Core Insights - College costs are rising, with the average undergraduate expense for the 2024–25 school year estimated at $30,837, leading to financial strain on families [2][4] - Parents often underestimate the total cost of college, which includes not just tuition but also housing, food, books, and transportation [2][4] - Balancing college funding with retirement savings is crucial, as families may feel pressured to reduce retirement contributions to cover educational expenses [4][5] Financial Strategies - It is advised to automate college savings early through a 529 college savings plan, which offers tax advantages and can be opened before a child is born [6] - Families should complete the Free Application for Federal Student Aid (FAFSA) annually to access federal grants, work-study programs, and lower-cost loans, which can alleviate financial pressure [7][8] - Parents can consider appealing financial aid packages if their circumstances change, and should explore low-interest federal loans and Parent PLUS loans with manageable payment plans [8]

Core Insights - A new scam targeting student financial aid is emerging, involving "ghost students" who exploit the system using AI-generated identities [1][2] - Organized networks are leveraging AI to create synthetic identities for fraudulent college enrollments, leading to significant financial losses [2] Financial Impact - California colleges reported 1.2 million fraudulent applications in 2024, resulting in 223,000 suspected fake enrollments and a loss of $11.1 million in financial aid [3] - The College of Southern Nevada experienced a loss of $7.4 million due to fraudulent enrollments during the fall 2024 semester [4] Broader Consequences - The presence of ghost students diverts financial aid from legitimate students, impacting their ability to fund education [5] - Fraudulent enrollments can lead to waitlists for genuine students and create discrepancies in class attendance, affecting professors' teaching environments [5]

Core Points - The Free Application for Federal Student Aid (FAFSA) is now open early for the 2026–27 academic year, allowing students to access billions in scholarships, grants, and federal financial aid [1] - Completing the FAFSA as soon as possible is crucial for students and families to make higher education more affordable [1] - Early filing secures a place in line for federal, state, and school-based aid, some of which is limited [1]