College financial aid

College Financial Aid Facts You Want to Know

According to the U.S. Department of Education, 71% of  undergraduate students received some form of financial aid in 2011-12.  

That is a 5% increase since 2007-08.

The average amount of aid increased from $9,000 to $10,800.

According to a report from Sallie Mae, How America Pays for College, in 2013, college expenses were covered in the following way:

  • Students borrowed 18%
  • Parents borrowed 9%
  • Parents’ savings 27%
  • Grants and scholarships 30%
  • Relatives and friends 5%
  • Student income and savings 11%.

Since the recession of 2009:

  • Parents have contributed less to meet college expenses.
  • Students borrowed more to meet college expenses.
  • Use of college savings plans increased.
  • Affordability has jumped to become the #1 factor in college selection.
  • Many colleges and universities have slowed the rate of annual tuition increases.
  • Some schools are charging different tuition rates for different majors.

The New College Guide by Marguerite-J-Dennis FeaturedThe New College Guide How to Get In, Get Out, and Get a Job recommends:

  • Finding out before you apply if you can afford the schools your list.
  • Meet with a financial aid counselor before you submit an application.
  • Ask the hard questions.
  • Debt is manageable or unmanageable only in relationship to starting salaries. Try to keep your loan payments to 15% of your first year starting salary.

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