Financial Aid

During times of political change, economic uncertainty, and fluctuating levels of job security, students of all ages are facing an array of personal and academic pressures. Many community college students and applicants are trying to cope with the mounting educational costs paired with added stresses of job loss, reduced wages, or soaring costs of living.

As many college applicants are struggling to find ways to pay for higher education expenses during economic tumultuousness, community college leaders across the country are seeking out new forms of financial aid to provide students with a greater scaffold of fiscal support.

Recent Financial Aid Reforms

In just the past several years, enormous changes have been made to the federal financial aid program, as struggling college students expressed with rising voices the difficulty of paying for the costs of college with limited access to money or means.

According to Art Hauptman from the Progressive Policy Institute, there was an initial jump-start to increasing federal student aid funding in 2005, when former President Bush renewed the “Higher Education Act.” With this act, the President proposed an increase to the Pell grant of $500 over the course of five subsequent years. As Pell grants were initially created to raise educational aspirations of socially and economically struggling Americans, many believe that the Pell grant increase would stimulate a boost in college accessibility and enrollment. Despite this positive reform, however, Hauptman

As the market steadily slows, and credit, banks, and loan institutions are forced to tighten their budgets, students and schools express concern about affording community college, especially in light of the rising cost of tuition paired with the plummeting availability of funds.

Andy Rosen, in his article “Students, Colleges Prepare for the Private Loan Slowdown,” further explores this issue in asserting: “Area colleges and students are concerned that it will get harder to bridge the gap between federal financial aid and the total cost of education, as a troubled credit market threatens to make private loans harder to get.”

Since many lenders are becoming increasingly cautious about student loans, intuitions are striving to prepare students with additional tools and resources to obtain funds for the school.

This video shares a student's opinion about student loans.

Can I Obtain Loans When Attending Community College Next Year?

If you’re seeking funds to attend college next year or in the upcoming future, it is still relatively uncertain as to how much support students will have access to tuition costs. Essentially, as Rosen reveals, “Nobody really knows the magnitude of the problem because many students have already secured their financing for this year.”

Since an economic recession has been predicted for quite some time, many students held onto anticipatory savings; however, this may not be the case in the upcoming semesters over the next few years. As

When the economy slows down, individuals across the country struggle to cope with layoffs. Even after the economy begins to grow again, it takes some time for employment levels to rebound. As a result, many workers find that their once-desirable resume is no longer up to par in a fiercely competitive job market.

To help unemployed workers stay at the forefront of training, some states offer free community college tuition. Specifically, states such as Kentucky and New Jersey are seeking to stimulate their community’s knowledge and job application appeal by providing free classes and affordable tuition to workers in need. Depending on each school’s programs, laid-off employees can either benefit from completely free tuition or significant tuition discounts.

This video shows a student explaining how he went to community college tuition-free.

Kentucky Community Colleges

The Kentucky Community and Technical College System offers extra tuition support to Kentucky residents who have recently encountered job loss. Dubbed the “Career Transitions Initiative,” the program seeks to provide workforce training in high-demand, high-wage jobs. Set into motion with the support of Governor Steve Beshear, newly laid-off workers are provided with a 50 percent tuition reduction for up to 6 credit hours each semester. This discount is available at 16 colleges and 67 campuses throughout Kentucky and students can utilize it for a full year of education or training. Additionally, this program is designed to help provide newly

Embarking on a community college experience can be overwhelming for many students. After all, rising costs of education can quickly eat away at your savings or your earnings from a part-time job. For this reason, a loan may be just the answer you've been looking for. An educational loan can help you pay for community college, allowing you to work towards your degree without the added stress of wondering how you will pay for it. A student loan can be repaid over time, once you've completed your education.

It is important to keep in mind that borrowing money is expensive, even if it is in the form of a government-subsidized loan at a relatively low-interest rate. If you have any money saved or are able to work and attend community college part-time, these may be some great options to avoid having a large amount of debt upon graduation. Only you, your parents, and possibly a financial advisor can determine the borrowing/savings scenario that is ideal for you.

Types of Loans

There are a number of different education loans available, each one uniquely tailored to address the needs of certain individuals. When the federal government offers loans to students, these loans usually have low- interest rates. The Stafford Loan is the main vehicle by which the government loans money to students. Stafford Loans are further broken down into two subcategories:

• Subsidized - In this case, the interest on your loan is paid by the government while you are still

Embarking on a journey of higher education can be exciting, confusing, and stressful all at the same time. To help with the financial aspect of education, current and prospective community college students are in a unique position to choose from various forms of student aid available. As you navigate your way through the myriad of financing options out there, let this overview help you in making the right decisions about financing your education.

While the average college tuition rates are rising fast across the country, you may be pleased to learn that the average cost of tuition at a community college is just under $2,300 per year (American Association of Community Colleges 2007). Although this cost is relatively low when compared to 4-year institutions, many students still find themselves looking for ways to finance their community college education. Unfortunately, it is also a fact that most parents are either unwilling or unable, for various financial or personal reasons, to finance all of the costs of sending their child to a community college.

This video offers tips on how to pay for a college education.

You may be surprised to learn that there are over 1,200 community colleges across the country. In fact, 11.6 million students, just under half of all U.S. undergraduates, attend community colleges. Of those students, 47% receive some sort of financial aid (American Association of Community Colleges 2007).

The federal government alone