For-profit College Students Report Unmanageable Debt
For-profit colleges can offer an appealing alternative to students looking for classes at night or online, in addition to day and on-campus classes. Many also offer specializations like culinary arts not available at many nonprofit liberal arts institutions. As NCB News reports, a multi-year investigation shows for-profit student debt at a disproportionate level as compared to nonprofit schools.
Survey: Less Financial Aid Leading to Fewer Choices for Entering Students
A recent study, “The American Freshman: National Norms Fall 2011,” found that entering college freshman were less likely to attend their first college of choice last Fall than at any time since 1974. While competition for top schools is on the rise, so is the inability of students to pay top dollar even if they are admitted. As the New York Times reports, nearly one in every 5 students accepted to their first-choice school do not attend because they could not secure adequate financial aid. “When you look at those students, the primary thing that jumps out is cost and financial aid,” John. Read More.
Federal Student Aid Gets Temporary Relief from Debt Deal
The recent stalemate over the debt ceiling threatened the stability of student loans like the Pell Grant program. The debt ceiling deal means an immediate ability to pay out benefits, but as The Chronicle of Higher Education reports, terms of the deal continue to threaten student loan availability. At the same time, the deal will force Congress to cut at least $1-trillion from the federal budget, including $7-billion in the 2012 fiscal year. Student-aid advocates worry that the bill’s spending caps, coupled with the remaining shortfall in the Pell Grant program, will force Congress to cut the maximum award or shrink other student-aid programs going. Read More.
Student Loan Debt Up 511% Since 1999
As a follow-up to The Atlantic’s recent report on the growing debt crisis facing America’s education system, Daniel Indiviglio looks at the staggering growth in student loans over the last 12 years. This chart looks like a mistake, but it’s correct. Student loan debt has grown by 511% over this period. In the first quarter of 1999, just $90 billion in student loans were outstanding. As of the second quarter of 2011, that balance had ballooned to $550 billion. The chart above is striking for another reason. See that blue line for all other debt but student loans? This wasn’t just any average period in history. Read More.
Average Student Loan Debt Up 4% Since 2008
At a time when most Americans continue to pay off the majority of their personal debt, student loan debt continues to rise. As reported by CBS MoneyWatch , the average American’s student loan debt has jumped 4% from $23,200 in 2008 to $29,910 in 2011: More people are borrowing more money for education than ever before. Worse, in many cases, college students are leaning on risky private loans rather than the safer alternative of federally guaranteed student loans. Why? Experts believe that they either don’t understand the difference (until recently, it was hard to tell one from the other), or they’re lured in by. Read More.