Student Loan Crisis Forces Families to Think More Affordable

October 21st, 2008 · No Comments

Cost has always been a major factor for families when choosing a college. This year it has moved to the top of the list for many high school graduates who are trying to decide where to head in the upcoming years. Application figures won’t be available for a few months, but state public colleges across the country are reporting record turnouts at college fairs and open houses. Financial aid officers have been extremely busy with more and more students and parents asking about financial aid and loans. It seems that all the focus is on the economics of an education this year, and that trend is sure to continue.

Many private colleges are reacting to this situation by expanding financial aid packages in an attempt to avoid losing the families who are on the fence and might be priced out of attending. Some private colleges have begun to impose a hiring freeze and have stopped construction projects in anticipation of the need to increase financial aid to the students.

There is no doubt that cost is becoming one of the major factors in the minds of students and families. This may end up being a good thing for everyone as the cost of college has ballooned over the last 5 years. Perhaps colleges, both private and public, will start to bring costs down to a manageable level so that a degree is once again possible for everyone in this country.

A few things to consider when comparing public and private colleges and universities:

Average College Costs 2007-08	But Did You Know That…
Private four-year $23,712 (up 6.3 percent from last year) Public four-year $6,185 (up 6.6 percent from last year)	About 56 percent of students enrolled at four-year colleges or universities attend institutions that charge tuition and fees of less than $9,000 per year. 43 percent of full-time students enrolled in public four-year colleges and universities attend institutions that charge tuition and fees between $3,000 and $6,000. While private four-year institutions have a much wider range of tuition and fee charges, only about 6 percent of all students attend colleges with tuition and fees totaling $33,000 or higher per year.
Public two-year $2,361 (up 4.2 percent from last year)	22 percent of all full-time students attend public two-year colleges. For full-time dependent students at public two-year colleges, net tuition and fees are no more than 2% of the family income.
Students will pay, on average, from $371 to $406 more than last year for this year’s room and board, depending on the type of college. The average surcharge for full-time out-of-state students at public four-year institutions is $10,455.	More than $130 billion in financial aid is available to students and their families. About two-thirds of all full-time undergraduate students receive grant aid. In 2007-08, estimated aid in the form of grants and tax benefits averaged about $2,040 per student at public two-year colleges, about $3,600 at public four-year colleges, and about $9,300 per student at private four-year colleges.

Tags: College Admissions · College Loans · Financial Aid · Private Student Loans · Student Loans

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