Financing Basics

Build the foundation needed to navigate the community college financial aid system. Learn which schools are the most affordable, get money tips on reducing college costs, and explore the latest initiatives to make community colleges even more accessible.
View the most popular articles in Financing Basics:
The College Cost Reduction and Access Act of 2007 ("CCRAA" or the "Act") was enacted to make college more affordable for low- and moderate-income students by phasing in increases in government grants. For example, in 2007 the maximum Pell Grant was limited to $4,310, whereas the maximum for 2012 is $5,400. The Act also decreases interest rates on government-backed loans and even cancels outstanding debt in certain situations. The favorable terms for grants and loans represent an important step forward in achieving universal access to higher education. This report examines the problem of inadequate college assistance, the enactment of the Act, the major provisions affecting college student borrowers, and the funding of the new benefits.

Rising Cost of Higher Education Leads to Massive Student Loan Debt
 
Federal student aid has not kept pace with the escalating cost of higher education and the reduced state support of public colleges and universities. As a result, some students decide that a college education is out of their reach. Other students and their families borrow increasing amounts to pay tuition and other expenses. Students who graduate with unpaid loans are burdened with thousands of dollars of debt that they must usually begin repaying shortly after graduation. Studies show that about 39 percent of college graduates under the age of 35 say it will take them more than ten years to pay off their loans. For graduates with low- or moderate-paying jobs, the monthly principal and interest due may far exceed their ability to pay.
 
Attending a . . . read more
View Pages:<<Prev  1 2  Next>>
Recent Articles
Freshman Year in College Looks More and More Like High School
Freshman Year in College Looks More and More Like High School
Nearly 52 percent of community college students in the United States begin their freshman year in at least one remedial class. These courses, which help students acquire knowledge and skills they should have acquired in high school, do not count toward their degree requirements. As a result, students are taking longer than ever to obtain their degree, if they obtain one at all.
Federal Student Loans – Unavailable at 20% of Community Colleges
Although a community college education is inexpensive when compared to tuition and fees at a four-year institution, some students still need financial assistance to pay their education bills. Yet, some community colleges don’t participate in the federal student loan program, putting some students in a financial bind.
Post-Recession Cliff Looms for Community Colleges
While many factors have contributed to the current decline in community college enrollment, the recovering economy is chief among them. As more and more people return to the workforce, fewer students enroll in courses at community colleges. Many institutions must now deal with budget shortfalls in the face of double-digit declines in enrollment.
Financing

FINANCING BASICS