TLP: So Here's Where Those Loans Are

Saturday, February 13, 2010 , , 5 Comments


After being able to basically suck up free money to attend college, students are now being called on to take more of their financial aid in the form of loans.

And, really, AP, the preferred term is "In this economy ..."

AP via The Washington Post

Now the weak economy is forcing some institutions to limit their generosity after many of them doubled or even tripled financial aid over the last decade to attract more applicants and reduce student debt.

Two of the nation's most selective private colleges - Dartmouth and Williams - announced they would no longer offer aid packages that allow students of any income to attend without taking out loans. Other schools are expected to follow suit, meaning many middle-class students will have to take on more debt.

Situations vary depending on the school, but experts expect financial aid at private schools to be less generous than last year while colleges increase tuition by 4 to 6 percent.

Many colleges dipped into savings last year to substantially increase student aid out of concern their enrollments would plunge because of the economic downturn - fears that went unrealized at most schools.

"There's a bit of a feeling that in increasing aid, maybe colleges went a little overboard because there was a lot of panic a year ago," said Roland King, vice president of public affairs for the National Association of Independent Colleges and Universities. "I think it's going to be a more austere year."

Well, if nothing else, knowing they're on the hook for tuition loans might make some students show up for class.

The Lazy Paperboy

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

5 comments:

Anonymous said...

am drunk from soulard but got news for you... know from first hand personal experience that they would rather young people borrow the money for tuition even when there is cash to pay the bill... no shit, first hand experience. signing off - Jeff

I believe you, Jeff -- about the loans and the Soulard buzz -- but this wasn't even a choice between students taking loans or paying out of their own pockets. These schools were giving grants and scholarships, trying to prevent a dip in enrollment. Now they've realized that was a losing bet, so guess who they're turning to for the fix?

-The Lazy Paperboy

Anonymous said...

"Many colleges dipped into savings last year to substantially increase student aid out of concern their enrollments would plunge because of the economic downturn - fears that went unrealized at most schools."

So, I guess the idea of cutting back their own internal operating costs were just something they couldn’t bare to consider? Shrink (now) to grow (in the future) is what these guys who are running universities and colleges had better start considering. Burying some schmuck who is still wet behind the ears in a mountain of government backed student loan debt is not the long term healthy solution (in my opinion) - not for the individual and not for the country as a whole. My wage bubble crash alert flag remains in place. On a somewhat unrelated topic… Does anyone else think that the bitch with a tenure denial axe to grind who went nuts at an Alabama campus look like she got her hair styling tips from Emo Phillips?

Yours in sobriety,
Jeff

Anonymous said...
Anonymous said...

http://www.pbs.org/wgbh/pages/frontline/programs/info/2817.html

watchin' the wheels fall off