It is still true today that many professions require at least a bachelor’s degree and all too many professions require a master’s degree if one expects more than an entry-level career. According to CNBC, tuition and fees for private colleges in the past decade rose by 44 percent. At the public schools, it rose by 55 percent in the same time period. This makes tuition out of reach for many, unless they have scholarships, grants and loans.
In order to find out more about how to finance one’s education through public sources, we spoke to Pine Advisors, a firm that specializes in helping people who have heavy debt loads.
Look for Public Sources of Education Funds First
According to U.S. News and World Report, on average, students receive 30 percent of their college tuition and fees in public funds. Anyone who needs to finance their education must first begin by filing the federal Free Application for Federal Student Aid, even if they think they do not qualify for federal aid.
The feds determine, based upon the student’s and possibly their parent’s income, what financial aid they qualify for and in what form. The Federal Pell Grant program is need-based. There are other state programs that provide grants for students with financial need in meeting college expenses. An example of one such state grant program is California’s Cal Grant.
After a student submits their FAFSA, then they need to apply to their state’s grant program as well as to as many scholarships as they can. The Pell Grant and the state grant programs often are for a student’s four-year bachelor’s program, as long as they meet academic and need requirements. The problem is that the Pell Grant, for the 2019-2020 school year, according to U.S. News, only pays for $6,195 of your yearly tuition if you are offered the maximum grant.
How Loans Enter Into the Mix
When scholarships and grants do not cover the costs of attending a four-year institution, students often have to resort to student loans. If you do have to resort to loans, the FAFSA will provide information about how much in federally-insured student loans you qualify for.
Loan Amounts Can Get Out of Hand
The problem for many students is the shortfall of public scholarships and grants in paying their tuition costs is getting larger and larger. CNBC reported that the average yearly cost for tuition and fees at a private, four-year university is just over $35,000. At public universities, tuition now averages over $10,000 yearly. Many students now leave college saddled with student loan debt. For some, it is private student loan debt at high interest rates.
Deferred Futures
The problem with all of the student loan debt that most students incur in getting their education is that they end up paying huge student loan payments each month. This is forcing people to delay marrying and having children as well as purchasing homes.
Solutions
If students have federal student loan debt with high payments, they need to go on the lender’s website and see what relief the federal government may have created for their particular situation. There are situations in which people may be able to defer their payments or make smaller payments.
If you have a private student loan and are suffering under high interest payments, call Pine Advisors. We have solutions for people who are suffering under high-interest debt.
Recent Comments