July 9, 2019
By Brittany De Lea
For Fox News
Exorbitant college Opens a New Window. costs are a significant problem for Americans, but new research shows prospective college students are unaware of how the financial aid Opens a New Window. process works.
A new study from ACT, which surveyed about 1,200 last year, found that many students “lack the most up-to-date … debt-related information” needed to make enrollment and financial aid decisions.
That’s particularly troubling at a time when outstanding student loan debt has surpassed $1.5 trillion, second only to mortgage debt.
Meanwhile, tuition and fees for the 2018-2019 school year averaged $35,830 at four-year private, nonprofit institutions, according to data from The College Board. At public four-year in-state institutions, the average was $10,230 – and $26,290 at public, four-year out-of-state colleges.
The average borrower has nearly $40,000 in student loan debt.
Here’s a look at what most college students surveyed did not know about the financing process.
- An “overwhelming majority” didn’t know that the U.S. government subsidizes a borrower by paying interest on existing loans while the student is still in college.
- A majority of respondents did not know about loan repayment options, which allows students to repay loans based on their earnings after college.
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I had no idea there was a Pell Grant until my third year of higher education.
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It’s definitely a great tool to have, coupled with knowledge of future career goals. There are so many affordable schools nowadays! I’m excited that institutions are aware that at least more students will make informed decisions.
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