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Students Brace for Largest Tuition Jump in Years

Published 20 January 09 04:18 PM | Student Loan Girl 

Tuition increases at the nation’s colleges are inevitable.

However, in the current economic climate — where states are slashing budgets to the bone — public colleges are being forced to raise tuition at rates that haven’t been seen in years, reports The Associated Press (“Families Await Sharpest Tuition Increases in Years,” Jan. 15, 2009).

Public, state-supported institutions have hiked tuition fees by 8 to 10 percent during economic recessions of the past in order to make up for reductions in government contributions, according to Nick Johnson of the Center on Budget and Policy Priorities in Washington.

“This recession is worse. This state fiscal crisis is worse than last time, so we would expect state tuition increases to be larger than in past years,” Johnson said.

With severe budget cutbacks in the governor of California’s new budget proposal, for example, university fees are expected to rise by at least 10 percent at California state schools. And the New York state government’s recent announcement of an unusual midyear increase to state public college tuition made it clear that the state’s budget crisis was so severe it couldn’t afford to wait until fall to impose a 14-percent tuition hike.

John Hayek, interim vice president of finance for the Kentucky Council on Postsecondary Education, says although the state announced it will hold tuition increases below last year’s, which ranged from 6 to 10 percent for in-state students, the state still plans to raise tuition by about 5 percent at community colleges and between 7 and 10 percent at public universities.

 

Families Uncertain How to Cover Extra Costs

For the four out of five American college students who attend public schools, these tuition increases have become a cause for concern, particularly in regard to their families’ ability to afford their college education.

Since many families lost savings in the stock market or can no longer tap home equity loans due to the real estate crash, says Jim Boyle, president of advocacy group College Parents of America, paying for college next year may be a particularly painful process with fewer means of financing college available.

“We’re probably going to have to take some options off the table (for the other children) unless things change,” said Donna Kopec, whose daughter’s college mutual fund lost a third of its value.

Kopec says that the drop in the market has created a funding challenge for all three of her college-bound daughters. She hopes President Barack Obama will follow through on campaign promises that include increasing Pell Grant amounts and implementing programs that award college grants in exchange for community service.



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