Financial aid guide for students and parents

College education is the dream in every parent’s eyes from the day their child is born or the ambition of a child to get a high paying job and build a rewarding career. Importance of education, especially college education, has always been emphasized and is considered important for every person. It is also equally well known that students are the hands that will develop our country in future and we want the country to rise, grow, prosper and shine. These facts are not some new inventions, but are basics known to everyone and then why have we let a situation develop where children are questioning the need, quality and worth of college education?

The constant hike in tuition fees is causing students and parents to borrow more. No matter how well parents perform financial planning for their child’s education, the tuition inflation is tearing their planning to pieces. It seems that tuition fees and debt now go hand in hand, so when a child graduates from college he is already under the burden of debt. To add to the problems, the entry level jobs for graduates are already less which leaves many of them debt stricken without a job. Some people feel that instead of arriving at this situation at the end, they would prefer the choice of not taking admission in college. But this decision also has its own hazards as the value of a degree is well known. Earlier, education was considered as an investment and hence borrowing for that investment was not a big issue. But not the sky high prices have turned education in to an expense and one cannot expect a return on an expense.

Colleges and institutions argue that there is financial aid available for the students but the truth is that financial aid is not sufficient to cover the entire education expenses. Also, not all students get financial aid and they have to opt for loan to pay the entire fees or cover some part of it. There are grave risks associated with student loan as it cannot be ended in bankruptcy.

The impact of tuition fee hike is wider and severe than it appears as less students going to the college or university, we will have fewer students available for highly demanding jobs. This will have a direct impact on the country’s economy and we will need to rely on other nations for skilled manpower. It will give rise to the issue of brain drain and there will be fewer jobs for local people. Few local jobs would increase the level of unemployed educated people and poverty, which would make education a distant dream for the next generation.

A vicious circle can result from the tuition fee hike and if this issue is not given serious attention, the value and worth of education will take a toss altogether.