TLP: So Here's Where Those Loans Are
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.