California State University Students Navigate Rising Tuition and Smaller Financial Aid Packages in 2024
California State University students may be expected to afford higher tuition with less financial aid in 2024 because of changes to the Free Application for Federal Student Aid and tuition hikes.
The FAFSA Simplification Act was passed in 2021 to make the form more accessible for low-income students and their families. In addition to the new adjustments, the 2024–25 FAFSA will no longer include the “sibling discount,” a loophole that discounts tuition for families with multiple students in college.
Less aid for families with multiple children in college
Families are unsure what the coming school year will look like with newly approved tuition increases and less federal financial aid.
The loophole was the effect of the Estimated Family Contribution being divided by the number of kids in college. For example, if a family has two kids enrolled in college, the EFC is cut in half, resulting in a higher aid eligibility for each student. The changes to the FAFSA convert the EFC into the Student Aid Index to better reflect the number’s meaning.
While the sibling discount does not affect low-income students whose SAI is zero, there may be mid- and high-income students who see a difference in their financial aid. Families with multiple children in college depend on the discount to make college affordable for their budget, especially if they have twins or triplets.
A computer science major anticipated transferring to San Diego State University in the fall of 2024 to attend with his sister. The siblings said they receive very little financial aid and worry about how their parents will afford college for their three remaining siblings. The sibling discount would have made paying for tuition more feasible for their large family, but now they will have to search for other alternatives.
“For my family’s situation, financially speaking, it is kind of hard to cover five people going through college,” he said. “Especially if some of us are in college for more than the four years. We have to wonder if it will limit our degree choice.”
Why was the FAFSA changed?
The FAFSA was not changed to remove aid from mid-income families but to minimize the millions of abandoned applications. The changes were championed by retired Sen. Lamar Alexander, who aimed to make the form easier for homeless students or those in the foster care system to fill out. The detailed information needed for the old FAFSA is difficult for those students to get from their parents.
“The complexity of the FAFSA itself serves as a barrier to college access,” Mark Kantrowitz, a financial aid expert, said. “By simplifying the form, they make it possible for more students to apply for financial aid and therefore to afford college.”
Legislators found that the FAFSA’s structure made it confusing for parents and students to complete successfully. Many low-income students miss out on financial aid because of the length and complexity. The 108-question form has now been streamlined to about 40 questions to make it more accessible and qualify more students for aid.
CSU tuition rates are set to increase for the next five years
In September, the CSU system voted to increase tuition by 34% over the next five years. The board means to pay off a $1.5 billion deficit covering student resources, faculty pay and financial aid. However, many students have expressed their disappointment in the decision.
“People who may have committed with only being able to afford a certain rate might not be able to stay consistent with that if it increases,” Kyla Booker, a first-year theatre arts major, said.
The rise in tuition makes it uncertain how the CSU system will continue to maintain its commitment to making college costs as “low as possible.” CSU Strategic Communications and Public Affairs Manager Hazel Kelly said it is hard to predict if the new FAFSA will significantly decrease financial aid packages.
“The law allows administrators the authority to make some adjustments based on special circumstances on a case-by-case basis (which must be specifically documented), but it does not allow for across-the-board adjustments based simply on the number of family members in college,” Kelly said in an email.
The CSU system has limited power when making financial aid adjustments, and the financial aid packages will not reflect the removal of the discount. Students and families must undergo an appeal process if they anticipate the sibling discount. Many students have expressed disappointment and frustration with the education system’s pay scale and rising tuition costs.
“There’s just such an imbalance, especially in the education system, both with the amount that we’re paying and the amount that the higher-ups are making. It’s infuriating,” SDSU journalism third-year Grace Roche said. “It is ridiculous, and I think we need to address that gap because it’s unfair.”
How can families afford college?
To keep costs down, students should apply for more merit scholarships and consider using the CSS Profile if they attend a private college or university. The College Board’s CSS Profile is an application for non-federal aid that deeply examines a family’s financial situation. The CSS Profile is not available for CSU students, but many different merit scholarship options are available through the CSU system.
“Each CSU campus’ financial aid office provides information and resources for students and families and offers various types of support,” Kelly said. “Students should reach out to their campus’s office to make an appointment, learn about any workshops that may be offered and ask any questions they may have.”
Families can also save more money for their students before the next school year to counteract any lost financial aid. However, they shouldn’t give up on filling out the FAFSA entirely. Instead of the usual Oct. 1 start date, the FAFSA will open on Dec 1. Kantrowitz recommends that students fill out the FAFSA as soon as possible because some need-based grants and scholarships are first-come, first-served.
The feast-famine cycle of college tuition will maintain a steady increase in tuition rates. Kantrowitz explained that tuition prices rise at the end of an economic downturn and stay stagnant until the next downturn, where they exponentially increase once again. Students and families will have to rely on financial aid from federal, state and local sources and opt for less expensive options such as community college.
This project was produced by Kaitlyn Donivan as a published learning experience in JMS 430 Digital Journalism, part of the Journalism and Media Studies Program at San Diego State University.
