Sobering College Financial Aid Article

Thanks, Krak, for the link.

This is not pleasant to read, but certainly necessary to read if anyone is in the position to need any sort of aid, from grant money to government-backed student loans.

I think that "college as we know it" has just come to an end for many students. The idea of going "anywhere" will just be an idea. There has already been a rise in enrollments in junior colleges. The state universities, at least in Illinois, have become much pickier than ever before due to the number of students applying. Part of the increased numbers is the larger number of students in this graduating class, but also a large part is due to the economics of in-state public vs. private colleges. I've spoken to a number of parents of seniors who report that their children will go to work for a while and then go to college.

I also think that "party schools" will no longer have that title--or not as strong of that title--I can't imagine that parents will be willing to pay for their children to not be focused on truly getting an education....the cost is too great and money is too hard to come by.

I sure wish my children had a rich aunt or uncle....Does anyone want to adopt them?

I have heard that the sooner you get your FAFSA in, the better opportunities you will have for aid. Is this correct?

The news is not great, but it's also not all bad. Read the whole article and you'll see some positives - the subsidized loan amount limit was raised, for example and parent loans can be deferred until graduation. The situation is not rosy, but it's also not a reason to give up on the idea of college. You may have to look harder and work harder to get the money, but it's still there. My nephew was just offered a full ride to a small private DIII school just based on his ACT score. It's definitely not his first choice school, but if nothing else comes through, he knows he'll be going there and he's OK with that.

If your kids have done their best to get good grades in school, they should still be OK. They may not go to their dream school, but they can still get a college education.

It is important to get your FAFSA done as soon as you possibly can, as most schools do allocate private aid (scholarships and grants) on a first-come basis. Get Krakin'!

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Observations...

While times are tough...Not all is doom and gloom...

- Good things still happen to dedicated productive students. Be one.

- Education is more important/valuable than ever. Could make an argument that it is WORTH more. People are headed back to school in droves as a way to improve and become more marketable. Sounds like a good idea, think on the upside.

- Values in education exist, search them out. JC Looks REALLY good about now, and for many may/can fit into baseball plans as well. Adapt/adjust to fit situaion.

- New administration is stated to be comitted to education as a part of the solution, new policies may be in the works. Article references new progrmas. Things may even get better, be ready.

- It would appear that federal loans are still available. Could argue that due to flexibility of repayment programs that they are better then the disappearing private loans anyway.

- Yes, private funding is drying up some. But while it pays to be careful and diligent...and it is up to each family to decide on debit levels...and while a recent HSBBW thread would have us believe that most everyone does...it is not a birth right to graduate without any debit. Studies show that money spent in education is an excellent investment.

- Controversial topic: While I fully understand the value of summer ball, maybe a player could work...and lift, and condition and skill develop for a summer or two. Could make a good case for this.

- While I would hedge my bets and get my FASFA completed now, and update it when the taxes are complete (have done both of ours already)...My understanding is that most finanacial aid decisions are not made until spring...post FAFSA dates. While it may be true, Not convinced that aid decisions are first come first serve. FASFA was never respresented to us that way. Rather a window you must adhere to to be considered.

from the article...

quote:

Indeed, the news isn't all bad. The federal government has authorized some $95 billion in grants, loans and work-study assistance to help almost 11 million students and their families pay for college this year, and its recent commitments mean that total will all but certainly be exceeded next year.

"It's scary, but not as scary as people might think," said Lauren Asher of the California-based Institute for College Access and Success, an independent nonprofit group.

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Obama's Stimulus plan may be money for schools

From the article........

quote:

School districts do spend a lot of the No Child Left Behind and special education money on teacher salaries. But they have five years to spend money from the two programs — and a long track record of spending it slowly.

I added the emphasis.

quote:

There currently is more than $5 billion in unspent federal education money, according to the Education Department. In other words, schools and states are still sitting on the money, McKeon said.

Eventually, they do spend most of it, although the department says just under $100 million is returned to the federal treasury every year.

With the current state of news journalism these days, who knows if this is reality or not?

But, when have you ever heard of a school saying they have too much money?

I do know that federal money for schools is returned to the goverment. Sometimes the strings with the money can't be met, but wouldn't you think they could find a way to use the money, as much as they whine that they don't have any?

Good post OB44, as always.

I believe the money is there, just right now harder to get, due to economic uncertainity, lot of "holding on to what we have until we find out what's going on". It's available, but might not be as much as you would like it to be, so that means adjustments for everyone.

There is absolutely no reason why if one does their homework and not sit back and wait for that full scholarship to come that your kids won't make it to college, and remember they have to do their part as well. More than ever, grades are important, something I have been saying for years, work hard in the classroom it will pay off.

More than ever, the need for an education is at an all time high, it is an investment, and having some debt when you leave is not unusual or something to be ashamed of.

quote:

Originally posted by observer44:

- While I would hedge my bets and get my FASFA completed now, and update it when the taxes are complete (have done both of ours already)...My understanding is that most finanacial aid decisions are not made until spring...post FAFSA dates. While it may be true, Not convinced that aid decisions are first come first serve. FASFA was never respresented to us that way. Rather a window you must adhere to to be considered.

For what it is worth - and this may be particular to the small liberal arts colleges that my daughter is looking at - but we have been told repeatedly that filling out the FAFSA as early as possible is key to getting larger financial aid awards.

To paraphrase from the information sessions

"We strongly suggest that you fill out the FAFSA using estimated numbers in January. We start making awards in February and those who come later will be looking at a smaller pool of funds."

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I stand corrected...I think.

Observation...I know that one of the schools we are looking at (state school) closed private $/private scholarships December 15, 2008 for the 2009/2010 school year....didn't even wait for the FAFSA. Closed even before the applications closed.

Which brings up the question...Are these early deadlines just for Private money or for federal and state as well?

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Not trying to correct - simply providing another data point.

My guess is that it varies by school - and better safe than sorry - e.g. fill them out with an estimate as soon as you can - and then amend when you have your final tax return. The forms don't take that long - and amending is even faster.

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I think I would rather endure chinese water torture than fill out that FAFSA form again....

Is it time already?!

quote:

The forms don't take that long

Agreed, the second year (Sophomore) is simple since much info is carried over.

I think all schools (ok, most) have their own financial aid deadline. I don't think it matters if it is public or private. Last year when one of my sons decided to transfer to a different school, due to our self-imposed financial parameters, he was limited to only those schools which had a later financial aid deadline. In researching this, I really was quite surprised that the deadlines were not uniform. And even more amazed that some schools had really early deadlines, like Feb. 1 and even Jan 1. However, the school that my son is attending now had a JULY 1 financial aid deadline! So it really is kind of random.

I am grateful for the reminder to get the FAFSA completed and submitted soon. Although I dread having to do EVERYTHING relating to math, I am surprised that filling it out isn't quite the nightmare that I once thought it was. It just takes awhile, is all.

Diligence, speed will help secure 2009 college aid