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College tuition rises, but at a slower pacePosted by Randy on: 2005-11-06 15:33:51 in category:
Retirement Planning [ Print | Permalink / 0 Comment(s) ] College tuition rises, but at a slower pace By Isaac Wolf Scripps Howard Foundation Wire WASHINGTON – Tuition at public colleges and universities rose at a slower rate this school year than it did during the previous two years, the College Board reported Tuesday. Average tuition and fees at four-year public institutions is up 7.1 percent, and 5.4 percent at two-year public schools, according to the 2005 Trends in College Pricing. Average tuition and fees at private four-year schools went up 5.9 percent, the same as last year. In the previous year, four-year public university tuition rose 9 percent, and at two-year public schools, it went up 9 percent. For the current year, tuition, fees, room and board rose 7 percent at public four-year schools and 6 percent at private four-year schools, the report found. College Board President Gaston Caperton called on universities to look more closely at their operating costs. “Solutions and actions are not keeping pace with the problem,” he said. To combat rising costs, institutions of higher learning must find more ways to trim their budgets, said William “Brit” Kirwan, chancellor of the University System of Maryland, which includes 11 degree-granting campuses. “Higher education needs to be accountable for controlling costs,” he said, suggesting schools consolidate bureaucratic operations to save millions of dollars. The College Board also studied student aid trends. It found that tuition increases have outpaced increases in aid this year, creating a higher net cost for students. This contrasts with the boom years of the 1990’s, when increases in student aid outpaced tuition increases, the report found. “That’s not happening anymore,” said Sandy Baum, the report’s co-author and an analyst at the College Board. “Real costs are increasing yet again.” The federal government this year provided $61 billion in student loans, about half of all aid, according to the College Board. Education experts and university administrators used the data to draw attention to what they see as a governmental “dis-investment” in education. University officials say this aid is eroding, and they point to the Higher Education Act, which would trim the aid budget by almost $9 billion if Congress passes it. “It’s an abomination that money is being taken out of the Pell Grant,” Kirwan said. “It really is the workhorse of the financial aid programs of our country.” Four years ago, Pell Grants covered 42 percent of tuition and fees at the average public four-year school, according to the College Board. Last academic year, they covered 36 percent. There has been a “steady erosion” in the buying power of Pell grants, Kirwan said. “The real cause for this erosion is that there’s been such a shift in thinking in the body politic about education,” he said. A spokeswoman for the House education committee said the cuts would not come from Pell Grants and that the percent of tuition covered fluctuates. “The real challenge is that colleges and universities continue to increase their tuition,” said the spokeswoman, Alexa E. Marrero. “While student financial aid is important, these tuition increases are the threat to students.” Undergraduates this year borrowed $14 billion from non-federal sources, including banks, Baum said, an increase over previous years. But as interest rates climb, these loans could result in larger monthly payments for students, Baum said. Students who borrow money for college graduate with less than $20,000 debt on average, the study found. But one group of students isn’t taking loans: the poor. Rather than taking loans, many poor students work part time, attend school part time and forgo federal aid, said Ronald Williams, president of Prince George’s Community College in Largo, Md. Part-time students are rarely eligible for grants or loans. “The concept of responsible debt is very middle class,” Williams said. “The poor often make the choice to not be responsibly in debt. They choose not to go into debt.” Open community website http://www.business-business.biz http://www.investment-investment.us http://www.retirement-retirement.com Recommended sites To design your custom retirement plan. http://www.retirement-plan.us For planning an IRA rollover this is the site to review. http://www.ira-rollover.us For professional asset allocation and the wonders it can do. http://www.asset-allocation.us Managers selected to fit your needs. http://www.money-managers.us Top rated manager http://www.durig.com |
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