Just like everything else the cost of college education has increased dramatically. Tuition increases of more than 6% per year are common now. For instance, in 1973 the price of registration at UCLA (University of California) was just over $200 per quarter while now it is more than $2,000 per quarter.
This ten times increase is not at all unusual and lots of things cost ten times more than they did 20 or 25 years ago. By contrast, wages have risen roughly three times in the same time period from in the region of $15,000 - $30,000 per year to approximately $39,000 - $42,000 per year. These figures vary according to age, gender and more but as a rough guide a three times increase is just about right.
Luckily for the good news. There are many more forms of financial aid available nowadays to students and parents than there has ever been. Financial aid, as the name suggests, is money that students and their parents get from scholarships, loans and grants granted by Federal and private lenders to aid students in paying for their college education.
Previously, students could depend almost entirely on Pell grants and Stafford loans to finance their education costs and college living expenses. These days Pell grants are still issued but they're need based and meet a very small proportion of the education cost today. Stafford loans are similarly need based but can range from 25% to 40% of the average cost of college nowadays. Another type of aid is Perkins loans that are similar to Stafford loans but that are given only to particularly low income families.
Fortunately, PLUS loans (Parent Loans for Undergraduate Students) are also available today and these were not an option a few years ago. PLUS loans are provided for parents and not students to assist parents in paying for their child's college education. Interest rates for PLUS loans are reasonable and there are certain restrictions and fees levied but they often form part of the student's overall package of college funding.
A very quick note on the subject of fees. A lot of loans are for a specified amount like $6,000 per year disbursed in several payments (typically one payment each semester). But it's not uncommon for up to 4% in fees to be deducted from that amount before any funds are disbursed. This 4% fee on your $6,000 equals $240 that you not see but that you must repay. If you are searching for a loan make sure that you do your homework and look for a low or no-fee loan.
Although Federal loan programs such as the subsidized Stafford loan program have low fees and interest is paid by the government, they are certainly not the only type of financial aid nowadays and are not necessarily the best choice.
Meeting the cost of a college education nowadays is a complicated operation and the majority of students will have to assemble a funding package that includes scholarships, grants, Federal loans and private financing.
Fortunately, there are now many more funding options available than ever before and market competition between private lenders in particular means that you can obtain funds at a price that will not necessarily break the bank.
It is also fortunate that you live in an age where getting hold of the information that you need to make wise decisions about the choices which are open to you is also fairly simple.
Author Resource:-
TheStudentLoansCentre.com provides a wealth of information for students covering everything from an introduction to college loan financing to a detailed look at student loan refinancing
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