In reversal, Education Department to reprocess all FAFSAs hit by tax error

The process will affect between 15% and 20% of previously submitted federal financial aid applications.

Published April 5, 2024

• The U.S. Department of Education will automatically reprocess between 15% and 20% of the applications for federal financial aid submitted thus far, following widespread tax data miscalculations. 
• The announcement reverses the department’s original plan to only reprocess the Free Application for Federal Student Aid forms that contained errors decreasing the amount of aid students were entitled to. 
• Earlier this week, the department said it would reprocess the forms that approved students for too much aid if asked by colleges. The change in plan stemmed from college and stakeholder feedback, an agency spokesperson said Friday.