For first-generation college students, the road to higher education is completely bumpy with a ton of barriers, especially when it comes to navigating the needs of financial aid. Unlike families that have college attendance experience, first-generation students often face a variety of challenges in selecting the appropriate college, securing sufficient financial aid, and understanding the long-term financial hardships of student loans. These obstacles create a lot of hurdles, not only to entry but also to persistence and achieving student success.

First-generation college students often struggle with selecting a college, usually focusing primarily on gaining acceptance to the best institutions based on prestige rather than affordability. Many are encouraged by a family member and often by parents who did not attend college themselves. Unfortunately, this advice leads to higher costs and advises first-generation college students to worry about the costs later. This mindset reflects a common misunderstanding about the affordability of higher education, where the most notable school might not offer the best financial fit.

When students focus solely on getting into the admired institutions, the financial implications are often put on the back burner. The reality is that the cost of education is an essential factor that should be considered during the selection process. First-generation students may not fully understand the burden of student loans and the long-term debt they will have after college. All too often they trust that once accepted, the institution will help them navigate these difficult financial aid processes. While some colleges do offer a variety of support through the financial aid process, it still often leaves students with misunderstanding of future financial strain.

FAFSA challenges

The process of applying for financial aid is one of the most significant hurdles for first-generation college students. The Free Application for Federal Student Aid (FAFSA) is an essential form that determines eligibility for federal grants, loans, and other financial assistance. However, filling out the FAFSA requires a level of financial literacy and access to family information that many first-generation students do not have. For example, the form asks for income information from both parents. However, what happens when a student doesn’t know one of the parent’s income? Also, what happens when a student comes from a single-parent household or a family with undocumented parents who lack Social Security numbers?

These scenarios are common for many first-generation students, and yet the college process for financial aid often doesn’t account for them in a way that makes it easier to navigate. For students with undocumented parents, the requirement for a Social Security number can create significant barriers. Although there are other avenues for success, such as submitting the FAFSA without parent information, the process is far from intuitive, and many students struggle to find guidance.

The FAFSA formula assumes that parental income is available to support the student’s education, but this is not always the case. Many first-generation students come from low-income households where family earnings are spread thin across multiple responsibilities, and parents may not be able to contribute to their child’s college education. Many times, even if a student qualifies for financial aid, the amount may not be enough to cover tuition, fees, and living expenses.

Once students receive financial aid, they are often left to figure out how to stretch these funds across both their education and living expenses. Rather than being used to maximize the course load or accelerate time to graduation, the funds often go toward everyday life survival. These expenses include rent, food and transportation. This creates a situation where students are constantly scrambling to meet their basic needs, detracting from their academic focus and overall college experience. The result is that first-generation students often take longer to graduate or drop out before completing their degrees, despite receiving financial aid.

The importance of financial literacy

Many first-generation students are not fully aware of the long-term consequences of student loans, including the fact that these loans are nearly impossible to discharge through bankruptcy. They may not realize that the repayment process begins soon after graduation, leaving them with significant debt before they’ve even established a stable income. This lack of financial planning and education brings light to the many challenges they face post-graduation. All these circumstances make it difficult for them to achieve financial stability.

High schools play a critical role in preparing students for the transition to college. However, many focus more on standardized testing and graduation rates than on preparing students for the financial realities of higher education. High schools need to place greater emphasis on financial literacy, ensuring that students understand how the financial aid process works, what types of aid are available, and how student loans will impact their future. First-generation students need targeted support that addresses their unique challenges. This is especially important for students whose parents have not navigated the college system themselves and may not be equipped to provide guidance.

The financial aid system presents significant barriers for first-generation college students, many of whom lack the financial literacy and family support necessary to navigate it effectively. From selecting the right college to understanding the long-term implications of student loans, there are a lot of challenges that make it difficult to succeed in higher education. High schools, colleges and policymakers have a responsibility to provide more comprehensive support to first-generation students, ensuring that they are not only able to access financial aid but also equipped to have long-term success in and out of college.

We have a responsibility to create a more equitable system that allows all students, regardless of their background, to thrive on a college campus and succeed after graduation.