Financial Aid

Financial aid has become a hot topic in higher education because of rising tuition and the high rate of defaults on student loans. The federal government is encouraging colleges and universities to focus on ways to reduce costs, while at the same time reforming the financial aid system so that a college education becomes more accessible to the economically disadvantaged. The first step for students needing assistance is the completion of a Free Application for Federal Student Assistance (FAFSA). This initiates a determination of a student's eligibility for grants and low-interest student loans. The problem is that the application process can be cumbersome, and there are deadlines for completion that require advanced planning. As any of us in higher education know, many students fail to plan ahead. Another issue is the tendency for students to borrow the maximum amount for which they are eligible, creating a burden of debt that can take years to pay off - thus the high rates of default. Lenders can be very aggressive in their marketing to students, further encouraging indebtedness. Scholarships are the preferred method of obtaining money for college, and their are many, many sources of scholarship funds. However, most are for small amounts. Students hoping to rely on scholarships must spend a large amount of time searching for appropriate sources and submitting applications. This task often proves too daunting for all but the most talented and determined of students.
So what's the answer? Given the importance of higher education to our economic development, should the federal government underwrite college for all qualified students? There is little support for this solution, as it suggests a level of socialism that most U.S. citizens would not endorse. I believe that what is at stake is too important to be ignored. How do we make a college education accessible to those most in need and least prepared to pursue it?