Sure, many of us have taken or are planning on taking the route through college to reach our dream job in the end. And few of us will get a full ride and not have to worry about paying for it. The truth is that college is getting much more expensive and harder to pay for without huge debts after graduation. The AP is reporting that the cost of a college degree has nearly doubled in the past decade. One article on msnbc gives the example of a Michigan State graduate who now owes $150,000 in student loans. She is now faced with a monthly payment of $660, and with interest rates climbing that payment is projected to jump to $800 per month.
Our economy is already in turmoil, we can not have another generation stiffled with debt before they even get a chance to get into the job market and make a difference. On top of that, the economy will be that much worse off if fewer people go to college or universities because they can not afford it.
The evidence in playing out right in front of us. Congress has passed a law that cuts federal subsidies to student lenders and more people have defaulted on overwhelming student loan payments. People choosing to eat over pay their loans have meant funding comapnies aren't getting paid back for loans, so they have to raise rates on others to keep meeting their bottom line and Congress has convienently decided to back away from the whole problem.
Lets find a candidate who will turn things around for us. Below are some of the standings for each candidate on college finding.
CLINTON
-> from finaid.org <-
Grant Proposals
-Replace the Hope Scholarship with a partially refundable $3,500 tuition tax credit (100% first $1,000, 50% next $5,000). The credit would be "advanceable".
-Increase the maximum Pell Grant. Would maintain value of the Pell Grant by annually adjusting it to take account of rising college costs.
-Provide $500 million to community colleges and $250 million to four-year colleges in the form of incentive grants to increase graduation rates.
-Double the Segal Education Award to $10,000 for AmeriCorps.
Loan Proposals
-Replace FFELP with 100% Direct Lending.
Other Proposals
-Simplify financial aid by allowing families to check off a box on their income tax return instead of submitting the FAFSA.
-> from theapple.com <-
Clinton has sponsored legislation that would gradually increase the maximum Pell Grant for low-income college students to $11,600 a year. She missed the vote on a bill that would cut the interest rate on student loans by half, to 3.4%, and increase Pell grants from $4,310 in 2007 to $5,400 by 2012. President Bush signed the bill into law on Sept. 27, 2007.
Clinton also wants to increase the Hope Tax Credit to $3,500 from $1,650 and make it available for four years of college instead of the current two. With this tax credit, families would subtract the credit amount directly from the taxes they owe. Clinton wants to increase money for programs that help minorities and first-generation students (those who are the first in their family to attend college). She also wants to adjust federal loan programs so students can borrow at lower rates.
McCAIN
-> from finaid.org <-
No statements concerning postsecondary education and student financial aid. Would permanently extend the 2001 (EGTRRA) and 2003 tax cuts, which include some measures affecting higher education.
-> from theapple.com <-
McCain generally backs greater federal funding of Pell grants and government low-interest loans to help students afford college. He missed the vote on a bill that would cut the interest rate on student loans by half, to 3.4%, and increase Pell grants from $4,310 in 2007 to $5,400 by 2012. President Bush it into law Sept. 27, 2007.
OBAMA
-> from finaid.org <-
Grant Proposals
-Establish a $4,000 fully refundable "American Opportunity Tax Credit" available at the time of enrollment. This tax credit would cover 100% of the first $4,000 of college education costs.
-Ensure that the Pell Grant "keeps pace with the rising cost of college inflation".
Loan Proposals
-Replace FFELP with 100% Direct Lending.
Other Proposals
-Eliminate the FAFSA, substituting a checkbox on the federal income tax return.
-Supports prior-prior-year (PPY) need analysis.
-Increase student aid transparency.
-> from theapple.com <-
Obama has been pushing for an increase in the federal Pell grant awards that students can get to pay for college. That increase was part of a wide-ranging college funding bill that the Senate passed in September 2007. Obama was a co-sponsor of legislation that President Bush signed in September 2007 lowering fees and cutting interest rates for student loans by half, to 3.4%, and increasing Pell grant awards from $4,310 in 2007 to $5,400 by 2012. But Obama missed the vote on final passage.
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Thank you for sharing this information. I know that since I began college in 2002, my tuition has went up almost every year; however, I'm still getting the same amount of grants. I like the idea of student loan repayment for people doing government jobs that help society as a whole, such as research, teaching, social work, healthcare, counseling, development, etc. I also like the idea of some type of tuition payback for graduates who continue to do community service after graduation. Many people boast hours upon hours of service in high school and college, but few continue the trend after graduation.
Unfortunately, lawmakers don't seem to agree with me :(. Maybe someday these could become a reality.
And how much will our taxes be raised? :)
We can't afford any more of these reforms, our debt is too high.
See my article, "Brother Can You Spare 9.2 Trillion Dollars?"
+mspin
As you point out in your article, there are plaenty of areas to cut back and save. We can reorganize a lot of our policies to reflect the current needs of the country and eliminate wasteful spending. That would provide enough money to invest in college students until they are able to make contibutions to the economy. When they graduate, well educated and with minimal debt, the economy will reap the benefits through their work as well as their spending.
I think that the idea of programs like these are great but I doubt that I would qualify for any of them and plus I don't want my family's taxes going up so we can donate to this program for other people because we're "too rich" to qualify. We're already in a bad situation as it is and we can't afford for taxes to go up. I admit I didn't take the time to read the fine details but my family hardly ever qualifies for programs like these. I'm a junior in high school and after visiting a private college that costs way too much for my family to afford I decided to try to raise as much money as I can for myself through grants and scholarships. I know I'll probably end up with some debt after college but I'm going to do my best to make sure it's as small as possible. It's frustrating that college is so expensive but it's an eye opener at least. I realize that I have to work for it if I want to go to the college of my choice and no one is going to hand it to me. I appreciate that aspect of my situation.
Credit requirements are tougher now, and loan options are fewer because many banks no longer view private education loans as a good investment. So the numbers will be a lot different for the 2008-2009 school year and beyond. Fewer students will be able to afford to go to college, but many resourceful students will discover innovative funding sources.
A larger percentage of college students and parents will seek alternative funding sources, such as contributions from family, friends, and alumni. Alternative funding websites, such as SchoolRaise.com, are available to help students and parents reach out to the people in their social networks (friends, family, alumni, etc.) and request help paying for college, $50 at a time.