The Expense of Education

The Expense of Education

The Expense of Education

A decade ago, only 5 percent of students had to apply for loans from private lenders, which are loans borrowed after a student's federal allowance has been expended. But today, about 25 percent of students are borrowing private loans to fund their higher education either at a ground or online school. The average amount of debt that a student graduates with has reached $25,000.

High school and college guidance counselor Frank Palmasani held a seminar yesterday at a school in Illinois for parents and students interested in learning about financial aid. Palmasani pointed out that while $25,000 may not sound like an "outrageously high number," as an average, many students are leaving school with much higher amounts of debt. This is becoming a cause for concern.

The cost of higher education continues to rise and today's poor economy is partially responsible for the large amounts of debt that students face. Palmasani told students that the best way to graduate without this debt is to research their options and find out which schools they can afford, based on family income contribution. Students often miss out on opportunities to receive financial aid and scholarships because they are unaware of them.

One parent who attended the conference, Dave Skocik, has three children- two currently in college and one still in high school. "It's ridiculous what you to have to through [to apply for financial aid]," he said. "It gets so confusing and I feel like most of the time you don't get anything." Lenders often look strictly at the numbers of a parent's income when determining eligibility for financial aid and fail to take other factors into consideration like yearly expenses.

Palmasani encouraged parents and students not to overpay for college, even if they can. The value of an education is worth the money, but a degree from an inexpensive school over an expensive school is still a degree.

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