The Education Department said recent FAFSA reforms improved customer satisfaction and increased Pell eligibility, but federal loan data show delinquencies and defaults are rising: roughly one million borrowers entered default late last year and nearly 10% of balances are more than 90 days past due. Financial‑aid directors and campus finance teams now face a dual challenge—operationalizing smoother, earlier FAFSA access while preparing for increased borrower distress that could depress repayment rates and complicate institutional loan counseling.