The economy has taken a toll on nearly everything we do, from eating out to paying the mortgage. Higher education can be included in that list of things. Today, it’s more expensive than ever to improve your life with a college degree.
The trend of ever-increasing tuition bills doesn’t seem to be abating anytime soon. Getting together enough money to pay for books, fees, and tuition is an open-ended question that doesn’t have any easy answers. Even the old standby of grants, scholarships, and student loans is getting more and more tenuous. If you need more information about federal grants, look on the internet.
It’s not only the general public that is getting hit in the pocketbook. Colleges and universities are struggling with cuts from the educational funds, alumni programs, and government assistance packages that they formerly relied on. Even large endowments at some universities are taking a tremendous hit because of the roller-coaster action of the stock market in the last few years.
It used to be that many colleges offered a “no-loan” program to students who qualified for financial aid. Today, that’s no longer true. Many schools are now backtracking on that promise to students, forcing them to take out expensive loans to pay for their education. This means that middle class families who once relied on federal aid to help pay for college are now left with the bill themselves, because schools can now only help the students who need financial aid the most.
This doesn’t mean there is no hope for students, though. Schools and government agencies are working hard to figure out ways to help students who need help. The federal government recently decided to increase the amount of money that is available to students who receive the Pell Grant. There are also new tax credits available for working parents. Schools are working to change the way they administer some scholarships. For instance, some scholarships that were previously academically based have been switched to income-based programs. Other colleges are working to try to increase the availability of scholarships to help make up the shortfall for students who need help.
Another possibility for students and their families is to take out a loan, even though that means you may be paying on the bill for years after graduation. There are different types of loans available. The most traditional type of loan is a student loan, which the student takes out themselves. Examples of these are loans like the Stafford or Perkins loans. Parents, too, can take out loans on behalf of their children. These loans are called Parent Loans for Undergraduate Students (PLUS loans). They have not proved to be as popular as other programs, though, because the interest rate in usually higher. There is an abundance of information about government grants on the web.
There are things a student can do to make sure they get the most help that is available to them. By making sure that every application for student aid is filled out and submitted before the deadline period is over, a student increases their chances. Colleges are becoming stricter when looking at applications. Late applications will likely not be considered. Wait listed and international students may also be out of consideration for aid packages, as schools continue to tighten their belts.
Looking for schools that have lower tuition may mean less expense, even if it doesn’t offer a scholarship package. You may even be enrolled in an online class that uses the same professor and curriculum as on campus, but costs less because it’s online.
June 23, 2010 by Michelle Conner