College Financial Aid Will Be Tougher to Receive This Year
By Donna Gundle-Krieg January 27, 2009
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Loans and grants for colleges will be scarcer than in the past due to the recession, according to the Associated Press.
"The financing system for college is in real crisis," said Barmak Nassirian, associate executive director of the American Association of College Registrars and Admissions Officers.
It's important to apply early. The Student Financial Aid Service (FAFSA) forms are due by March 1st, and the Department of Education says that applications for this year’s federal aid are 10 percent above last year's record pace.
In addition, college endowment funds have taken a huge hit, and grants and scholarships may be cut at many schools. There will also be fewer private loans available.
Compounding the problem, state aid to colleges has been reduced, so tuition continues to rise each year.
The average list price of tuition and fees for the current academic year is $6,585 for in-state students at four-year public universities and $25,143 at private colleges, with some costing far more. Grants and tax breaks lower the average net price to about $2,900 for tuition at public universities and $14,900 at private schools. These numbers do not include room and board, according to the College Board.
The situation may improve. The federal government has authorized some $95 billion in grants, loans and work-study assistance. In addition, stimulus proposals that would give students more financial aid are progressing through Congress.
There are many excellent options to high priced schools. Community college enrollment is booming across the country, and schools are making it easier to transfer classes from community colleges to four year schools. In addition, some communities are working to provide college opportunities for all students in poor districts. See “New Michigan Law Allows Fundraising for Free College In Poor Areas.”
For more information on how to obtain scholarship, see “How to Obtain Scholarships”
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