However, college can be quite costly and many find it difficult to meet the financial requirements of higher education. In fact, roughly 70 percent of all university students lack the financial resources to pay tuition independently. Despite these rising costs, young people today are more motivated than ever to receive the education that will act as a gateway to a life of endless opportunities.

Different Types of Higher Education

Early on, most colleges in the US were small, private institutions providing limited fields of study. With the emergence of large, predominantly public universities and colleges, students from a wide variety of backgrounds are now presented with a number of career choices. Higher education in America today can be provided by universities, community colleges, liberal arts colleges, and technical colleges. There are also many other collegial institutions and career colleges that reward a number of academic degrees and certificates. These different institutes of higher learning are either public or private. Private universities rely directly on student and alumni funding, whereas a public state university receives a direct subsidy from the state in which it is located.

Tuition costs will vary depending on many different factors. The status of the institution (instate vs. out-of-state, public vs. private, reputation) will usually dictate the cost of housing and tuition. For example, public colleges and universities cost much less than private colleges and universities, due to a larger amount of funding and support form state governments.

As the cost of out-of-state tuition is significantly higher, the most cost effective school for any student will be the two-year or four-year college or university in their home state. Although costs may vary from state to state, a typical year’s instate tuition at a public university will likely cost around $5,000. Tuition for out-of-state students is comparable to the high costs of private institutions. Private school tuition, which is much higher, can range anywhere from $15,000 to $40,000. And, in addition to tuition costs, students will be slammed by extra expenses like books, school supplies and lab fees.

Financial Aid and Scholarships

College tuition and fees are on the rise and are not likely to drop any time soon. Economic improvement is the only hope for lowering costs, but in the meantime there are many different ways for student to help finance their education. First and foremost, reducing the cost of college expenses takes years of saving and preparation, long before choosing a college to attend. The earlier a family or student prepares for these expenses, the better. But that doesn’t mean that the opportunities to save on education are limited to earlier years. There are plenty of opportunities to receive financial aid or a scholarship after graduation.

As most students in US institutions of higher learning are not able to pay for school independently they become heavily reliant on various forms of financial aid. Financial aid is intended to make up the difference between what the student and family can afford and the cost of college. Student loans and scholarships distributed through a university, federal government or a private lender has become the primary means by which most students and parents pay for higher education. Students with outstanding academic achievements, those who play on a university sports team, international students, and minorities may receive a partial or “full-ride” scholarship. For the rest, applying for financial aid is the appropriate option.

The majority of student loans in the US today are distributed by the federal government. Others may come from the university or college, a private lender or state government.

Although the majority will have to take out a student loan, college grants (no payback) are often distributed to those coming from a low-income household. There are many types of student loans to choose from depending on each individual’s financial situation. The two main types of loans in the US are federal loans and private loans. Federal loans can be categorized into three main types: Federal Stafford Loans, Federal Plus Loans, and Federal Perkins Loans. They are issued depending on the student’s household income and have a low interest rate.

A Stafford Loan can be issued to a full-time student or a part-time student and can be obtained through a variety of lenders. The amount of the loan will vary depending upon the student’s need and school costs. A student will be offered either a subsidized or unsubsidized loan. A subsidized Stafford loan means that the federal government will pay the interest that accrues while the student is still attending school. As for the unsubsidized, the student is responsible for this interest and these types of loans become much more costly. Repayment on these loans usually begins at 50 USD per month, but can be as expensive as 300 USD per month.

Federal Plus Loans are awarded to the parents of students enrolled in a college undergraduate program. The amount awarded is based on the family’s credit history and the cost of tuition. With the Parent Loan for Undergraduate Students (PLUS), parents can take the loan on their child’s behalf and receive low interest rates with continuing tax relief. The Federal Perkins Loan is awarded to students based on extreme financial need and the funds available are limited. The interest is usually very low and the amount of the loan will also be relatively small.

For those who do not quality for federal loans there are other options such as borrowing from a private lender, getting a state loan, or a College Board Extra Credit Loan. Other options include borrowing from lenders such as Academic Management Services, which is affiliated with approximately 2000 schools, or College Resource Center.

Housing and Personal Expenses

Not only are students struggling to meet tuition costs, they are also faced with large living expenses. This is in addition to tuition, books and equipment, stationary and photocopying, field trips and in some cases, lab fees, which can also be quite pricey. Living costs usually include housing, food, travel, entertainment, clothes, phone, medical and personal. To cover these expenses, many students will take a full or part time job along with a rigorous full time class schedule, often preventing them from graduating on time. However, student employment through federal programs such as work-study can also help students pay for these extra expenses and are often more flexible than regular employment.

Dealing with Rising Costs

In an age of technology and a continuously advancing society, the need for college educated citizens is larger than ever. And for some, America may only be the “land of opportunity” if a college degree is earned. In today’s fast paced workforce, a college degree is valued at what the high school diploma used to be. Young people are becoming more and more aware of the importance of education. But as the number of people enrolling in college institutions continues to rise, so do the costs. For many qualified high school graduates, these costs are the only thing holding them back.

So what is the US doing to ensure that young people today have the opportunities they deserve? What the American people are starting to realize is that mounting tuition costs and shrinking state appropriation for aid will eventually take their toll. Since 2001, tuition and fees have increased by 28 percent and are steadily on the rise. Now, Congress is beginning to recognize the dilemma. On Tuesday April 17, lawmakers held their first formal negotiating session in hopes of compromising on a new two-year budget. This would include increased funding for colleges and universities and would also provide hundreds of millions of dollars in bonding authority for higher education capital projects. And in Texas, the Senate Higher Education Subcommittee has held a number of open discussions on several bills that could change college tuition and admissions laws.