The Free Application for Federal Student Aid (FAFSA) is notorious for being a convoluted and time consuming process with more than 100 questions to fill out. But one startup, which recently raised $10 million in Series B funding, is trying to change that: CampusLogic.
According to a press release from CampusLogic, the startup out of Gilbert, Arizona will use the funding, which was led by 4.0 Partners, to expand the platform that simplifies the financial aid process. According to the same press release, 40% of low-income high school graduates don’t go on to college because they didn’t understand how to get financial aid, not because they weren’t accepted. CampusLogic aims to combat this lack of financial literacy and know-how.
As a sign of the times, CampusLogic’s mobile technology enables prospective college students and their parents to get a better understanding of the true cost to earn a four-year degree. On top of that, the platform enables borrowers to access and understand award letters through the same mobile technology. It also helps borrowers complete financial aid forms, greatly shortening the learning curve in the financial aid process.
CampusLogic argues that its platform not only helps college bound students get a better grasp of the college finances, but actually saves time and money for participating schools. Many colleges, universities, and non-profits spend time and money by holding seminars and workshops to help students and their families complete the FAFSA application. With the help of CampusLogic, these resources could be devoted elsewhere. CampusLogic is already used at 400 different colleges and universities around the country with Georgia State University, Arizona State University, and Purdue University among those participating.
It’s not surprising CampusLogic was able to raise $10 million in funding. While the Department of Education has long said that the FAFSA is straight forward, countless families struggle with the application. In fact, this feedback triggered a large push by Congress to improve the transparency of the financial aid process. According to new research from LendEDU, 37 percent of senators actively advocated legislation to improve financial literacy along with 32 percent of House of Representative members.
Despite companies like CampusLogic, individual efforts by schools, and the changes made by the government, many students are still clueless when it comes to the federal financial aid program. Last month, LendEDU surveyed college students to gauge how informed they were on financial aid. The survey came back with alarming results. Of those polled, an eye opening 84 percent didn’t know when the deadline for the 2017-2018 FAFSA application was. 16 percent of students enrolled in college thought that they had to pay to file the FAFSA while 10 percent of students had never heard of the FAFSA. That may not seem like a lot, but the percentage should be closer to zero.
Author: Andrew Rombach
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