For some attending private colleges, the Great Recession is a small blip on their financial radar. For others, whose parents have lost a job or who have milked the cash cow known as home sweet home dry, they are turning to financial aid offices for help to keep their children in school.
Nearly 80 percent of students attending local colleges are receiving financial aid.
For students who”™ve returned to school to get their master”™s degrees in order to retain current jobs, the stress can be overwhelming. Some school districts now require teachers to obtain their masters degree within two years of hire. “The pressure is enormous,” said one teacher, who worked full time and attended the College of New Rochelle at night for two years. “There were days I didn”™t think I”™d make it, but then I wouldn”™t be able to keep my job.”
Joe Weglarz, executive director of student financial services at Marist College in Poughkeepsie, said, “The Department of Education allows us to use professional judgment; we can go into the student”™s FAFSA application and adjust the numbers to reflect the family”™s current financial situation. It may or may not allow them to receive a Pell grant or increase the loan. We”™ll do our best to give them help through our own financial aid assistance budget here at the college.”
At the College of New Rochelle, Ann Pelak, director of financial aid, said, “In a situation where a parent has lost their job, we ask the student to appeal. We”™ll do a review for the financial aid reward letter and then show supporting documentation. In most cases, once the review is done, they end up getting more financial aid, including need-based grants and entitlement programs.”
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The College of New Rochelle has a tuition management system for its school of arts and sciences, as well as its school of nursing, “but even in our non-traditional programs,” said Pelak, “students can appeal. Families that are having difficulty due to the overall demise of the economy have written to ask for a review.” Pelak said she”™s seen more requests for reviews in the past six months than she”™s seen in her four years as director. “We do all we can to help retain our students and get them through this crisis.”
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Mount St. Mary College in Newburgh counsels families who are having severe financial hardship, said Michelle Taylor, director of financial aid. “We do a second review of their FAFSA application. Since there”™s been a significant job loss in the Hudson Valley, we”™ve seen an uptick in the number of students coming to us for help.”
The Mount offers an interest-free payment plan for students, breaking up their annual tuition payments over a 10-month period. “We continue to emphasize to families that they don”™t have to pay the full amount they commit to borrow, and we”™re always encouraging them to sign up for a payment plan,” said Taylor. “We have been increasing the amount of need-based aid, one way to help families through tough economic times. Not only do we try to see if there is further federal or institutional aid they may be entitled to, but we”™ve definitely been investing more of our financial aid dollars.”
The House of Representatives currently approved a measure to end subsidies to private lenders, create grant programs and boost Pell grants for needy students. According to the Congressional Budget Office, turning control of loans to the government will save taxpayers approximately $87 million a year. The bill”™s sponsor, U.S. Rep George Miller, D-California, told fellow lawmakers they had a choice: “End subsidies to private banks and start giving the money directly to students, or continue with the status quo.” For regional colleges, “It will just change funding, but it will increase the maximum Pell grant now allowed if it passes the Senate and is signed into law,” said Taylor.
“It”™s been an interesting year and I don”™t think the worst is over,” said Weglarz. Colleges that participated in this report said the number of students seeking aid reassessments is between 8-10 percent, mirroring the national unemployment rate. On average, the Hudson Valley”™s private college tuitions are $25,000 a year, not including housing, books and other expenses.
For families who relied on the years of home equity they built up to borrow for their children”™s future, many have found themselves upside-down financially now that they”™ve drained the inflated equity out of their homes. “It”™s a sad situation,” reflected Weglarz. “A lot of people just spent the money and never thought it would end. Well, it”™s ended.”
