Financing

The cost of a college education has risen rapidly over the last three decades. In fact, according to the Bloomberg Report, the overall cost of a college degree has risen a whopping 1,120 percent since 1978. This rate of increase is nearly double that of medical care costs and has outpaced housing costs by threefold. The exorbitant cost of college has many people concerned that higher education is beyond their means, and rightfully so. As a result, many politicians in Washington, D.C., as well as state-level officials, are examining ways they can help curb the exponential growth of college costs in order to make higher education more affordable for more people.

Ohio Plans to Freeze Tuition

For those for whom college is too expensive, some states have launched plans to freeze tuition. In Ohio, House Bill 484 seeks to hold tuition rates steady while students complete their degrees. The guaranteed tuition rate would be good for a specified period of time, most often two or three years. The cost of tuition a student pays in their first year of study would remain constant over his or her tenure at the school, making their college studies more affordable and increasing the likelihood that they will stay in school and graduate.

Supporters of House Bill 484 maintain that the program will encourage more first-time students to enter college and obtain a degree. Additionally, they argue that more students

It’s no secret that Americans are lagging behind other industrialized nations in terms of attaining a post-secondary degree. Losing the brain battle is concerning in and of itself, however, many politicians are also concerned about a workforce that may not have the necessary knowledge and skills to compete in the global market. To address this issue, legislators in some states are proposing plans that would make tuition at public community colleges free for all students, regardless of income.

Advantages of Zero-Tuition Programs

Clearly, free tuition makes college much more affordable for students. At a time when college tuition costs are higher than ever, being able to take advantage of such savings could encourage untold numbers of college hopefuls to enroll in classes at their local community college. Of course, with a college education comes improved knowledge, an expanded skill set, and better marketability for jobs.

Additionally, getting young people to go to college is a means to reverse the trend of income inequality in this country. With more and more of the nation’s wealth concentrated in the hands of a few, getting a college degree can help improve the economic situation of millions of young people that are the future of this country’s workforce. The better educated they are and the more skills they have, the more in-demand they will be and the more money they will make. As a result, upward mobility becomes much easier and the middle class expands.

This video asks

The announcement of a significant increase in Stafford loan rates could pose a problem for some community college students. Despite reassurances from Congress that a deal is coming, those looking for ways to pay for their postsecondary education continue to be left in a bind at this point. On the other hand, many community colleges have done away with the Safford loan option for other reasons, and students are finding alternative methods for footing their tuition bills. Check out how community colleges are dealing with the issues involving Stafford loans and finding other ways to help their students financially.

Stafford Loan Rates Doubling?

MPN Now reports that the failure by Congress to address student loan rates has resulted in a doubling of the rates for Stafford loans. Without intercession by lawmakers, students could see rates of 6.8% on loans taken out for the upcoming school year. Last year, those rates were just 3.4%.

The rate hike applies to subsidized Stafford loans, which are those in which the government pays the interest while the student is still attending college. Subsidized Stafford loans make up about one-quarter of all Stafford loans issued. Unfortunately, they are also the loans that typically go to the neediest students.

Susan Romano, director of financial aid at Finger Lakes Community College in New York, told MPN Now that the changes may prompt students to look for other ways to pay for their college education.

“I think it’s going to make families

As federal lawmakers appear unable to make progress in the student debt crisis, state lawmakers in Oregon are moving ahead with a plan to make higher education more affordable and debt-free. The proposal, known as “Pay it Forward, Pay it Back,” is a unique approach to footing the climbing bill of postsecondary education today. The bill has been approved by the state legislature and is expected to be signed into law by Oregon Governor John Kitzhaber later this month.

What is Pay it Forward, Pay it Back?

According to the Oregon Working Families Party website, this new piece of legislation, officially dubbed House Bill 3472, offers access to higher education without accumulating large amounts of debt. Students attending public universities and community colleges would be able to do so without paying any tuition upfront. After the student leaves college or university and enters the workforce, these students would pay a percentage of their income directly to the state’s higher education funding.

Under the current proposal, students graduating from a four-year public school would pay 3 percent of their income. Those graduating from a community college would pay 1.5 percent of their income. Payments would be deducted directly from the individual’s payroll, much like social security taxes. The payments would increase or decrease according to the individual’s income amount and would continue for a full 24 years.

Pay it Forward, Pay it Back was the brainchild of a group of students at Portland State University in collaboration with

Choosing a college is an important step that can directly impact a student’s success. Once a college is chosen, the reality of paying for higher education begins to creep into the picture. By selecting a community college, students have already made a frugal choice for their future. However, even community college is far from free. These ten financial aid tips help you pay your way through community college.

Earn Credits before College

You can begin paying for college long before you even apply. How? By earning college credits while you are still in high school. Many community colleges now work with neighboring high schools to allow students to dual-enroll in both college and high school classes simultaneously. Many of these programs do not charge tuition to college students but offer the same credit for the courses.

Determine Your Needs

Before you begin filling out financial aid forms, ABC Chicago recommends you get a rough idea of how much money you will actually need. Take the total cost of tuition at the college you will be attending and add on living expenses if you will be living on your own, books, and other essentials. Subtract the amount you have saved, as well as any money provided by your parents. Now you have a ballpark figure of how much money you still need to come up with to pay for your entire education.

This video offers some suggestions for securing financial aid.