News

Browse All News Topics

New Report: Tuition and Financial Aid Rise, Private Loans Fall During Recession

Oct 21, 2009

by Scholarships.com Staff

On Tuesday, the College Board published the latest installment in its Trends in Higher Education Series, annual reports detailing changes in college costs and student financial aid. These newest reports cover the 2008-2009 and 2009-2010 academic years and provide some insight into how economic difficulties have affected paying for college. Despite the recession, tuition continued to rise at a pace comparable to previous years, but financial aid has undergone some changes.

Between 2008-2009 and 2009-2010, tuition increased 6.5% at 4-year public colleges and 4.4% at 4-year private colleges. Tuition and fees for in-state students at four-year state colleges rose from $6,591 to $7,020. Out-of-state tuition and fees at public colleges rose to $18,548, a 6.2 percent increase. Private college tuition and fees rose to $26,273. Total costs of attendance also rose to $19,388 for public colleges (a 5.8% increase) and $39,028 for private colleges (a 4.4% increase). Rising college costs are attributed to declines in state funding and massive endowment losses brought about by the recession.

Despite tuition increases and greater financial difficulties for students and families, total student borrowing dropped by 1% when adjusted for inflation in 2008-2009.  Federal student loan borrowing increased by $11 billion, or 15 percent, to about $84 billion. Most strikingly, there was a 50% drop in private loan volume in the 2008-2009 academic year, as a result of the tightening of credit markets. The 2008-2009 academic year also saw a growth in grant aid (both need-based and merit-based college scholarships and grants). About 2/3 of full-time undergraduates receive grants and the average grant was $5,041. The College Board anticipates that students will receive an estimated $5,400 in grant aid and tax benefits in 2009-2010.

A large portion of grant aid is made up of merit-based awards, like academic scholarships, which worries some analysts who are concerned with the increasing cost of tuition pricing lower income families out of college entirely. While, after adjusting for aid, the average net cost of tuition actually has declined for families over the period covered in these reports, another recent report by Postsecondary Education Opportunity research Tom Mortenson showed that students from the poorest families tended to have the largest amount of unmet financial need. The sharp drop in private loans suggests those families may be less likely to be able to secure funding to cover that unmet need, even if colleges and the federal government have made more aid available this year.

Much of the growth in federal student loans and college grants and scholarships is likely due to the increased amount of aid colleges and the federal government made available to struggling students as a result of the recession. However, much of this emergency aid is intended to be temporary, so these changes may turn out to be anomaly, rather than an overall trend.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 

Most Shared Articles

What do spring college scholarships bring? Potentially thousands of dollars in free college money to help foot your college tuition bill! Whether you are relaxing over spring break or heavy into spring cleaning, don't forget to do your academic and financial aid housekeeping. Explore these spring-centric awards, as well as college scholarships with spring 2017 deadlines. Or if you prefer, conduct your own free college scholarship search here: [...]

0 months ago 1 comments Read More

March is National Women's History Month, and while we observe and celebrate the many females that brought forth change and exemplary contributions to our society, we want to give you some opportunities to pursue your dreams - without the financial burden. Ladies, check out these scholarship opportunities reserved for women only: [...]

0 months ago 0 comments Read More

Hundreds of Middlebury College students turned their backs on, and shouted down a prominent and controversial writer and scholar, Dr. Charles Murray, preventing him from giving a public lecture. The violent attack on free speech left one college professor injured and Middlebury’s President disappointed with the "deep and troubling divisions that were on display [that] night." [...]

0 months ago 19 comments Read More

Two University of Washington professors are calling out "fake news" and "alternative facts" in defense of the scientific community with their new course "Calling Bullshit In The Age of Big Data." Students, as well as the general public will have the opportunity to learn how to "detect and defuse" bullshit. [...]

1 months ago 2 comments Read More

One Faculty Master is keeping his free cookie tradition strong for College House residents, even while he's on sabbatical. Every Wednesday at 10 p.m., freshman line up Master Dennis DeTurck's apartment for a sweet snack and the singing of show tunes. This is only one example of the many food-centric traditions found at the university. [...]

1 months ago 0 comments Read More

Fighting crime is no easy task and is not meant for everyone. Careers in criminal justice aren't limited to police officers. You can study to be a criminal law paralegal, a crime lab analyst or even work for homeland security. If you plan to take this route, don't forget to apply for these solid scholarships to reduce debt while also doing your part to reduce crime: [...]

1 months ago 0 comments Read More

Due to Oregon's $1.8 billion budget crisis, public university leaders want funding reallocated from the Promise program to the state's need-based grant, which is awarded to low-income students who attend Oregon's public universities. [...]

1 months ago 1 comments Read More