A lift for college aid in a down economy: although the economy is in a downturn, the government and some colleges are giving more financial support

Careers and Colleges, Spring, 2009 by Don Rauf

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In these economic times, students and their families can use all the help they can get to meet college costs. It's no surprise that financial aid applications rose 16% this school year compared to last. And the number of students qualifying for Pell Grants, which go to the neediest families, far exceeded expectations, according to the National Association of Student Financial Aid Administrators (NASFAA).

"It's a little early to know how this is shaking out for next school year, but if I were to venture a guess, I think we'll see another increase in aid applications for 2009-2010," says Justin Draeger, Vice President for Development at NASFAA.

While more students are joining the ranks of those who need financial support, schools and the government are doing what they can to make college more affordable.

College cost-savers

On average, the cost of college continues its creep upward. The College Board estimates that students are paying between $108 and $1,398 more this school year than last. The average cost of one year at a private four-year college is $25,143; at a public four-year college, it is $6,585. As students struggle to meet these costs, the College Board reminds students that the investment in a college education is well worth it. According to the Board's 2007 report Education Pays, the typical full-time year-round worker in the United States with a four-year college degree earned $50,900. That's 62% more than the $31,500 earned by the typical full-time year-round worker with only a high school diploma.

As colleges struggle more financially in this current economic environment, cost cuts are not on every school agenda. But many are doing what they can to give students a financial break. Saint Leo University in Saint Leo, Florida, is slashing its tuition rates by 10% for new online students. Merrimack College in North Andover, Massachusetts, has decided to freeze tuition, room, and board for 2009-2010 at this year's price of $39,500. Benedictine University in Lisle, Illinois, is following suit, keeping tuition the same next year at $21,600.

"These are extremely troubling times for students and their families," said Benedictine University President William J. Carroll. "Although most of our students receive some form of aid, we are committed to doing as much as possible to ensure that education is a lifelong journey, not a lifelong burden."

Some schools, although not freezing costs, are limiting increases. Agnes Scott College in Decatur, Georgia, and Saint Vincent College in Latrobe, Pennsylvania, are limiting their tuition hikes to just under 3%.

Recognizing that some families are stretched to the financial limit, the College of Wooster in Ohio established an emergency student aid fund to provide loans to full-time students who have experienced an unanticipated change in their family financial circumstances and face a financial hardship that jeopardizes their ability to continue at the college.

Struggling state schools still lend a hand

Declining tax revenues have brought especially hard times to state colleges. But again, while public school tuitions are expected to rise on average, some states are doing all they can to limit increases. By trimming costs, Cleveland State University in Ohio is avoiding a tuition hike in 2009. Cleveland, like other state colleges, is trying to make itself an attractive option for out-of-state students as well. Cleveland is offering those students a special academic scholarship designed to offset charges that apply to out-of-staters. Youngstown State University in Ohio will cut its yearly out-of-state surcharge from $2,692 to $200 for students living in nearby Pennsylvania counties.

Naturally, two-year community colleges remain an especially affordable option, with the average annual cost at $2,402, according to the College Board.

"We're seeing increasing numbers of top-notch students coming our way because of the afford- ability factor," said Erin Brooks, spokesperson for Harper College, a two-year school in Palatine, Illinois.

The first rule of financial aid: always ask

As the old saying goes, it never hurts to ask, and that's certainly the case with financial aid. Half the battle of affording college is applying for all the possible aid that is out there. Make sure you promptly file the Free Application for Federal Student Aid (FAFSA) each year. If your school requires the CSS/PROFILE form to receive aid, get it in on time. And don't overlook state, college, and private sources of funding, such as scholarships. This may take some online research, but seek out all of the aid that you can.

If you are a student who is finding it difficult to meet the cost of college, ask your school for help. Recently, an enrolled student at Mary Baldwin College in Staunton, Virginia, contacted the college's president, Dr. Pamela Fox, about her roommate, who was 52,000 short of being able to register for classes. The student asked Dr. Fox if there was anything she could do to help. After thoroughly reviewing the student's financial aid package, Dr. Fox saw that the student actually had more need than first realized, and she was able to find a donor to provide the remaining 52,000.