Showing posts with label Student financial aid. Show all posts
Showing posts with label Student financial aid. Show all posts

Monday, April 10, 2017

New York Set To Be First State With 'Free' Tuition At Public Colleges

A last minute budget negotiation late Friday pretty much ensures that New York will be the first state to offer "tuition-free" public higher education to its entitled snowflakes.  The $163 billion state budget agreement includes the Excelsior Scholarship, which covers tuition for any New Yorker accepted to one of the state’s community colleges or four-year universities, provided their family earns less than $125,000 a year.


Of course, for politicians, "free" is just a nice way of saying they"re about to jam more taxes down the throats of working Americans to cover the cost of services they may or may not use personally.


Free College



The scholarship program will be phased in over three years, beginning for New Yorkers making up to $100,000 annually in the fall of 2017, increasing to $110,000 in 2018, and reaching $125,000 in 2019. Nearly 1
million families will qualify for the scholarship.


It is a last-dollar program, meaning the state would cover any tuition left over after factoring in federal Pell Grants and New York’s Tuition Assistance Program. Students must be enrolled in college full time and take at least 30 course credits a year, though those facing hardships can pause and restart the program or take fewer credits.


As the Washington Post points out, the program is expected to cost New York taxpayers $163 million in its first year and, like all other entitlements, will only grow over time. 





Proposed by Gov. Andrew M. Cuomo in January, the scholarship taps into one of the Democratic Party’s most popular ideas and advances a bipartisan movement to lower the cost of college that is taking shape across the country.



“Today, college is what high school was — it should always be an option even if you can’t afford it,” Cuomo said in a statement Saturday. “With this program, every child will have the opportunity that education provides.”



Not much changed from the initial proposal, including the $163 million estimated cost for the first year of the program, though there were concessions to win over lawmakers. Award recipients attending community college now have to remain in New York for two years after graduation, while those at state universities must stay for four years. Private universities, whose leaders said the plan would undermine their schools, will see an increase in state tuition assistance funding.



Of course, the irony of the situation is that, like many misinformed liberal entitlement programs, throwing more money at U.S. universities only serves to exacerbate the underlying problem of bloated, out-of-control college budgets.  But, on the bright side, America"s snowflakes will have yet another pool of money on which they can rely to fund their hedonistic, binge-drinking filled spring break trips to Cancun. 

Monday, February 20, 2017

Visualizing The Stunning Truth About How Students Are Spending Loan Cash

Over the last 15 years the starting salary for recent college grads has declined about $4000. Unfortunately, as ValueWalk.com details, the amount of student loan debt most students are graduating with has skyrocketed. You can now expect to graduate into a worse job market and with more debt than just a decade ago, which is leading to a serious financial crisis- the average debt load upon graduation is $37,000, and many people can’t even make their minimum payments.


Nearly 60% of student borrowers have no idea when their student loans will be paid off. Over half of borrowers have no idea what their monthly payments will be when they graduate. When you combine these facts with declining wages and rising housing rates, many people will find they just can’t make ends meet.


There are a few things students can do before graduation to ensure they aren’t set up for failure. Find out what your total costs will be and only take out the amount you need- financing a pizza every Friday night for four years can easily turn an expense of $1800 into $2291 when you have to pay interest over time. Try to seek out alternative ways to cover at least a portion of your expenses- a work-study program or part-time job can be a big help!



Student loans can never be bankrupted, so it’s important to pay them off as quickly as possible. Make payments while you are still in school on order to minimize your debt load upon graduation, and once you graduate try to make additional principal payments whenever possible to help accelerate your payoff schedule. Stay on top of payments and set up automatic payments if necessary so you never miss a payment- penalties can keep you on the hook much longer than you need to be. Learn more about lightening the student loan burden from this infographic!