During trying economic times, paying for college becomes a greater challenge that before. Tuition costs are on the rise, and financial aid does not usually cover all of the expenses needed to receive a degree. Students must find ways to pay for tuition, books, supplies and living expenses without putting themselves in a debt that will haunt them for years after graduation.
The average college student will graduate with over $30,000 in debt. Once interest is added, this debt could take years to pay off. Many students take out loans with the hope of using their degree to get a high paying job that will allow them to pay their debt with ease. Unfortunately, employers are hiring fewer people straight from college and are offering lower starting wages as the recession continues.
Traditionally, parents have paid for their children’s education, but it is becoming harder for parents to cover these expenses as money becomes tighter.
Students at Texas State University are not exempt from the financial problems faces by the rest of the nation. The university is considered a value college, that is, it is less expensive than other universities with similar offerings, but with in-state tuition and fees at about $7,000 a semester, many students are having trouble keeping up with costs.
Thursday, April 30, 2009
Wednesday, April 29, 2009
Texas State financial aid statistics
Julie Eriksen, an administrative assistant in the Department of Financial Aid and Scholarships at Texas State University, provided this information for the 2007-2008 school year. Similar information for the 2008-2009 school year was not yet available.
NOTE: The document pictured is exactly what the Department of Financial Aid and Scholarships provided for me. I did not write it, edit it, or even type it up. I posted the document, which I did not make, because I think it is a valuable resource for Texas State students and their families. Please don't bust me for plagiarism, Ms. Fox!
Straight Outta Luck: Students who have trouble qualifying for aid
For some students, receiving financial aid is as simple as filling out a FAFSA. Once submitted, the student simply waits until the university notifies him or her of the grants and loans they are eligible to use to pay for their education.
Many other students do not have this luxury. They fill out their FAFSA’s and apply for scholarships, but are turned down for a variety of reasons.
For Francisco Garcia, a senior in anthropology, financial aid was hard to come by the first few years of school. He believes that his difficulty receiving aid was due to the fact that his parents were illegal immigrants.
“Before I came to Texas State, I went to Sam (Houston State University) for a few years. The entire time I was there I wasn’t able to receive any financial aid,” he said.
Garcia paid for most his school expenses by saving the money he earned from working construction, but continued to apply for aid to help him pay for his education.
It wasn’t until he transferred to Austin Community College in 2006 that Garcia received aid in the form of an emergency loan. “The loan helped, but it was only a temporary solution,” he said.
In the fall of 2006, Garcia’s persistence in applying for aid finally paid off. He was awarded a $2,000 grant. He used the money to take more classes at ACC before transferring to Texas State.
“I’ve been at Texas State since fall of 2007. I’m able to pay for my tuition and living expenses here since I finally receive financial aid,” Garcia said.
Now in his senior year, Garcia currently receives a $2,000grant as well as two loans to pay for his education. He supplemented his aid with his earnings at the Tommy Hilfigure outlet in San Marcos, but was recently able to quit because he had enough money to cover his expenses for the semester.
“I can focus on graduation now,” Garcia said. He added with a grin, “Finally.”
Tamara Woehl grew up in Germany, but her parents are not illegal immigrants. Woehl and her family lived in Austin for ten years before she moved to San Marcos and her parents moved to California.
Like Garcia, Woehl is ineligible for financial aid. She doesn’t believe that this is because of where her parents are from, however. Instead, Woehl’s lack of aid is due in part because of where they went.
“My parents’ income is just over the amount that would let me get financial aid. Unfortunately, they live in California. The cost of living there is high, so there’s not too much money for school,” she explained.
Woehl is a junior who is double-majoring in German and creative writing. She is thankful that her family pays for her school, but can’t help but feel guilty about her situation.
“I’m one of those people that has a tendency to focus on work too much when I have a job,” she said. “My parents and grandparents understood that, and offered to pay my tuition.”
Woehl still works part-time on the weekends belly dancing at a restaurant in Austin. Her weekend hours allow her more study time during the week.
“I use the money I earn to pay for groceries, gas, and everything else. I don’t make too much, but I’m able to get by.”
Woehl and Garcia are just two of thousands who have experienced difficulty with the financial aid system.
Many other students do not have this luxury. They fill out their FAFSA’s and apply for scholarships, but are turned down for a variety of reasons.
For Francisco Garcia, a senior in anthropology, financial aid was hard to come by the first few years of school. He believes that his difficulty receiving aid was due to the fact that his parents were illegal immigrants.
“Before I came to Texas State, I went to Sam (Houston State University) for a few years. The entire time I was there I wasn’t able to receive any financial aid,” he said.
Garcia paid for most his school expenses by saving the money he earned from working construction, but continued to apply for aid to help him pay for his education.
It wasn’t until he transferred to Austin Community College in 2006 that Garcia received aid in the form of an emergency loan. “The loan helped, but it was only a temporary solution,” he said.
In the fall of 2006, Garcia’s persistence in applying for aid finally paid off. He was awarded a $2,000 grant. He used the money to take more classes at ACC before transferring to Texas State.
“I’ve been at Texas State since fall of 2007. I’m able to pay for my tuition and living expenses here since I finally receive financial aid,” Garcia said.
Now in his senior year, Garcia currently receives a $2,000grant as well as two loans to pay for his education. He supplemented his aid with his earnings at the Tommy Hilfigure outlet in San Marcos, but was recently able to quit because he had enough money to cover his expenses for the semester.
“I can focus on graduation now,” Garcia said. He added with a grin, “Finally.”
Tamara Woehl grew up in Germany, but her parents are not illegal immigrants. Woehl and her family lived in Austin for ten years before she moved to San Marcos and her parents moved to California.
Like Garcia, Woehl is ineligible for financial aid. She doesn’t believe that this is because of where her parents are from, however. Instead, Woehl’s lack of aid is due in part because of where they went.
“My parents’ income is just over the amount that would let me get financial aid. Unfortunately, they live in California. The cost of living there is high, so there’s not too much money for school,” she explained.
Woehl is a junior who is double-majoring in German and creative writing. She is thankful that her family pays for her school, but can’t help but feel guilty about her situation.
“I’m one of those people that has a tendency to focus on work too much when I have a job,” she said. “My parents and grandparents understood that, and offered to pay my tuition.”
Woehl still works part-time on the weekends belly dancing at a restaurant in Austin. Her weekend hours allow her more study time during the week.
“I use the money I earn to pay for groceries, gas, and everything else. I don’t make too much, but I’m able to get by.”
Woehl and Garcia are just two of thousands who have experienced difficulty with the financial aid system.
When it comes to paying for college, responsibility is key.
Jacob Zernick doused his chicken sandwich with Polynesian Sauce in one of the campus food courts. The sandwich, fries and drink cost him one meal trade, roughly $7.50, and is just one of many expenses the psychology sophomore endures while trying to receive his bachelor’s degree.
“To pay for school means more than just paying tuition,” he said between bites. “You need a place to stay, you need food, you need books, and if you’re an art major, you need art supplies.”
He expressed relief that, as a Psychology major, his expenses are less than those of his friends. He knows art students that pay hundreds on supplies each semester.
“My biggest expense is books,” said Zernick, who spent over $400 on reading material this semester. “That’s a lot of money, especially if you can’t sell them back.”
Zernick isn’t complaining about college expenses. He manages his costs through grants, scholarships and responsibility.
“I actually get a lot of financial aid. It doesn’t cover everything, but it takes care of most of my tuition,” he said. Zernick receives about $5,000 a year to cover college expenses.
He has a plan that helps to keep him out of debt while getting an education. While many students rely on loans to pay for tuition, rent and other experiences, Zernick tries to avoid loans as much as possible.
“First I use my financial aid. What that doesn’t cover, I pay for with my job. Sometimes when that doesn’t work, I go sell plasma. When that doesn’t work, I ask my dad for help, but that’s only after everything else doesn’t work.”
Zernick’s father was one of 2.6 million Americans laid off in 2008. “I didn’t borrow much from my parents last year because they were tight for money,” he says. “I’ve really just been careful with my spending instead.”
Responsibility is the key to Zernick’s success with handling college expenses. He says students should be more adamant in applying for scholarships and aid if they wish to get through school with less debt.
While most students have about $30,000 to pay off in loans, Zernick expects to graduate with less than $15,000 in debt. He only takes out small loans for emergencies, and won’t take out more than he’ll be able to pay back.
Zernick said he has a credit card, but uses it to build his credit for later rather than creating more debt.
“I’ve had my credit card for over a year, and I’ve always been able to pay my
balance each month. You hear people say they couldn’t pay their cards off, but there’s really no excuse for that.”
Frequent notices help Zernick to remember when payments are due on his card. In the past year he has increased his credit limit to $50,000.
“I only use my credit card for things I’d pay for anyway. It’s pretty convenient to have a little extra time to save up for tuition payments,” he said. He notes that if a tuition payment is due in April and he pays with a card, he has until May to pay his balance.
“My advice to new credit card users is to always pay the full balance and to ask as many questions as possible to learn how to keep your credit up.”
While the economy is playing a large part in student debt, irresponsible spending habits will only make problems worse. Students who are willing to work through college and manage their money carefully have the opportunity to get the education they need without the debt they dread.
“To pay for school means more than just paying tuition,” he said between bites. “You need a place to stay, you need food, you need books, and if you’re an art major, you need art supplies.”
He expressed relief that, as a Psychology major, his expenses are less than those of his friends. He knows art students that pay hundreds on supplies each semester.
“My biggest expense is books,” said Zernick, who spent over $400 on reading material this semester. “That’s a lot of money, especially if you can’t sell them back.”
Zernick isn’t complaining about college expenses. He manages his costs through grants, scholarships and responsibility.
“I actually get a lot of financial aid. It doesn’t cover everything, but it takes care of most of my tuition,” he said. Zernick receives about $5,000 a year to cover college expenses.
He has a plan that helps to keep him out of debt while getting an education. While many students rely on loans to pay for tuition, rent and other experiences, Zernick tries to avoid loans as much as possible.
“First I use my financial aid. What that doesn’t cover, I pay for with my job. Sometimes when that doesn’t work, I go sell plasma. When that doesn’t work, I ask my dad for help, but that’s only after everything else doesn’t work.”
Zernick’s father was one of 2.6 million Americans laid off in 2008. “I didn’t borrow much from my parents last year because they were tight for money,” he says. “I’ve really just been careful with my spending instead.”
Responsibility is the key to Zernick’s success with handling college expenses. He says students should be more adamant in applying for scholarships and aid if they wish to get through school with less debt.
While most students have about $30,000 to pay off in loans, Zernick expects to graduate with less than $15,000 in debt. He only takes out small loans for emergencies, and won’t take out more than he’ll be able to pay back.
Zernick said he has a credit card, but uses it to build his credit for later rather than creating more debt.
“I’ve had my credit card for over a year, and I’ve always been able to pay my
balance each month. You hear people say they couldn’t pay their cards off, but there’s really no excuse for that.”
Frequent notices help Zernick to remember when payments are due on his card. In the past year he has increased his credit limit to $50,000.
“I only use my credit card for things I’d pay for anyway. It’s pretty convenient to have a little extra time to save up for tuition payments,” he said. He notes that if a tuition payment is due in April and he pays with a card, he has until May to pay his balance.
“My advice to new credit card users is to always pay the full balance and to ask as many questions as possible to learn how to keep your credit up.”
While the economy is playing a large part in student debt, irresponsible spending habits will only make problems worse. Students who are willing to work through college and manage their money carefully have the opportunity to get the education they need without the debt they dread.
Fighting the system: One student's solution to tution costs
As the economy weakens and the cost of college rises, Sam Bagot’s attitude toward his educational expenses is downright apathetic. His $37,000 debt may never be paid, and he’s completely fine with that.
Some people plan to pay their student loans with years of hard work and saving. Bagot says, “F*** that.”
“I can’t get grants because I’m working on my second degree. For now, all of my financial aid is in loans,” said Bagot. The nutrition major came to Texas State after receiving his first bachelor’s degree from Texas Tech. He spent $44,000 on education before graduating, most of which were in loans.
When getting his first bachelor’s degree, Bagot received $500 each semester in Pell grants. He was also awarded a $1,000 scholarship his freshman year at Texas Tech.
“The scholarship seemed like a lot at first, but compared to the $44,000 I spent, it’s really not much,” he said.
The thought of paying for another round of school would make most people cringe, but Bagot has a plan for his college loans. “I’m not paying them back. I’m just not.”
Bagot may have found a way to use the faltering economy to his advantage. If the economy collapses completely and our current financial system changes, there may be no loans for him to repay, so starting now would not be in his best financial interest.
“Really, the way things are going I may not have to pay (my loans) back. I think the dollar is going to crash and there’s going to be some reconstruction,” said Bagot. “It’s just not worth it to pay for college in this economy.”
Amid all the news of doom and gloom, at least someone has a positive attitude. If the current monetary system does collapse, Bagot will have a degree without the debt. He says he’s prepared to live without money if the government seizes his income for not paying his loans in the future.
“I’ll work jobs under the table if I need. They’re not getting their money back. I can find a way to live without a real salary.”
Bagot hopes this situation will not be necessary. While most people fear economic collapse, he is almost counting on it.
“The Federal government’s loans are not a viable monetary system. With them printing money like they are, they’re going to have to create a new system. When they translate my loans to whatever that system is, I’ll just refuse to pay.”
Until the downfall of the dollar, Bagot plans to pay his low-interest loans back as slowly as possible and spend as little as he can repaying his debts. He describes himself as apathetic toward his financial situation because he refuses to stress over paying for his education. “I’m going not going to put any effort toward it, that’s for sure.”
Bagot says that even if the American dollar somehow manages to survive its inevitable demise, he will find other ways to avoid paying his loans.
“With the bailouts and all the money (the government) has stolen and used on the war, I don’t feel like I owe them anything.”
He does have a backup plan, just in case the economy doesn’t completely collapse in the next few years. “If it comes down to it, I’ll teach math. After four years or so, they’ll throw out my loans. Either way, I’m not paying them back,” Bagot said.
Bagot's approach to "paying" for his education may be seen as eccentric, but in an era of economic uncertainty it could also be viewed as a sign of the times. Only time will tell how the nation will pull out of this recession, and whether Bagot's plan will work.
Some people plan to pay their student loans with years of hard work and saving. Bagot says, “F*** that.”
“I can’t get grants because I’m working on my second degree. For now, all of my financial aid is in loans,” said Bagot. The nutrition major came to Texas State after receiving his first bachelor’s degree from Texas Tech. He spent $44,000 on education before graduating, most of which were in loans.
When getting his first bachelor’s degree, Bagot received $500 each semester in Pell grants. He was also awarded a $1,000 scholarship his freshman year at Texas Tech.
“The scholarship seemed like a lot at first, but compared to the $44,000 I spent, it’s really not much,” he said.
The thought of paying for another round of school would make most people cringe, but Bagot has a plan for his college loans. “I’m not paying them back. I’m just not.”
Bagot may have found a way to use the faltering economy to his advantage. If the economy collapses completely and our current financial system changes, there may be no loans for him to repay, so starting now would not be in his best financial interest.
“Really, the way things are going I may not have to pay (my loans) back. I think the dollar is going to crash and there’s going to be some reconstruction,” said Bagot. “It’s just not worth it to pay for college in this economy.”
Amid all the news of doom and gloom, at least someone has a positive attitude. If the current monetary system does collapse, Bagot will have a degree without the debt. He says he’s prepared to live without money if the government seizes his income for not paying his loans in the future.
“I’ll work jobs under the table if I need. They’re not getting their money back. I can find a way to live without a real salary.”
Bagot hopes this situation will not be necessary. While most people fear economic collapse, he is almost counting on it.
“The Federal government’s loans are not a viable monetary system. With them printing money like they are, they’re going to have to create a new system. When they translate my loans to whatever that system is, I’ll just refuse to pay.”
Until the downfall of the dollar, Bagot plans to pay his low-interest loans back as slowly as possible and spend as little as he can repaying his debts. He describes himself as apathetic toward his financial situation because he refuses to stress over paying for his education. “I’m going not going to put any effort toward it, that’s for sure.”
Bagot says that even if the American dollar somehow manages to survive its inevitable demise, he will find other ways to avoid paying his loans.
“With the bailouts and all the money (the government) has stolen and used on the war, I don’t feel like I owe them anything.”
He does have a backup plan, just in case the economy doesn’t completely collapse in the next few years. “If it comes down to it, I’ll teach math. After four years or so, they’ll throw out my loans. Either way, I’m not paying them back,” Bagot said.
Bagot's approach to "paying" for his education may be seen as eccentric, but in an era of economic uncertainty it could also be viewed as a sign of the times. Only time will tell how the nation will pull out of this recession, and whether Bagot's plan will work.
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