Guide to Education Grants

Another Student Loan Resource:
According to a March 6, 2007 article by Elia Powers titled “Tilting Toward Need-Based Aid,” that appeared in Inside Higher Ed, “At a time when private colleges are often criticized for spending too much of their financial aid resources trying to attract students who can already afford to attend, George Washington University is planning to increase need-based aid and substantially decrease merit awards for next year’s incoming class.
 
“Noticing a slowing rate of increase in expected family contributions among its applicant pool, the university projects that it will reallocate roughly $2.5 million from merit aid to need-based aid.
 
“Out of the total financial aid budget, about 75 percent goes toward need-based aid. With the change, the average merit-based scholarship would decrease from about $18,500 to $12,500. The number of merit-based scholarships would drop from about 360 to 300 for the incoming class, according to Daniel Small, director of the Office of Student Financial Assistance.”
 
George Washington University Increases Aid
 
Powers also reported, “For the past three years, George Washington has promised entering students both a fixed tuition rate and a financial aid commitment that can be spread across their four (or five) years. The cost of attendance – including tuition, fees, room and board – is likely to break the $50,000 mark for the first time for incoming students this fall.
 
“Tuition for next year’s freshman class is set at $39,210, up nearly 4 percent from the year before. More than 60 percent of students at George Washington receive some type of financial aid, and the college’s discount rate is about 35 percent.”
 
Is This an Experiment?
 
With all the talk about student loan legislation in the news nowadays, it’s refreshing to see a college taking financial aid in its own hands. Powers reported, “George Washington’s move only affects students entering in the next academic year. Small said the university’s fixed tuition promise sets officials up in a game of projecting finances four years down the line.
 
“‘It’s a whole new learning process for us,’ he said. ‘We aren’t clairvoyant, but we can take into account several factors. For us, merit provides a balance. There’s still a need for students who would possibly not be able to attend.’
 
“Chernak [Robert Chernak, senior vice president for student and academic support services at George Washington University] said he doesn’t expect a drop in overall yield. He said only a small minority of students who qualify for merit aid would not be eligible for other institutional or federal aid.
 
“‘It would be riskier for us if we didn’t put funds into need-based aid,’ he said. ‘And this might be a more socially responsible thing to do, anyway.’”
 
It is important to keep up to date on student loan news and higher education. What goes on in government and in your state can have a great impact on your student loans and your college education.
 
For all the information you need about student loans, go to www.nextstudent.com.
 
Be sure to tune in next Wednesday for my next blog on student loan legislation in the news.
 
Student Loan Girl
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This entry was posted on Friday, March 9th, 2007 at 10:11 am and is filed under Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.