As college applicants navigate through the challenging process of choosing a school in 2024, one overwhelming factor appears to be at the forefront of their decision-making process: financial aid. While financial aid has always played a significant role in determining where students choose to attend college, the ongoing issues with the new federal financial-aid application have further emphasized the critical importance of aid in college choices this year.
According to a survey by Ellucian and EMI Research Solutions, a staggering 76% of students identified the financial aid amount awarded to them and the overall financial aid process as the top drivers in their choice of college. This percentage outweighed other factors such as parental influence, location, campus culture, and degree programs offered. This highlights the heightened stress and concern around college costs that students are experiencing in 2024.
The cost of higher education continues to soar, with tuition and fees, along with room and board, averaging $56,190 per year at four-year private colleges and $24,030 per year at four-year, in-state public colleges in the 2023-2024 school year. This financial burden, coupled with the delays and issues surrounding the new Free Application for Federal Student Aid (FAFSA), has further compounded the challenges faced by college-bound students this year.
In previous years, financial aid award letters were typically sent out around the same time as admission letters, allowing students ample time to compare offers before National College Decision Day. However, due to delays in the financial aid application process this year, some students may not receive their final financial aid award letter until the end of August. This delay could potentially result in students starting their fall semester without crucial information regarding their college costs.
Ellucian’s CEO Laura Ipsen emphasized the critical role of timely financial aid offers in the decision-making process, as the sooner students receive offers, the more likely they are to accept them. The delays in financial aid awards not only impact students’ ability to attend their top-choice school but may also influence whether they attend college at all.
Data from the U.S. Department of Education indicates that only 45% of new high school graduates had completed the FAFSA as of June 21, compared to 52% the previous year. Completing the FAFSA is a strong predictor of college enrollment, with students who complete the application being 84% more likely to enroll in college directly after high school. The FAFSA serves as the gateway to federal aid money, including loans, work-study, and grants, which do not need to be repaid.
Advice for College-Bound Students
Educational consultant Eric Greenberg advises students to explore other sources of merit-based aid to supplement their financial aid packages. Merit-based aid is not exclusive to elite students and can provide additional financial support. By diversifying their sources of financial aid and exploring all avenues of assistance, students can alleviate some of the financial burdens associated with higher education in 2024.