College Financial Aid Drops - Families Pinched
"College students paid significantly more out of pocket for their education this year than last, even though tuition rose at a slower pace than at any time in the last decade," the San Francisco Chronicle reports. "That's because less financial aid was available to them, concludes a study released Wednesday by the College Board. The numbers could help explain why families still feel squeezed even though the economy is improving. ... Students are paying more because financial aid - education grants that do not have to be paid back - has not kept pace with rising tuition. In the last decade, financial aid for each full-time student rose by an average of 54 percent, from $9,700 to $14,980. That's according to the latest 'Trends in College Pricing,' one of three new studies packed with data about what college costs, what students owe the bank after graduating and what they earn after getting a job. ... 'Overcoming financial barriers to higher education remains a significant challenge for the nation's low- and moderate-income families,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators, which surveyed its members to help the College Board compile its data. Draeger noted that while borrowing is down and student debt is somewhat steady, families who aren't wealthy 'are continuing to shoulder an ever-increasing amount of college costs.'"
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