Adult Students Forgo Federal Aid; Use Cash for College
The raging debate across the nation is college affordability/access and the escalating cost of attending college. With many bills pending approval and yet to become law, the U.S. population is becoming more educated regarding college aid legislation and what actually could happen if these bills become law.
Whatever occurs, it appears that students may not be getting as much federal aid help as originally anticipated. As I recently found out though, not every college student depends so heavily on federal aid. This specifically applies to the adult education market, or those engaging in continuing education and professional programs.
Only 28 Percent of Adult Learners Depend on Federal Aid
According to the Feb. 27, 2007 article by Elyse Ashburn titled “Adult Learners Tend to Rely on Cash and Employer Assistance to Pay for College, Survey Finds” that appeared in The Chronicle of Higher Education:
“Most students in adult, continuing-education, and professional programs at American colleges and universities rely on personal savings and employer-provided tuition assistance to pay for their education, according to a new report based on a survey of 25,000 current and prospective students.
“Of those surveyed, 50 percent said they used or planned to use cash and nearly half (48 percent) said they used or planned to use tuition assistance to pay for at least part of their college courses, while about a quarter identified federal student loans (28 percent) and scholarships (22 percent) as financial resources. Responses in those categories overlap because most of the respondents used at least two financial sources.”
Survey Implications, Suggestions
Obviously, the survey is not conclusive, but what I got out of it was that there is a large segment of the college student population that largely disregards federal funding or student loans. Instead, they opt to use cash savings and tuition assistance from their employers. While this is not the answer for the current college funding problems facing the average college student, it is certainly an interesting twist.
Sean R. Gallagher, a program director and senior analyst at Eduventures Inc., said that “State and federal policy makers also should consider tools, like tax-exempt saving accounts, that would better assist adult learners in saving for lifelong learning,” according to the article.
In an earlier blog, I talked about how beneficial I believe that tuition tax credits and incentives will prove to be down the road. This new idea of tax-exempt savings accounts for college is another fantastic suggestion that, if combined with the other tax incentives, could go a long way in actually helping college students.
Other Survey Points According to the Article:
· “Generally, students’ reliance on cash savings and tuition assistance, rather than federal or private loans, increased along with their income.
· Most students taking courses for personal enrichment or to change careers used cash savings (60 and 57 percent, respectively), while the biggest share (41 percent) of students interested in completing a degree used federal loans.
· Workers in the utilities, manufacturing, and mining industries were the most likely to have employer-provided tuition assistance, while those in retail; arts, entertainment, and recreation; and accommodations and food services were least likely to receive tuition assistance.
· By field of study, students in subjects related to engineering, transportation, or business were the most likely to receive employer assistance.”
The student loan advisers at NextStudent are helpful and knowledgeable about student loans. They are a trusted source in getting you the appropriate information about your student loan consolidation, student loan options and helping students get the college financing they need. Go to www.nextstudent.com for more information.
Be sure to tune in next Thursday for my next blog on student loan advice.
Student Loan Girl