RIBGHE -
[Cached Version]
Published on: 8/10/2002
Last Visited: 11/2/2003
James Hanbury, director, Office of Student Financial Aid, Rhode Island College
...
Jim Hanbury began his presentation by citing a recent survey report published by the American Council on Education that concluded "most Americans continue to substantially overestimate the cost of a college education."He went on to say that the average estimated cost of tuition at public institutions was over $11,000 - more than three times the actual average price of $3,754.
He said further that he believed a college education in Rhode Island is still affordable.He then explained the term "affordability" from his perspective:• having to borrow money• access to public colleges/universities regardless of financial circumstances• (in the case of high-need students) to graduate without borrowing if the student commutes from home and works a part-time job• grants - state grant program and federal supplemental grant awards.
Mr. Hanbury stressed that application deadlines for financial aid and grants is a critical factor.Students who apply late for such aid are often denied assistance because of insufficient funds.
In the case of middle- and higher-income families who may not qualify for much (or any) grant assistance, Mr. Hanbury said that federal Stafford loans are available.For a freshman at Rhode Island College, such loans cover about 70% of the cost of tuition and fees.
Mr. Hanbury noted that the choice between attending public or private institutions of higher education was diminishing.He cited the following as reasons: the shifting of priorities at the federal, state and institutional levels; the decline in the purchasing power of the Pell Grant; and the slowing economy that is causing many states to slash funding for higher education and forcing many public institutions to make up the difference with double-digit tuition increases.He noted that the state grant program administered by the Rhode Island Higher Education Assistance Authority is facing a possible budget cut of 10%.
He cited concerns about access for low-income students in the future-such as level funding of the Pell Grant, level funding campus-based programs, and possible elimination of the LEAP program, which provides partial funding for the state grant program.In addition he noted proposed changes in the federal work-study program that would require colleges to spend up to 50% of their federal work-study funds on community service activities.
Mr. Hanbury noted that the federal student aid programs authorized under the Higher Education Act are due for reauthorization by September 2003.He suggested that topics for review should include loan limits under the Stafford and the Ford Direct Loan programs.Although he believes that loan limits should be increased, he sees a great deal of excessive student borrowing.And although many students demonstrate genuine need, much of the excessive borrowing is done to maintain a lifestyle.However, before increasing loan limits, he said there was a need to focus on reducing the cost of borrowing-including elimination of loan origination fees.
Sareina Kim, a student at Rhode Island College, explained to the audience how financial assistance has made a difference in her life.She was born in Cambodia during the Khmer Rouge Reign of Terror.Her mother, brother and sister were killed during that time.Sareina was fortunate to escape the country with her father, an aunt, and her grandparents in 1979.Sareina described her vivid memories of the frightening escape.
The fractured family migrated to the United States in 1982 and ultimately settled in Providence, where she was raised by her grandparents.Her grandfather died in 2001, and Sareina continues to care for her grandmother.Sareina is the single mother of two children, one of whom is profoundly deaf.She told of her difficulty in balancing her studies, a job and family responsibilities.
Sareina explained how financial aid has given her the ability to continue her education.She has received scholarships and grants and has taken out loans.Sareina said that she has had to borrow a significant amount of money and feels it will be a great burden to pay it back.Sareina also said she will do whatever it takes to achieve her goals.She plans to become a nurse practitioner.
13 online sources [ view sources ]
Profile is not claimed [ claim profile ]
