Nearly half of first-generation students were unable to complete the FAFSA this year. (iStock)
The new rollout of FAFSA went anything but smoothly. Parents and students struggled to access the form. Others had their income reported incorrectly, leading to less aid for students who needed it most.
About 47% of first-generation students weren’t able to complete FAFSA, a Study.com report found. The study surveyed 600 first-generation students to understand how the botched FAFSA rollout affected their education decisions. Of the students who were able to access FAFSA, 28% of them spent more than seven hours trying to fill it out.
Unable to get the financial aid they needed, many students faced a significant amount of stress. Out of the students surveyed, 29% reported experiencing stress or anxiety around FAFSA, and 19% faced academic performance issues because of this stress.
“The environment for first-generation college students and students of color is getting more challenging,” said Victoria Coker, executive director of Bottom Line New York, an organization that prioritizes helping students of color earn their degrees.
“These shifts in the FAFSA, the Supreme Court’s decision that undermines students of color’s place on campuses, a mounting affordability crisis, and narrative in the media questioning the value of a college degree may turn students away from a college-bound pathway,” Coker said.
Without FAFSA as an option for some students, funding for college had to be found elsewhere this year. Nearly 86% of first-generation students sought alternatives to FAFSA. About a quarter looked into more scholarship options, 21% worked more hours outside of school, 19% looked for loan alternatives and 15% considered delaying their enrollment altogether.
You can visit Credible to learn more about private student loan options and get personalized rates from multiple lenders without dinging your credit score.
A MAJORITY OF STUDENT LOAN BORROWERS ARE WORRIED ABOUT THEIR ABILITY TO REPAY THEIR LOANS
Department of Education launched additional FAFSA support
The U.S. Department of Education is trying to compensate for FAFSA difficulties. Recently, the department announced a $50 million dollar program to help school districts, nonprofits and state organizations promote FAFSA completion.
The program, named the FAFSA Student Support Strategy, provides funds for organizations to add advisers, counselors and coaches to schools. These professionals can help walk students through the FAFSA application process. They’ll have extended office hours during the weekend and summer to help boost the number of FAFSA applications completed.
“We are determined to close the FAFSA completion gap,” U.S. Deputy Secretary of Education Cindy Marten said. “The funding we’re announcing today will support states, districts and community-based groups build capacity and leverage their power to ensure that every student who needs help paying for college turns in their FAFSA form.”
Funds are also going toward advancing communication support via text, phone calls and video conferences between students and parents and FAFSA counselors. Plus, there will be counselors who can communicate in multiple different languages to help students or parents whose native language is not English.
Don’t worry about having to navigate student loan options on your own. Credible can help compare student loan companies in minutes.
MILLIONS OF BORROWERS TO SEE STUDENT LOAN PAYMENTS DROP IN JULY AFTER SAVE ADJUSTMENT
Biden Administration gives $6.1 billion in forgiveness to students who attended The Art Institutes
More student loan forgiveness was announced early in May, this time for borrowers enrolled at The Art Institutes between Jan. 1, 2004 through Oct. 16, 2017.
About 317,000 borrowers are set to receive forgiveness totaling more than $6.1 billion. Relief is automatic, so students don’t have to submit any paperwork.
The Art Institute, and its parent company, Education Management Corporation (EDMC), misled students by providing inaccurate post-graduation employment rates and potential salaries.
“For more than a decade, hundreds of thousands of hopeful students borrowed billions to attend The Art Institutes and got little but lies in return. That ends today – thanks to the Biden-Harris Administration’s work with the attorneys general offices of Iowa, Massachusetts and Pennsylvania,” Miguel Cardona, U.S. Secretary of Education said in a press release.
This round of forgiveness brings the total amount of student debt relief approved by the Biden Administration to almost $160 billion for nearly 4.6 million borrowers.
If you have private student loans, federal relief doesn’t apply to you. If you’re looking to lower monthly payments and ease the burden of student loan debt, consider refinancing your student loans. Credible can help you lock in lower interest rates by comparing refinance options.
PRESIDENT BIDEN ANNOUNCES NEW STUDENT LOAN FORGIVENESS PLANS THAT COULD BENEFIT 23 MILLION AMERICANS
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
