Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
My husband and I don't yet have children, don't know if we want any, but I am sure of one thing: college funds for these hypothetical offspring need to be opened immediately. The College Board said this week that the yearly cost of in-state tuition for a four-year public college jumped 6.6% from the 2006-2007 school year hitting $6,185. This follows a 5.7% increase last year from the 2005-2006 period. Private universities saw the annual tally for tuition and fees rise 5.5% to $16,640. The most affordable education can still be found at public two-year institutions, where costs rose just 4.2% from last year to $2,351 per year.
And that's just tuition and various fees. For students who live on campus (40% at public schools; 64% at private), the cost of room and board jumped 5.9% at public schools to $13,589. To live, eat, and learn on a private-school campus, it will cost $32,307 per year, also a 5.9% increase from last year.
Worse news for those counting on a higher education is that financial aid isn't keeping pace with rising costs. Last year, undergraduates received more than $97 billion in state, institutional, and federal aid, a 3.1% drop from two years ago. Funding for need-based Pell Grants also declined for the second year in a row. Representative George Miller (D-Calif.) responded to the news in a statement, noting that the "college cost crisis" is draining families and negatively affecting the USA's position in the global economy.
Students are also increasing reliant on private student loans, which carry higher interest rates. New graduates may emerge with their 4-year degree already tens of thousands of dollars in the hole, unable to recover until middle age. Every time I read statistics like this I feel the need to again thank my parents for financing my (public, but out-of-state) education, which was certainly pricey, even 15 years ago.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
Students are also increasing reliant on private student loans, which carry higher interest rates. New graduates may emerge with their 4-year degree already tens of thousands of dollars in the hole, unable to recover until middle age. Every time I read statistics like this I feel the need to again thank my parents for financing my (public, but out-of-state) education, which was certainly pricey, even 15 years ago.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
10-23-2007 @ 8:13PM
Tim said...
Tuition increases are enabled by encouraging students and their parents to take higher levels of debt. Sound at all like housing?
10-24-2007 @ 5:31AM
leo said...
For any financial related queries plz click on this url :
http://247wallst.blogspot.com/2006/09/twenty-best-financial-blogs.html
10-24-2007 @ 5:43AM
leo said...
https://secure.holotech.net/enews/spearii/subscribe.php4?12
For any financial related queries click on this url
10-29-2007 @ 10:58AM
Paulina said...
This is a great article. College rates really are rising at rates that outpace government aid, and recent investigations into lender scandals have shown that many lenders and schools are doing little to help (though I am not suggesting that this is the norm). A great site for additional information about scholarships is Scholarships.com. Students can find myriad information about financial aid, including details on FAFSA, scholarships, grants and fellowship opportunities.