With the Economy in the Toilet, Is my Chance to Attend College out the Window?
Posted by: Daniel Kane in Education, tags: EducationAlmost every family in America, regardless of its economic status, is concerned about the current state of the U.S. economy.
And, families with children in college or children due to begin college in the next 4-5 years are especially concerned about one aspect of the economy; how to meet rising college costs in difficult economic times.
Even those who have planned ahead and spent years saving for college may come up short, particularly if their savings/investments have been in real estate or stocks. Not only are most investors sitting on portfolios worth at least 25% less than their value a few months ago, but many own a considerable number of individual stocks or funds that have declined in value by an even higher percentage.
College endowments, because they too are heavily invested in the stock market, are also down considerably. And, for all but the very wealthiest colleges, a decline in endowment value may well mean a decline in institutional scholarship funds available to students.
Institutional scholarships are a very important part of financial aid packages, especially at private colleges and universities. In fact, in normal times, private colleges offer students enough institutional-based scholarships to offset approximately 35% of tuition costs. Some colleges have so much money that their ability to provide institutional aid will not be impacted even if the economic downturn continues.
Others will have no choice except to maintain or even increase their scholarship expenditures in order to meet their enrollment goals. Some others, however, may be forced by lower endowments to reduce the number and/or size of institutional scholarships awarded.
Our sagging economy may bring serious changes to the way prospective students and colleges approach the admissions and selection process. Thus far, it has brought a great deal of uncertainty.
So, what should a student do in the face of so much uncertainty? Here are a few things to think about.
1. Do not panic. Your family, and the college(s) you are considering, may not be materially affected by the economy.
2. Talk to experts…high school and college counselors. Apply for all the funding sources they recommend.
3. See if your high school counseling office has a list of scholarships offered by organizations in or near your community.
4. Conduct Internet searches for free scholarship search sites. They’ll help “match” you to scholarships for which you might qualify.
5. Be extremely wary of organizations which want to charge you for scholarship or financial aid assistance. Most maybe allare outright scammers.
6. Look for bargain colleges. There are more than you may think.
7. Do not rule out student or parent loans. If you need them, they are a great investment. Just resist the temptation to borrow more than you absolutely need.
The unfortunate truth is that many families currently face serious economic problems. And not a single economic guru has predicted a fast solution to our economic malaise. However, the difficulties we are experiencing should not be an insurmountable obstacle to students who wish to pursue higher education in traditional or online degree programs. Historically, in times like this, colleges have held down tuition increases and/or boosted the availability of financial aid.
Students who do not give in to panic, explore their college financing options, and seek out affordable colleges and universities need not worry. What they do need to do is become as well informed as possible.
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