Scholarship News

States Cut Grants as Students Borrow More Money for College


August 12, 2009
by Scholarships.com Staff
Rising unemployment rates and other symptoms of the ongoing recession continue to drive more people to attend college and look for ways to pay their bills, causing an uptick in state and federal financial aid applications. However, states are also hurting for money to meet financial aid requests and other budget demands. According to the Associated Press, 12 states have made significant cuts to state grant programs so far this year, with additional cuts likely. At least anecdotally, these cuts are already leading to more reliance on student loans, especially among groups that, according to a brief published this week by the College Board, may already be finding themselves overburdened with debt.

Rising unemployment rates and other symptoms of the ongoing recession continue to drive more people to attend college and look for ways to pay their bills, causing an uptick in state and federal financial aid applications. However, states are also hurting for money to meet financial aid requests and other budget demands. According to the Associated Press, 12 states have made significant cuts to state grant programs so far this year, with additional cuts likely. At least anecdotally, these cuts are already leading to more reliance on student loans, especially among groups that, according to a brief published this week by the College Board, may already be finding themselves overburdened with debt.

ADVERTISEMENT

This week, the College Board released some new numbers on student debt loads and borrowing habits, culled from the National Postsecondary Student Aid Study, data released every four years by the Department of Education. Students at for-profit colleges are the most likely to borrow (96 to 98 percent graduate with some amount of loan debt), have the largest average debt loads at graduation, and are also some of the poorest college students (students at for-profit schools received 19 percent of the Federal Pell Grants disbursed in 2007-2008 despite making up only 7 percent of the college-going population). With additional sources of need-based aid drying up, these students may find themselves even more burdened with debt.

Students at other types of schools have also had to do more borrowing in recent years, according to the study. A full 59 percent of college students graduate with some amount of student loan debt, including 66 percent of bachelor's degree recipients. While most students took on manageable amounts of debt, 10 percent of students at four-year public schools, 22 percent of students at four-year private colleges, and 25 percent at four-year for-profit colleges borrowed more than $40,000 to attend college.

The average loan debt of undergraduate students in 2007-2008 was $15,123 (this is all students, not graduates), up 11 percent from the last time the survey was conducted. While increases in loan burdens were most modest at four-year state and non-profit colleges, reductions in state grant programs that are often earmarked for students at state colleges or nonprofit private colleges could send these numbers climbing.

You may want to consider statistics on student debt as a factor in your college search, but keep in mind that there are alternatives to borrowing. Scholarship opportunities exist for students at every type of college pursuing many different types of degree programs.

Connect with our massive database of millions of college scholarships by conducting a free scholarship search at Scholarships.com. Scholarships.com offers the simplest way to search for, apply to, and win college scholarships. Make your college education affordable or even free, by conducting a free college scholarship search at Scholarships.com.

ADVERTISEMENT

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


 
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
FAFSA is an acronym. It stands for Free Application for Federal Student Aid. Please take note that the first word in the acronym is Free. You do not need to pay to fill out the FAFSA but there are certainly websites out there that will charge you for their assistance. If you are asked for a credit card at any point in the process, you are at one of these sites. If you do not want to pay to complete the FAFSA, be sure to apply at https://studentaid.gov/h/apply-for-aid/fafsa. The FAFSA must be completed by you and your family each year if you wish to be considered for need-based grants from the college or university you are or will be attending as well as subsidized student loans.

What is the FAFSA?

October 8, 2021 2:52 PM
by Scholarships.com Staff
FAFSA is an acronym. It stands for "Free Application for Federal Student Aid". Please take note that the first word in the acronym is "Free". You do not need to pay to fill out the FAFSA but there
A study abroad program can be the beginning of the most exciting chapter of your college experience. Often, the travel, housing, credits and even food are included in the price of the program you choose. However, this is no reason not to look for more financial opportunities!

Want to Study Abroad? Find Scholarships

August 31, 2021 12:30 PM
by Scholarships.com Staff
A study abroad program can be the beginning of the most exciting chapter of your college experience. Often, the travel, housing, credits and even food are included in the price of the program you
As you get ready for this next big step in your life, this last year at home can feel like the longest and the shortest you ever had! While you prepare to select a college and research scholarships and financial aid, don’t forget to spend some quality time with your friends and family. While movies, even when based on a true story, are always a little bit fantastic, they are also works of art that share experiences among their viewers.

Movie Night! College Classics

August 19, 2021 12:22 PM
by Scholarships.com Staff
As you get ready for this next big step in your life, this last year at home can feel like the longest and the shortest you ever had! While you prepare to select a college and research scholarships
While the notion of men and women having naturally different aptitudes and interests is slowly becoming a thing of the past, there remain differences in professional compensation between the sexes. Recent studies are still exploring the way women with the same education and occupation as their male counterparts earn less money. There also remains a tendency for jobs dominated by female workers to pay much lower, in general, than those with a larger male employee base.

Fighting the Wage Gap

August 11, 2021 12:21 PM
by Scholarships.com Staff
While the notion of men and women having naturally different aptitudes and interests is slowly becoming a thing of the past, there remain differences in professional compensation between the sexes.
While you work hard to ensure your future at the college of your dreams, it may seem like academic programs and credits are the only things going on there. Once you enter your college or university, you will find that it is one big community made up of many smaller ones. Part of your journey will be to find your specific home there. This may entail finding a teacher you love working with, a project with peers that fuels your creativity or your entrance into an entire academic department.

Netflix's New Fictional Show About Higher Ed

August 5, 2021 10:20 AM
by Scholarships.com Staff
While you work hard to ensure your future at the college of your dreams, it may seem like academic programs and credits are the only things going on there. Once you enter your college or university,
A high school senior from Lithia, Florida has just been awarded the $1,000 grand prize in a scholarship competition. The 16-year-old, Laura Gonzalez, is on track to attend college next fall. She hails from Lithia, a suburb of Tampa in central-east Florida and is completing her last year at Newsome Highschool, with a total population of about 3,000 students. Her small school and community are thrilled for her and are all wishing her the best on her upcoming new chapter in life.

Florida Teen Wins Scholarship!

July 29, 2021 12:44 PM
by Scholarships.com Staff
A high school senior from Lithia, Florida has just been awarded the $1,000 grand prize in a scholarship competition. The 16-year-old, Laura Gonzalez, is on track to attend college next fall. She
Even after all the battles you have won in applying to schools and getting accepted, there will most likely still be work to get done when it comes to paying tuition. There are two main avenues you can take to try to address this problem: scholarships or student loans:

Student Loans vs. Scholarships

July 13, 2021 2:57 PM
by Scholarships.com Staff
Even after all the battles you have won in applying to schools and getting accepted, there will most likely still be work to get done when it comes to paying tuition. There are two main avenues you
Among the most important things you want to do before applying for a job is to update your resume with relevant experience. Doing so makes it possible for employers to take notice of you, your skills, and what you have to offer their companies. The sooner you clean up and polish your resume, the easier it becomes to submit it to companies seeking employees like you.

Create an Outstanding Resume That Employers Notice

July 7, 2021 11:58 AM
by Scholarships.com Staff
Among the most important things you want to do before applying for a job is to update your resume with relevant experience. Doing so makes it possible for employers to take notice of you, your
College is expensive. That’s why a majority of college students take out student loans. Nearly 70% of the Class of 2019 took out student loans and graduated with almost $30,000 in debt. It’s a frightening statistic, and it’s part of why Scholarships.com exists to help students discover scholarships to pay for college. In general, scholarships do not entirely replace the need to take out loans. Responsibly borrowing for college can be a worthwhile investment, but for students and their families take out an abundance of student loans, the results can be frustrating – saddled with debt that’s increasingly harder and harder to pay off.

Risks of Over-Borrowing on Student Loans

June 24, 2021 2:08 PM
by Izzy Hall
College is expensive. That’s why a majority of college students take out student loans. Nearly 70% of the Class of 2019 took out student loans and graduated with almost $30,000 in debt. It’s a
Summer is the perfect time to take on a student internship. Your class load is lighter, so you have more time to explore options in your preferred industry. There isn’t as much competition from your peers, either, because many have gone elsewhere for summer break, leaving opportunities wide open for you to take advantage of now. Internships open doors in your professional and academic careers by adding to your work experience and offering you a chance to see what a career in your major or interest is truly like.

How to Find a Summer Internship

June 22, 2021 9:46 AM
by Scholarships.com Staff
Summer is the perfect time to take on a student internship. Your class load is lighter, so you have more time to explore options in your preferred industry. There isn’t as much competition from your