Potential Decline in College Enrollment due to FAFSA Fiasco, Experts Warn – CNBC

Last Updated on April 23, 2024 by Robert C. Hoopes

As the high school class of 2024 navigates the college application process, there is a concerning trend emerging regarding financial aid. Only 31% of students have completed the Free Application for Federal Student Aid (FAFSA) as of March 8, a significant 33% decline compared to the previous year.

School counselors across the country are reporting that students are becoming frustrated and giving up on completing the FAFSA. Many students lack confidence in their ability to receive the financial aid they need for college, leading to a decrease in applications being submitted.

The FAFSA serves as the gateway to federal aid money, including loans, work-study programs, and grants. The new aid formula is expected to make an additional 2.1 million students eligible for the maximum Pell Grant. However, if the current slower pace of FAFSA applications continues, the number of recipients may remain the same as last year.

The goal of simplifying the FAFSA process was to increase the number of lower-income students applying for financial aid. The decrease in applications is worrisome, as FAFSA completion is essential for college access and affordability. Without completing the FAFSA, students may miss out on crucial financial assistance that could make higher education more accessible.

It is important for students and their families to prioritize completing the FAFSA to ensure they receive the financial aid they need to pursue their college education. School counselors and educators can play a crucial role in supporting students through the FAFSA process and encouraging them to take advantage of available financial aid opportunities.