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An annual study released Tuesday by student loan provider Sallie Mae and market research company Ipsos reveals frustrations over this year’s fraught federal financial aid process, increased student borrowing and more families using AI in the college application process.
The study, called “How America Pays for College,” found that more families are borrowing money to pay for higher education. Almost half of families, 49 percent, reported borrowing, compared to 41 percent last year. Loans covered 23 percent of families’ college costs, up from 19 percent the previous year. But only 40 percent of families said they had discussed who would pay back the loans. A little over 43 percent said they considered more expensive colleges and universities because loans were available, and almost half of students said they believe their federal loans will be forgiven.
The report also detailed families’ challenges with this year’s delayed, glitch-ridden rollout of the new Free Application for Federal Student Aid. The study noted that only 29 percent of families reported the FAFSA was easier to complete, as intended. Meanwhile, 44 percent of families described feeling stress over delayed financial aid decisions, while 21 percent looked into other aid options, 14 percent considered transferring students to lower-cost colleges and 10 percent transferred institutions. Some 11 percent considered leaving college or taking a pause—and 9 percent did so.
For the first time, the study measured how families used AI to research financial aid and scholarship options. About a quarter of students and 18 percent of parents used AI at some point in the college application or decision-making process, the study found.
