Inflation Affecting College Costs and Family Finances, College Ave Survey Finds

Parents of college-bound students, budget for higher costs now; get ready for the full Free Application for Federal Student Aid (FAFSA) launch on December 1

WILMINGTON, Del., Oct. 22, 2024 /PRNewswire/ -- For families of high school seniors, making a list and checking it twice can only mean one thing: the fall college admissions journey. And for many, that includes figuring out how to cover college costs while balancing all the demands on their budgets. A recent College Ave survey of 1,020 parents of current college students conducted by Barnes & Noble College Insights™ found more than half of parents (57%) said inflation has affected their family's finances and has made paying for college more expensive. Nearly 3 out of 4 (74%) stated their student's housing and food costs rose year over year, while 6 out of 10 (60%) found college tuition and fees to be more than expected. However, despite the rising costs, most parents agree (88%) that college is a crucial investment for their child's future.

Get Ready for the FAFSA

One of the most important places to start when figuring out how to pay for college is the Free Application for Federal Student Aid (FAFSA) that launches December 1, 2024. And good news – the survey found most families (87%) will fill out this form, which can unlock not only state and federal aid, but also institutional scholarships and grants. One in three families report the form, revamped last year, is less complicated and more streamlined than the older version.  

The FAFSA helps colleges determine a student's financial aid package, which can vary between schools. Approximately half of parents of college freshmen (51%) said that schools varied greatly in the amount of financial aid their students were awarded. Most families (65%) found it to be a surprisingly higher amount than they expected to contribute. Around half agree (51%) that their family did not receive as much financial aid from schools as they expected. 

"Fall is an exciting time for college-bound families as they plan and prepare for life's next big step," said Angela Colatriano, Chief Marketing Officer, College Ave. "Our survey results highlight that sometimes, despite careful planning and preparation, the college investment can take families by surprise. We encourage families to spend this time exploring their college options – majors offered, the campus environment, school size, location and cost – to find the right match for their student."

For families in the midst of their college admissions journey, Colatriano offers the following tips: 

• Prepare for 'Road to College' Costs. Parents estimate they spend more than $5,550 on 'road to college' expenses, which include application fees, test prep, campus tours, college counselors and more.  
• Research the College's Merit Aid. 42% of parents said they did not apply to certain schools due to high tuition and fees. However, don't let the sticker price shock you. Dig into the school's average merit aid offerings, which can significantly lower the cost. As mentioned above, schools vary widely in the amount of financial aid awarded. While the academic majors offered, campus environment and location were the top three factors when making college decisions, 43% also said a good financial aid package helped when making their final selection.
• Review the College List. The majority of parents (59%) helped their children figure out how to pay for college, while interestingly, less than a third (28%) helped their students create a college list. Be part of the process from the beginning to help lessen any surprises when it comes to paying the first tuition bill – around 1 in 3 (31%) said their child attended a school outside of their budget, with close to half (48%) saying that amount ranged from $10,000-$40,000.  
• Research and Apply for Scholarships. After the parent's savings and income, scholarships and grants were the second most used method to pay for college (61%). However, 65% said finding scholarships was difficult. An easy one to apply for is the $1,000 Scholarship Sweepstakes from College Ave. Both parents and students can enter – and a new winner is selected each month.

Overall, the survey highlights how parents are invested in their child's future – most respondents (65%) said paying for college was their top resolution for the New Year, ahead of cutting back on day-to-day expenses (52%) and saving more (46%). In fact, most parents are making paying for their child's college a priority – putting it ahead of big purchase items (52%) or investing (35%). For more information and resources on how to plan and pay for college, visit collegeave.com.

About College Ave 
College Ave started with a big vision and a simple mission - take the stress out of paying for college so students can focus on preparing for a bright future. Now a leading financial services company, College Ave remains committed to using best-in-class technology and deep industry expertise to deliver practical and personal solutions that give young adults a running start on their roads to financial success. We offer best-in-class products with competitive rates and a customer-friendly experience from start to finish. Visit: collegeave.com.

About the Survey
The College Ave survey was conducted by Barnes & Noble College Insights™. The national online survey of parents of undergraduate students who attend a 4-year college or university at one of the campuses served by Barnes & Noble College had 1,020 respondents and was fielded in September 2024. Last year, Barnes & Noble College Insights conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its more than 770+ campus bookstores across the nation.

SOURCE College Ave