Rising College Expenses: 5 Key Considerations

Introduction:
As college tuition costs continue to rise, it is crucial for students and their families to carefully assess and plan for these expenses. In this article, we will discuss five important factors to consider when dealing with the increasing costs of higher education.

1. Understand Your Options

In 2024, Ascent launched the "Ultimate Guide to Paying for College" on its AscentUP1 platform. This free resource, available to nonprofits, high school counselors, parents, and students, offers professional training, career readiness, and updates on the FAFSA® application process. The guide takes just 10 minutes to complete and provides actionable tools to help students and families make informed decisions about which college to attend and how to finance it.

Ascent's Bright Futures™ Engine enables students and families to compare colleges and majors based on the return on investment (ROI) of college costs and potential future income. Understanding the financial implications of higher education, both in the short and long term, is crucial when making post-graduation decisions. Ascent offers a range of loans and financial aid options tailored to different needs, helping over 100,000 people afford school. This includes co-signed and non-co-signed loans, as well as options for Deferred Action for Childhood Arrivals (DACA) recipients and parents. Additionally, Ascent has awarded over $330,000 in scholarships.

2. Alternatives to Federal Funding

With the rising cost of college, many families find that federal Pell Grants and loans are insufficient to cover expenses.

Over 20 million students rely on federal funding for higher education. However, a study by the National College Attainment Network (NCAN) revealed that only 38% of high school seniors completed the Free Application for Federal Student Aid (FAFSA®) by early May 2024. This is a 20% decrease compared to the previous academic year and could lead to fewer students enrolling or attending college due to a lack of funding, disproportionately affecting low-income students and students of color.

Ascent also reports that there have been errors and miscalculations in the FAFSA form, which is required for federal funding. This has resulted in some submissions needing to be reprocessed.

When federal funding falls short, here are four alternatives to consider:

1. Scholarships: Many organizations and institutions offer merit- or need-based scholarships that do not require repayment. Ascent provides allowing several no-essay scholarship giveaways throughout the year.

2. Work-study programs: These programs provide part-time jobs for students with financial needs, them to earn money to help cover college.

3. Financial aid directly from your college: In addition to federal aid, colleges often offer their own grants, scholarships, or financial aid packages.

4. Private loans: Private lenders like Ascent can provide loans to help cover the remaining costs.When considering your options, you can look into partners like Ascent. They are dedicated to the short- and long-term success of students and families. According to their 2023 Impact Report, their goal is to increase student student income by $10 billion in five years, which in turn would boost graduates' earnings. Additionally, you should also consider factors such as potential interest accrued, repayment requirements, and the flexibility of repayment terms.

3. Private loans

can be a solution when you need funding for college. It's important to find loan options that align with your financial plan and help you pay for your education. Ascent offers four options:

1. Non co-signed loans: Ascent's Outcomes-Based Loan allows students to qualify based on factors beyond credit scores, such as academic performance and future earnings potential. This option provides financial support and career coaching through AscentUP, which can motivate students to thrive in college.

2. Co-signed parent loans: Ascent's co-signed and parent loan enables parents or guardians to take out loans even if their child has low or no credit. Borrowers can also release co-signers after 12 months, allowing students to start building credit under their own name.

3. Deferred Action for Childhood Arrivals (DACA) loans: DACA students often face challenges in accessing financial aid or in-state tuition. specifically However, Ascent provides access to scholarship giveaways and loans for DACA students and their families.

4. Pay on your terms: It's important to choose a lender that offers flexible repayment options. Ascent offers up to 40 repayment options, providing the flexibility to meet various financial needs. Borrowers can also repay early without any fees. Additionally, Ascent eliminated all college loan fees in 2024, meaning borrowers won't be charged for applying, processing the loan, or receiving the funds.

4. It's essential to recognize that a low credit score

it can have long-lasting consequences. It can impact your ability to purchase a car, rent a home, obtain certain credit cards, and even fund higher education. If a low credit score is hindering your pursuit of higher education, consider alternatives such as scholarships, work-study programs, or private loans. Financial education can also be beneficial in making better financial decisions. Ascent reports that 83% of their college loan borrowers increased their credit score by an average of 55 points or more, and nearly one in five borrowers saw an improvement of over 100 points.Ascent offers borrowers built-in financial tools and education throughout the application process In addition, the company provides free resources through AscentUP, as well as up to 1% discounts for automatic payments and 1% cash back for graduating college.

5. Investing in Long-Term Outcomes

 

Ascent understands that a stable salary and a good credit score can lead to lasting financial independence and economic mobility for student borrowers.

Internships play a crucial role in securing jobs after graduation. However, they can be difficult for many college students and recent graduates to obtain. This challenge is particularly prevalent among low-income students who may lack the same social connections as their wealthier peers. Moreover, these students often cannot afford to accept unpaid internships, even if they present promising opportunities.

While college career centers and employers usually organize job and internship fairs, Ascent has taken steps to address this issue. The online lender provides its borrowers with access to paid internship opportunities at top companies through the Ascent UP Internship Program. The program aims to offer borrowers the chance to earn money and gain meaningful remote work experience. Ascent immigrants can take advantage of self-paced learning, live one-on-one coaching, and a wealth of resources to support their growth in internships and future careers.

When it comes to financing higher education , you have several options. It's important to consider your financial needs and goals, allowing you to make a well-informed decision that sets you up for long-term success.