It's FAFSA season again. Perhaps you find yourself wondering if it is worth the effort this year. After all, it's pretty clear those of us who are working to send kids to college this year are living in the Perfect Storm when it comes to financing it. Consider these realities:
- College expenses have gone up more than the usual rate, including state universities, because
- States are close to bankruptcy and are cutting back on funds available for higher education and
- Less money is flowing to funds designated for scholarships to state funded schools, and
- Private universities have lost substantial funds in their endowments due to downturns in the stock market, and
- Families have also lost substantial funds in dedicated education accounts, retirement accounts or other investment accounts traditionally used to help pay for college, and
- Families have lost much equity value in their homes, against which they might have borrowed funds to pay for college, and
- Even if the value of the home is not substantially reduced, the ability to secure a home equity line of credit or second mortgage has almost disappeared for all but those with the most exemplary credit, and
- Demographics of the current college-bound generation are making competition for college placements and scholarship opportunities among the most intense in recent decades, and
- It is more difficult than ever for teens to find employment because so many people are out of work, and many traditional businesses hiring teens are now out of business.
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