Average Cost of Tuition Increases, but So Does Amount of Federal Aid Available

A large increase in tuition was padded by a big jump in federal aid offered by the government, according to a new report from the nonprofit College Board. The report also found that the dollar amount of student loans taken out this year was reduced thanks to the increase in aid.

Tuition Costs Increased This Year

The College Board report found that the average price of tuition and fees increased for a number of educational institution types. Here are a few stats from the report:

• In-state students attending public four-year institutions pay $7,605 this school year, which is a 7.9 percent increase over last year.
• The average price of private nonprofit colleges and universities is $27,293, which is a 4.5 percent increase over last year.
• Two-year state colleges cost $2,713, which is a 6 percent increase over last year.

These increases could have made it difficult for many students to attend college, but the federal government stepped in.

Increased Federal Aid Amounts Distributed to More Students

To help cushion the blow of increased tuition costs, the government gave out $28.2 billion in Pell Grants in the 2009-2010 school year along. This is a $10 billion increase over the previous year. The stats for the current school year are not available yet, but the numbers are expected to rise.

The report also revealed that the increase in federal aid has helped students reduce the amount of their student loans while allowing them to afford their tuition.

What If I Don’t Qualify for Federal Aid?

Despite the increase in federal aid distributions, there will be students whose parents make too much to qualify for aid, yet their parents still cannot afford to pay out of pocket. If you are one of those students, there are still options for you:

• Apply for scholarships: Since many scholarships are not based on financial need, you could apply for as many as possible to try to take in free money.
• Find an on-campus job: If you’ve already been accepted to a school, you could work with a recruiter to see if there are on-campus job opportunities that will pay you while you attend school.
• Take out student loans: While this is not necessarily the route you want to take, if you save your money while in school and make sure your student loan amounts match your earning potential, you could pay off your loans with ease after you graduate.
• Attend school part time: You could also consider attending school part time to pay less tuition until you figure out how to finance your studies.
• Become independent: If your parents no longer claim you as their dependent, your income goes down to zero (if you’re not working). This often allows you to qualify for the maximum financial aid amounts available.

There are a number of ways to pay your tuition costs if you don’t qualify for federal aid. So if you’re determined to attend college, it’s good to do everything you can to make your dreams come true.