Recession Goes to College: The State of the Financial Aid Union

Paying for college is no joke, but these days it seems like the stakes keep getting higher and higher. Who can afford school when their primary source of income has been drastically downsized and they need to secure full-time work just to make ends meet? Nevertheless, it's still a good time -- maybe even the best time -- to commit to college education. Read on and find out why.

Lest you chalk up the prevalent economic anxiety to unfounded fear, a survey conducted by the National Association for College Admission Counseling (NACAC) in 2009 confirms the truth: The recession has led to lean times for schools across the country. A full 44 percent of colleges reported decreases in overall yield rates for fall 2009. That's why colleges are employing several strategies to meet enrollment goals; good for you, all of these strategies prove beneficial to students in the end.

How Colleges Will Win You Back
Sixty-seven percent of colleges have accepted or plan to accept a greater number of applicants, 53 percent are offering larger student grant aid packages, and 52 percent are offering grant aid to a greater number of students. By way of comparison, private colleges are more likely than publics to report offering larger student grant aid packages (60 percent vs. 37 percent), and smaller colleges are also more likely to award increased grant aid.

Obviously, students need financial assistance to make it through school: Nearly 90 percent of colleges reported an increase in financial aid applications for fall 2009. While 85 percent of private colleges reported a financial aid application increase, a whopping 99 percent of public colleges did so as well.

So colleges have unleashed an overwhelming response to students' cries for help. This fall, 74 percent of colleges reported an increase in the number of students offered institutional grant aid, 76 percent reported an increase in the total institutional grant aid awarded, 68 percent saw an increase in the number of students offered self-help aid (college loans and work-study), and 62 percent experienced an increase in the average loan amount.

Students are also making more calculated college choices with the recession in mind. Once considered unpopular, community colleges are now benefiting from the financial crisis with soaring enrollment. According to a survey by the California-based Campus Computing Project, which studies the role of information technology in higher education, more than 90 percent of community colleges reported an increase in enrollment from last year, and 86 percent reported an increase in full-time students. A Princeton Review survey proves the point: more than two-thirds of students who applied for college this spring said the economic downturn affected their college choice.

In the final analysis, the college financial aid landscape is not completely bleak. From cars to homes to major appliances, 2009 has been a buyers' market; the same is true for your college education "purchase." Schools are doing everything they can to get you back -- so now's the time to shop smart and go all in. Because when you make an investment in higher education, you're taking one of the most important steps toward recession-proofing your future.

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