The financial aid process should be a bridge, not a barrier, to higher education. Yet for countless students and families, it feels like a maze, filled with jargon, unclear forms, and frustrating delays.
For years, families have struggled with a system that feels outdated and unwelcoming. With major federal changes underway, we’re seeing a shift in how aid is managed and delivered. These changes bring uncertainty, but they also open a window of opportunity.
Colleges and universities have a chance to reassess the ways in which the financial aid experience can better serve their students, while driving enrollment success. We explore the longstanding challenges families face with financial aid, how recent federal decisions are changing the landscape, and what institutions can realistically do to improve the experience.
The Current Student & Family Financial Aid Experience
Students and families today are met with financial aid portals that are often clunky, confusing, and difficult to navigate, especially on mobile devices, which are the primary tool for many students. This digital friction alone can discourage families from completing essential steps on time.
Once a student manages to apply for aid, they’re often confronted with award letters that are inconsistent in format and filled with confusing terminology. Phrases like “unsubsidized loans” or “Parent PLUS” loans appear with little context, leaving families unsure of what’s being offered and what they’ll actually owe. Without standardization or visual clarity, families struggle to make confident financial decisions.
Communication issues add another layer of frustration. Many institutions rely on outdated systems lacking easily understandable resources concerning the financial aid process, requiring families to initiate every step. Instead of proactive outreach, students are left chasing updates, trying to determine what documents are missing or what deadlines they’ve overlooked.
In 2024, for instance, the National College Attainment Network found that FAFSA submissions were down 57% compared to the previous year, pointing to the fact that many students and families struggled with these outdated and inefficient systems as the FAFSA for the 2024-2025 year had a delayed start and other additional roadblocks.
This toll is particularly heavy for first-generation and low-income students. With limited access to guidance or family members who have gone through the process before, these students often feel overwhelmed, discouraged, and unsupported.
What’s Changing: The Federal Restructuring of Financial Aid
In 2025, the federal government initiated a major restructuring of education policy, including plans to dismantle the U.S. Department of Education and shift its responsibilities to other agencies. A March 20th executive order directed the department’s closure and the return of education authority to states and local communities. As part of this transition, the Small Business Administration will manage the federal student loan portfolio, while the Department of Health and Human Services will take over programs such as special needs and nutrition services.
In March 2025, the department announced a reduction in force impacting nearly 50% of its workforce, affecting divisions responsible for student loans, Pell Grants, and other critical services. The downsizing has raised concerns about the continuity and efficiency of financial aid processing, with potential delays and disruptions in services for students and institutions.
While the administration asserts that congressionally appropriated funding, such as Pell Grants and Title I funding, will remain intact and be managed by other agencies, the transition has introduced uncertainty. Financial aid administrators and students are apprehensive about potential complications in loan servicing, application processing, and the overall accessibility of federal student aid.
The proposed elimination of the DOE requires congressional approval, which presents a significant hurdle. Despite this, the administration's actions have already initiated substantial changes in the federal education landscape, prompting institutions to adapt to a rapidly evolving environment. In this context, colleges and universities must proactively assess and adjust their financial aid processes to ensure continued support for students amid the shifting federal framework.
One notable potential impact of these changes is a shift in how and where decisions are made. With less centralized federal oversight, institutions may be expected to take on more discretion and autonomy in managing aid. While this could give schools more flexibility, it could also introduce potential confusion for both students and financial aid staff who are now dealing with more localized or shifting guidelines.
Policy experts warn that while decentralization may eventually allow for more agile responses, the current transitional period is likely to be bumpy unless institutions adapt quickly and invest in more student-centered solutions.
What Students & Families Are Asking For
Students and families aren’t asking for miracles; they’re asking for clarity. They want to receive information in straightforward language, with visual aids and context that make financial aid offers easy to understand. Rather than legalistic or financial jargon, they’re hoping for award letters that clearly explain how much aid is being offered, what kind of aid it is, and how much they will actually owe.
There’s a strong call for transparency. Families want to know the full cost of attendance in practical terms. In a 2023 survey, EdTrust found that 68% of parents surveyed indicated the total tuition cost of college was a “major concern.” They want to understand the differences between loans and grants, how much aid is renewable, and how outside scholarships or changes in income might affect their eligibility.
Support is another essential element. Students need reminders when deadlines are approaching. They want someone to walk them through complex steps in a format or language that feels manageable and accessible. This includes multilingual resources and culturally aware guidance, especially for families who may be navigating the process for the first time in a higher education system that wasn’t built with them in mind.
What Institutions Are Doing Now & Why It’s Not Enough
Many institutions are making genuine efforts to support students through the aid process. Financial aid offices often hold walk-in hours. Some campuses organize FAFSA completion events. Others maintain financial aid FAQs on their websites. While helpful, these efforts often rely on the initiative of students first finding that information to then seek the help offered.
Unfortunately, most colleges are operating with limited staff and outdated infrastructure. Digital tools may not be integrated, and messaging is often “one size fits all,” failing to address the specific needs of different populations. For students who require extra guidance, this gap can be significant.
On average, one financial aid advisor is expected to support more than 500 students. This impossible ratio makes it nearly inevitable that questions will go unanswered, applications will be incomplete, and families will miss out on aid they could have received. And while most institutions don’t have the budget to hire additional staff, they can improve how they communicate available resources and critical financial aid information. By working smarter, not harder, schools can extend the reach of their support and ensure students stay informed throughout the process.
What Institutions Can Do: Realistic Solutions Moving Forward
Even as the federal system evolves, colleges can take meaningful action now to improve the financial aid journey. One place to start is by redesigning award letters. Institutions can present cost breakdowns more clearly, using intuitive language and visual layouts that allow families to easily compare options.
Timely, step-by-step guidance can be delivered through email and text message campaigns, helping students stay on track through key deadlines. Financial aid checklists can also be embedded into admissions CRMs, creating a seamless experience that connects aid conversations with the broader enrollment journey.
Targeted support is especially important. Institutions can conduct outreach to first-generation students or underrepresented groups with tailored guidance that speaks to their unique questions and concerns. This kind of outreach doesn’t require reinventing the wheel; it just requires thoughtful execution and the right tools.
Why Evolving Your Financial Aid Process Matters for Everyone
When the financial aid process becomes easier to navigate, students benefit immediately. They gain access to the support they need, make more informed decisions, and are less likely to withdraw or delay enrollment. Clarity reduces attrition and increases trust.
For institutions, these improvements drive better enrollment outcomes. Yield rates improve. Student satisfaction rises. And financial aid becomes a point of strength, rather than a bottleneck. There are tangible financial benefits as well. Institutions that improve aid communication and transparency lose fewer students, see fewer enrollment delays, and spend less time troubleshooting preventable issues.
Transparency in financial aid is more than a student-facing win. It’s an institutional strategy that pays dividends across operations.
A Moment of Opportunity
Federal systems are changing, economic pressures are rising, and students are counting on colleges to help them make sense of it all. Now is the time for institutions to rethink how they communicate about financial aid as a strategic opportunity to build trust, increase yield, and better support their communities.
Optimizing financial aid communications is one of the smartest enrollment decisions your institution can make.
How Acevox Helps Institutions Optimize Financial Aid Processes
As experts in higher education optimization strategies and marketing, Acevox has mastered improving programs and content that ultimately helps convert. We work with colleges and universities to modernize how they communicate and how to effectively deliver information, like financial aid support, to students.
Our team helps schools reimagine workflows, simplify languages, and connect students with formats that actually resonate. Our expertise in creating student-focused content can help schools redefine the way they approach their financial aid process and meet students where they are.
The way that information is delivered to students is just as important as the actual content itself, that is, if you want your students to actually retain it. We provide expert consultation on how to streamline aid communications and integrate them more effectively into admissions content and systems.
Ready to simplify your financial aid process and support your students better? Connect with Acevox to learn more about financial aid optimization, maximize aid, and minimize stress.
