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Inflation is Affecting College Students

Liam Saranich | News Editor





As inflation drives up prices, college students are feeling the impact of rising living costs and tuition more than ever. Across the country, students are reporting increased financial stress, which is affecting their ability to balance academics, work, and personal lives. Concerns over rent, food, transportation, and tuition have increased, beginning debates about financial aid’s effectiveness and the overall accessibility of higher education.

In recent years, inflation has affected almost every aspect of daily life. For students, this has meant increased costs for housing, groceries, utilities, and transportation. According to the College Board, average tuition fees at public four-year institutions rose by 10% between 2013 and 2023. In addition, the costs of off-campus housing have increased in many college towns, sometimes more than the financial aid that students rely on.


In response, changes to the Free Application for Federal Student Aid (FAFSA) aim to simplify the process and increase aid transparency. The FAFSA Simplification Act, introduced in 2020, was designed to streamline the application process by reducing the number of questions and allowing for a direct transfer of tax information. However, these adjustments, which took place in the 2024-2025 school year, are producing mixed reactions among students.


One significant change is the introduction of the “Student Aid Index” (SAI), which replaces the former Expected Family Contribution (EFC) as a measure of a student’s aid eligibility. While the SAI aims to make aid distribution more equitable, middle-income students are concerned it could reduce their eligibility. This has led to anxiety among families who do not qualify for significant aid but still struggle to cover rising college costs.

These adjustments may have a big impact on middle-income families. These families typically earn too much to qualify for need-based aid but still struggle to cover the full cost of attendance. For example, students from families earning between $75,000 and $100,000 could see their federal aid eligibility reduced under the new formula, leading to an increased reliance on private loans.


Critics argue that the adjustments fail to account for regional cost-of-living differences. Students attending college in high-cost areas, such as major urban centers, often experience financial strain despite their family’s higher income bracket. To cope with these financial challenges, students are turning to work, loans, and even food assistance programs. Many institutions, such as Eastern Connecticut State University, offer emergency grants, food pantries, and subsidized housing options. While these resources help with alleviate some burdens, they are limited in scope and cannot fully fill in the gaps that many students face.



Student-led advocacy groups are also working to raise awareness and push for policy changes. Organizations such as the Student Borrower Protection Center and the National Association of Student Financial Aid Administrators have proposed reforms to make financial aid more responsive to students’ real needs. These groups ask for a more flexible aid system that considers housing costs, inflation, and a family’s complete financial circumstances.


As students navigate these financial hurdles, many hope that both federal and state policymakers will take further action to address rising education costs. For now, students are juggling academics with multiple jobs, loans, and careful budgeting, even as the reality of high costs remains a daunting challenge. For many students, the rising cost of living and financial aid uncertainty make one thing clear that addressing college affordability is most important.


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