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The Free Application for Federal Student Aid (FAFSA), an online form that helps determine the amount of federal student aid given to current and prospective college students, has historically launched every year on October 1.

However, the FAFSA for the 2024-2025 school year wasn’t available until December 31, 2023. Ironically, the delay was due to an initiative to simplify the lengthy form, eliminating two-thirds of the questions.

The holdup is affecting other aspects of college admissions and financial aid. Take a look at a few ways to ensure it doesn’t impact your state and college aid, and tips for how to approach the new FAFSA application.

How Might the FAFSA Delay Affect Students?

While the federal deadline to complete the FAFSA is June 30, students are encouraged to submit their application much earlier. One reason is that state and college-based financial aid, which use the FAFSA application and disburse aid on a first-come first-served basis, have earlier deadlines.

For example, Texas and Connecticut students must file the FAFSA by March 15, 2024, for priority consideration. Filing by your state’s deadline ensures that students receive maximum consideration for limited financial aid resources. You can check the deadline for your state on the FAFSA website .

The FAFSA delay may also affect a student’s college search. After all, if you don’t hear about financial aid from a school early in the year, you may have difficulty deciding the right fit. Fortunately, many colleges recognize this issue and have pushed their acceptance deadline — typically May 1 — to May 15 or even June 1.

Recommended: What Percentage of Parents Pay for College?

3 Steps to Hit All Your Financial Aid Deadlines

Meeting your financial aid deadlines ensures that you take advantage of all opportunities.

1. Submit the FAFSA as Soon as Possible

How do you prepare for filing the FAFSA? You can look at our FAFSA 101: How to Complete the FAFSA to learn how to complete the current form. Also consider looking into college financial aid terms for parents.

Submit the FAFSA as soon as you can. Current students need to submit the FAFSA every year, and so will current high school students who plan to apply for federal, state, and institutional aid using the FAFSA.

The new version will include the following changes:

•   Fewer questions. The new FAFSA features fewer questions, decreasing application completion times.

•   Automated tax data retrieval. The new IRS Direct Data Exchange (DDX) will pull in parents’ and students’ tax information — no manual completion needed.

•   More colleges. Students can list up to 20 colleges on the FAFSA, a change from the previous maximum of 10 colleges.

•   No benefit from overlap. Previously, families with more than one child in college received additional benefits. The new FAFSA will decrease aid eligibility for middle- and high-income families with multiple children in college.

•   Types of income. The FAFSA will no longer ask about some types of untaxed income, such as cash support (from grandparents, for example) or money from a grandparent’s 529 plan.

•   Increase in Pell Grant eligibility. Pell Grants typically go to undergraduate students with exceptional financial need. More than 174,000 students will now be eligible for the grant. Students could be eligible for an additional $1.6 billion.

•   Divorced or separated parents. Currently, students who have divorced or separated parents list the parent they live with the majority of the time on the FAFSA. However, the FAFSA changes indicate that a student should list the parent that provides the most financial support.

2. Look out for Financial Aid Communications

Keep checking in for news about financial aid deadlines. Remember that you should still file the FAFSA even if you miss your state’s deadline. You may still qualify for federal aid.

School counselors and college access professionals will have information about college deadlines. If you have any questions about the FAFSA, ask your preferred college’s financial aid administrators for direction, whether you’re a prospective or current student.

Recommended: 31 Facts About FAFSA for Parents

3. Learn About Financial Aid Options

Parents should have the college money talk with their student to explain what they can and can’t afford.

Seek out scholarships and grants that are not dependent on the FAFSA.

And use a student loan calculator to decide how much you want to borrow.

The Takeaway

If you haven’t yet submitted your FAFSA form, do so as soon as possible. Some state and college financial aid deadlines are earlier than the federal deadline. Research your state deadline and stay in contact with your preferred colleges and universities.

Once you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

College tuition inflation since 1980 has been rising. In fact, widely cited statistics have consistently shown college tuition rising faster than inflation.

It’s no secret: College tuition is on the rise, and it has been for years. According to the most recent data from the National Center for Education Statistics, during the 2021-2022 academic year, tuition and fees costs at undergraduate institutions were:

•   $9,700 at public institutions

•   $17,800 at private for-profit institutions

•   $38,800 at private nonprofit institutions

Between 2008-2009 and 2018-2019, costs rose 28% at public institutions and 19% at private nonprofit institutions. However, the costs for private for-profit institutions have reduced 6% in 2018-2019 compared to 2008-2009.

In comparison, public institutions cost $9,100 in 2010-2011, private for-profit was $19,400, and nonprofit institutions cost $34,000 in the same year, according to NCES , a subagency of the U.S. Department of Education.

Why has college tuition outpaced inflation, anyway? We’ll walk you through a complete guide to understanding college tuition vs inflation and the reasons college tuition has outpaced inflation over time.

What Is the College Tuition Inflation Rate?

First of all, inflation refers to a decrease in how much individuals can purchase with their money, based on increases in the prices of goods and services. According to Macrotrends, the general U.S. inflation rate for 2022 was 8%. Inflation peaked at 13.55% in 1980, at its highest levels since 1960.

Each college has its own tuition rate increase per year, so to get an accurate measure of an individual college’s tuition inflation rate, you can use the Bureau of Labor Statistics (BLS) inflation rate calculator to calculate the current inflation of college tuition rate for each institution based on previous tuition costs.

Ultimately, the average cost of tuition has increased nearly 180% over the past 20 years, even after accounting for inflation.

How Does Inflation Affect College Tuition?

When the cost of goods goes up, colleges and universities offset the increased cost of operating by increasing tuition costs.

The Higher Education Price Index (HEPI), which measures the price changes of items that allow universities to stay afloat, doesn’t align exactly with the Consumer Price Index, which refers to what consumers pay for goods.

It can be difficult to make an apples-to-apples comparison between rising tuition at colleges and universities and changes in inflation because the HEPI is affected by more than just the cost of goods. For example, administrators, professors, financial aid professionals, admission counselors, and others also require salary increases on top of the miscellaneous expenses associated with keeping college and university facilities running.

Why Is the Cost of College Rising?

There are other reasons that cause tuition, room, board, and fees to increase from year to year. In the next section, let’s explore the reasons that it becomes more expensive to run a school. We’ll discuss state funding availability, demand, and financial aid.

Less State Funding

Declining state funding has influenced tuition costs at state universities as health care and pensions increase for state employees.

As a direct result of the last two economic recessions, education appropriations remain 6% and 14.6% below 2008 and 2001 levels, respectively, according to the 2022 State Higher Education Finance (SHEF) report produced by the State Higher Education Executive Officers Association (SHEEO).

However, state funding for financial aid has increased steadily for two decades. State and local funding reached $100 billion for higher education for the first time in fiscal 2019.

More Demand

As demand rises, costs increase as well. More than five million more students attended U.S. colleges in 2017 than in 2000, though between fall 2010 and fall 2021, total undergraduate enrollment decreased by 15% (from 18.1 million to 15.4 million students), according to the most recent data from NCES.

Despite recent statistics, it’s still evident that the demand for higher education has continued to increase over the past few decades. The dependence on a highly skilled workforce and growing wage differences between college and high school graduates means more students choose to attend college and drive up the demand for higher education. Higher education prices must increase in response to a growing student population.

More Federal Aid

The 1987 Bennett hypothesis (named after President Ronald Reagan’s secretary of education, William Bennett), stated that colleges will raise tuition when financial aid increases, especially subsidized federal loans that offer low interest rates. In other words, the theory was that colleges can raise prices because federal financial aid will cover the excess costs and students can offset the cost increase with federal student loans.

Is the Bennett hypothesis still a worry today?

The New York Federal Reserve compiled a 2015 study that supports that finding. It found that student credit expansion of the past fifteen years has risen with college and university tuition.

Why Has College Tuition Outpaced Inflation?

It’s not easy to pinpoint one single reason for the rise in college tuition — you might be quick to blame governments that face deep deficits and cannot subsidize the full costs of higher education. However, the truth is that the costs of outpaced inflation are multifaceted.

Colleges often attempt to raise tuition to appear competitive with similar institutions, increasing costs across the board. University presidents also face enrollment demands and increases in HEPI also inflate budgets. That’s why high school students, together with their families, may want to carefully plan for the costs of attending a particular institution.

Some options for students who are looking into financing their education might include finding work during the summer, applying for financial aid, or looking into payment tuition plans.

College Tuition Inflation Since 1985

According to data from the NCES, since 1985 the average college tuition at all institutions has increased nearly $20,000 from $4,885 to $24,623 during the 2018-2019 school year. That number is even higher when considering the cost of attending a four-year institution, which in 1985 was $5,504 and during the 2018-2019 school year increased to $28,123

College Tuition vs Inflation

The increase in college tuition and fees have outpaced the rise of inflation for decades. According to Forbes, the cost of attending a four-year college or university during the 2021-2022 school year was increasing at double the rate of inflation. The cost of attending a two-year community college is increasing a third faster than the rate of inflation.

However, in light of the COVID-19 pandemic, this has changed slightly. From the 2020-2021 school year and the 2021-2022 school year, tuition and fees increased by about 0.6% on average, while overall prices in the U.S. increased by 3.2%, according to Bloomberg based on data from the BLS.

The Takeaway

College tuition has increased dramatically — increasing by nearly 180% in the past 20 years. The reasons for such an rise in tuition can be attributed to a variety of factors including less state funding, an increase in demand, and even an increase in the amount of federal aid awarded.

Despite the seeming downsides to inflation and college costs, SoFi can offer some major perks to help you pay for school with our private student loans. Note because private student loans don’t offer the same benefits as federal student loans (like income-driven repayment options), private student loans are generally considered only after students have carefully reviewed all other sources of funding and financial aid.

But, if private student loans seem like an option, you can check your rates and apply in minutes and easily add a cosigner if you so choose.^* Borrowers can choose from four flexible repayment options and there are no fees.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/TARIK KIZILKAYA

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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For college students, few things are more welcome than extra money. And surprisingly, those additional funds might be from your school in the form of a college refund check.

Colleges sometimes issue refunds to students, and the amount can be thousands of dollars, depending on your situation.

Are you eligible for a refund from your college, and if so, how long does it take to get your money? Read on to learn more about college refund checks.

What Is a Refund Check From a College?

A refund check is typically issued by your college or university when your financial aid covers more than what you owe for tuition, room, board, and fees. Here’s how that can happen: When you receive financial aid, the aid amount is based on your college’s cost of attendance (COA). The COA is an estimated amount, however, and sometimes the actual price turns out to be less than the amount you may have been awarded in scholarships and borrowed through student loans. In that case, your school sends you a refund check.

For example, let’s say you received $15,000 in aid for the semester, but your school’s tuition and fees were $12,000. In this case, you’d get a $3,000 refund.

When you are owed a refund check, your college or university may send you a paper check in the mail, directly deposit the money into your bank account, or credit your school account (the credit can be applied for the next semester’s tuition or other school-related expenses).

Although it’s exciting to get money back, student loan refunds are typically not free money. Unless the refund comes from leftover funding from a grant or scholarship you received, these funds are likely to be part of the student loan you borrowed, and they will need to be repaid with interest. So it’s important to use your refund wisely.

Refund Check Process

The process for getting a refund check varies from school to school, but this is typically how it works:

1.    Financial aid is disbursed at the beginning of the semester. This is when federal student loan funds, grants, scholarships, and private student loans are sent to your school and applied to your tuition, room, board, and fees. To make sure your disbursement happens promptly, register for all the classes required to get your financial aid, and sign the Master Promissory Note (MPN) for your federal Direct subsidized and unsubsidized student loans.

2.    Your school should notify you when the disbursement happens. If there is money left over after that, your school will issue a refund.

3.    You may receive a paper refund check or the money may be directly deposited into your bank account (you can sign up for direct deposit through the online portal for your school account). The refund might also be credited to your college account, in which case it won’t be sent to you. Instead, the credit will be applied to future school costs like tuition.

College Refund Check Dates

Schools typically disburse financial aid at the beginning of a semester. After they disburse your funds, if they determine that you are owed a refund, they will start the refund process. The time it takes to receive a college refund check varies from school to school. Some schools issue refunds within several days; others take 14 days. Contact with your college’s financial aid office to find out the timeline.

For freshmen, the college refund check process may take longer. First-year undergraduates who are taking out student loans for the first time may experience a 30-day delay after the first day of the school’s waiting period before their college disburses their loan funds. Not every school uses this 30-day rule, though, so check with your school to find out.

College Refund Check Status

To check on the status of a college refund, log into your school account through the online portal to see if the refund is noted on your account. If it is, but there’s no information listed about how long the refund might take, contact the school’s financial aid office to inquire about the status of your refund check.

Refund Check Problems

If you believe you are owed a refund but the money hasn’t landed in your account, there may have been a snafu. Some possible reasons a college refund check could be held up include:

•   Late paperwork. If you filed your Free Application for Federal Student Aid (FAFSA) late or you waited to apply for student loans, you might experience a delayed refund check. The financial aid office at your college or university may be able to give you an update on the status of your refund and when you might expect it.

•   Incorrect paperwork. If you forgot to complete a section of your paperwork or missed a signature on your financial aid forms, this could delay the process. Fix the mistakes and submit the correction, then double check with the school’s financial aid office to make sure everything is in order.

•   Regular processing delays. It takes time for colleges and universities to implement financial aid disbursements and then to pay out any necessary refunds, especially at the busy start of the school semester. These may just be normal delays, but of course it doesn’t hurt to contact the school to find out.

When Will I Get My College Refund Check?

The dates for refund checks vary by the school and their financial aid disbursement process. The type of aid you’re being refunded for may also factor into the equation.

For example, in 2025, Jackson College in Jackson, Michigan, mailed or deposited Pell Grant check refunds on September 13. Loans, however, were disbursed by the school in two waves. For the first loan disbursement, refunds were sent on October 4, 2024. For the second disbursement, refunds go out on November 1.

As you can see, how a school handles this process affects when you’ll receive a refund. Every school’s dates and processes are different, so check with your college to find out the specifics.

Do I Get a Refund Check Every Semester?

You might get a refund check every semester you’re in college, but it depends. You must submit the FAFSA each year, which could affect the amount of aid you receive. That, in turn, can determine whether or not you receive a refund.

Recommended: Student Loan Forgiveness Guide

What Is the Average College Refund Check?

A college refund check might be hundreds or thousands of dollars. The refund amount depends on a variety of factors, including your school’s estimated COA versus the true cost. Other factors include the type of financial aid you receive and how much you get. Each student’s situation is unique.

And remember, a bigger refund is not necessarily better. If the refund is from loan funds, you’ll have to repay that money eventually, along with the rest of your student loans. A student loan payment calculator can help you figure out how much you might owe and help put things in perspective.

Things to Do With a College Refund Check

Getting a college refund check is exciting, and you may be tempted to spend the money on a vacation or some new clothes. However, since those funds are supposed to be for your education — and you may very well have to repay it — think carefully about how you spend it. Some ideas include:

•   Start paying your student loans. You can begin repaying your student loans anytime — you don’t have to wait until the six-month grace period after you graduate. Making payments on your loans now could give you a head start on getting out of student loan debt.

This is especially true if you have loans that accrue interest while you’re in college, like federal Direct unsubsidized loans. Depending on the federal student loan interest rates, the amount of interest you might accrue over time may be substantial if you don’t begin paying them off. You can even just pay down the interest amount.

•   Put the money toward your tuition bills. You can allocate a college refund to next semester’s tuition. You might also use it for other education-related expenses, such as books or supplies.

•   Pay off other debt. Another option is to use the money to help pay off high-interest debt, such as credit card debt. With interest rates of approximately 24%, this type of debt can add up quickly if you don’t begin tackling it.

•   Return the refund. You don’t have to accept a college refund check. If the money is from federal student loans, you can send it back to the Department of Education, which could help reduce your student loan debt. As long as you return it within 120 days, you won’t pay interest or fees on the sum. To return the refund, call your college’s financial aid office to see if they can help. If they are unable to, contact your loan servicer.

Recommended: Student Loan Debt by Major

The Takeaway

You may be eligible for a college refund check if your financial aid amount was more than the actual cost of your tuition, room and board, and other fees. The check may be mailed to you or deposited directly in your bank account, or the amount may be credited to your college account for future school costs. The length of time it takes to receive a college refund depends on your school, among other factors, and it generally takes between several days to two weeks.

One way to use a college refund is to start repaying your student loans, especially if interest is accruing on the loans while you’re in school. And keep this in mind: If the interest rates on your student loans are high, one option is to refinance student loans later on for a lower rate and better terms, if you qualify. Just be aware that refinancing federal loans makes them ineligible for federal benefits, such as income-driven repayment.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/Drazen Zigic

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.