• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading

Getting financial aid for college is more important than ever before

CNBC NewsbyCNBC News
February 1, 2021

As college costs rise, financial aid is a growing necessity, yet many students still don’t apply.

Now, more states are requiring that they do — and paving the way to a college degree for some who might not be able to otherwise afford it.

The Free Application for Federal Student Aid, or FAFSA, serves as the gateway to all federal money, including loans, work-study and grants, which are the most desirable kind of assistance.

Currently, only Louisiana and Illinois require you to file a FAFSA to graduate from high school. But soon the same will be true for Texas and at least another eight states, including California, Florida, Hawaii, Indiana, Kentucky, Maryland, Nebraska and New Jersey, which are all considering bills to make the FAFSA mandatory, as well.

More from Personal Finance:
These colleges went remote but hiked tuition anyway
College can cost as much as $70,000 a year
Under Biden, free college could become a reality

The idea behind making the FAFSA mandatory is that students are more likely to enroll in college when they are aware of the financial resources available to help them pay for it, according to the National College Attainment Network.

FAFSA completion can boost a student’s likelihood of going to college and graduating, studies show.

In Louisiana, high school graduation rates have risen since the state implemented this rule, and the number of high school graduates immediately enrolling in college has climbed to an all-time high, according to early data.

“Time will tell if this is an effective approach, but more broadly, what’s particularly encouraging is that we’re seeing a collective understanding of how important it is for students and families to complete the FAFSA,” said Ashley Boucher, a spokeswoman for education lender Sallie Mae.

A lengthy and overly complicated application is another hurdle for many students and their families, Boucher said.

To that end, congressional education leaders have also been working toward simplifying the FAFSA, which would go a long way to increasing access even without state mandates.

In December, the Consolidated Appropriations Act was passed to streamline the process.

“Reducing the FAFSA from 108 questions to 36 will remove the biggest barrier to helping more low-income students pursue higher education,” said former senator Lamar Alexander, the leading driver behind simplifying the form, said in a statement.

However, those changes won’t go into effect until the 2023–24 academic year.

Amid the Covid-19 pandemic, parents and students may need more immediate help paying for college.

Yet even fewer families have applied for financial aid this year.

As of January, the number of applications was down 10% from last year, with roughly 144,000 fewer high school seniors applying, according to the National College Attainment Network.

“That is a number that certainly concerns us,” said Carrie Warick, director of policy and advocacy at the National College Attainment Network.

Some would-be undergraduates may have opted to find jobs instead of going to college to help their families through the economic crisis, Warick said. Others simply feel that the tuition tab is not worth it while colleges are operating remotely, particularly at the same high cost they would pay for an in-person education, she added.

In ordinary years, high school graduates miss out on billions in federal grants because they don’t fill out the FAFSA. Many families mistakenly assume they won’t qualify for financial aid and don’t even bother to apply.

Meanwhile, college costs are rising. Tuition and fees plus room and board for a four-year private college averaged $50,770 in the 2020-21 school year; at four-year, in-state public colleges, it was $22,180, according to the College Board, which tracks trends in college pricing and student aid.

For families who have already filed the FAFSA but have since experienced a financial shock, it is also possible to amend their FAFSA form or ask the college financial aid office for more aid, according to Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College.”

“For students filling out the FAFSA this year, it won’t encompass how the pandemic may have impacted your financial picture,” he said.

If your household income has gone down, file your 2020 return so that you can document that reduction, he advised. “The more documentation you can provide, the better.”

Colleges are likely receptive to appeals, he added — particularly now.

Subscribe to CNBC on YouTube.

Read The Original Article on CNBC News

Related Topics

Investing

Virgin Galactic drops 10% after chairman Chamath Palihapitiya dumps his $213 million personal stake

Personal Finance

Democrats want to send more unemployment benefits. Some workers never got the last round

Prev Next

You May Like

Investing

Virgin Galactic drops 10% after chairman Chamath Palihapitiya dumps his $213 million personal stake

Personal Finance

Democrats want to send more unemployment benefits. Some workers never got the last round

Stock Market

Stocks making the biggest moves midday: Virgin Galactic, Gap, Nikola and more

Personal Finance

Self-employed and gig workers can now apply for PPP loans under new rules. Here’s what you need to know

Financial News

Stock Market

Thinking of putting new cash to work? Credit Suisse’s Jonathan Golub suggests waiting until after December

CNBC News
by CNBC News
Blockchain News

StanChart CEO Bill Winters: Mass Adoption of Digital Currencies is “Absolutely Inevitable”

Blockchain News
by Blockchain News
Blockchain News

Equilibrium and Chainlink to Power Synthetic Assets and Stablecoins on Polkadot

Blockchain News
by Blockchain News
Personal Finance

Sens. Bernie Sanders and Josh Hawley team up in push for second $1,200 stimulus checks

CNBC News
by CNBC News
Bitcoin

Zcash Undergoes First Halving as Major Upgrade Drops ‘Founders Fund’

CoinDesk
by CoinDesk
Personal Finance

McConnell, Schumer seem far apart on unemployment benefits, stimulus proposals

CNBC News
by CNBC News
Personal Finance

These 5 billionaires added the most to their net worths in 2020

CNBC News
by CNBC News
Bitcoin

Bitcoin Black Friday Sale Ends, Crypto Stock Up is Advised by Digital Currency Group Founder

Blockchain News
by Blockchain News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
← Daymond John says you can shift the power in any room—as long as you master these skills ← Mark Cuban: How selling stamps as a kid helped me see why digital assets are the future of business
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.