What Every American Family Needs to Know About Financial Aid in 2025
As President Donald J. Trump moves forward with bold reforms to rein in federal spending and restore common sense to Washington, many families are asking: What’s happening to student financial aid? More specifically, is the Free Application for Federal Student Aid (FAFSA) going away?
Despite media panic and political spin, the answer is no—FAFSA is still available, and federal aid like Pell Grants is still being distributed.
In fact, new numbers show that more than 8 million FAFSA applications have already been filed this year—an impressive 50% increase from last year. That’s right: Even with major changes at the Department of Education, millions of students are still receiving aid to help pay for college, trade schools, and technical education.
What’s Behind the Headlines?
Under President Trump’s leadership, the Department of Education has been cut down to size, slashing bloated budgets and unnecessary bureaucracy. These cuts have caused some confusion—especially after years of dysfunction under the Biden administration—but core services like FAFSA are untouched.
In fact, officials have confirmed that no employees working directly on FAFSA or student loan processing were laid off. Student financial aid remains a top priority.
“Continuity of operations for Federal Student Aid is a critical and mandated function,” said Acting Under Secretary James Bergeron in a March 14 letter.
Compare that to the Biden years, when an overhyped “revamp” of FAFSA caused months of delays, technical glitches, and panic for students and parents. Even colleges were forced to delay decision deadlines due to Biden’s fumbled rollout.
Families Still Have Time—But Deadlines Matter
Students have until June 30, 2026, to submit the FAFSA for the current aid cycle—but early submission is key. State and school deadlines often come earlier and affect eligibility for grants and scholarships. High school seniors typically need to commit to a college by May 1, so timing matters.
Currently, 42% of high school seniors have submitted FAFSA forms—an improvement from last year, but still behind pre-Biden levels.
What About AI, Layoffs, and the Media Panic?
Recent reports suggest the government may introduce AI-powered chatbots to answer basic questions about FAFSA—sparking outrage from Senate Democrats. But for many Americans, this kind of cost-saving innovation is exactly what government should be doing: cutting waste, streamlining services, and using modern tools.
Yes, some departments within the Education agency saw staffing cuts—but not the teams that process aid applications. In fact, the administration has already rehired key tech staff to ensure FAFSA remains fast, secure, and available.
The Bottom Line for American Families
Despite the fear tactics from the Left, President Trump has made it clear: student financial aid will remain accessible—but Washington’s wasteful spending won’t.
✅ FAFSA is still open
✅ Pell Grants are still available
✅ Applications are up 50% from last year
✅ Families still have time to apply
This is good news for families who value education, opportunity, and responsible governance. While the Department of Education may look different in the years ahead, essential services for students are being protected—not dismantled.