Will the Government increase aid to Students?

Posted in Financial Aid & Loans

Will the Government increase aid to Students?There are stories of ancient shrines and institutes, where students were paid to learn! Kings, Emperors or Lords used to support these shrines and everything form tutors’ pays to students’ eating expenses, all were paid by them. The Church kept this healthy tradition in practice for a very long and even today, some theological colleges are working on these bases, but for all the other fields of education, things have changed a lot!

An average American student is paying $18,000 an year for his or her graduation degree, and if this degree is being earned from a reputed institute like Harvard, the cost reaches to an approximate average of $49,000 per year! Now this cost is too much for every student to pay and hence, the ratio of students in formal system of education is decreased by a threatening 7.4% in the last decade, all around US.

Under such circumstances, Government is taking many steps to help out the students meet up their educational expenses. Various scholarships, financial aids and student loans are offered by the government on the various levels of studies, to keep up both the ratio and morale of the students.

Government has announced a total sum of $36 billion in the form of Pell Grant for needy students. Also the figure of Pell Grant which is currently $5,350 per year is going to be increased up to $5,975. The new Pell grant proposal includes an extra $13.5 billion that is in place to coat a deficit in the budget that was originated by the gigantic raise of Americans that were gathering back to schools during the downturn.
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Congress is working out a plan to pull up for the improved grants by finishing subsidies to the private banks that practice student loans and start direct transfer of education funds to college students. However, the sum of capital that is in fact going towards education expenditure and support for college students is, in reality, a great deal less than President Obama’s management had intended in the past, due to shortfalls in budget. This means that the American College students will receive a total aid and grants of $61 billion, instead of $87 billion proposed earlier!

The cut of $9 billion from this fund, which is decided to be utilized in President’s Public Health Care plan is criticized all around the States and is also not welcomed by the banking sector which was processing the loans for college students.

But, after the whole above discussion, the final conclusion comes in to mind is that the Government, although trying its best to come over the shortfall of funding in the education sector, is just failing to maintain the balance between average college fees and the amount of money offered to a student as educational aid. Even, if you get a $6,000 per annum for your educational expenses, how are you going to manage the rest of $12,000 if you are an average student? And if you are a student of Princeton or Yale, your deficit is more than $40,000 a year!

Now the only solution remains is the Online Education. Most of the reputed National universities are now offering their Online Courses in almost every field of study. And the cost is so low that any student can manage it even with his pocket money or a part-time job!

Government is doing a lot to promote education, but it should also look towards the Online Education Sector and help it to prosper, as this is the cheapest, fastest and by far, easiest way of effective learning now days!

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