As more borrowers qualify for student loan forgiveness, incoming college freshmen are set to rack up $37,000 in new debt, report finds

The Biden administration is proposing to forgive student debt for millions of Americans, providing relief to current borrowers.

However, this comes amidst a surge in college costs, with incoming college students expected to borrow an average of $37,000.

Compounding this issue are ongoing problems with the Free Application for Federal Student Aid (FAFSA), which students must file to access federal financial aid.

This has discouraged many high school seniors from completing the application, leaving them uncertain about how to pay for college.

The annual cost of higher education has skyrocketed, doubling over the past two decades.

Despite rising costs, family incomes have not kept pace, leading to increased reliance on financial aid.

Student loans now constitute a significant portion of these aid packages, and many families turn to private financing to fill the remaining gap.

Scholarships are an important source of funding, yet many families fail to utilize them.

Filing a FAFSA is essential to access all types of aid, including scholarships and grants.

However, the technical issues with the new FAFSA have hindered the application process for many potential college students.

The combination of rising college costs, insufficient financial aid, and FAFSA glitches has created a precarious financial landscape for aspiring college students.

While the Biden administration’s debt forgiveness plan offers some relief to existing borrowers, it does not address the long-term challenges faced by those navigating the current higher education system.