The New Rules on Paying for College

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Paying for college is a challenge in the best of economic times. So when the worst of times come, as they did for millions of Americans during the pandemic, affording a degree gets dramatically harder.

While there have been calls to have a large scale student debt forgiveness program, so far little progress has been made on that. But the pandemic has been a catalyst for other significant changes by Congress, the Biden administration, and colleges themselves that could make higher education more affordable and student debt easier to manage.

It’s important to understand what’s new and how to take advantage of changes that could help make school more affordable. Whether you’re going to college in the next year or two, are heading to campus in the fall, or left school with a boatload of debt, this guide will help you navigate the new landscape.

Private Colleges Are Offering Record Discounts

Many private schools whose enrollment was hurt by the pandemic are aggressively discounting tuition and fees to attract new students and retain current ones. On average, undergraduates got a record 48 percent discount on tuition and fees in the form of scholarships, grants, and fellowships in the 2020-21 school year from private schools, according to the National Association of College and University Business Officers’ (NACUBO) annual tuition discounting study. That’s up from 46 percent the prior academic year and 39 percent 10 years ago.

What to do: Broaden your horizons. The discounting trend won’t end when the pandemic does, according to NACUBO. Many private schools were already grappling with flat or declining enrollment and using discounts to compete for students.