The cost of college keeps going up, but unfortunately for many Colorado families, the answer this fall won’t be more government assistance.
Changes in a complicated federal formula will make it harder for families to qualify for financial aid this year, partially because of Colorado’s low state taxes, The New York Times revealed last week. And for those who do land a federal loan, the interest rate will jump nearly two points on July 1. It is the biggest increase in a generation.
Meanwhile, if you have been reading our recent headlines, you know that Colorado students heading to state campuses this fall face double-digit tuition hikes. At Colorado State University, tuition is up 15 percent; at the University of Colorado-Boulder, the hike will be as high as 28 percent.
All this comes at a time when Colorado is trying to get more low-income students into college.
“In the long term, we have to do more to invest in higher education to keep costs affordable, and make sure it stays productive and efficient,” said Rick O’Donnell, director of the Colorado Commission on Higher Education. In the meantime, however, he urges middle-income families to save what they can and unearth scholarship opportunities.
Colorado lawmakers have whittled the amount of state aid available to low-income students from about $90 million a few years ago to $77 million. Merit-based aid was zeroed out this year to boost aid for poor students by $1 million.
But middle-income families that don’t qualify for free government aid and haven’t saved enough to pay cash for college costs end up with education loans. About three- quarters of all students borrow money to help pay for college.
The Colorado Commission on Higher Education launched a five-year, $15 million program, funded mostly with private support, to get more kids into college and boost financial aid opportunities. Its website, www.collegeincolorado.org, has information on scholarships available, and O’Donnell also touts College Invest, a plan that offers tax breaks to parents who save for their children’s college.
Part of Gov. Bill Owens’ long-term plan for education involves voter approval of Referendum C this fall. The measure allows the state to keep more of the money it collects, and O’Donnell says, “One of the first things our budget will ask for is significant increases in financial aid.” He’d also like to see an increase in the state’s $2,400 higher education stipend for each student.
For now, parents and students are forced to get even more creative in how they pay for college. And they should hurry and consolidate their existing federal loans before July 1.
