The Free Application for Federal Student Aid (FAFSA) is the gateway to accessing federal, state, and institutional financial aid for higher education. California recently enacted a universal application completion policy to boost participation in this important program. Last week, PPIC researcher Kevin Cook outlined findings from a recent analysis of the policy. A panel of state and local experts then discussed early implementation challenges and proposed strategies to increase participation going forward.

“California students have some of the lowest debt loads in the nation,” Cook said, stressing that to access the state’s “generous financial aid programs,” high school graduates must complete FAFSA applications on time. Importantly, the process of completing the forms gives students and families information “critical to understanding what options a high school graduate has as they move to start their adult lives.”

Historically in California, completion numbers have been low. But in the new policy’s first year, they rose by about 16% (about 42,000 students), to nearly 70%. Moreover, though the increase occurred across income levels, Cook emphasized that “by far the largest increase came from students who would benefit the most from financial aid—the state’s lowest income and least represented students in the public college system.”

The discussion participants all agreed that the universal FAFSA policy is the first step in a broader vision—to increase access and affordability for all Californians. One of the state’s major 2030 higher education goals—that 70% of the adult population will hold college degrees or certificates—creates urgency around maximizing the universal FAFSA’s potential, especially given the sub-optimal results of the second year.

Second-year implementation faced major problems related to a faulty federal rollout of a new FAFSA form. This exacerbated existing challenges from the first year, which included heavy school counselor caseloads, confusion about the opt-out process, and parental reluctance to share financial information—especially in families with mixed citizenship status. “The problems with the new FAFSA form essentially eliminated the gains in FAFSA completion rate from the previous year,” Cook said.

Daisy Gonzales, executive director of the California Student Aid Commission (CSAC), spoke to the importance of developing and regaining trust among students and their families, especially after the problems that occurred in the second year. She emphasized the importance of partnership across organizations so students could be sure “the application worked, their information was safe—particularly if you’re undocumented—and it led to financial aid access at a scale that allowed you to complete your education.”

Kristen Soares, president of the Association of Independent California Colleges and Universities, agreed on both points, reiterating that “affordability is often a key barrier” for “least represented and lowest income families,” especially for private colleges and universities. She emphasized that even though last year was hard, the first year’s increases in application completion showed how critical it is to keep working in partnership with CSAC, districts, and community-based organizations to help families and students understand what filling out the FAFSA means.

Catalina Cifuentes, director of college and career readiness at the Riverside County Office of Education, also addressed the issues of trust, affordability, and understanding. With over half of her district’s families being first generation or low-income, submissions were historically low because parents didn’t have the information they needed. “The push is really about creating systems of equity so they’re making an educated decision,” she said.

Cifuentes noted that the message she wants her district’s families and students to get is “this universal requirement is not a punishment. It’s not you must. It’s I believe in you. I want to give you this opportunity. And I want you to have this opportunity.”