By Jane J. Kim
Now that families have sent in their
college acceptance letters, reality is setting in.
How in the
world are they going to pay the bill?
Faced with steep budget cuts
and slumping endowments, schools are raising tuition and paring back
aid, putting additional strain on families still struggling to recoup
investment losses suffered during the financial crisis. Earlier this
year, for example, Harvard University announced that its tuition, fees
and board would increase by 3.8% for the 2010-2011 year, exceeding
$50,000 for the first time. Dartmouth College and Williams College
announced plans to replace grants with loans in the aid packages of some
students.
Parents
Paying for Tuition
Many state schools,
traditionally far cheaper than private schools, are imposing
significantly steeper hikes in percentage terms. Tuition at Washington's
four-year state schools is expected to rise by another 14% this fall,
on top of a 14% increase a year ago—while students at the University of
California's campuses face a 32% rise in tuition and other costs.
Families are likely to see even larger tuition increases at state
schools in 2011 as federal stimulus funds run out.
It adds up to
another depressing reminder of how difficult paying for college can be
for upper-middle-class families. Many are too affluent to qualify for
significant financial aid, but not wealthy enough to afford to pay out
of pocket.
Fortunately, there are a surprising number of short-
and long-term strategies that parents can use put their finances in the
right light to qualify for more aid.
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