Monday, April 25, 2011

FAFSA Filings Rise as Economy Slumps

The effects of the recession are becoming more and more apparent. One of those signs is the number of students filing the Free Application for Federal Student Aid. The Columbus Dispatch reports that Ohio State alone saw 10,600 more filings and estimated a million more nationwide.

Diane Stemper, OSU’s director of student financial aid, believes there are many factors contributing to the 22 percent increase, but the recession is still the biggest cause. "Many people who used to have the resources to send their children to college have lost their jobs or been downsized," Stemper said. "Declining home and stock values, coupled with rising food and gas prices, are also taking a toll."

Six out of ten students today are taking out loans to help with the cost of college, meaning more graduates with hundreds of thousands of dollars in debt to pay off. The FAFSA is one way to curb the growing number of loans.

Colleges see spike in student-aid requests [The Columbus Dispatch]

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