Some Schools Cut Student Grants, Scholarships
"After loosening their coffers to help families cope during the recession, some colleges now are cutting back on grants and scholarships, aid that students don't have to pay back," the Wall Street Journal reports. "The move—prompted in part by the colleges' own financial troubles—is prompting students and their families to borrow more to close the gap, raising the already-heavy debt load many graduates will face. Grants and scholarships fell 15% during the just-completed academic year, according to a study to be released Monday by student-loan provider Sallie Mae. ...While college aid typically accounts for a big chunk of grants and scholarships, the category also includes scholarships from outside organizations and federal funding, such as Pell Grants. 'During the deepest valleys of the recession, schools were trying to maintain a certain level of [financial aid]. As schools have burned through their reserves, they're pulling back,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators."
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