Aside from the specific, serendipitous nature of being a standout grid-iron star, our children need help when it comes to footing college’s exorbitant bill. And while grassroots tactics like garage sales, working overtime, and relocating the family vacation to New Jersey are appreciated gestures, they are little more. College is expensive, and getting more so. Finding adequate means of fighting back against soaring cost trends becomes imperative. The chief means appears to be student loans.
In 2003-2004, national tuition and fee averages rose across the board. Four-year public institutions (according to www.collegeboard.com) saw a 14.1 percent increase in tuition and fees from 2002’s yearly average of $4,115 to $4,694 (a difference of $579). Private four-year universities and colleges experienced a 6 percent increase in student costs from $18,596 to $19,710 (a difference of $1,114 a year). Even two-year community colleges saw tuition and fees climb from levels in 2002 — from $1,674 to 2003’s $1,905 (a 13.8 percent increase for a yearly difference of $231). Will tuition costs even out? Probably not; according to the analysis of recent trends, college fees will continue soaring in the near future. But relief is on the way from the government in the form of student loans and grants.
From 2002 to 2003, the Federal government disbursed a record-breaking $105 billion in student aid ($13 billion more than the previous year). This dramatic sluicing of funds spiked the average student aid numbers to the yearly total of $9,100 per student in 2003. The better news: $3,600 of that amount was grants (meaning money students do not have to pay back). In addition to doling out grants, the government constructs student loan repayment programs tailored specifically to recent collegiate graduates — i.e. low interest rates that do not begin accumulating until six months after graduation (giving students time to find employment). However, sometimes governmental student aid programs fall short in coping with the rising costs of attending four-year universities. In this case, private institutions pick up the slack, offering low-interest student loans to cover any remaining costs of education.
Knowing which student loan disbursement agencies to trust is half the battle; conversely, knowing the exact repayment terms is the other half. As always, some loan suppliers (usurers) will prey upon the helplessness of students desperate to afford an education. Weed out these undesirables through the Better Business Bureau — use the BBB to check the reputability of any lender you secure. The website www.collegiatefunding.com is an excellent resource for uncovering both public (FAFSA) and private student aid providers, as well as individual scholarships. The site supplies links to a variety of student aid sources including governmental Staffordstudent loans (most students automatically qualify for a minimum $2,625 loan) and www.clubscholarship.com, which houses approximately 500,000 tenable offers for full or partial collegiate scholarships.
There is funding for students taking on the challenge of college; finding it becomes the central problem. Employing websites like www.collegiatefunding.com allow prospective or returning students the opportunity to search databases of available scholarships and loan offers. The chances of unearthing public or private loans or grants skyrocket with the aid of the Internet; and if you decide not to use them, you better start playing catch with your kid early: That’s the only way you’re going to be able to afford college.
By Jean-Pierre Lacrampe