
The Free Application for Federal Student Aid (FAFSA) for the 2018-2019 academic year became live on October 1. We all know what that means: the college application season is upon us. And it is causing millions of students and their families to brace themselves for increasingly small acceptance rates, high tuition costs, and difficult dinner table conversations.
But the FAFSA is intended to alleviate—not exacerbate —the financial burdens of postsecondary schools, right?
Right.
The intention of the FAFSA may be to provide access to college. But, reality check: it acts as more of a hindrance than an advantage to applicants across the country because it is confusing to fill out, does not direct its resources to families who need the most help, and oftentimes leaves people with thousands of dollars in student loan debt.
Take the hardworking student of David Nguyen. In 2015, David was accepted to his top choice, Tufts University. He earned a 3.9 GPA and scored a 30 on the ACT; he deserved the “congratulations!” letter. David had to rescind his application to Tufts, however, and will graduate from his in-state school of the University of Michigan in 2019.
“Well, why did David decline his offer from Tufts if it was his dream school?” you may ask.
Even with an annual household income of $130,000, David’s family could not afford to pay over $60,000 a year for one child’s education. So, he filled out what should be his ticket to college: the FAFSA.
The formula the FAFSA uses (cost of attendance – expected family contribution = financial aid) determined that David was only eligible for $10,000 in financial aid, leaving his family responsible for the remaining $50,000. He weighed his options of graduating from Tufts with student loan debt or leaving the University of Michigan debt-free, and he—reluctantly but understandably—chose the latter option.
The unfortunate, discouraging reality is that David’s situation is not an unusual one; instead, it has become the norm. According to the Institute for Higher Education Policy, families with annual incomes of $100,000 cannot afford almost 60% of U.S. colleges and universities.
But let’s not that the median U.S. household income in 2016 was $57,617—way below that $100,000 benchmark. This means that the majority of higher education institutions are totally out of reach for the average American family, and, as a result, for the average American student.
The problem, however, is that as colleges have become so financially unattainable, they have also become the prerequisite for a stable career. In short, there is statistic likelihood that a bachelor’s degree—at the very least—means making more money. The Pew Research Center found that Millennials with college degrees earned $17,500 more a year than their high school graduate counterparts.
So, the pressure is on to go to college to earn more money. Which is why—amongst several other reasons—people go to such great lengths to avoid the obstacle of affordability.
Loans should be the perfect solution. Don’t currently have the money to pay for school? No problem. You enroll in a direct subsidized or unsubsidized loan program. Things are looking great—until you graduate college with over $37,000 in debt. And you’re not alone. You’re only one of the 44 million people in student loan debt.
All of this can be attributed to the immaculate FAFSA.
Now more than ever before, students are either being deterred from attending their dream schools solely because of the price tag attached to higher education, or they are graduating from these institutions in thousands of dollars of debt. It’s a lose-lose situation.
Nevertheless, the number of students enrolling in postsecondary schools is increasing. People want to go to college. In 2015 alone, 17 million were enrolled. That number is projected to increase to 19.3 million by 2026.
The point? The FAFSA needs to undergo dramatic changes to accommodate the skyrocketing number of people who want to receive an education after high school.
First of all, the FAFSA needs to be simplified. Rather than mimicking a lengthy tax form, the language used should be straightforward and easy to understand. Secondly, the FAFSA needs to reevaluate the formula it uses to factor in other variables, such as the number of children a family has. In addition, the Pell Grant needs to be increased to at least $12,000. Finally, the current student loan debt program needs to be terminated; instead, the FAFSA should only offer one student loan option with no fees and a low interest rate that must be paid off throughout a student’s college career.
Works Cited
http://money.cnn.com/2015/05/11/pf/college/college-financial-aid/index.html
http://money.cnn.com/2017/06/22/pf/college/afford-college/index.html
https://www.usnews.com/news/articles/2014/02/11/study-income-gap-between-young-college-and-high-school-grads-widens
https://nces.ed.gov/programs/coe/indicator_cha.asp