College and Recession

It is not a surprise that everything costs more each year.  College tuition, on the average, has risen four times since the 1980’s.  Some students get loans.  Some parents tap into the equity of their homes

And now we are in a recession with the job losses, decline in home values and investment portfolios, the tightening of financial aid belts, it is becoming more and more difficult to pay for college.  Most colleges are now back for the Spring Semester, but more students than ever before will extend their winter break, not being able to return to school because they can not pay the tuition.  The amount of unpaid tuition bills has increased over 65% this year according to a survey by American Association of Collegiate Registrars and Admissions Officers

Some colleges are calling on their alumni for donations to help keep the students in classroom. Brown University has increased the amount of back tuition students can owe and still stay on campus by 50 percent.

Lawmakers are talking up tuition tax credits at the state and federal levels. It’s essential to the dreams of millions of families that lawmakers make these tax credits a reality.  Still much financial aid is awarded on a first-come, first-served basis. With the prospect of increased Pell Grants being discussed as part of President Barack Obama’s economic stimulus plan, families should help themselves by getting in line and submitting the FAFSA (Free Application for Federal Student Aid) ASAP.