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Before
you give up on the book bucks, learn the truth
about financial aid.
College
Money Myths Shattered!
By Dawn Papandrea
Additional reporting by Rebecca Vara
The CollegeBound Network NewsClick -- First, the
bad news: According to the College Board's Annual
Trends in College Pricing Report for 2002-2003,
college tuition and fees increased between 5.8
and 9.6 percent at four-year private and public
institutions. That means more than a $1,300 increase
in fees between the two -- the largest jump in
a decade. Now, the good news: More aid was given
out to students this past year than ever before,
totaling a record $90 billion, an increase of
11.5 percent over the last year. Think there's
none for you? Think again!
According
to College Board President Gaston Caperton, the
increase in student aid is important given of
the recent economic downturn. "As the cost
of college rises, the availability of student
aid becomes increasingly critical to a student's
ability to pursue academic goals," explains
Caperton. "This record amount of financial
aid is promising for America's students, but we
must do more to ensure that college remains affordable,
and that more students who have the preparation
and desire, have access to higher education."
That
may be true, but will there be a piece of the
financial aid pie for you to grab? The answer
may surprise you.
"There
are many misconceptions about college financial
aid," says Harold Burtley, director of financial
aid at Northwestern Business College (Chicago,
IL). That's not a surprise when you consider how
complex the cash collecting process can be. Luckily,
however, Burtley gave NewsClick the lowdown
on money myths, proving that college cash can
be yours!
*
Feeling like you're stuck in the middle of the
financial aid food chain? Not to worry, says Burtley.
"Students from middle-class families regularly
qualify." There are various federal and state
loan and grant programs to meet the needs of students
of all income levels, he explains.
*
If you've given up on attending a private school
because you think you can only get state and federal
aid for a public school education, you're missing
out. "Private colleges are just as capable of
subsidizing a student's education through state
grants as public universities," assures Burtley.
*
As sad as it may seem to those who were hoping
to stay debt-free, being eligible for a federal
student loan is considered part of financial aid.
Why? As Burtley explains, "Offerings like the
federally subsidized Stafford Loans and Parent
Plus Loans offer lower interest rates than those
available through banks or credit unions."
*Over
one million new jobs for college graduates were
added over the last year, while two million non-degree
jobs were eliminated, according to a recent study.
"In addition to potential financial gains, it's
more important than ever that we encourage our
students to pursue a college education -- it's
the best investment we can make to foster knowledgeable
and empowered citizens," Caperton says.
The common thread here? Asking the right questions
and doing your research will help you make a financially-educated
higher ed' decision.
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