Although more students are eligible for federal financial aid, the number of high schoolers enrolling in college is decreasing.

• A recent report indicates that there has been a decrease in enrollment of first-year college students, specifically at four-year institutions that cater to low-income students, compared to the previous year.
• Despite an increase in eligibility for federal aid, challenges with the new FAFSA form, escalating college expenses, and burgeoning student debt remain significant concerns.

Despite an increase in eligibility for federal financial aid, a decline in the pursuit of a four-year degree among high schoolers is observed. Studies suggest that college is becoming a path primarily for those who can afford it.

Despite an overall increase in undergraduate enrollment, the number of new first-year students decreased by 5% this fall compared to the previous year, with four-year colleges experiencing the largest decline, according to a study by the National Student Clearing House Research Center.

Since the start of the pandemic, the first decline in freshmen has been observed, and it is astonishing, according to Doug Shapiro, the National Student Clearing House Research Center's executive director.

Ivy League admissions consulting can cost families up to $500,000. The top 10 highest-paying college majors are also listed. Some colleges now have a sticker price of nearly $100,000 a year.

Despite the decline in new students, the increase in returning or continuing students is keeping overall undergraduate enrollment growing, particularly at community colleges, which is a positive aspect.

The report found that four-year colleges serving low-income students experienced the most significant declines in first-year student enrollment. At these colleges, more than 10% of first-year students did not enroll.

More students qualify for federal financial aid

The new Free Application for Federal Student Aid aims to enhance accessibility by broadening Pell Grant eligibility, thereby offering more financial assistance to low- and middle-income families.

Due to modifications in the financial aid application process, a larger number of students are now eligible for a Pell Grant, which is exclusively based on financial need.

According to new data from the Department of Education, there has been a 10% increase in the number of students who are on track to receive Pell Grants this year, including a 3% increase among current high school seniors.

The number of Pell Grant recipients has decreased significantly over the past decade. In 2011-12, 9.4 million students received grants, while in 2023-24, the number dropped by 32% to 6.4 million, according to the College Board, which monitors trends in college pricing and student aid.

Federal aid is not keeping up with costs

The maximum Pell Grant award has increased to $7,395 for the 2023-34 academic year, but those grants have not kept up with the rising cost of a four-year degree.

The cost of attending a four-year private college in the 2024-25 school year was $58,600, an increase from $56,390 in the previous year. Meanwhile, the cost of attending a four-year in-state public college also increased, from $24,080 to $24,920, according to the College Board.

Financial aid experts have repeatedly cautioned that persistent issues with the new FAFSA have led to a decrease in the number of students applying for financial aid, which may also contribute to declining enrollment.

Mark Kantrowitz, a higher education expert, stated that the simplification of FAFSA was intended to increase the number of Pell grant recipients. However, this was before the chaos that ensued.

Recent high school graduates polled by Jenzabar/Spark451 in September reported that 45% experienced frustrations with the college application process and 12% ultimately chose a community college, technical school, or alternative due to their FAFSA experience, according to an exclusive look at the firm's upcoming college-bound student survey.

Experts say that the increasing college costs and growing student debt balances continue to be a significant issue, causing more students to question the value of their education.

According to Jamie Beaton, co-founder and CEO of Crimson Education, there is increasing doubt and mistrust regarding the worth of a degree.

The number of students enrolling in certificate programs has increased by 7.3%, according to the National Student Clearing House Research Center.