A Failing Financial Aid System Keeps Students Out of College
Money for college is hard to find and isn't keeping up with rising costs
Corrected on 9/5/08: A previous version of this story said that Orenthious Hill attends the University of Florida; he attends Florida State University. It also said that he had to wait until he turned 25 to apply for need-based aid without the support of an adult. He is eligible to apply for that aid on his own now that he's 24.
Rduch, the daughter of a single mother who teaches high school Spanish, will graduate from Amherst College next June without a penny in debt. Amherst's recent pledge to provide enough grants to eliminate loans from its standard financial aid offers doesn't mean it is offering free rides to students like Rduch. To scrape together the approximately $10,000 a year Amherst felt the family should be able to afford without borrowing, the Rduchs tapped a small college savings plan a grandparent had set aside. Victoria, who was salutatorian of her high school and scored 1550 on her SATs, worked hard to get several thousand dollars a year in private scholarships. Her mother, Evita, contributed the remaining $2,000 a year or so to cover plane tickets and other costs.
Evita was relieved she didn't have to take out a second mortgage or drain her own retirement savings. "And I got to buy some fruit instead of eating hot dogs for the last few years," she jokes. What's more, her daughter will be able to buy a car, if she needs one, to get to her first postgraduation job. "People claim the middle class get the shaft," Rduch says. "But I'm middle class, so I can tell you no, no, no."
Not, at least, for the brightest or most geographically lucky students. Everybody else, however, is facing a more difficult and uncertain climb.
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Reader Comments
Why can't I file independently?
I graduated in 2008. My father makes 90,000+. However, he is unwilling to pay for my school. The government says I can't file independently, but I am 19 and I haven't lived at home since I was 16. I graduated with a 3.5 gpa, and was in the top 10% of my class. Still, the school gave me little funding because my father makes so much. He isn't supporting me at all. No grants and 1 scholarship came my way but not enough to attend my university. He is also military, and has been recieveing my government funding from the Veterns Association to pay for my schooling, however I haven't step into a class room in over a year.
No financial support
I graduated from the UC system paying out of state tuition for three of the five years since my parent travelled for work (this even though I had no other state of residence). Was below poverty line when I applied to undergrad. Received no aid although I followed all instructions to the letter and met all FAFSA deadlines. Graduated in the top 6% of my class and received no merit scholarships. Won numerous awards for volunteering on campus and worked two jobs. Graduated and earned 9$ hour working for a white collar firm that has since gone bankrupt. Went back to graduate school and scored in the top 6% in the verbal section of the GMAT with a 740/800 in the quant section. No merit aid for graduate school; more loans. Currently work in investment banking at 60K after 90K in student debt. No other benefits other than a flat salary. That is my reward for 8 years of higher education.
Lessons learned: US education system is a major disappointment for about 40-50% of low end middle class students. Being bright and motivated means little if there is no opportunity. Universities want to meet quotas of sexy candidates for admission. Poor, hard working students are not sexy.
There are few if no good jobs in the US where you can break even with even a basic degree. Our counterparties in Europe who graduate debt free and with the same degrees are much more competitive. Ditto for Asian competitors around the corner. This system can’t last.
Study Overseas
I posted this comment on another article. I think more Americans can avoid losing hair over haggling with the financial aid system or taking on debt that will cripple them for years if they went to college overseas, where tuition is a small fraction of what it would cost in the USA. In the Philippines, for example, tuition is only about $2400 a year and academic standards in the best colleges and medical schools are at par with their US counterparts to the point that American graduate schools accept undergrads from Philippine universities, and American hospitals accept Philippine medical school (WHO-recognized) graduates. You can graduate college or med school debt-free and will have the financial flexibility to carry-on with the rest of your life.
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