Although states give out $7,947,674,000 a year for student financial aid, the fact remains that school is expensive.
The average cost of tuition and fees:
• 4-year public institution: $5,038
• 4-year private institution: $18,838
The legislative branch of the government will have a Democratic Party majority starting in January of 2007 for the 110th Congress of the United States. In mid-November, the Wall Street Journal reported that one of the biggest topics to be discussed by the new majority is the affordability of higher education.
Currently, students may receive a maximum of $4,050 from the federal Pell Grant program. This limit was set four years ago, when the average cost of tuition and fees were:
• 4-year public institution: $4,115
• 4-year private institution: $18,596
Democrats are proposing that the Pell Grant program limit be raised to $5,100 a year and trying to encourage students to take out loans directly from the U.S. government, as well as proposing tax deductions to families and individuals who are paying student loans.
The Wall Street Journal reported that one of the major drawbacks of having caps on federal aid is that students then have to rely on private loans to fund their education. Private loans tend to be more costly than government loans. However, if more federal financial aid becomes available, colleges and universities may decide to increase tuition costs.
CNNMoney.com reported that nearly 66% of full-time students have received federal grants to afford their education, but considering the rate of inflation, the same amount of money covers far less than it did just 4 years ago. An average of 44% of financial aid packages are composed of grant money, while loans cover 51 to 56% of the rest. According to CNNMoney.com, grant aid has steadily decreased over the past decade, leaving many students to seek out loans to cover costs.
The average amount of college debt a student graduates with? $20,000.
As always, eLearners' Articles and Resources section has tidbits and advice on all topics, including scholarships and student loans. Also be sure to check out fellow-blogger irishmum78's blog Affordable Online Education.
“What’s on the Agenda For Student Aid” from the Wall Street Journal online, posted on 15 November 2006.
"Average college cost breaks $30,000" from CNNMoney.com, posted 24 October 2006.