The Biden administration plans to forgive student debt for some borrowers, while new college students may have to borrow more than $37,000 on average. The FAFSA, which grants access to federal aid, is facing issues, leaving families concerned about paying college expenses. As the cost of college continues to rise, students rely heavily on loans and financial aid, and scholarships remain underutilized.
College costs remain sky-high, with some universities nearing $100,000 per year. However, most families pay significantly less thanks to financial aid. Scholarships, grants, and loans reduce the net cost, making many schools more affordable. Filling out the FAFSA (Free Application for Federal Student Aid) is crucial for accessing federal aid, even with recent issues.
Ivy Day, when Ivy League schools announce admissions decisions, is approaching. However, some students are becoming more skeptical about these elite institutions due to confusing application processes, recent scandals, and rising costs. Despite this, the allure of Ivy League degrees remains strong, with studies showing increased earning potential and access to elite graduate schools and prestigious firms. However, concerns remain about the perpetuation of privilege due to the higher admission rates of students from high-income families.
To curb the college affordability crisis, several institutions have adopted "no-loan" policies, eliminating student loans from financial aid to ensure students graduate debt-free. Inspired by Princeton University, 23 colleges now offer no-loan policies, meeting students' financial needs solely with grants. This approach alleviates the heavy burden of student debt, enhancing access to higher education and attracting more applicants. While loans are eliminated, students may still incur other costs such as family contributions and fees.
