Despite gains in FAFSA completion rates among rising college freshmen, undergraduate students are still not taking advantage of the full range of financial aid available, according to surveys conducted throughout the 2024-25 academic year.
As of August, about 16% more high school seniors from the class of 2025 completed a FAFSA compared to last year, according to the National College Attainment Network.
However, two reports conducted during the 2024-25 academic year illustrate persistent misperceptions about the federal aid form.
A recent Sallie Mae and Ipsos survey discovered that more than a quarter of traditional-age undergraduate students and their parents did not file the FAFSA, even though 64% said the form was easier to navigate.
Moreover:
- 21% knew the form was available by October; early applications are critical for students to maximize all available federal aid, state grants and institutional scholarships.
- 40% didn’t take advantage of scholarships to pay for college because they were unaware or felt like they wouldn’t win.
As a result, family spending on college has increased by 9% over the last year.
“Students and families navigating higher education today need greater transparency when it comes to the actual cost of college so they can make the most informed decisions about this significant investment,” said Rick Castellano, vice president of Sallie Mae. “We also need to continue to promote FAFSA completion and reinforce the availability of scholarships, so families don’t inadvertently leave free money on the table.”
Another survey conducted last fall by Trellis Strategies found that 49% of all undergraduates who didn’t complete the FAFSA believed they wouldn’t be eligible. Half of those students also stated that they would have trouble getting $500. Additionally, students who wouldn’t have trouble accessing $500 were less likely to state they weren’t informed about how to apply for financial aid.
The Trellis survey, which gathered responses from more than 53,000 undergraduate students, suggests how economically fragile students are:
- 68% had run out of money at least once in 2024.
- 55% have accrued more debt than expected.
- 37% feel their debt is manageable.
Students experiencing financial hardship said it interfered with their ability to focus on school. Nearly three-quarters of respondents worked at least 20 hours per week.
The Department of Education’s Office of Federal Student Aid recommends five solutions to raise students’ awareness about financial aid for postsecondary school. Find it here.
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