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As the cost of college continues to rise, families face the daunting task of figuring out how to afford higher education. The sticker prices of some prestigious institutions are now nearing six figures a year, causing many students and parents to question the feasibility of attending these schools.
According to data provided to CNBC, eight institutions, including New York University, Tufts, Brown, Yale, and Washington University in St. Louis, have a sticker price of more than $90,000 for the 2024-25 academic year. With annual tuition adjustments averaging around 4%, these colleges could cross the $100,000 threshold as soon as 2026.
However, despite the sticker shock, families rarely pay the full cost out of pocket. On average, families spent $28,409 on education costs in the 2023-24 academic year, with parental income and savings covering nearly half of college costs. Scholarships, grants, and student loans make up the rest of the expenses.
The Importance of Filling Out the FAFSA
One of the key ways to access financial aid for college is by filling out the Free Application for Federal Student Aid (FAFSA). This form serves as the gateway to federal money, including loans, work-study, and grants. However, recent issues with the FAFSA rollout have discouraged many students and families from completing the application.
As of Aug. 9, FAFSA submissions were down almost 10% nationally in 2024 compared to 2023, according to the National College Attainment Network. This decline in financial aid applications could translate to fewer students attending college, ultimately hindering access to higher education.
Private Schools and Financial Aid
While the high sticker prices of some colleges may seem daunting, private schools often have more resources to offer aid to students. Many institutions are committed to meeting students’ demonstrated financial need, making college more accessible for those in need of financial assistance.
At Extreme Investor Network, we understand the challenges families face when it comes to navigating the costs of college. Our goal is to provide valuable insights and resources to help you make informed decisions about financing higher education. Stay tuned for more tips and strategies to help you achieve your financial goals!