Financial aid guide for students and parents

The constant rising of tuition fees has created severe political as well as socioeconomic consequences in United States. While the US economy doesn’t show any signs of stability and recovery, there are only few families who can meet the high expenses of education. According to the recent survey, the education institutions in California have raised tuition fees by more than 31 percent. As a result of that, most of the schools had to shut down as they didn’t get sufficient applications to run their education program.

The education cost is rising every year, which has created sheer financial crisis for parents and they are even struggling to send their children to get appropriate college education. Even though, education cost varies from college to college, most of the institutions charge about $9,000, while private colleges charge around $35,000 per year. So, for two year’s college education students pay $2000 per year. Apart from tuition fees, the accommodation, food and transportation cost create additional financial burden on parents. Many institutions in states like Arizona, Pennsylvania, Oregon, and New York has followed same suit of reducing the teacher to student ratio, which hampered the quality of education by significant extent.

During academic year 2010-2011, the tuition fees for in-state students are cumulated to $10,208 and $25,408 for out of state students. The rise in 9% cost of education during this academic year has restricted the ability of parents and students to make adequate payments. Wealthy people can afford to pay for their children’s education and others have to compromise with lower class education or they may get sunk into the huge debt to fund the high class education. Unlike mortgage debt, student loans can’t be dismissed during bankruptcy. This tells that, paying high cost of education is lifelong problem. If you default your educational loans then lenders have right to take your tax refunds, degrade your credit rating and sue you for defaulting the loan.

The impact of rise in tuition fess is more severe than one can think. It will curtail the number of students, who want to enroll for quality education. As most of the students not able to get quality education, it will not only obstruct their individual growth but also create brain drain issue, which impacts the economy in ruthless manner. Most of the local businesses and industries will suffer as student community assist in contributing large part of their income.