Look Elsewhere for College Cost Relief

While the whole brouhaha over cuts in student loan interest rates may seem attractive, even helpful thanks to the political rhetoric, students actually in college or prepping for college will have to look elsewhere for financial relief.

What the Interest Rate Cuts DID NOT Do

A couple of weeks ago the House of Reps voted to cut the interest rates accorded to big student loan lenders. The move, dubbed the College Student Relief Act, was hailed by many as a smart response to the skyrocketing costs of a college education that just don’t stop. Others, like the White House, argued the measure was inconsistent with the real meat of the matter—college costs.

See the interest rate cuts really benefit college grads. They are the party who may see adjustments in their student loan repayment, but for those in the thick of college or looking for financial aid relief now, the whole political handshaking scene is worthless:

“So the College Student Relief Act is really the College Graduate Relief Act - the expansion of a regressive wealth-transfer program benefiting a demographic group earning $1 million more per capita than the hardworking American taxpayers without college degrees who will have to pay for it.” (Baltimore Sun, Carbone)

If Not This, Then What?

The student loan business is really not poised to change very much. State and federal programs are not budging; no, you’re not going to get more money for your Stafford Loans. So if not student loans, then where should college-bound kids look for more cash, because what they have now, ain’t working?

Right now it seems that the biggest break students can get is a two-fold process: scholarships and the savvy to know they can qualify if they work at it.

In Kentucky, plans to create scholarships and grants that would benefit hundreds of college kids and their families are already underway. Eastern Kentucky U., Western Kentucky U., and Morehead Universities are all patting themselves on the back for their contribution to the college cost problem. And we’re not talking a little $200 scholarship for a couple of students. The KY institutions are taking the problem seriously and going after it in a proactive kind of way:

“In the face of persistent evidence that a college education is becoming less affordable, three more public universities in Kentucky have announced financial-aid initiatives to help students.” (Lexington Herald-Leader, Jester)

BEACON Scholarship Program at EKU comprises a set of scholarships, including the Math/Science Scholars program that awards a current 22 students with over $11,000 each; the Regional Scholars program that recognizes the academic fortitude of low-income students with $2,600 scholarships; Scholastic Opportunity Grants will focus on students who are already Pell Grant recipients; and the Transfer Scholarships will assist those students who wish to transfer in from one of the state’s communities colleges.

Western Kentucky U. is launching its “Top it Off” program. The aid measure awards financial aid grants equal to the disparity between a WKU tuition and the federal and state financial aid awarded to low-income students. Future plans are to cover the tuition disparities of over 500 students.

Morehead U.’s Eagle Access Program is also a “cover the difference” program.

Second Part of the Problem—A New Mantra

Still, according to financial aid experts, too many families and students are selling themselves short. Fill out the FAFSA, is the mantra. Whether you think you qualify for aid or not the form is important. Many colleges and universities want the FAFSA for other types of aid. Miss the deadline and you miss out entirely. And typically those who think they don’t qualify are dead wrong.

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