Thursday, October 31, 2013

Another Current Event Day!

http://www.sfgate.com/education/article/College-financial-aid-drops-families-pinched-4921057.php


College financial aid drops - families pinched

That's because less financial aid was available to them, concludes a study released Wednesday by the College Board.

The numbers could help explain why families still feel squeezed even though the economy is improving.

For example, students attending a public, four-year college paid an average of $1,180 more in tuition this year than they did four years ago, in 2009-10, after financial aid was taken into account - even though colleges raised their prices this year by "the smallest percentage increase in over 30 years," or 2.9 percent on average. Overall, students paid an average of $3,120 after aid.

At private, nonprofit colleges, the amount paid by students after financial aid rose nearly as much on average - $910 - in half the time, since 2011-12. Students paid an average of $12,460 after aid.

Students are paying more because financial aid - education grants that do not have to be paid back - has not kept pace with rising tuition. In the last decade, financial aid for each full-time student rose by an average of 54 percent, from $9,700 to $14,980.

That's according to the latest "Trends in College Pricing," one of three new studies packed with data about what college costs, what students owe the bank after graduating and what they earn after getting a job.

"A college education is an unparalleled investment, but there is no college opportunity without college affordability," said David Coleman, president of the College Board, a not-for-profit education advocacy group that oversees the SAT and other college entrance exams. It released all three studies Wednesday.

"Trends in Student Aid," the second study, shows that fewer students are taking out education loans; borrowing dropped by 6 percent between 2011 and 2012.

That drop followed a year in which the average amount owed by graduates increased to $26,500 in 2011, up from $25,300 in 2010.

"Overcoming financial barriers to higher education remains a significant challenge for the nation's low- and moderate-income families," said Justin Draeger, president of theNational Association of Student Financial Aid Administrators, which surveyed its members to help the College Board compile its data.

Draeger noted that while borrowing is down and student debt is somewhat steady, families who aren't wealthy "are continuing to shoulder an ever-increasing amount of college costs."

The trends are happening as states have reduced their appropriations to public colleges by 19 percent in the past five years. At the same time, students have flooded into colleges, raising overall enrollment by 11 percent.

Other findings from "Trends in College Pricing":

-- Only about one-third of full-time college students pay full tuition with no financial aid.

-- In 1973 - using 2013 dollars - average tuition and fees at public, four-year colleges was $2,710. In 2013, it was $8,893.

-- In the past five years, average tuition and fees at public, four-year colleges increased by 27 percent.

-- In 1973 - using 2013 dollars - average tuition and fees at private, nonprofit colleges was $10,783. In 2013, the amount was $30,094.

-- In the past five years, average tuition and fees at private, nonprofit colleges increased by 14 percent.

To see all three studies, called "Trends in Higher Education," go tohttp://trends.collegeboard.org.

Nanette Asimov is a San Francisco Chronicle staff writer. E-mail:nasimov@sfchronicle.com Twitter: @NanetteAsimov

Briefly explain the article, what happened and how it affects you.  Your response should be a minimum of 5-8 sentences.

This articles is about how colleges are expensive and many cannot afford to pay for school. They seek out help and for years now the prices have go up and down. Financial aid has made college possible but still is a burden to the families who are not wealthy. Even thought there is help to pay for school there is still a huge problem. They are becoming impacted. Many students are trying to get into college because it has become a bit easier to pay for school. This has made getting into college even more difficult then it already is. This is extremely important to know about because for one we are all seniors applying to schools who are for the most part impacted in most majors that we plan on going into. Second of all we now have to make our selves more noticeable to get accepted to schools that we want to go to and that can be very difficult. This affects us students applying to colleges in every way possible. 

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