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
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.
READ!!!
FASFA ONLY HELPS YOU OUT IF YOU HAVE EIGHT KIDS AND ON FOODSTAMP. ANYONE CAN KEEP HAVING KIDS! I LIVE IN NEW ORLEANS AND THERE ARE ALOT OF KIDS THAT GO TO SCHOOL AND REALLY DON'T GIVE A SHIT. THEY ARE SLACKERS AND THEY HAVE PERSONALLY TOLD ME THAT THEY ARE GETTING GRANTS. SURE POOR PEOPLE WHO WANT TO REALLY BE THERE SHOULD GET IT. I AM 22 HAVE NO KIDS GOT KICKED OUT MY PARENTS HOUSE WHEN I WAS 16 AND BEEN SURVIVING BARELY. I WANT TO GO TO COLLEGE, BUT LIKE EVERYONE ELSE CAN'T AFFORD IT. I HAVE TO GO BY MY PARENTS INCOME,BECAUSE I AM NOT 25. AND CAN'T GET GRANTS BECAUSE I DON'T HAVE EIGHT KIDS AND AM NOT ON FOODSTAMPS. I AM STRUGGLING JUST LIKE THE REST, BUT I WAS SMART ENOUGHT NOT TO BRING A CHILD IN TO A PLACE WHERE I CAN'T EVEN TAKE CARE OF MYSELF. I DON'T THINK ANY OF IT IS RIGHT PEOPLE UNDER 25 HAVE TO SUFFER. HOW ARE THEY GOING TO HELP US? NO ANSWER FOR THAT ONE I BET.
Education through the military
I would love to hear from those who financed their education through various military options.
This is a MAJOR problem today and people here offer minimal solutions
I am disturbed by some of the comments made by people including Allan Frazier and Karen from Ohio. I am from a middle-low income family and am the first one to attend college. Sure I can fill out a FAFSA form online in less than 30min. now, but back then I was a naive 17 yr. old trying to fill out a form my parents never new existed. I had never worked and had never dealt with W2s or Income tax forms before. It took some time to learn the ropes. Not only that but all the other hoops one has to jump to get financial aid. Now as my sisters go to college I can offer insight I never had at their age except by a caring school counselor who though, very helpful, was limited due to the many students she had to help. I do feel for all of those who've had to take out loans, I really do; I have friends in these type pf situations where they have debt upwards of $40K; and I might have to resort to a loan to cover my last year. I also work and try to maintain good grades, something that can be challenging when you work at a physically demanding job, while your wealthier peers, get their tuition paid by daddy, and have ample time to study and earn those As. I know I'm smart and hard working and probably have more cultural experience abroad and here at home than they do, but that's nothing when it comes to these kids getting the best and then thinking they are naturally smarter than others simply because they had the time, money, and energy, which to many low income people can be a luxury, to get good grades. Financial Aid is a must for all if we are to remain competitive as a nation.
The problem with this country is that we focus on the wrong things and find the money to support them. The Immigration issue is what is causing our American families to struggle, because they are lowering salaries and taking our jobs. The second is we need to focus on America and our issues here and until they are corrected we need to back down on aide sent everywhere else. Instead of focusing tax money on our education and health care system that it is severely lacking, We are now looking to waste money in a foreclosure bailout for individuals that chose to live beyond their means and banks that were willing to promote it. So now is our law makers going to bailout people that are struggling and behind in their taxes? I think not. God forbid we do this.
I am 33 yrs old, single, an American citizen and just financed and paid for my Bachelors Degree by myself, no co signer and no government assistance.I worked a fulltime and partime job in addition to attending school full time just to make ends meet. I am a 4.0 student and I will be in $47,000 in debt because I qualified for not one grant or academic scholarship. Yet our lawmakers have the nerve to not see that there is something wrong with this. I had to take out my 401 K to pay for tuition that I could not receive assistance on, in addition to not wanting to take an additional loan out for an insane 18% interest and now the IRS is after me for taxes on the money I withdrew to pay for school. Yet I look at those that go to school for free and receive living expenses to top it. These people are coming out with the same degree and will be eligible for the same salary, yet I owe and they don't.
As far as the comment:
"For parents who don't speak English well or who don't want to reveal such exhaustive financial information to the government, this form can be insurmountable.”
My feelings on this is we are in America people, get over it,I had to fill this exhaustive form out and got denied to top it..why should you be any different? Learn the language or go back where you belong.
Get a Clue?
As millions of Americans navigate the process of what school to apply to, pay for, and attend, I would bet that most of them aren't navigating which of the three top Ivy League schools financial incentives are the best for their child/family. While her content is on point, I believe she losses the masses by framing her position up front that only .01% of the population can relate to.
Even better, is that after getting solid advice on making schools compete for your student(s) through the financial aid process, US News and World Report then pitches a collection of Private student loans to consider. After balancing this advertisement with advice to look to Federal loans first as they may have advantages, they then pitch another Private student loan offer.
How can people rely on content from someone who makes money on advertising certain loan offers?
If the federal income tax and most state income taxes were abolished, many more families could afford to send their children to college. The family taking $84k is definitely paying a lot in income tax and property taxes that are taking away from their ability to provide for themselves. If they tried to save, they are taxed on the interest a savings account earns.
I will also point out that any family making even 1/2 that income is still paying 1/3 of their income to support various levels of government.
My Dad forked over a few thousand one year because he made "too much money", yet drove a 10 year old vehicle, paid the house off early, and still worked part time after retiring.
Remember though, that most colleges are publicly funded, so there are not too many colleges operated at a for profit basis. Perhaps most universities need to be privatized so one could have better feel for what the real cost are for an education.
