Tuition increases as financial aid decreases

As state governments are beginning to run out of money to give to college bound students, parents and students are beginning to worry about how they are going to pay for their education. Supposedly, the reasoning behind the shortage of grant money is due to the higher number of applicants this year compared to other years. Now, I do not doubt that this is true, but there probably is a reason behind the sudden increase in applications. In the past few years college tuition has increased tremendously causing families of college-aged kids to worry about their financial future. Due to this increased worry more and more students are applying for loans, grants, and scholarships to try and alleviate the cost of college. But there has to be another way to fix this problem.

Instead of colleges continuously raising their prices and causing students to suffer with the stresses of paying off their debt and loans, they should no longer be allowed to increase tuition, and actually should begin to lower them. There is no reason for a college with 20,000 people to charge each individual $30,000 per year. If colleges actually cost less, more people would be able to attend and colleges would not have to give out big financial aid packages. With more people in attendance and smaller amounts of money going out to students, these colleges would end up making more money than they already do. Of course, college is a business and for some reason many post-secondary schools are under the impression that they will appear superior with higher ticket prices.

It seems as if colleges are losing sight of their original purpose: to educate people so they can get jobs and make money as well as so that our country is more educated and can therefore be one of the powerhouses of the world. With the way tuition is going now less students will be able to attend college, our economy will suffer even more and the U.S. will continue to lose its credibility in the world.

http://www.smartmoney.com/Personal-Finance/College-Planning/Are-States-Running-Out-of-College-Grant-Money/

Is it worth it?

The idea has been drilled into the minds of millions of students for years and years. Teachers, parents, administrators, bosses, and friends-- I've probably heard the advice thousands of times over the course of my life. But as I prepare to head off to college (and spend thousands of dollars, putting myself in debt for years) I can't help but wonder if I'm really doing the right thing. Has the cost of college grown to the point where I would be better off saving my money and getting a job that does not require a college degree? And if college really is so important, why is it so difficult for middle class students (the category most students fall into) to get the scholarships, grants, and loans necessary to attend college.

For an average student, a 4 year college degree can cost anywhere from about $70,000 to $150,000. For that price, it is hard to justify going to a school that costs more than double what an in-state public school costs. This is why more and more students are trying to find alternate ways to get a college degree, forcing them to make tough sacrifices in order to make it work. It's easy for the government to say that they are giving out "more financial aid to those who need it". Well, that’s great, but the reality is that most people in the middle class won't see any of that money. Most people are trapped in a catch-22: too rich to receive aid, and too poor to be realistically expected to pay for school. Yes, our parents might have money. But as a student, I don't. And with four kids to put through college, my parents really don't either.

Even if a student does quailify for aid, they have tough decisions ahead of them. It's hard to decide whether it is worth it to put yourself thousands and thousands of dollars in debt just to attend the college of your dreams. The reality is- it's not worth it. Many of us think think better of a student from Harvard than one from a community college. But a few years after college, employers care more about what you've done after school than during school. If you can go to a community college, and get out of school with less debt, you're more likely to be able to build a portfolio of accomplishments that will impress future employers. Meanwhile, that Harvard graduate will be living on the street desperately trying to earn enough money to pay his bills. He will constantly be playing "catch-up" instead of being the successful person he strived to be. I realize that this is just a hypothetical situation, but as a student its something I know we're all thinking about.

http://learnfinancialplanning.com/is-a-college-degree-too-expensive/