The Impact of FAFSA Delays on College Athletics

Recent FAFSA delays have created a ripple effect of challenges for small colleges across the nation, particularly impacting college athletics. Lindenwood University in St. Charles, Missouri, provides a telling example of how financial instability can lead to drastic measures within athletic departments.

In December, Lindenwood cut 10 of its 50 sports programs and eliminated nine nonathletic staff positions as part of a budgetary “rebalancing.” The university hoped to avoid further cuts, but significant enrollment disruptions, exacerbated by FAFSA delays and errors, thwarted these plans. By mid-June, FAFSA completion rates in Missouri were among the lowest in the country, dropping by 12% from the previous year.

As a result, Lindenwood’s projected fall enrollment declined by 12%, compelling the administration to cut an additional 10% from its operating budget. This included laying off 12 staff and two faculty members. President John Porter attributed much of the financial strain to the FAFSA issues, which forced the university to reassess and reduce costs, including in athletics.

This situation at Lindenwood is not unique. Small colleges nationwide are experiencing similar pressures. Many are more dependent on tuition revenue than ever, and the enrollment consequences of the FAFSA problems have accelerated program cuts. For instance, Hampshire College in Massachusetts, which had been on a path to recovery, had to reverse financial growth plans and make significant cuts due to lower-than-expected enrollment.

The financial aid fiasco has pushed institutions to make tough decisions. At the University of Lynchburg, administrators cut 12 undergraduate and five graduate programs and laid off 40 staffers. Despite these measures, the president noted that FAFSA issues significantly impacted their financial stability.

For counselors working with student-athletes, these developments are crucial to understand. The financial instability of small colleges can directly affect the availability of athletic programs and scholarships. As we guide our students through the college selection process, it’s essential to stay informed about these trends and help them consider the financial health of prospective institutions.

Link to original article:
https://www.insidehighered.com/news/business/cost-cutting/2024/06/28/fafsa-woes-lead-budget-cuts-small-colleges