Finanical Aid Information
All students, regardless of financial need, are eligible for some type of financial aid program. The assistance may be in the form of a loan or multiple loans that must be repaid, but a quality education is the wisest investment you will ever make. An often quoted statistic in the higher education community is that a college degree equates to nearly $1 million more in lifetime earning potential than someone with a high school diploma! That is significant and worth the cost.
The single most important thing a new college student or parent of a new college student can do to prepare financially is to make a budget. Making a budget requires knowing two things:
1) How much is college going to cost? and
2) How much money do I have to cover these costs? There are many tools online to help you figure this one out. Every school will cost something different. You can find a Cost of Attendance worksheet online. This will help you start putting some real costs together and start you on your way to a sound financial aid program.
If you are like most Americans, you probably do not have enough stored away under the mattress to simply write a check for your college bill. In fact, a recent survey by Academic Management Services found that 57% of parents with at least one child entering college as a freshman in 2005 waited until their child was in high school before researching ways to pay their child’s tuition. But you will be glad to know that help is available. Most college students receive some form of financial aid. (Sometimes, it is good to know that you are not alone.) The following is the percentage of undergraduate students using some kind of financial aid program in the 2003-2004 academic year:
- Two-Year Public Colleges 46.8%
- Private, for Profit (Proprietary) Institutions 89.9%
- Total (All Institutional Types) 63.2%
Does this surprise you? In the year 2005-2006, the average total tuition at a 4-year, public was $5,491. When you take into account the additional expenses of room and board and books and supplies, the price tag jumped to just over $13,000! Private institutions cost even more. The average tuition at a four-year private college was $21,235, and with the additional expenses mentioned previously, the price tag goes to $29,930! The costs at two-year colleges were $2,191 and $8,901 respectively.
From 1981 to 2000, average tuition (adjusted for inflation) more than doubled at most post-secondary institutions while the median family income only grew at 27% during that same time. The good news is that few families actually pay the “sticker price.” Once you deduct grants, scholarships and loans from the bottom-line, most families are left with a very manageable net cost.
Over $122 billion in financial aid programs were distributed to undergraduate and graduate students in academic year 2003 - 2004; the majority coming from either loans or institutional grants.
So, as you can see it is all doable. You just need to do your homework and research. Find the best things out there to fit your personal financial situation.