Here are some ways families are managing the increasing expense of college.

• Many families must use multiple resources to meet the increasing cost of college.
• A study reveals that student loans are increasingly contributing to a larger portion of the financial burden.

Families are struggling to determine how to cover the rising costs of college, exacerbated by a problematic financial aid application process.

With the start of a new academic year, there is an increase in demand for student loans among students and their parents.

How families pay for college

The cost of attending a four-year college or university, including tuition, fees, room and board, books, transportation, and other expenses, is rapidly approaching $100,000 per year without financial aid.

Nearly half of college costs are typically covered by parent income and savings, while more than 25% are accounted for by free money from scholarships and grants, with student loans making up the remaining percentage.

Harvard is once again the top "dream" school, while more colleges are introducing no-loan policies.

According to Sallie Mae's annual report, the average amount families spent on education costs last year was $28,409.

Parents are increasingly relying on borrowed funds and federal parent PLUS loans to cover the costs of their children's college education, according to various reports.

During tough economic times, families are increasingly relying on borrowing for college expenses, according to Jennifer Berg, vice president of public affairs for market research firm Ipsos.

Berg added, "That's when the FAFSA really comes into play."

The FAFSA is 'a stunning failure'

In order to receive any college aid, students must submit a Free Application for Federal Student Aid.

Completing the FAFSA is crucial for accessing federal aid, including loans, work study, and grants, which are highly sought-after forms of assistance. Research indicates that FAFSA completion can increase a student's chances of attending college and earning a degree.

Despite the new FAFSA being available, many students and their families have been discouraged from submitting an application due to problems with the form. According to Sallie Mae, only 29% of families who filled out the new form found it easier to complete.

Sallie Mae spokesperson Rick Castellano stated that the new simplified FAFSA was anything but what the vast majority said it was.

The number of FAFSA submissions has decreased by 6.2 million from the typical 17 million students who use it.

Nearly half of families who submitted the new FAFSA for the upcoming academic year reported experiencing delays in receiving a financial aid offer from their school, according to Sallie Mae.

Beth Maglione, interim president and CEO of the National Association of Student Financial Aid Administrators, stated that the Department's poor planning has resulted in a failure to provide financial aid dollars to some college students, which may hinder their ability to start classes in the upcoming weeks.

College is worth it, even with loan forgiveness in limbo

According to a report by Fidelity, factors beyond parents' control, such as issues with the FAFSA, rising costs, and the future of student loan forgiveness, continue to have a significant impact on college decisions.

President Biden's initial attempt to broadly cancel student debt was thwarted, prompting the administration to unveil new plans with more specific eligibility criteria for relief.

"Sallie Mae's Castellano stated that borrowing is increasing and half of students anticipate loan forgiveness, prompting the question of whether there is a correlation between the two."

Despite the uncertainty about covering the cost, most parents still believe college is worth it, according to Fidelity.

More families consider saving for higher education a top priority.

A recent study by Fidelity found that 74% of parents have started saving for their children's college education, up from 58% in 2007.