"Downturn Expected to Drive Tuition Up"

"Downturn Expected to Drive Tuition Up"

By Tamar Lewis, New York Times


Tuition costs rose slightly faster than the Consumer Price Index last year, and students received record amounts of financial aid, according to the annual reports on college pricing and student aid released Wednesday, November 29, by the College Board. But while financial aid is still growing, average student borrowing is still going up, as well. With the troubles in the stock market, they said, both public and private colleges may soon be in serious financial straits, forcing large increases in tuition." Given the economic strain on state budgets, the pressure on state governments to shift the cost of education to students and families may prove irresistible," said Molly Corbett Broad, president of the American Council on Education, "Private institutions, too, given the loss of endowment income and expected cutbacks in private giving, will likely be forced to increase tuition at the same time they struggle to increase institutional financial aid." For the current school year, the reports found, the average in-state tuition and fees at public four-year institutions increased by 6.4 percent - to $6,585 - not much more than the 5.6 percent rise in the Consumer Price Index. Private four-year colleges and universities' average tuition and fees are $25,143, 5.9 percent higher than last year. But as the costs of college rise, so does student aid. Last year, the reports said, graduate and undergraduate students received more than $143 billion in financial aid, including grants, federal loans, federal work-study assistance and federal tax credits. In addition, they borrowed $19 billion from state and private sources. With worsening economic conditions, public and private institutions alike may cut back the "merit aid" offered to attract particular students - often, those whose grades and test scores will improve their rankings - and use that money on aid to needier students instead. According to the report, public four-year institutions give only 44 percent of their aid dollars to students with financial need. On average, 38 percent of the public universities' aid goes to non-need-based merit aid, and 18 percent to athletic scholarships.

Notice to All Seniors and their Parents!!!

The colleges that you are applying to all have specific requirements for being considered for their scholarships. Most of the institutions have deadlines of January 1st. Failure to properly apply will remove you from consideration. We strongly encourage you to spend the next couple of weeks accessing each of your college's websites, downloading and completing the scholarship applications properly and returning the applications before the cutoff date. Failure to do this could literally cost your family thousands of dollars which may make it financially unfeasible for you to attend even if admitted to your school of choice. Feel free to contact a local volunteer if you have any questions regarding this time sensitive issue.


I am a Consultant for the Access College Foundation-A member of the American College Planning Foundation and the California Association of student Financial Aid Administers

Access College Foundation (ACF) will provide the following services:

1. Assist with the completion of the Free Application for Federal Student Aid. (FAFSA)
2. Confirm accuracy of the Student Aid Report. (SAR)
3. * Create Expected Family Contribution (EFC) reports using both the Federal and Institutional Methodology Formulae.
4. Provide monthly College Roadmap newsletters.
5. Assist with the completion of the Financial Aid Profile Application, as needed. (FAP)
6. Assist with the completion of Institutional Forms, if required.
7. * Provide access to an online interests/abilities assessment designed to confirm or create a student’s career path.
8. Provide an interactive Student Positioning Session to help family/student select/confirm the best colleges for a career-appropriate pool of 6 to8 choices.
9. Produce college financial assistance history; detailing their Cost of Attendance, average merit award, % of need met, and their Grant to Loan ratio.
10. Recommend specific actions to maximize Financial Assistance Eligibility by reducing your EFC, when possible.
11. Assist with negotiation of the college award offers, when appropriate.
12. Assist in responding to any IRS verification requests.
13. * Develop a cost-effective funding plan to pay for your family’s college costs.
• Develop tax-efficient strategies to reduce your out-of-pocket costs.
• Develop customized plans utilizing current resources and cash flow to pay for college without diminishing or delaying retirement goals.
14. Provide guidance with education loan applications, if necessary.
15. Provide unlimited telephone and email support.

* (Pro-bono, if through Access College Foundation presentation)


Brad Asbury
basburycsa@yahoo.com