Financial burden of college to ease somewhat; Increasing the Pell Grant

Financial burden of college to ease somewhat

by JENNY DERRINGER
derringer@crescent-news.com

As the economy worsens and the jobless rate hits double digits, many people are looking to change careers whether by choice or necessity.

A strong college foundation will be helpful not only to graduating seniors, but adults as well. But tackling the rising costs of tuition, books and school-related fees can be a daunting task.

Action taken recently at the federal level could help alleviate that financial burden somewhat. More options for grants, low-interest student loans, additional tax credits and work study were included in the economic stimulus package approved by lawmakers and President Barack Obama's education budget.

The most obvious change will be increasing the maximum federal Pell Grant from $4,731 to $5,350 on July 1, an increase of $619 that can go a long way in paying for books. By 2010, that figure would increase to $5,550, adjusted for inflation.

Concerning loans, students have been able to borrow money for college through two avenues -- banks and the federal government. The new plan will eliminate the bank option, allowing students to apply for a loan directly from the government. Money to loan will increase from $1 billion to $6 billion.

Families will also see the tax credit rise from $1,800 to $2,500 when filing their taxes. This includes all families who make up to $180,000 a year.

And concerning work study, there will be an additional $200 million earmarked for those who work on campus.

Financial aid comes from many different sources, explained Amy Francis, director of financial aid at Defiance College, with the federal government being the largest source, secondary to state programs.

"Colleges and universities also provide financial aid along with outside private agencies," said Francis. "The increases in the federal Pell Grants and federal work study programs will definitely benefit the financially needy students. This is very crucial to students during this recession. Many state agencies across the United States are facing budget cuts for higher education. It is somewhat uncertain what state funding in Ohio will be until the governor's budget is finalized."

Working with her students on financial options at Tinora High School is guidance counselor Kathy Cavanaugh.

"I think any increase in college funding is always helpful and very much appreciated by the students and their families," said Cavanaugh. "I have told my students to be very diligent in their search for scholarship monies. Completing the FAFSA (Free Application for Federal Student Aid) early, searching local and national scholarships via the web, and checking with the college of their choice for additional scholarships are all ways of securing additional money for college.

"I don't think it is getting any easier for today's seniors because of the economic downturn," she said, "but any increase in aid will surely help send more students to college."

Planning to attend the University of Findlay in the fall is Tinora High School senior Kate Hohenberger.

"I was aware of the new funding and that it would help me go to the college that I wanted to go to, instead of a college I could afford," noted Hohenberger.

Any time there are additional funding options, more students have increased opportunities open to them, noted Charlotte Sorg, director of financial aid at Northwest State Community College, rural Archbold.

"The increase in Pell Grant funding is definitely positive for students," stressed Sorg. "However, there are many other factors that impact a student's overall funding situation including state aid and student loan options. The overall picture of state and federal funding is not clear at the present time.

"Until we can get a final clear picture from all fronts regarding federal and state aid," she added, "we are being very cautious in trying to gather the facts so that we do not set up potentially unrealistic expectations for our students."