President Biden has proposed making community college tuition-free nationwide, believing it's a better way to tackle college affordability than student loan forgiveness. While a federal plan isn't underway yet, 35 states have implemented programs to cover remaining tuition after financial aid. New Mexico's Opportunity Scholarship stands out for extending benefits to adult learners and immigrants, and has seen a significant increase in college enrollment since its launch.
The new FAFSA is causing problems, resulting in a significant decline in college financial aid applications. As a result, 2.6 million fewer FAFSAs have been submitted this year, causing delays and preventing many students from applying for aid. This situation has led to concerns about reduced college enrollment and the availability of grants for students.
President Biden announced a revised plan to forgive student loans, which will benefit tens of millions of Americans. This plan is narrower than his original effort, but it targets specific borrowers with financial hardship or those who have been in repayment for a long time. The revised plan aims to forgive up to $20,000 of unpaid interest for borrowers and could erase or reduce balances for many. Biden hopes this effort will survive legal challenges and help address the burden of student debt in the country.
Due to technical issues, financial aid awards for college students are delayed, causing uncertainty about next year's decisions. Students may consider applying for private scholarships to reduce college expenses. This delay provides an opportunity to carefully consider college options beyond financial aid. Exploring major choices and potential earnings can help make informed decisions. Utilizing resources like the college scorecard and net price calculators can aid in assessing affordability. By researching and applying for scholarships, students can potentially cover a significant portion of college costs.
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.
Several universities are expanding their financial aid programs, providing more students with the opportunity to graduate debt-free. Vanderbilt University will offer full-tuition scholarships to families earning up to $150,000 annually, while Dartmouth has increased its income threshold for zero parent contributions to $125,000. These changes come amid concerns that rising college costs may deter enrollment, especially among lower-income families.
