Daily Aid 86: Paying full price for college at a premium

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Daily Aid 86: Paying full price for college at a premium

24 February 2009 1 views No Comment

Daily Aid 86: Paying full price for college at a premium

Student Financial Aid News

As colleges and universities provide more financial aid to families hit by the recession, they are also more likely to give wealthier students preference in admissions and scholarships to help offset that extra cost, according to college administrators and consultants.

“The full-pay kid this year is going to be at a premium,” said Frank Vellaccio, senior vice president at the College of the Holy Cross in Worcester, which does not consider finances in admissions decisions. “Those students are going to have a lot more choices now and will get into schools that they might not have normally.”

Commentary

Hard economic realities are forcing the hands of colleges. As the endowments and investments of colleges fall with the market, the full price premium student’s stock will only continue to rise. Fair or not, unless colleges reduce tuition costs (and costs in general) or find other sources of income, expect the trend towards greater preference for full sticker price students to last as long as the depression does. Once markets turn around and investments begin growing again, aid policies are likely to change as well.

What do you do if you can’t pay full price? Unless you’re at the top and can be admitted with financial aid for fantastic academics or other traits the college is seeking, it’s time to look at other alternatives for college, be they public schools, community colleges, online degree programs, or even taking some time off to work if you can.

Here’s something I want you to strongly consider – ironic coming from an employee of a student loan company. Avoid borrowing if you can. I would suggest attending a less expensive college before borrowing because this economic depression is accelerating despite the efforts of the private sector and government. Change schools first before you borrow more.

At a minimum, keep your student loan borrowing in total to less than the amount you are likely to make in your first year after college, because turning around an economy is going to take time. By the time you graduate, the economy may not have fully recovered – even for entering first year students. The less debt you carry on the day you walk with cap and gown, the better off you will be.

Scholarship Update

The Krylon Clear Choice Art Scholarships will award five $1,000 non- renewable scholarships to high school seniors and college freshmen and sophomore students currently accepted at or enrolled in a fine art program. The five scholarship recipients will also receive a student gift package of Krylon Artist Sprays and Adhesives with an approximate retail value of $70. In addition, the winners’ schools will receive a $500 grant and a school gift package of Krylon Artist Sprays and Adhesives with an approximate retail value of $250.

Details at our free college scholarship search site.

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