Although federal and state governments are doing the best they can to support the economy, it looks like tuition prices for college could take a nasty spike in the next few years. Recent reports from College Board's annual survey of tuition and fees showed relatively modest increases in tuition costs for the 2008-2009 academic year, with costs rising 1 percent to 3 percent above inflation. But the report also was based on data collected before June and does not reflect the economic issues now embroiling the nation. According to the report, tuition for the year climbed 6.4 percent for in-state students at public four-year institutions to an average cost of $6,585 and 5.9 percent to an average of $25,143 for private colleges. Amazingly the cost of attending community colleges actually declined, after adjusting for inflation, by 0.8 percent to $2,300 for the year. Although financial aid, including both grants and federal loans, increased for the year, particularly from public programs and federal student loans which jumped 6 percent, the number of private loans for higher education, which had been climbing, began to shrink even before the current credit crisis. Experts such as the American Council on Education, a coalition of more than 1,600 college and university presidents, warn that conditions are increasingly ripe for some of the biggest tuition jumps in more than a decade. The main reason is that "state governments, struggling to balance budgets at a time of plummeting tax revenue, are beginning to slash appropriations to post-secondary institutions. Private schools are also having problems as their endowments decline in the stock market and donors grow more cautious with their giving" the group said.
Because of the economic crisis, people are losing jobs and money. Many parents, even in well-off families that normally wouldn't be anxious, are worried about paying for their kids education and in states such as New York, more and more parents are actually pushing their kids toward SUNY(State of New York University) less-expensive, public schools rather than cherished yet costly Ivy League schools such as Harvard that they normally would have supported. Not only are tuition prices going up but applications have increased by roughly 50% so far this fall.
As stated by the New York Times, "Clearly along with the high stress level that comes with a record number of students applying to colleges, there’s the even higher stress level that comes with the realization that in tough times, affording college is no given and there are things that trump fancy windshield stickers from brand-name colleges." Although parents care about what's best for their kids, they also need to be sensible financially, and if that means sending them to top ranked public schools rather than private, it definitely seems too be the better plan.
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3 comments:
Wow that is really surprising. I had no idea tuition prices were rising so much. I have just started following your blog so may have cover this somewhere else, but what is each candidate doing to try to prevent the prices from rising or lower the current prices?
That is awful that tuition prices are rising...when the economy is bad is when the job market gets most competetive, and thats a stressful thought...not get the education you once could have because the prices jumped up too high. Choosing top-ranked public over private isn't the worst thing in the world, but for those who are struggling to pay for public alone and aren't recieving much help...thats when this country sees a problem.
Dear student and britney,
Thanks so much for your comments. Student,since universities are state funded, not federally funded, there is not much the presidential candidates can do to control college costs, but they both support student loans and financial aid for college. McCain and Obama both support Pell Grants and simplifying student aid applications, but Obama seems to be the more ardent supporter of student loans with his American Opportunity Tax Credit which is worth 4000 towards college tuition in exchange for 100 hours of community service. Britney, I agree that public colleges are not bad to choose, especially since I am attending one myself. The financial crisis is especially hitting middle class families who have enough money to live off of and do not qualify for loans but do not enough money to send their kids to college. My family, for example, is not rich and I have two younger twin sisters to put through college next which means we will have three kids in college at the same time. My parents really care about our education and are just managing to put me through college right now. I do not have financial aid but hopefully when my sisters arrive we will be able to get some sort of loan or grant from the government to help pay off our college education.
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