Category Archives: Cost of College

Private Colleges Propose Tuition Reduction Strategy

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What if America’s private colleges could stop their annual increases in tuition or even drop their prices down?

The National Association of Independent Colleges and Universities (NAICU) has an idea it says would do just that.

NAICU has recommended that Congress give private, nonprofit colleges a temporary anti-trust exemption for the purposes of promoting affordability.

Current laws ban discussion about prices and discounts — including student aid — among competitors in any industry. NAICU says that this has led to a vicious cycle of ongoing tuition inflation and has forced private colleges to offer larger and larger discounts on the sticker price to stay competitive.

They believe that if schools could talk to one another, they could end this cycle and start targeting financial aid to the students who need it most. The thinking is that if everyone made the decision to collectively lower tuition, then no college would feel like it “lost” because it wasn’t offering the huge discounts that are currently available to counter price inflation.

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Study: Economic Factors Influence College Graduation Rates

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Money talks. It’s an old adage, but it rings true even when it comes to college graduation rates.

A new study from Oregon State University found that both the socioeconomic status of a college’s student body and the school’s own revenue and expenditures are significant predictors in whether first-time students will complete their degree and graduate within six years.

Researchers focused solely on four-year broad access institutions, which are colleges and universities that accept 80 percent or more of their applicants.

“For those students, resources really matter, in a way that is different from the population as a whole,” Gloria Crisp, the study’s lead author, said. “That finding is consistent with the persistent inequities in college completion rates for these underserved populations.”

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Maryland Outlaws Scholarship Displacement at Public Colleges

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A new law prohibits scholarship displacement at Maryland’s public colleges and universities.

The state is the first in the nation to pass legislation limiting the practice, which can spur financial aid reductions for students who are awarded private scholarships.

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Report: Women Hold Two-Thirds of All Student Debt

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Women hold more student debt and take longer than men to pay it off, according to a recent report from the American Association of University Women.

“It’s encouraging that women are enrolling in college more than ever before, but at the same time they are taking on larger amounts of debt to pay for their dreams,” AAUW researcher Kevin Miller said in a press release. “Because of factors like the gender pay gap, debt that could be manageable ends up becoming unmanageable, particularly for women.”

Women now earn 57 percent of all bachelor’s degrees awarded by US colleges, but hold almost two-thirds of the country’s $1.3 trillion student debt.

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New Website Explores College Affordability

Cost of Education.Many of us working with students in the college search and selection process struggle to help families understand college affordability. While most students will not pay the full cost of attendance, many will use sticker price to eliminate colleges from their list before they have the chance to weigh financial aid packages and scholarship offers.

What are best practices in talking to students and families about financial aid, student debt, and fit and finances? How do we best explain longer-term benefits beyond financial gain, inherent in the value of higher education, to high school juniors and seniors? How do we address the value of borrowing for college?

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Study: Extra Years in College Cut into Income, Retirement

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In just a few short months, a new crop of freshmen will begin their college journey.

For first-year students, four years may seem like more than enough time to pick a major and earn a degree.

But national data shows that roughly one in five students take longer to complete college. And each extra year cuts into their lifetime earnings and retirement savings, according to an analysis by NerdWallet — a San Francisco-based consumer finance company.

“Taking six years to get a four-year college degree can cost students up to almost $300,000 in tuition, interest on loans, and forgone income and retirement savings,” the report notes.

Continue reading Study: Extra Years in College Cut into Income, Retirement

Lawmakers Examine Factors Behind Suspension of DRT

The Internal Revenue Service Data Retrieval Tool (IRS DRT) was suspended on March 3, with Federal Student Aid (FSA) and IRS citing security and privacy concerns. On  May 3,  the House Committee on Oversight and Government Reform held a hearing to get a better understanding of the problems that caused the tool to be taken out of service and the steps FSA and the IRS are taking to restore this critical tool.

James Runcie, the Chief Operating Officer of the office of Federal Student Aid (FSA), confirmed that the DRT will continue to be suspended for 2017-2018 FAFSA; it will return Oct. 1, 2017 for the 2018-2019 FAFSA. This solution, according to a memo from FSA, will “limit the information that displays to the applicant” to enhance security. Taxpayer information will be encrypted and hidden from view on both the IRS DRT page and the FASFA page. Continue reading Lawmakers Examine Factors Behind Suspension of DRT

Survey: College Grads Concerned about Finances

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Graduation is fast-approaching, and a new national survey suggests that college seniors are worried about money.

Researchers with Barnes & Noble College interviewed 312 graduating seniors in April. Here’s what they found:

  • Salary is important to job-seeking graduates, with 44 percent of respondents citing pay as their top priority in the job hunt.
  • Forty-eight percent of respondents are worried about student loans.
  • And 68 percent of students listed “earning enough money” as a top concern.

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Survey: Cost Influences College Choice

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A new study confirms what many admission professionals already know —students are cost-conscious when selecting a college.

Nearly 19 percent of students who turned down the chance to attend their top-choice school in 2016 did so because of the cost of attendance, according to new data from Royall & Company, a firm that assists colleges with enrollment management and fundraising.

“I think enrollment leaders and the public in general have had a suspicion that cost factors were driving a lot of enrollment decisions,” Royall’s Managing Director Peter Farrell told Inside Higher Ed. “This verifies it in an empirical way.”

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Report: Many Community College Students Struggle Financially

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The majority of community college students live paycheck to paycheck, and nearly half say a lack of finances could cause them to leave school, national survey results show.

The findings — included in a new report from the Center for Community College Student Engagement (CCSE) — underscores the role finances play in educational attainment.

Continue reading Report: Many Community College Students Struggle Financially