Find Funding for College 2: Challenges Facing Students

This continues our series on how to pay for college especially using someone else’s money
Before exploring how to find funding for college, you should understand the benefits and challenges of attending college in today’s economy. A recent study by Rutgers University shed additional light on the plight of students and their parents.
How Students and Parents Pay for Schooling
The Rutgers’ study stated

• “6 in 10 (56%) of recent graduates borrowed from government or private banks
• 8% said they borrowed money from a parent or relative that they will pay back
• 4 in 10 (41%) students paid for their education from personal earnings & savings
• 8 in 10 (82%) students worked during the school year (36% full time)
• 9 in 10 worked during the summer between semesters at school
• Other sources for funding for college education included
  • Scholarships from colleges
  • Direct payments by parents and relatives”

Financial Obligations Connected to Getting an Education
Rutgers reported “Upon graduation, the majority of students (55%) owed $20,000 (median) to pay off the costs of their education…For example,

• Median public college or university debt was $18,680.
• Private college debt was $24,460.
• Male graduates owed $5,000 more than female graduates ($25,000 versus $20,000)
• College graduates enrolled in graduate and professional programs already owed $10,000 more than those who have not pursued additional education ($20,000 versus $30,000)
• College graduates already in the workforce who earn less than $30,000 per year owed the same amount in college loans compared with the $20,000 owed by working college graduates who earn between $30,000 and $60,000.”

Difficult Paying Loans
“The current earnings of those who are employed full or part time also do not leave much room for paying off outstanding loans.

• Median starting salaries were $30,000 for 2006 and 2007 and $27,000 for those entering the workforce in 2009, 2010, and 2011.
• Moreover, students earning less than $20,000 per year were more likely to have borrowed money from non-family sources (42%) than those earning $50,000 or more (30%).”

Friday we discuss the need to act, act with confidence, and act with excellence to find funding