The Financial Aid Myth That Could Cost You $10,000
As a student, when you think about paying for college, the first number that usually comes to mind is the price tag. Tuition. Housing. Books. The true cost of college might also have to do with the opportunities you find – and potentially miss.
A new study from Sallie Mae found that financial aid confusion is causing many families to make major decisions based on misconceptions – and some may be leaving thousands of dollars unknowingly untouched.
WHY FAMILIES MISS OUT ON AID
College financing company Sallie Mae just released its How America Plans for College 2026 survey, conducted by Ipsos. The firm asked more than 1,000 U.S. students and parents involved in paying for college an array of questions, all to better understand what financial aid myths families might believe, and how those misconceptions might affect college decisions.
What they found was that families are making decisions about affordability before they fully understand their options. More than two out of every five families (43%) believe or suspect they missed out on federal financial aid they may have been eligible to receive. Meanwhile, 29% of families skipped applying for federal aid, including Pell Grants and federal student loans, because they assumed they would not qualify.
One of the biggest misconceptions was actually that families simply earn too much to receive financial aid. A good 41% believe a household income above $100,000 automatically disqualifies students from receiving any assistance. That’s again two out of every five families. That assumption can be costly, because nearly one-in-four families said they later learned they may have qualified for aid they never applied for. In hindsight, one-third of those families estimated they missed out on the option to claim $10,000 or more.
The confusion surrounding financial aid is doing more than creating frustration. For some students, uncertainty around paying for college became a reason to reconsider attending altogether.
The good news? If you don’t know the answer to how much aid or what kind they offer, you can just ask the schools for assistance. In an article on their site, Citizen’s Bank says, “Your college’s financial aid office is there to help you with all things related to paying for college.”
“Ask the financial aid office what their offers typically include, such as unique options specific to that school.”
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