College Enrollment Climbs

The American public understands that a college education is one surefire route to ultimate financial success. Reports from the Commerce Department’s U.S. Census Bureau estimate that recipients of master’s degrees earn $1.3 million more during their lifetime than those who have only received high school diplomas. So while it is indeed true that some of the wealthiest people alive do not hold college degrees (Bill Gates and Steve Jobs are both college dropouts!), the rest of us mere mortals might feel compelled to earn a college degree to guarantee a steady annual income.

And as American families are living through one of the nation’s most financially tumultuous periods, parents know that providing their children with superior higher level educations will help cushion their futures. Prospective students are turning to websites like www.careersandeducation.com to find out what online schools have to offer.
But alas, guaranteeing the current generation’s academic success translates to added stress in an already stress-laden economic landscape. As high school seniors draft college applications and weigh out their options with guidance counselors, many have to eliminate costly private schools and public universities with hefty out-of-state tuitions from their “top pick” lists. While prospective college students may have once had their sights set on a particular school for its unique degree programs or social reputation, many are finding that their choices are considerably more limited. High school students who have spent years earning good marks and participating in extracurricular activities might not be able to even consider attending tony private schools in desirable metropolitan areas, where annual tuition and housing fees can exceed $40,000.
Furthermore, students already enrolled in college are finding it harder to make ends meet due to rising costs in tuition and living expenses. “I decided to attend fashion school in New York City, figuring that the networking opportunities would translate to more money in my future,” says a first-year college student, Julie Finger*. “But the cost of living and going to school in Manhattan is very expensive. I’m hoping that getting a part time job will help ease the financial burden on my family.”
Adding to the overall anxiety, families are now limited in their choices of private student loan lenders. The U.S. Department of Education grants loans to students through universities or private companies. The subprime mortgage crisis has affected the nation’s largest private lenders, like Sallie Mae and Bank of America, who now face cutbacks on resources. Numerous other private education lenders have ceased to participate in the government’s guaranteed student loan program entirely, according to findaid.org. Federal loans such as PLUS loans can be easier to obtain than private loans, and enable families to borrow money with lower interest rates. By filling out the Free Application for Federal Student Aid (FAFSA), students can find out about their eligibility regarding different types of federal financial aid.
Students must take it upon themselves to visit financial aid offices at individual schools, and have their family’s financial situation fully evaluated. If it is determined that a student’s financial situation calls for increased assistance, financial aid offices can provide students with valuable advice. Financial aid officers are well versed in the myriad financial aid options available to students and will help customize a plan to meet a student’s particular needs. Many opportunities to obtain scholarships are available, and federal grants can provide students with supplementary funds they need to remain financially afloat.
College administrators are also going to have to take a new look at how their budgets are being allocated. A recent report by the Delta Cost Project found that costs to students have increased while there was no measurable increase in quality of academic programs. Many schools are allotting large sums of money toward school construction projects or research initiatives, and perhaps this might be a time to slow big-budget undertakings. Fortunately, many university officials around the country recognize that change is rapidly approaching, and they must rise to the occasion to meet students’ needs: “We’re looking internally at our own budgets to see what we may be able to do in terms of providing additional assistance to students under various situations,” Jon Riester of Hanover College recently told The New York Times. To boot, some schools are open to adjusting their educational formats to meet students’ evolving demands. Colleges such as Arizona State University and George Washington University have added online education options, enabling students to avoid high costs of living on campus.
Overhauls will have to be made both by colleges themselves and in governmental policy during this time of crisis. Because while many American families are tightening their budgets and scaling back their standards of living, the nation’s desire for higher education will not be squandered.
*Student’s name has been changed to protect privacy.