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As enrollment deadlines approach, fewer students have figured out how they will afford college next year. Ongoing problems with the new Free Application for Federal Student Aid have delayed financial aid award letters and even prevented many high school seniors and their families from applying for aid at all. As of the latest update, roughly 7.3 million 2024-25 FAFSA applications have been submitted and sent to schools, according to the U.S. Department of Education, less than half of the more than 17 million students who use the FAFSA in ordinary years. Many institutions are now issuing aid with the information they have on hand, according to the Department of Education. "Students should know that they are not going through this alone, we will remain in regular communication with schools and students and encourage students to stay in touch with us and with their colleges," an Education Department spokesperson said.
Persons: Mark Kantrowitz, it's, Sandy Baum Organizations: Federal, Aid, U.S . Department of Education, Finance, Harvard, Urban Institute's Center, Education, Department of Education
PhotoAlto/Dinoco GrecoGetting a college degree seems increasingly less appealing. College degree earners fall nearly 3%Community college pathway is 'at risk'Historically, a two-year degree was considered an economical alternative to a bachelor's, or even a more affordable pathway to a four-year college. In fact, just 16% of all community college students ultimately attain a bachelor's degree, according to recent reports by the Community College Research Center at Columbia University, the Aspen Institute College Excellence Program and the National Student Clearinghouse Research Center. Community college as a stepping stone is "at risk," Shapiro said, and "that's very bad news." Submitting a FAFSA is also one of the best predictors of whether a high school senior will go on to college, according to the National College Attainment Network.
Persons: Shapiro, Joe Biden, it's, Sandy Baum, Baum Organizations: Community College Research Center, Columbia University, Aspen Institute College Excellence, Student Clearinghouse Research, Community, Federal, National College, Network, Seniors, U.S . Department of Education, Education, Urban Institute
Numerous hiccups in the rollout of the updated Free Application for Federal Student Aid have upended this year's financial aid award season. By now, most of the problems with submitting the form have been resolved, but getting the FAFSA information from the ED's Federal Student Aid office to colleges has introduced another slew of issues. "Continually taking two steps forward and one giant step back is not a sustainable pathway toward getting financial aid offers out to students and families." Outside of those erroneous forms being reprocessed, FSA said as of April, schools should start receiving students' financial information within one to three business days of the student submitting their FAFSA. Still, some students may feel the pressure to commit to a school before they've seen all the financial aid offers available to them or skip the FAFSA — and potentially college — process altogether.
Persons: Justin Draeger, they've Organizations: Federal, Education, National College, Aid, Internal Revenue Service, IRS, National Association of Student Financial
It makes sense then that just 36.5% of adults say they feel they're better off financially than their parents, according to CNBC's International Your Money Financial Security Survey conducted by SurveyMonkey. A greater share — 42.8% — say they're worse off than their parents, while the remaining 20.7% say they're faring about the same. Here are three ways younger generations are financially worse off than their older counterparts. More equality Younger generations have navigated adulthood with more freedoms than a lot of their parents may have had. Gender and racial pay gaps, along with other barriers to wealth-building, certainly still affect Gen X and millennials.
Persons: they're, Gen, Xers, Clever, Gen X, Tara Unverzagt, I'm, millennials, Louis Fed, Unverzagt Organizations: Financial Security, SurveyMonkey, Education Data Initiative, CNBC, Pew Research Locations: U.S
Some American universities estimate their total cost of attendance will exceed $90,000 next year. Tuition and fees at universities have continued to climb, even when adjusted for inflation. The result may be a generation of students wondering if college is worth it. AdvertisementThe price of getting a degree has continued to climb at American universities, with the cost of some schools reaching a new threshold. Out-of-state and in-state tuition and fees at public universities have risen by about 38% and 56%, adjusted for inflation, over the same period.
Persons: , Gen, Ana Hernández Kent, Louis Organizations: Service, New York University, Tufts, University of Pennsylvania, Yale, NYU, Board, U.S . News, for Higher, of Education, Universities, Institute for Higher Education, Institute for Economic Equity, Federal Reserve Bank of St Locations: U.S
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewThe price of getting a degree has continued to climb at American universities, with the cost of some schools reaching a new threshold. This story is available exclusively to Business Insider subscribers. Out-of-state and in-state tuition and fees at public universities have risen about 38% and 56%, respectively, inflation-adjusted over the same period. In a Business Insider and YouGov survey conducted last year, 46% of Gen Z respondents said they don't think college is worth the cost.
Persons: , Gen, Ana Hernández Kent, Louis Organizations: Service, New York University, Tufts, University of Pennsylvania, Yale, Business, NYU, Board, U.S News, of Higher, of Education, Universities, Institute of Higher, Institute for Economic Equity, Federal Reserve Bank of St
CNN —Several New England universities and colleges have reached a pinnacle of at least $90,000 for undergraduate tuition and costs starting this fall. The nearly six-figure sums reflect the rising cost of higher education, far outstripping the average inflation for other goods and services. Schmeidel said very few Wellesley students pay the total fee, adding nearly 60% of its students receive financial aid and the average financial aid award is $67,469. Riley added 56% of domestic students received some form of aid for this academic year, with the average financial aid package being $67,000, for an average cost of attendance of $16,000. “Because this is an average, some of the students with greatest demonstrated financial need paid $0, and others paid more,” Riley said.
Persons: trumping Wellesley, , Stacey Schmeidel, Schmeidel, ” Schmeidel, Colin Riley, Riley, ” Riley, Jeremiah Quinlan, , Quinlan, Patrick Collins, Collins, ” Collins, CNN’s Allison Morrow Organizations: CNN, Yale University, Tufts University, Boston University, BU, Wellesley College, Tufts, Wellesley, College, Colleges, of Education, Labor, Yale Locations: New England, Boston
If you're questioning how to put your money to use in your 20s, here are three smart money moves to set yourself up for success later in life, according to two certified financial planners. The most common forms of debt for twentysomethings include credit cards, auto loans, student loans and personal loans. High interest rates have made paying off debt even harder, and in 2023 people under 29 carried an average of nearly $3,000 in credit card debt. To tackle credit card debt, Rossman recommends either signing up for a 0% balance transfer card or consolidating your credit card debt if you have several balances on different cards. Student loans are another common burden for many young people, with nearly 35% of adults ages 18 to 29 carrying student loan debt, according to the Education Data Initiative.
Persons: you've, Z, Andrew Fincher, Joe Conroy, Ted Rossman, Rossman, Fincher Organizations: Financial, CNBC, Education Data Initiative Locations: what's
The Federal Trade Commission announced on Wednesday it is refunding $4.1 million to 27,584 consumers who fell victim to student debt forgiveness scams. Fraudsters "tricked students into paying hundreds to thousands of dollars in illegal upfront fees and pretended to lower consumers' monthly student loan payments," the FTC said in a press release. Additionally, the operators claimed to take over the servicing of consumers' loans and thus, often pocketed consumers' monthly payments, the agency said. Scammers lure student loan borrowers by offering ways to lower their monthly payments or even eliminate their balances. Use these tips to avoid losing money to a student loan scammer.
Persons: Fraudsters, it's, scammer Organizations: Federal Trade Commission, Mission Hills Federal, Federal Direct Group, Data Initiative, FTC, Department of Justice
Read previewThe Arby's Foundation has committed $1 million to wipe the lunch debt burden for tens of thousands of students across the US, including 7,413 students in Georgia. AdvertisementAn estimated 30.4 million students have student lunch debts, totaling a combined debt of $262 million per year, according to the Education Data Initiative. AdvertisementAn elementary school in Ohio came under fire last year when it excluded indebted children from buying ice cream on "Ice Cream Friday." Kids with outstanding school lunch debt were prohibited from buying ice cream even if they came with the necessary $1. The debt problem persists despite legislative efforts such as the School Lunch Debt Cancellation Act of 2023.
Persons: , Rita Patel, Arby's, Insider's Juliana Kaplan, Tiffany Haddish Organizations: Service, Business, Atlanta, Education Data Locations: Georgia, Ohio, Boardman , Ohio
I value both saving for retirement and saving for my son's college, but retirement is my first priority. Recently, I spoke with Ashley Rittershaus, a CFP and founder of Curious Crow Financial Planning, a fee-only comprehensive financial planning firm. Advertisement"Some common advice is that it's more important to save for retirement than college because your children can take out loans for college, but you can't take out loans for retirement," says Rittershaus. "Setting your child up for financial success can come in forms other than paying for college," says Rittershaus. Ultimately, I don't want to be a burden on my child later in life, so it's crucial that I continue saving for retirement.
Persons: he'll, , Ashley Rittershaus, Rittershaus, we're Organizations: Service, Curious, Education Data Initiative Locations: Tennessee
The student loan payment match program can benefit employees actively paying down student loan debt. The new student loan match program certainly can put employees in a better situation to start paying down student loan debt. How to get a 401(k) match for your student loan paymentInvesting platforms and third-party administrators have already begun adding student loan matches to existing employer-sponsored retirement plans. For example, Betterment launched a student loan 401(k) match benefit to its automated 401(k) plan, Betterment at Work. Secure 2.0 student loan match program — Frequently asked questions (FAQs)What is the Secure 2.0 Act student loan match?
Persons: , Teresa Greenip, you'll, Greenip, Sarah Levy Organizations: Employers, Service, Federal, Education Data Initiative, IRS, Fidelity, Secure, Chevron Locations: Aspiriant, Chevron
What broke the American Dream for Millennials
  + stars: | 2024-01-19 | by ( Allison Morrow | ) edition.cnn.com   time to read: +11 min
For their nine-month-old son, Miles, Rachael and Garrett agree: They’re not going to push him to pursue the same path. “This is the American Dream,” Rachael says. The nest egg mythA common refrain Millennials heard from their Boomer parents is that buying is always better than renting. Luke Sharrett/Bloomberg/Getty ImagesCentral to the pitch of the American Dream is a house. “I don’t think anyone could have foreseen house prices going up 20% or 30% in a three-year period,” Garrett says.
Persons: Pennsylvania CNN — Rachael Gambino, Garrett Mazzeo, , Miles, Rachael, Garrett, They’re, ’ ”, ” Rachael, Kristen Gambino, Rachael Gambino, Deborah Brunswick, John General, America it’s, Brendan Duke, Baby, Millennials, gumming, Obama, , Louis, Boomer, Luke Sharrett, they’d, ” Garrett, they’re, homeownership, We’re, “ we’re, That’s, Duke, ” Duke, , Camerota, Matthew Friedman Organizations: Pennsylvania CNN, , CNN, Center for American Progress, of Education, America, Federal Reserve Bank of St, Bloomberg, Getty, Federal Reserve Bank of Philadelphia, Workers, Center, American Progress ’ Locations: Lansdale, Pennsylvania, America, United States, Attom, financials
The housing demand from millennials has made it harder for the generation to get into the game. Meanwhile, housing prices are still high but have started to pull back recently in some areas of the country. In September, Zillow reported that the total US housing market reached a record value of $52 trillion, a 49% jump since before the pandemic. AdvertisementMillennials are in danger of creating a housing bubbleThe research from Indiana University warns that the larger millennial population could lead to a housing bubble and a crash in the housing market. Demand from this generation is expected to wane just as baby boomers start to leave the housing market.
Persons: , millennials, Zillow, ZIllow, Paul Bradbury, Millennials, boomers, Ariel Skelley, Xers, Tom Grill Organizations: Service, Federal Reserve, Indiana Business Research Center, IU Center, Real Estate, Getty, Education Data Initiative, National Association of Realtors, Indiana University Locations: millennials
Parents thinking of saving for their children's college education in around a decade could be in for some sticker shock. Breaking down the costs U.S. college tuition inflation averaged 12% annually from 2010 to 2022, according to T. Rowe Price, citing research by Education Data Initiative . Even assuming a more modest 5% annual inflation rate, the estimated total college cost could be as high as $383,823, she said. That college tuition bill 10 years from now — taking the $165,000 as a baseline and assuming a 3% normalized inflation rate and tuition inflation of 6% — could hit $295,000, according to Ebright. "It is important to maintain some exposure to growth assets as tuition inflation has traditionally been higher than the broader economy," Shen said.
Persons: Laura Suter, AJ Bell, Rowe Price, Wenting Shen, Shen, Alan Ebright, they're, AJ Bell's Suter, Rowe Price's Shen, Berkshire Hathaway, Suter Organizations: CNBC, AJ, Education Data Initiative, College Board, Check Capital Management, University of California, Securities, Berkshire, Fidelity Emerging Markets, Companies, Fidelity Locations: U.S, Asia, Britain, United States, Berkshire
Getty ImagesHighest-paying majors are mostly STEMPayscale's recent college salary report found that petroleum engineering is currently the highest-paying major overall. After petroleum engineering, operations research and industrial engineering majors are the next highest paid, followed by interaction design, applied economics and management, and building science. The growth in STEM jobs is expected to outpace that of non-STEM jobs in the coming years, Pew also found. 'You don't always need a degree'However, in some STEM-related fields, "you don't always need a degree," according to John Mullinix, chief growth officer at Ladders. A growing number of companies, including many in tech, are dropping degree requirements for middle-skill and even higher-skill roles.
Persons: Marc Cenedella, Greenberg, Eric Greenberg, Pew, John Mullinix Organizations: U.S . Census, Greenberg Educational, College Board, Pew Research
The company's owner, luxury goods giant LVMH Moët Hennessy Louis Vuitton, is expanding a program that trains people to become artisans who can make Tiffany's high-end jewelry. The company said Thursday it's begun a two-year bench jewelry apprenticeship program involving Tiffany and the Rhode Island School of Design. The move comes as Gen Zers rethink the idea of college as costs skyrocket and US student-loan payments are resuming following a pandemic hiatus. The programs work with colleges and universities to help conduct the training. LVMH has used apprenticeship programs to help develop the skilled artisans it needs for its brands.
Persons: Tiffany, , Moët Hennessy Louis Vuitton, Gena Smith, it's, Smith, LVMH, Johnny Vacar, It's, they'd Organizations: Service, Tiffany, Rhode Island School of Design, Data Initiative, Tiffany's, Louis Vuitton Locations: Europe, North America, Island, York, LVMH's, Japan, San Francisco
The short answer is that, yes, it is possible to get a grant to help you pay off your student loan debt. Citizens Bank Student Loan Refinancing is one of many strong options for student loan refinancing, particularly because the company allows you to refinance up to $300,000 and to apply with a co-signer. Bottom lineGetting a grant or some other form of loan forgiveness can make a huge difference in your student loan management journey. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan refinance products. See our methodology for more information on how we choose the best student loan refinance companies.
Persons: Harris, refinanced Organizations: Education Data, Biden, CNBC, Citizens Bank Student, Citizens Bank, Loan, Federal Reserve Bank of New, AK, IL, CNBC Select's, Facebook, Twitter Locations: California, Federal Reserve Bank of New York, MN, NH, OH, TN, TX
The restart of student loan payments is about to hit the housing market. 58% of polled experts believe that the resumption of student loan payments could have a significant impact on mortgage affordability, according to a recent analysis conducted by Pulsenomics. Student loan payments will kick back in at a time when housing affordability is already strained. The effects of the student loan payment restart may be felt for years to come, too. AdvertisementAdvertisementStudent loan payments are set to resume on October 1, ending a three-year payment pause that began during the pandemic.
Persons: Morgan Stanley, That's Organizations: Service, Pulsenomics, Inside Mortgage Finance, US Department of Education, Education Data Initiative Locations: Wall, Silicon, delinquencies
The San Jose area has the largest pay gap between holders of a graduate degree versus a bachelor's. Some top law schools cost over $200,000 over the course of the program, while medical schools average nearly $219,000 a year. SmartAsset found the average graduate degree holder made $72,000 a year. For cities including The Villages, Florida; Prescott, Arizona; and Morristown, Tennessee, graduate-degree holders made less than $55,000. Florida has two metropolitan areas in the top 15 for graduate-degree income difference, though neither Texas nor New Jersey ranks in the top 25.
Persons: SmartAsset Organizations: Trenton, Service, Education Data Initiative, Park, San Locations: California , Alabama, Utah, San Jose, Huntsville , Alabama, Princeton , New Jersey, Wall, Silicon, Sunnyvale, Santa Clara, California, Princeton, New Jersey, Jose, San Francisco, Huntsville, Trenton, George , Utah, Zion, Provo, Orem, Merced, Fresno, Tuscaloosa , Alabama, Elizabethtown, Fort Knox, Kentucky, Florida, Prescott , Arizona, Morristown , Tennessee, Florida , Texas, New Jersey . Florida, Texas
It’s not too late to apply for financial aid or appeal the financial aid amount that was given. “It doesn’t mean that we run out of funding,” said Phil Asbury, Director of Financial Aid at Northwestern. With the financial aid office, students shouldn’t brag or boast about grades. Explain what has changed in your situationAt Emory University, “students can contact the Office of Financial Aid at any point” with what’s called “a special-circumstances appeal,” said John Leach, Associate Vice Provost for Enrollment and University Financial Aid. Inform the school’s financial aid office right away and in some cases, financial aid can increase, he said.
Persons: It’s, , Phil Asbury, “ Don’t, Lissett Bohannon, “ It’s, University of Chicago’s Youssef Hasweh, Hasweh, shouldn’t, what’s, John Leach, Leach, ” Leach, FAFSA, Vicki Vollweiler, Vollweiler, Miranda McCall, Duke, ” McCall, Organizations: CNN, Columbia University, University of Wisconsin, University of Colorado, Education Data Initiative, Northwestern University, Aid, Northwestern, University of Chicago’s, Federal Student Aid, Emory University, Financial, Enrollment, University Financial, College Financial, Locations: New York City, Madison, University of Colorado Boulder, United States, Illinois
Undergraduate enrollment in petroleum engineering is down 75% since 2014, WSJ reported. That's despite the fact that the average petroleum engineering grad makes 40% more than a computer science grad. Heinze told the Journal of Petroleum Technology that over 90% of petroleum-engineering students at Texas Tech have jobs right after graduation. But when it came to picking which career paths were most attractive, the Gen Zers surveyed ranked finance as the most promising industry regarding career prospects. Education was ranked the second-most popular industry when it came to career prospects, and STEM, which includes engineering, was ranked fifth.
Persons: That's, Lloyd, Young, Heinze, Zers Organizations: Morning, Petroleum, Street Journal, Texas Tech University, University of Oklahoma's, Louisiana State University and Colorado School of Mines, Department of Education, US Bureau of Labor Statistics, Colorado School of Mines, Journal of Petroleum Technology, of Petroleum Technology, Texas Tech, CFA Institute, Education
Why college is getting more expensive
  + stars: | 2023-07-16 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +8 min
After adjusting for currency inflation, college tuition has increased 747.8% since 1963, the Education Data Initiative found. But the net price of college — that’s the amount that students and their families are actually shelling out — has been decreasing. The average student at a private four-year college paid $32,800 for tuition and room and board last year. When adjusted for inflation, the actual price paid for private college has dropped by 11% over the past five years, according to College Board data. In a 6-3 decision the Supreme Court struck down the Biden administration's student debt forgiveness program in Biden v. Nebraska.
Persons: Brian Snyder, , Megan Brenan, Catharine Hill, , , couldn’t, ’ ”, they’ve, Kevin Dietsch, Joe Biden’s, Biden Organizations: New, New York CNN, College, US News, Harvard University, Harvard, Reuters, Education Data Initiative, Georgetown University Center, Education, Gallup, Vassar College, , , National Education Association, Foreign Relations, Economic, Institute, luxe, ” Colleges, American, of Trustees, NEA, College Board, U.S, Supreme, Biden, . Nebraska Locations: New York, Cambridge , Massachusetts, United States, , Washington , DC, .
Following the Supreme Court's ruling on President Joe Biden's student loan forgiveness plan, interest on student debt will begin to accrue in September, with payments due in October. Borrowers with federal student loan payments currently owe $37,338, on average, with a median monthly payment of $250, according to the Education Data Initiative. But for certain workers — especially those with piles of student debt — finding room in the budget to invest for retirement can be difficult. Under the new law, employers can make matching contributions to workplace plans — including 401(k)s, 403(b)s, 457(b)s and SIMPLE IRAs — based on an employee's qualified student loan payments. In order to qualify for the match, workers must simply certify that student loan payments have been made.
Persons: Joe Biden's Organizations: Education Data
The Supreme Court struck down Biden's student loan forgiveness plan. Student loan payments will likely resume in October. For the justices behind the decision, the cost of an undergraduate degree was much cheaper when they were in school. According to EDI, there was a 2,807% increase in the average student loan debt at graduation between 1970 and 2021 before adjusting for inflation. Student loan borrowers gathered at the Supreme Court today to tell the court that student loan relief is legal on January 2, 2023.
Persons: , Joe Biden's, Biden, Clarence Thomas, Wally McNamee, Samuel Alito, Sonia Sotomayor, Elena Kagan, John Roberts, Ketanji Brown Jackson, Roberts, Jackson, Brett Kavanaugh, Neil Gorsuch, Amy Coney Barrett, Larry French, Thomas, Gorsuch Organizations: Service, Republicans, White, Education Data Initiative, The College of, Princeton University, Harvard, Yale, Columbia University, Rhodes College, Associated Press, AP
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