Wednesday

07-09-2025 Vol 2016

Hawaii’s FAFSA Completion Rate Lags Behind National Averages Despite Recent Improvements

Hawaiʻi has seen a recent increase in the application rate for federal financial aid among public school seniors, yet the number still falls short of pre-pandemic levels.

This year, approximately 48% of Hawaiʻi public school graduates completed the Free Application for Federal Student Aid (FAFSA), a crucial step required to qualify for federal grants and various scholarships from colleges and other sources.

The current application rate is significantly lower than the approximately 60% rate of the public school class of 2019, when the state education department set an ambitious goal for 90% of graduates to submit the FAFSA.

However, including students from private schools has improved Hawaiʻi’s national ranking.

With private school students factored in, 54% of all graduates applied for federal financial aid this year, placing Hawaiʻi at 14th nationally.

Hawaiʻi’s college attendance rate also remains concerning, with only 52% of public school graduates enrolling in college last year, compared to the national average of 63%.

David Sun-Miyashiro, executive director of HawaiiKidsCAN, attributed the decline in interest in higher education to rising costs, leading many students to be skeptical about the value of a college degree.

In late 2023, the federal government introduced a revamped version of the FAFSA designed to streamline the application process.

However, delays in opening the application—nearly three months later than usual—and inconsistent online availability caused frustration and confusion for students.

Last May reported that only 39% of Hawaiʻi public school seniors had completed their FAFSA forms, according to the state education department.

This year, the process was substantially smoother and quicker, leading to an increase in completion rates among public school students, according to Sun-Miyashiro.

Many families may assume that higher education is financially out of reach for their children, while students themselves may be unaware of how the FAFSA could unlock access to various forms of financial aid.

For instance, completing the FAFSA is necessary for students to qualify for state scholarships like Hawaiʻi Promise, which covers tuition and textbooks for residents attending the University of Hawaiʻi community colleges.

Erica Nakanishi-Stanis, advocacy director for HawaiiKidsCAN, warned that neglecting to fill out the FAFSA can lead to significant financial losses, adding that failing to understand its importance may cause students to lose out on more funding than expected.

Hawaiʻi students overlooked $14 million in federal aid in 2023 by not completing the FAFSA, with many eligible students missing the opportunity to claim the federal Pell Grant for college education.

In an effort to boost FAFSA participation, Hawaiʻi lawmakers introduced a bill requiring the education department to devise a plan making FAFSA completion a graduation requirement by 2027, although students would have the option to request a waiver.

Unfortunately, this bill did not pass during the legislative session.

The future of higher education access for students in Hawaiʻi hinges on improving FAFSA application rates and raising awareness about the financial aid opportunities available.

image source from:civilbeat

Charlotte Hayes