The story of financial aid

For my story,  I interviewed Patrick Early of EIU, and he in the EIU Marketing and Communication department. Tuition is important to every student, no matter what school you go to. With this in mind, the focus of my story is about college tuition.

“Students should know that EIU tries its best to keep tuition low and affordable to everyone” as stated by Patrick Early. College tuition in 2005, only cost $4,132.50 for the entire school year and fees were $1,648. In  2009, tuition had risen to about $6,540 for that entire school year. Now in present day 2014, tuition has doubled that of 2005’s tuition cost and has hit $8,490. With fees for the year being $2,653, which is half of the tuition for the 2005 fiscal year. This covers school utility fees, teacher payroll, and some of the equipment used by faculty and students.

State laws have been put in place like the law of (110 ILCS 665/10-120) which says that an Illinois residents tuition will remain the same for four continuous academic school years. This rate is also extended if the student will need more than four years to complete their degree. Like anything else, this is limited to a set number of extra semesters that have to be approved by the University. Meaning that if a student needs more that the traditional four years to complete their degree. They will be granted additional time, but only for a limited number of extra semesters. If you exceed the maximum semesters, you will have to pay for you own tuition. Depending on the University and major will determine how many extra semesters the student will receive financial aid. This is important because some students constantly switch classes and majors throughout the college career. This is kept from most students, and some think its okay to keep switching majors without knowing that eventually they will not receive financial aid if they don’t graduate after a set amount of time.

Students fail to apply for financial aid on time, this why some lose out on money they could receive.  Applying on time also affects how much money you will receive. If you apply late you may receive only half or even less for the Pell or Map Grant than if you would have applied on time.

In conclusion, EIU recognizes that student tuition is rising. They are trying their best to only use it to cover what is needed and nothing more. Most students fail to apply for financial aid on time, but some also fail to graduate within the required time frame, because they constantly switch their majors.  These are all important because they affect how we as students pay for schooling. If the price of tuition continues to rise how will we be able to pay for school?

 

 

 

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BLog Post 3

Student loans and student debt has slowly risen over the pass decade. Every year more students graduate and began the task of trying to get a job to start a career.  In the “Don’t Major in Debt” video a lot of students who have graduated are interviewed, and they talk about how they didn’t think it would be that big of a issue paying off their loans. They all though this and ended up learning hard way, that paying off loans wouldn’t be as easy as they hoped. The second video ” I have $80,000 in debt” talks about a student who graduated with $80,000 of debt to pay back to loan companies.  The stress of this is killing her, but she tries to be optimistic and hope for the best. ” Default the student loan documentary” talks about  how some people defaulted on their loans after graduation thinking this would give them more time to pay off loans. What they didn’t know is that while they were given extra time to pay off loans, their loans doubled or tripled from interest.  In “ABC 20/20” they talk about how students graduate with degrees, but have trouble finding jobs in the chosen career paths. This leads to many graduates  getting jobs in fields that don’t pay well or that have nothing to do with their degree.  In “A college degree won’t get you into the middle class” talks about how  some universities are not teaching to enlighten students, but to make money off them.  each section of this post focuses on a different each and they all relate, because they talk about how students are affected by their student loans.

Don’t Major in Debt

In this video, they talk about student loans and student debt. There is a series of interviews with people who have graduated from college with a degree. Most never knew about the effects college debt would have on them. Most never thought about how they would pay off their loans after school. They laugh at the idea of thinking about how much they owe, but are really sad, because they are paying over $500 a month. Most realized that college wasn’t worth it as far as the debt, because they have a debt from school that will hinder them for the next 10 or more years.   They now wish they knew what they know now. Most would have did things differently for example, they would go to a community college and transfer to a University. This is important because it talks about what most students go through. We are told that college is the way to go, but we are not told a lot about how much debt we will have after graduation. It is made to seem that you only go to a community college if you didn’t get good grades in high school. In retrospect its the opposite, it’s better to go to community college for your first year or two. This will minimize your debt and give you more time to figure out what degree you want to pursue.

I have $80,000 in debt and don’t know how to pay it off

This is about a student named Julia who is in grad school and she owes  $80,000.  She has no plan on how to pay off her debt. She is stressed from the idea of knowing she has no idea on how it will be paid off. She doesn’t regret going to college at all. She tries to think possible, in her mind she doesn’t regret going to college. She feels she got everything she was suppose to get out of college. She advises others to be smart about how they plan  to pay back loans and how they will pay for college. This is important because it gives a inside look at how a student thinks and feels about paying off debt. It helps inform others that they need to research as much as they can before jumping on the bandwagon that is college.

Default: the student loan Documentary

This is a video about defaulting on loans, which sets up forbearance. Which is when you agree to push back your payments on student loans.  At first this seem like a smart idea, but you have no idea on what this actually means.  While your loans are on hold, the interest for them increases and gets added to what you already owe. What this means is that a student owing $20,000 will add another $10,000-$20,000 to that what is already owed. Companies do this knowing they can make more money off students.  It makes college seem like a scam, because you are told one thing, but not told another thing. The “thing” your not told about is loans and debt. When most of the people being interviewed are given time to think about their loans, most cried because they know it will take them a lifetime to pay off their loans.This is important because it teaches you that it is important pay attention to what your signing. You shouldn’t listen to everything your told, you have to look and research yourself. Most of the people interviewed said that the loan companies didn’t care how much they made, they just wanted the students to pay back their loans.

ABC 20/20- College is a Rip Off

In this video, they talk about how college is not as good as it is said to be. We are told that you earn more money getting a degree, what you are not told is that you may not get a  job in what you get a degree in. A BA use to be considered important for getting a job, but now it is looked at just like a high school diploma.  It talks about how some students never finish college, even if they are allowed eight years to complete a degree. Not everyone believes you need a degree, some say it is better to go to a technical or vocational school. These will help you minimize your loans and still become successful.  A recent survey showed that 40% of students would not go to college if they knew what they knew now.  A lot of students have jobs that have nothing to do with what they do at work. They have jobs in opposite fields that doesn’t relate to their degree in any form. This is important because it is a eye opener to everyone. College is helpful, but not as helpful as it may seem. From this you can see that their are other ways to getting a better education without going to college, like going to a trade school.

A college degree won’t get you into the middle class

Education was thought to be important and cheap for everyone. Some schools like NYU ( New York University) are in business to make money. They are partnered with banks to charge a lot of money and force students to pay back debt. By saying that even if you go bankrupt you will still have to pay back loans.   There is no way of escaping the inevitable which is student debt.  This is important because the article talks about how schools like NYU escape property taxes. This allows them to make more money off student, which has connected school and real estate into a lucrative business.