In the United States, the cost of an education is now the second-most expensive milestone in a person’s life behind buying a home. Tuition for public and private institutions has outpaced the cost of living, and most students can no longer pay off their education with a part-time job and no other support. Many families are going into debt to help their college-bound kids pay for school, but the value of a degree has decreased as the number of students who are accepted into college programs has increased.
A college education is still one of the top ways to maintain a decent quality of life, but it’s drifting further out of reach for middle- and low-income students. College costs have skyrocketed over the past ten years for a variety of reasons. Mainly, it has to do with the reduction of government funding, pushing universities to pass a greater chunk of education costs onto students. This pushes many families who value education to make a tough financial decision, which often results in taking out loans they may or may not be able to pay back.
Tuition Costs for Public Universities Increase 35% in 10 Years
The cost of tuition and fees at a 4-year public school jumped 35% in the last 10 years, while the cost of attending a private four-year school jumped 26% during the same period. Tuition is now about 50% of a school’s revenue, but around 30 years ago it was only a quarter of revenue, with state and local governments providing the rest of the school’s funds.
Given that state funding for higher education has plummeted since the Great Recession of 2008, schools have three options for making up the difference. Those differences include:
- Accepting more students who need less financial aid or who can afford the full cost of tuition
- Increasing tuition costs
- Cutting campus budgets
Huge increases in tuition costs are especially troubling because student loan debt is indelible for bankruptcy, except in extreme situations. This means private financial institutions can lend massive amounts to students with a much greater assurance they will be repaid the loan. It also means schools can raise tuitions and the money will flow easily, a huge win for the lenders and the schools but a massive burden on the student borrower.
How Grants and Scholarships Can Help Students Manage Tuition Costs
Many students receive grants and scholarships to bring down the cost of education. Grants and scholarships, unlike loans, do not need to be repaid. They offer free money to help pay for school, allowing students to borrow less from lenders. Grants are need-based while scholarships are merit-based. The federal government, state government, private or nonprofit organizations, and even the colleges themselves may provide grants and scholarships. Before applying to college, it’s a good idea to see what’s out there that could help bring your tuition costs down.
Failing to Make a Dent in Your Student Loan Debt? Seek Help from Debt Settlement Attorneys
If you’re considering taking out loans to pay for an education, the cost of tuition might cause you to have second thoughts about getting your degree. After all, the average college grad walks out with $30,000 in debt. Yet, not all hope is lost. If you’re struggling to pay off debt for student loans, you have options for lowering your bills.
Debt settlement lawyers with McCarthy Law PLC have extensive experience helping borrowers reduce private student loan debt. Because bankruptcy is only available in rare cases, debt settlement is essentially the only option to help borrowers in trouble with their student loans. When you’re struggling to pay for essentials due to student loans, you should trust a professional to negotiate the best deal possible.
There are many advantages to working with a debt settlement lawyer to reduce student loans. McCarthy Law PLC offers free consultations, so there’s no risk involved in learning what your most viable solutions are for private student loan debt. Our firm may be able to take several actions to reduce your burden, including negotiating with lenders. When it comes to student loan debt trouble, hire a law firm. We can also match the fees of another debt settlement company if you find one offering lower fees than ours so you are ensured legal representation. Call 855-976-5777 or complete our contact form to get started.