Economic Crisis effects College Tuitions
Kayla Mrozinske
Issue date: 11/20/08 Section: News
With the United States facing an economic crisis, college institutions are feeling the wrath. In reference to the struggles in the stock market, both public and private colleges and universities are said to soon face financial crisis's which will result in the increase of college tuition and cut backs in school funding.
Reports have found that the average in-state tuition fees for public college institutions with four-year programs have creased by nearly 6.4 percent which is roughly $6,585 additional. In similar, two-year institutions increased about 4.7 percent, nearly $2,402 out of pocket. In closing, typical private four-year colleges and universities have increased in price by $25,143 which is a 5.9 percent increase within one year. That is some serious cash!
With the increase in tuition, financial aid has helped the students make each semester they endure possible, $143 billion in financial aid to be exact. This aid included grants, federal work-study assistance, federal tax credit, and federal loans to students who have qualified or applied. The money broke down into $8,896 in financial aid, $4,656 in grant aid, and $3,650 in federal loans to undergraduate college students alone. In addition, the number of Pell Grant students rose from 5.2 million to 5.4 million recipients in the last year. The grant helps with low and middle class families with low incomes in the sense that it enables their college experience to become possible.
Due to the increase in tuition, the reaction of current and future college students is to apply for the financial aid and loans which puts the private colleges in a bind in terms of their enrollment if those recipients do not meet the financial needs. However, the private colleges are reassuring their students that it will be possible to afford their tuition, no matter what the state of the economy is. Those colleges will face challenges such as keeping their student aid budgets in sync with the growth of finances. In addition, with respect to both private and public colleges and universities, the institutions will have to cut back on "merit aid" offered to those desirable students who project good grades and high test scores which increases the school's rankings and instead can be properly distributed to students in financial need.
It seems the circle goes round and round. The economy suffers, prices rise, and everyone must adjust accordingly to survive.
Senior policy analyst for the College Board and a Skidmore College economics professor told The New York Times, "College prices are doing what other prices are doing. They're not going up more rapidly; they're just keeping the pace. But then, we had an unusually high rate of inflation. And with the current economic crunch, we don't know what will happen next year."
Reports have found that the average in-state tuition fees for public college institutions with four-year programs have creased by nearly 6.4 percent which is roughly $6,585 additional. In similar, two-year institutions increased about 4.7 percent, nearly $2,402 out of pocket. In closing, typical private four-year colleges and universities have increased in price by $25,143 which is a 5.9 percent increase within one year. That is some serious cash!
With the increase in tuition, financial aid has helped the students make each semester they endure possible, $143 billion in financial aid to be exact. This aid included grants, federal work-study assistance, federal tax credit, and federal loans to students who have qualified or applied. The money broke down into $8,896 in financial aid, $4,656 in grant aid, and $3,650 in federal loans to undergraduate college students alone. In addition, the number of Pell Grant students rose from 5.2 million to 5.4 million recipients in the last year. The grant helps with low and middle class families with low incomes in the sense that it enables their college experience to become possible.
Due to the increase in tuition, the reaction of current and future college students is to apply for the financial aid and loans which puts the private colleges in a bind in terms of their enrollment if those recipients do not meet the financial needs. However, the private colleges are reassuring their students that it will be possible to afford their tuition, no matter what the state of the economy is. Those colleges will face challenges such as keeping their student aid budgets in sync with the growth of finances. In addition, with respect to both private and public colleges and universities, the institutions will have to cut back on "merit aid" offered to those desirable students who project good grades and high test scores which increases the school's rankings and instead can be properly distributed to students in financial need.
It seems the circle goes round and round. The economy suffers, prices rise, and everyone must adjust accordingly to survive.
Senior policy analyst for the College Board and a Skidmore College economics professor told The New York Times, "College prices are doing what other prices are doing. They're not going up more rapidly; they're just keeping the pace. But then, we had an unusually high rate of inflation. And with the current economic crunch, we don't know what will happen next year."
Viewing Comments 1 - 6 of 6
Amanda Smith
posted 3/04/09 @ 8:21 AM CST
Good and interesting article, thanks!
Katrina Glover
posted 3/09/09 @ 1:41 AM CST
Cheers for writing about this. FYI - here's some more info about watch bones you might like!
Montgomery Donigan
posted 4/19/09 @ 4:54 AM CST
That looks like lots of fun. When I was in college we didn't had so many fun activities.
Monica Achey
posted 6/20/09 @ 12:07 PM CST
Very interesting site. Hope it will always be alive!
Caroline Card
posted 7/04/09 @ 6:03 AM CST
I have to agree with teh poster above... :/ looks like a lot of hot air to me.
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posted 11/23/09 @ 1:58 PM CST
I think crisis effects almost everything!
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