History of Financial Aid in the UNITED STATES

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The land grant system (Under the rule of Abraham Lincoln), the GI bill (after the World War 2) and the Pell grants in the 1970s facilitated funding.

The HOPE scholarship and the Lifetime Learning tax credit have been instrumental in providing billions of dollars for the education of thousands of American families.

The federal work study program has helped in reducing the fees of the students, and cutting interest rates on student loans. This also opened additional options for repayment.

Education is highly important and is greatly encouraged in the United States. It is believed that an educated individual will more often than not, contribute to the nation’s development.

There is ample scope for the students as $235 billion is vested for students who seek financial support.

Why has the tuition fee increased over the years?

The downfall of the stock market has contributed to the reduction of educational budgets. Therefore, the colleges have gone for cost cutting by dismissing professors. The economic instability has led to the hike in the tuition fee.

The gradual increase in the tuition fee has prompted the parents to seek for financial aid.

In case you feel that, Financial aid is only for the low income groups-

  • A student whose parents had a net worth of more than $4 million was able to attend a school with a minimal course fee of $ 4,000/year.

Now, that sounds impossible and unfair. Luckily, the students managed to get the aid because of their awareness about financial aid.

Why should I know the rules concerning the financial aid?

1. The duty of IRS officer is to collect as much tax as he possibly can. Similarly, the financial aid officer’s job is to collect every possible financial information about a candidate, and try his/her best to give away a limited amount of money to the candidate in form of financial aid. Therefore, your duty is to know the rules of financial aid that will help you minimize your EFC.

2. Financial aid leveraging, or determining how much less financial aid the college can offer to its students – has been the trend that is followed by 65 percent of private universities. The government, universities are not lagging behind, with 27 percent of financial aid officers look to offer the minimum possible financial aid to its students.

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