Applications drop for student aid as pandemic raises questions about college enrollment

State officials say the covid-19 pandemic may be driving college decisions for students.

Applications for Pennsylvania’s need-based grants for college costs are down by 31,000 — or about 8% — since mid-March compared to this time last year, officials with the Pennsylvania Higher Education Assistance Agency (PHEAA) said Thursday.

The decline reflects trends elsewhere across the country and is apparent among new applications from first-time students as well as returning students and in grant applications for the upcoming summer session, said Elizabeth McCloud, PHEAA vice president for grants and special services.

McCloud said PHEAA will extend the deadline for aid applications from the original cut-off point of May 1 until May 15 and urged families to file applications this week, even if students are unsure what they’ll be doing this fall.

Last year, 132,000 Pennsylvania college students qualified for state grants. The grant awards, which are based on demonstrated needs, capped out a maximum of about $4,130 last year.

McCloud said students who are considering college in the coming year must complete the Free Application for Federal Student Aid in order to be eligible for state and federal grant and loan programs.

“If a student is anticipating they might be going to college this fall, we’re urging that they complete the FAFSA (Free Application for Federal Student Aid) now,” she said. “We have been hearing that a number of students are thinking of other options. But it’s important for them to realize that they could still be eligible for aid if they delay until spring, enroll part-time or in an associate program instead of a bachelor’s program.”

Although a decline in the pool of new high school graduates in Pennsylvania has contributed to some declines in college enrollment over the last decade, McCloud said the current decline in aid applications suggests uncertainties, including family financial hardships and speculation that some colleges may continue to offer online only classes. That could drive the decline higher.

The National College Attainment Network reported it is tracking fewer applications from families at the lower end of the income spectrum as the pandemic continues, McCloud said.

At the other end of the spectrum, high school students in Western Pennsylvania and across the country have said they are reconsidering plans to attend college far from home and instead are re-evaluating local options.

An April 9 national survey of 1,172 students by Simpson Scarborough suggested that total college enrollment may decline as much as 20% this fall. It found that 10% of high school seniors who had planned to attend a four-year college are make alternative plans to attend a community college, take online classes or take a gap year.

It is unclear just how much money PHEAA will have to offer as grants to those who apply. The agency underwrites a portion of its grant pool with profits from its student loan servicing division, while the remainder is funded out of the state budget.

“We will strive to hold to the 2019-20 levels, but we’re not sure what it will be yet,” said PHEAA senior vice president Nathan Hench.

Agency officials stressed that their staff is available to assist students and families at no cost in filling out the FAFSA and applications for grants. For more information, go to www.PHEAA.org and look under the headings for Partner Access and Tools.