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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