Originally Posted On: https://www.ascentfunding.com/blog/how-much-college-aid-are-students-missing-ascent-funding/
How Much College Aid Are Students Missing Out On?
How Much College Aid Are Students Leaving on the Table? (And How to Get It)
In the 2023-2024 academic year, the average estimated cost of four-year college, including tuition, fees, books, and other expenses, was between $28,840 and $60,420 per year. And while factors like in-state versus out-of-state tuition and private versus public institution play a significant role in the total cost, paying for college may still feel like an unattainable goal for many students and parents.
Finding the money to cover the rising cost of higher education can be challenging, which is why many students turn to financial aid, scholarships and grants, and student loans for support. Yet, despite the demand for various forms of financial aid, there is an astounding amount of “free” aid that goes unclaimed every year.
A recent analysis by the National College Attainment Network (NCAN) found that more than $4 billion in Pell Grants were left on the table by the high school class of 2023. In 2022, there was $511 million in unclaimed Pell Grants in California alone.
When figuring out how to pay for college, it is important to take advantage of all the available financial aid options to help minimize your out-of-pocket costs. This rings especially true for forms of aid like grants and scholarships that don’t need to be paid back.
Here are some considerations to help ensure you don’t miss out on these financial aid opportunities.
Pell Grants and how to claim them
There are several different types of financial aid offered by the U.S. Department of Education, one of which is the Pell Grant. New undergraduate students with exceptional financial need may be eligible for Pell Grants, which can help pay for some educational costs. The best part? If you meet the eligibility requirements to qualify for a Pell Grant, your award amount generally doesn’t need to be paid back, making it an attractive source of college funds.
The award amount for 2024-2025 is set to $7,395 but this can fluctuate year to year. The grant amount you may be eligible for depends on several factors including:
- Your Student Aid Index (SAI), as determined by the FAFSA
- Enrollment status (full-time or part-time)
- Total cost of attendance for your school
The amount of Pell Grant funds you can receive is limited to six years or 12 terms, and they generally don’t need to be repaid unless there is a change in your eligibility status.
To see if you qualify for a Pell Grant, you must fill out and submit the FAFSA every year.
Why you shouldn’t skip the FAFSA
The FAFSA determines your eligibility for financial aid such as Pell Grants, federal student loans, and work-study programs. Completing the FAFSA should be your first step in exploring financial aid – not filling out the application can be a major loss.
NCAN suggests that students skipping the FAFSA is one reason behind the $4 billion in unclaimed Pell Grants in 2023. Navigating how to fill out the FAFSA can be difficult, but there are a variety of online resources available to support students and families throughout the process.
Some students might assume they’re not eligible for financial aid, so they don’t bother to apply. But there is no risk in applying—not applying could literally cost you. The only way to find out if you’re eligible for federal financial aid is to complete the FAFSA, so it’s in your best interest to do so.
Finding college scholarships
Scholarships are like grants in that they are considered gift aid and do not need to be paid back. However, instead of being determined by financial need, scholarships can also be merit-based and awarded to students with exceptional academics, athletics, or skills. Some scholarships are also identity-based, which means they are awarded based on a specific field of study, culture, or demographic criteria. And just like untapped grants, many scholarships go unawarded every year.
According to the National Scholarship Providers Association (NSPA), the number of scholarship awards has increased by over 45% over the past decade. Despite this increase, an estimated $100 million in scholarships are unclaimed due to a lack of applicants—a staggering statistic in light of the many students and families struggling to cover college expenses.
Scholarships can be issued by a variety of sources including schools, individuals, organizations, employers, and private companies, and there is no cap to how many you can apply for. When looking for scholarships, online directories such as Scholarships.com and BigFuture can be a great place to start.
Understand alternative funding sources
With the majority of undergraduates receiving just $4,983 in federal grants annually, many students can still expect a significant gap between the free aid they’re awarded and their expected expenses.
In these cases, supplementing federal grants with federal or private student loans can help bridge this financial gap. There are a variety of loan types and repayment options to fit your personal circumstances, and some lenders even offer perks like ACH discounts or cash back at graduation as well as support with internship opportunities and career coaching. Be sure to do your research before applying, and be mindful not to borrow more than you will need.
Don’t miss out on free college aid
There is no doubt the cost of college can be intimidating, and it may even seem out of reach at times. Do not underestimate the opportunity that grants, scholarships, student loans, or other financial aid can provide in reducing your borrowing costs. Ascent offers a variety of helpful student loan types, including student loans without a cosigner, graduate loans, and parent student loans. Knowledge is key, and making informed financial decisions about your education can help ensure you are set up for success during college and beyond.
For more information on the types of financial aid you might qualify for, visit the Federal Student Aid website or download our Ultimate Guide to Paying for College.