Financial Aid
By Dr. Shaan Patel, CEO & Founder of Prep Expert

In today’s polarized political climate, the Department of Education has become a high-stakes target—and millions of students may be caught in the crossfire.

Between proposed budget cuts, federal layoffs, and talks of a complete shutdown, families are asking a critical question: What happens to FAFSA and financial aid if the Department of Education disappears?

As the founder of Prep Expert, I work with students navigating the complex world of college admissions every day. And the truth is, while the headlines sound extreme, there’s still a lot you can do to protect your financial future.

Let’s break it down.

Will FAFSA Actually Disappear?

This is the biggest fear I hear from parents and students—but the good news is: FAFSA isn’t going anywhere.

The Free Application for Federal Student Aid (FAFSA) is authorized by Congress. Even if the Department of Education is shut down or restructured, FAFSA would likely continue under a different agency, such as the Treasury Department or a new education-focused office.

The real concern isn’t about whether FAFSA will exist, but whether it will function smoothly—especially during the transition.

Expect delays. Expect confusion. But don’t expect it to vanish overnight.

Why Timing Is Everything for Financial Aid in 2025

In a normal year, FAFSA operates on a “first-come, first-served” basis for limited funding like Pell Grants and campus-based aid. In a year filled with administrative uncertainty? Timing becomes even more critical.

This year’s FAFSA rollout was already delayed due to a technical overhaul. Add a potential shutdown or transition, and it’s a recipe for longer processing times and possible disruptions to how aid is awarded or disbursed.

Here’s what students should do right now:

1. Submit your FAFSA as soon as possible. Even if you don’t have all your tax info finalized, estimate and update later. Early submission gives you priority access to limited funds.
2. Save documentation. Keep confirmation emails and screenshots of everything you submit.
3. Double-check your college deadlines. Many schools have priority FAFSA deadlines that are earlier than the federal one.
4. Follow up. If you haven’t received a financial aid award, don’t wait—contact the college directly to make sure your FAFSA data was received and processed.

How a DOE Shutdown Could Impact Your Aid Disbursement

If the Department of Education’s staff or systems are scaled down, the problem won’t be that aid is eliminated—it’s that it may be delayed.

Aid programs like Pell Grants, Work-Study, and subsidized federal loans are backed by law. But the infrastructure that handles payment processing, customer service, and verification could slow to a crawl if responsibilities shift to another agency.

To avoid disruptions:

• Ask your college if they offer temporary tuition deferrals or emergency loans in case of aid delays.
• Reach out early if your disbursement hasn’t arrived—financial aid offices can flag urgent issues.
• Research state-based or private scholarships that aren’t tied to federal timelines.

Don’t Let Politics Derail Your College Goals

For most students, news about a potential Department of Education shutdown feels far removed from their personal goals. But if you’re depending on federal aid to attend school this fall, this isn’t just a political debate—it’s your reality.

A slowdown in processing could mean delayed funds, longer wait times, and more frustration navigating an already complex system. That’s why staying informed is so important.

Here’s the mindset I encourage:

• Control what you can. Submit everything early, track deadlines, and document communications.
• Plan for flexibility. If your funds are delayed, be ready to pivot—ask for tuition extensions, consider payment plans, and lean on school resources.
• Stay focused on the big picture. College is still a worthwhile investment. This disruption is temporary, but your degree and career trajectory are long-term.

5 Steps Students Should Take Right Now

Whether you’re applying to college this fall or returning for another year, here are five immediate actions you can take to stay ahead:

1. Submit your FAFSA immediately if you haven’t done so.
2. Check each college’s FAFSA deadline—and don’t rely solely on the federal one.
3. Bookmark StudentAid.gov and sign up for alerts to stay up to date on any policy changes.
4. Keep a paper trail. Document emails, submissions, and financial aid conversations.
5. Apply for private scholarships and state grants that aren’t affected by federal shifts.

Final Thoughts

The headlines about the Department of Education may seem chaotic—but they don’t have to derail your college plans.

FAFSA is still alive. Aid is still available. But the students who succeed in this environment will be the ones who stay proactive, organized, and adaptable.

At Prep Expert, I’ve seen what happens when students take charge of their education. Even in uncertain times, opportunity exists—for those who prepare for it.

—

Dr. Shaan Patel is a Shark Tank winner, bestselling author, and founder of Prep Expert, an education company that has helped over 100,000 students improve test scores, win scholarships, and gain admission to top universities. He scored a perfect SAT and is passionate about expanding access to education worldwide.