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College tuition outstrip aid Original Source Link: (May no longer be active)    http://www.dfw.com/mld/dfw/news/nation/8817520.htm http://www.dfw.com/mld/dfw/news/nation/8817520.htm Posted on Wed, Jun. 02, 2004 College tuition, fees outstrip aid By Andrew Mollison Cox News Service WASHINGTON - College tuition and fees rose faster than the value of grants and scholarships in the 1990s, a massive statistical report released Tuesday by the Education Department shows. "In other words, the growth in grant aid was not enough to offset the price increases," said the report, Paying for College. At the same time, families became more likely than ever to take out student loans, and the average size of student loans reached record highs. "The resulting increase in borrowing has been one of the most dramatic changes in financial aid in the decade," said the report, which was issued by the department's National Center for Education Statistics. Susan Choy of MPR Associates, who directed the center's study, said, "Growth in tuition and fee increases also outpaced both inflation and growth in median family income." After adjustments for inflation, average tuition and fees went up $500 over the decade to $1,600 at public two-year colleges; up $1,400 to $4,300 at public four-year colleges; up $3,900 to $15,900 at private four-year colleges; and up $700 to $8,000 at for-profit trade schools. Nevertheless, enrollments grew from 10 million in 1990 to more than 13 million in 2000. "Except at public two-year institutions, financial aid compensated for the price increases when both grants and loans are considered," Choy said. "I don't want to look like we're blowing off the cost of borrowing a lot of money," Choy emphasized. But, she said, "Somehow, they're covering the cost." The study did not include people who didn't go to college or who went only part time because of the expense. The study concentrated on full-time undergraduates who are financially dependent on their families. The portion of those family-supported students who took out loans rose from 30 percent in 1990 to 45 percent in 2000, mostly because of a 1992 federal law that made children from middle-class and rich families eligible for student loans. "By borrowing, they lowered the immediate cost of enrollment and shifted those costs to after graduation," said Jacqueline King, director of the Center for Policy Analysis at the American Council on Education. She said one reason for the added borrowing is that "the interest rate has been below 3.5 percent, and that's an all-time low." -------------------------------------------------------------------------------- ONLINE: National Center for Education Statistics, www.nces.ed.gov

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