In a year filled with challenges for college applicants, the significance of financial aid in the decision-making process cannot be overstated. The amount of financial aid offered and the distribution among grants, scholarships, work-study opportunities, and student loans have always been key factors in selecting a college. However, in 2024, the issues with the new federal financial aid application have exacerbated the importance of financial aid in college choices. Delays in financial aid award letters, coupled with difficulties in applying for aid, have left many high school seniors in a predicament.
A survey conducted by Ellucian and EMI Research Solutions in March revealed that a staggering 76% of students considered the financial aid amount awarded to them and the overall financial aid process as the primary influencers in their college selection. This percentage surpassed parental influence, location, campus culture, and even the degree programs offered. The stress surrounding college costs in recent years has reached unprecedented levels, with Robert Franek, the editor-in-chief of The Princeton Review, describing it as “palpable.”
The cost of higher education has been a concern for many families, considering that it exceeds their financial capabilities. Tuition, fees, room, and board at a private four-year college averaged $56,190 in the 2023-2024 school year, while at four-year, in-state public colleges, the cost was $24,030 annually, according to the College Board. The escalating cost of college education continues to burden families, making financial aid a critical factor in the decision-making process.
Experts anticipated that the challenges associated with the new Free Application for Federal Student Aid (FAFSA) would have a profound impact on enrollment decisions. The Ellucian study revealed that 44% of the surveyed students would consider switching their top-choice school if they were offered a mere $5,000 more in aid. The timing of financial aid offers, as well as the comparison of different award packages, significantly influenced students’ decisions, according to Eric Greenberg, president of Greenberg Educational Group.
Traditionally, financial aid award letters were sent out concurrently with admission letters, allowing students ample time to evaluate offers before National College Decision Day. However, extensive delays this year have disrupted this process, with some students not receiving their final financial aid award letters until the end of August. The U.S. Department of Education acknowledged the significant delays, impacting students’ ability to make informed decisions about college costs.
The timing of financial aid offers plays a crucial role in students’ decision-making, with early offers increasing the likelihood of acceptance. The delay in financial aid notifications not only affects students’ choices in attending their preferred schools but also influences their decision to pursue higher education altogether. As of June 21, only 45% of new high school graduates have completed the FAFSA, indicating a decline from the previous year.
Completing the FAFSA is a critical step for high school seniors planning to attend college, as it serves as the gateway to all federal aid programs, including loans, work-study, and grants. Merit-based aid is also encouraged as an additional source of financial assistance. Contrary to popular belief, merit aid is not exclusively reserved for elite students, as highlighted by Greenberg. Exploring various avenues for financial aid is essential for students seeking to alleviate the burden of college costs and pursue higher education opportunities.