The cost of attending college has skyrocketed in recent years, with some top schools charging nearly six figures per year. When factoring in tuition, fees, room and board, books, transportation, and other expenses, the price tag for a college education has never been higher. It is estimated that tuition adjustments average around 4% per year, meaning that some institutions could cross the $100,000 threshold as soon as 2026.
According to data provided to CNBC, about two-thirds of full-time students receive some form of financial aid, which can significantly reduce the out-of-pocket cost for families. Private schools, in particular, have more money to spend on financial aid, making them some of the most affordable options in the country. For example, Washington University in St. Louis offers an average scholarship award of over $65,000 per year, bringing the total cost down to around $26,000.
On average, families spent $28,026 on education costs during the 2022-23 academic year, according to Sallie Mae’s annual report. Parental income and savings cover nearly half of college costs, while scholarships and grants account for more than a quarter. Student loans make up the rest of the costs, with the U.S. Department of Education awarding about $120 billion every year to help students pay for higher education.
In addition to federal aid, students may also be eligible for financial assistance from their state or college. However, in order to access this aid, students must fill out the Free Application for Federal Student Aid (FAFSA). Unfortunately, problems with the new FAFSA form have discouraged many students and their families from completing an application. Only a fraction of students who usually use the form have submitted it this year, making it difficult for students to access much-needed financial aid.
Despite the rising cost of college education, there are still opportunities for financial assistance through scholarships, grants, and loans. While the sticker price of some institutions may be high, it is important for families to consider the aid packages available and not rule out schools based on cost alone. By filling out the FAFSA form and exploring all available options for financial aid, students can make college more affordable and accessible in these challenging times.
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