College Financial Aid on the Rise
April 23, 2008
A number of leading private colleges have announced plans to boost financial aid to families that would otherwise have a tough time affording college.
For instance, Duke will be spending $13 million more on financial aid packages for families earning less than $60,000 a year. Likewise, Harvard is replacing loans with scholarships to help alleviate the financial burden for students.
Similarly, the University of Pennsylvania, Swarthmore, and Tufts are attempting to offer students a debt-free college education. The moves come at a time when the average tuition at four-year private colleges tops $23,000 a year. The most prestigious universities typically cost double that amount.
Of course, you might be wondering why institutions of higher learning are being so generous. For one thing, parents, alumni, and public officials have been leading the push to make college more affordable. For another thing, in order to remain competitive, colleges need to scale back costs for students. At this point, less than one-fifth of all college students attend private universities.
Experts predict that less expensive colleges may try to follow suit, offering more money in student aid. While that might seem like a positive development, it could actually undermine efforts to make college more affordable. That’s because some of the aid is being targeted at upper-income families - aid which could siphon off money from those from lower income brackets.
Meanwhile, Pell Grants, which are given to low-income students by the federal government, are expected to rise to $4,731 under legislation approved by Congress. However, the increase represents less than what many students had been hoping for.
Another foreboding factor is the economy. A number of economists are predicting an economic downturn in the near term, which could result in less state funding for higher education. That development, in turn, could mean higher college tuition bills.
Recent additions:
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