The Reconciliation Bill, substantial cuts to the Department of Education and the role of AI in higher education were among the big discussions this year.
Among the growing number of conversations in financial aid in 2025, one common theme was clear – the financial aid landscape is changing rapidly.
Yet, through all the shifts and challenges, Global was able to deliver stability and guidance for our clients throughout the changes this year.
Here is a recap of some of the topics that defined conversations in 2025:
- Changes to the Department of Education – Major changes to the department’s core structure, as well as a substantial reduction in staff, led to backlogs and a limited capacity to resolve issues. As a result, college financial aid offices reported slower response times from the department. Education Department programs shifted this year to other federal agencies, and the department faced efforts to reduce its scope.
- The Reconciliation Bill – Signed into law July 4, 2025, the bill contains notable policy shifts with significant implications for financial aid administration. New requirements increased administrative complexity for institutions and students alike, especially around key aid areas, such as Pell Grant eligibility, loan adjustments, and verification and compliance requirements.
- FAFSA Simplification – Higher FAFSA completion rates were indicated for the 2025-2026 award year because of the simplified FAFSA, which reduced questions and authorized direct data transfer from the IRS, among other changes. Assessments also showed increased engagement and completion for some populations, while creating new verification and documentation challenges for others.
- Artificial Intelligence – Ongoing discussions about how AI will reshape financial aid roles, workflows and decision-making have been balanced by optimism that technology will support and not replace human expertise. Higher education will increasingly adopt automation with important conversations about efficiency, security, compliance and the future of financial aid work.
In 2025, institutions and their financial aid teams navigated verification, supported students, and adapted and delivered aid. Their efforts helped ensure students continued to access the funding they needed for an education, even amid increasing complexities and change.
If you’d like to talk more about the year ahead and how Global can assist your college with financial aid processing, please reach out to us at 228.523.1797, cdonovan@globalfas.com or globalfas.com.
December 18, 2025