posted
Do you really think that the availability of credit is a primary factor, Russell? I was thinking that this particular phenomenon is more demand-driven, now that it's considered impossible to get a job without a college degree.
Posts: 37449 | Registered: May 1999
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quote: I don't think that increases in financial aid are the only, or even the primary, reason for increases in tuition.
Got it covered
For no particular reason, I suspect the impact of credit/grant availability on tuition is perhaps five to ten percent of recent tuition increases (not of tuition, of tuition increases) at most schools, as an upper limit.
At prestigious schools, I expect it is higher, perhaps much higher. Top ten (to twenty) schools provide copious financial aid to many of their applicants, and soak those who can afford it. I've heard from administrators at two highly ranked schools that this idea has had an impact on tuition decisions.
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But that "copious financial aid" is primarily internal aid, and therefore depends very little on federal/state aid maximums.
Posts: 32919 | Registered: Mar 2003
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I'd just like to see improvements in the financial aid system, period. I get $5,000 a year in Pell Grants. That might sound okay, if I were going to a school that cost $15,000 a year, or less. That'd be a third to a half of my costs. However, I go to a school that costs nearly $30,000 a year to attend. Why? Because it's a pretty good school, at out-of-state rates. Now, on top of that, because my family technically lives below the poverty line, I can get about an extra $9,000 in subsidized Stafford loans. However, that still leaves me about $15,000 short. That $15k is made up for in more loans...that are on my parents, not me. That have to be repaid immediately, and are not deferred until the end of my college career.
Did I mention that my parents live below the poverty line? Which, y'know, makes paying off $15,000 in loans pretty hard.
So, basically, I have to choose between going to a good school and making life hard for my parents, or going to a crappy school in the state that I wanted to get away from. If my parents weren't willing to take the financial risk of those loans, I wouldn't be able to go to a good college at ALL. The system's broke, and no one seems to want to spend the money to fix it. Scholarships really don't pick up the slack, when most that I've seen either have insane competition, or pay about $500 per scholarship. Most of the school-sponsored scholarships, I can't even apply for. Why? Because I'm homeschooled. I have no GPA, no official transcripts, nothing.
And that's just the normal person's situation. If you join the military and put your life on the line for your country, so that you can someday get an education? Hell, I think that the government should swallow the bill if that soldier wanted to go to Harvard. And then they can fix it for the rest of us.
Posts: 3658 | Registered: Jan 2002
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posted
Pell maximum is $4310 this year. Stafford (sub) maximum for freshman is $3500, not $9000! I'm guessing you must mean Perkins loans for the rest; unless it's the increased (unsubsidized) Stafford for students whose parents don't qualify for PLUS loans, but that seems inconsistent with what you said about them taking out loans.
How is a family below the poverty line qualifying for PLUS loans anyway? Or are they paying on private loans?
Have you discussed your situation with your college's financial aid advisor(s)? They may be able to help you find other options.
OTOH, as a taxpayer I object to the implication that you should be getting more money from the government. There are plenty of good schools that cost considerably less than $30,000 per year. While I would like to see Pell and Stafford maximums go up, there will always be schools out of any given student's price reach. That is a fact of life.
As for scholarships and no GPA, those requirements vary greatly. However, some scholarships will accept a grade on the GED in lieu of a GPA.
Posts: 32919 | Registered: Mar 2003
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posted
Perkins loans, that's right. Duh. I have a hard time keeping track of all of this stuff. As for the PLUS loans, I've got no idea. But it was heavily implied that my parents BEING poor is what gained them qualification for the PLUS loans. *shrugs* I don't know the rules, I just know that it's messed up.
I tried to talk to them about it. *shrugs* They said to do the federal stuff. So I did. I filled out the FAFSA, all that. That's pretty much all they tell you to do.
I also wasn't aware that $30,000 a year was an unreasonable price, if going out of state. I was led to believe that pretty much any good college that's out of state will be somewhere between $30k-$70k a year, and that a good in-state college started at about $15,000.
Posts: 3658 | Registered: Jan 2002
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I just don't understand why university costs so much in the States. I was paying roughly $6000CDN for a year, including co-op fees and incidentals. I pay just over 9000 pounds in the UK, and that is the international student rate (home rate is around 3000 pounds). What makes US tuition so absurdly expensive?
Posts: 2849 | Registered: Feb 2002
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quote:Originally posted by Human: As for the PLUS loans, I've got no idea. But it was heavily implied that my parents BEING poor is what gained them qualification for the PLUS loans.
Highly unlikely. Unlike student loans, for PLUS loans lenders are allowed to look at certain aspects of the borrowers credit history. FAOs can also look at the parents' ability to repay and get the student additional (unsub) Stafford instead (up to that maximum).
quote:Originally posted by Human: I don't know the rules, I just know that it's messed up.
Might I suggest that before you push for changes, you do a little more research on how the system actually works? There are a ridiculous number of resources out there, and I'd be happy to recommend some.
quote:Originally posted by Human: I tried to talk to them about it. *shrugs* They said to do the federal stuff. So I did. I filled out the FAFSA, all that. That's pretty much all they tell you to do.
Again, doubtful. In most FA offices, that's what they insist you do first -- which is as it should be. But if you came back after that and asked about options, talked about your family situation, you should get more specific advice. I'm guessing that -- like 97% of students -- you did not do that.
It's not their job to chase after you.
Ask about private loans, if you don't want your parents to have a PLUS. What about work study? If you're getting full Pell and have large need, why aren't you getting any FSEOG, or did your school run out before you applied?
quote:Originally posted by Human: I also wasn't aware that $30,000 a year was an unreasonable price, if going out of state. I was led to believe that pretty much any good college that's out of state will be somewhere between $30k-$70k a year, and that a good in-state college started at about $15,000.
I have no idea where you're getting these numbers from, or what definition of "good" is being used.
Also, according to your school's website, out-of-state tuition for 2007-8 is about $15,000. I realize you have dorm fees, books, etc., but $30,000 is still rather high given that tuition.
quote:Originally posted by Eaquae Legit: I just don't understand why university costs so much in the States.
1) In both Canada and the UK, university costs are directly subsidized to a large degree by the government -- that is not true here, and has not been for quite some time. Most states have made additional cuts in the past 5-10 years.
2) There is a tendency among students, parents, and the magazines which rate colleges to assume that the higher the tuition, the better the school. Studies have shown that the single thing a private college can do that most directly results in more applicants -- with better average GPAs and SAT scores -- is to raise tuition 5-10%.
If it costs more, it must be a better school, right?
Posts: 32919 | Registered: Mar 2003
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Rivka: I'm aware of the fact that PLUS loans actually look at credit history and all that. I don't know why my parents qualified or anything about that because I left the dealings with that to my parents. All I know is that they were a great source of concern to them.
I do have work-study--which is why I'm not completely broke. But that doesn't pay out into my tuition, that pays out to me, and then I get to use the money at my discretion. Also, what's an FSEOG?
Finally, the reason why it's nearly $30,000 a year--I say nearly because I admit I'm rounding up by about $2,500 dollars--is that my dorm fees are nearly $10,000, from what I recall, stacked with some other fees and bits of tuition. It all racks up to about $27,500 a year.
Posts: 3658 | Registered: Jan 2002
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Work-study never pays into a student's account. That would be illegal. Many students turn right around and use the money to pay tuition or other fees, though.
Posts: 32919 | Registered: Mar 2003
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posted
Huh. I didn't even know that there WERE such things as FSEOG awards.
My main point with my first post was not to complain about my situation--well, not too much, anyway. I just think that if the civilian situation is complicated and not always functional, then it should be better, not worse, for soldiers.
Posts: 3658 | Registered: Jan 2002
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quote:Originally posted by Human: I just think that if the civilian situation is complicated and not always functional, then it should be better, not worse, for soldiers.
posted
What steered me towards the article originally was that I'm getting out in September '09 and I have to apply to, be accepted by, and figure out how to pay for college pretty darn soon. So far I'm having trouble figuring out how to do any of the three.
If the GI Bill changes at all, it'll be right in time to confuse the oh-so-helpful VA bureaucracy when I come around asking for the payout. My phone's going to get stuck to my ear.
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