Under the proposal, universities would be required to reimburse students for unused scholarships. (iStock)
Many students enroll in college meal plans using federal funding. Traditionally, unused money in these plans is returned to the university.However, new Ministry of Education proposal They would instead require universities to pay that money to students.
Student meal plans typically consist of a “flex” account that students can use at cafeterias and campus grocery stores. Under the new proposal, universities would have 14 days to return unused funds if students do not spend all of their funds by the end of the academic year.
If a school fails to meet this deadline or refuses to return the money to the student, it will be subject to financial penalties. Other penalties are also planned for colleges that withhold non-Title IV aid.
Students receive various forms of financial aid. Some are Title IV aid, which includes grants and federal aid. Students who receive Title IV aid from their school receive additional money after tuition and other fees are deducted.
If a student receives non-Title IV aid, the university is not required to refund the balance. The changes proposed by the Department of Education would require schools to provide extra money credit balances to students within 14 days of the balance being incurred.
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FAFSA mistakes cause hardship for many students
The Free Application for Federal Student Aid (FAFSA) got off to a rough start this year and has yet to fully recover. When the Department of Education released the FAFSA after making some necessary changes, the calculations used to determine the aid amount were incorrect.
This error caused many families to appear to have inflated their incomes, resulting in incorrect financial aid amounts being calculated. If this mistake is not corrected, it could cost students and their families $1.8 billion in federal aid. NPR reported.
A Department of Education spokesperson told NPR that the department plans to correct the mistake by the 2024-2025 award year, but declined to elaborate further.
Financial aid officials are struggling with the confusion and facing a lack of communication from the U.S. Department of Education.
“We’re in a situation where we can’t really help students and their families,” said Charles Conn, aid manager at Cal Poly Pomona, Thornton’s college. “They’re getting some input from the Department of Education, we’re not.”
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High tuition fees make students reconsider their university choices
The price of a college education is too high for many new students. According to one study, approximately 42% of prospective students were unsure whether their school of choice was affordable. niche research.
Some students do not apply to their desired schools because of the high list prices. She said 83% of students who participated in Niche’s study did not apply to or even consider a particular school due to high cost.
“Students and their families have become smarter shoppers in recent years, including how they consider the cost and value of higher education,” said Will Patch, Senior Leader of Enrollment Insights at Niche. says. “Our research reveals that students are leaving college at high sticker prices before they know what their final price will be after financial aid.”
According to one study, the average cost of attending college in the United States is $36,436 per student per year. Education Data Initiative Report. Costs have increased steadily over the years, with an annual growth rate of 2% over the past 10 years.
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