National Free Applications for Federal Student Aid See Spike; Trend Mirrored at Harvard

National Free Applications for Federal Student Aid are at three million for the 2009-2010 school year, an increase of 20 percent over the same processing period last year, according to a release by the National Association of Student Financial Aid Administrators on Friday.

The government’s direct student loan program is also up by $7 billion this academic year, according to NAFSAA.

The increase in applications for financial aid at Harvard maps with the national increase in FAFSA applications. This year, the number of financial aid applicants increased from 73 to 78 percent of the undergraduate population, according to Dean of Admission and Financial Aid William R. Fitzsimmons ’67.

But Harvard remains able to meet the full financial need of its students, which will total $147 million next year—an 18 percent increase from 2008-2009.

Harvard’s funding for financial aid comes mostly from the endowment and other private sources, with only around five percent coming from the federal government, according to Fitzsimmons.

The increase in applications is concurrent with additional education funding from the $787 billion American Recovery and Reinvestment Act. The ARRA will provide an additional $17 billion for Pell Grants in fiscal years 2009 and 2010; funding for the current fiscal year is $16.2 billion, with 6.1 million students participating.

The stimulus package is also providing nearly $14 billion in tuition tax credits for middle-class families, raising the current cut from $1,800 to $2,500.

“With regards to Pell grants and student loans, the funding is in place, so even though there is an increase in applications, it will have no effect on who qualifies,” said Larry Zaglaniczny, NAFSAA vice president of government affairs.

According to Zaglaniczny, the only federal program that could see some shortness of funds is the Federal Supplemental Education Opportunity Grant Program, a small program administered directly to low-income students by participating colleges, Harvard being one such school.

Nevertheless, as the Financial Aid Office has stated, a student’s aid package will be fully backed, even if there is a shortfall in federal funds.

—Staff writer Jillian K. Kushner can be reached at kushner@fas.harvard.edu.