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Student Aid

January 25, 2008 • Volume 18, Issue 4
Will many low-income students be left out?
By Marcia Clemmitt

Introduction

University of Missouri senior Kristen Overmyer turned to credit cards when her financial-aid loans ran out, adding to her already substantial debt.  (AP Photo/L.G. Patterson)
University of Missouri senior Kristen Overmyer turned to credit cards when her financial-aid loans ran out, adding to her already substantial debt. (AP Photo/L.G. Patterson)

With a record number of students hoping to attend college next year — and fees higher than ever — finding a way to pay the bills will be tough for many. Congress and the Bush administration made common cause in 2007 to increase federal Pell Grants for students and reduce some student-loan interest rates. Nevertheless, critics say the increases won't go far enough. To help middle-class families, states increasingly offer merit-based grants for college aid. But with merit scholarships replacing need-based aid, low-income and minority students — who often don't have the grades for scholarships — are finding their college dreams harder to realize. Meanwhile, longtime concern that private lenders rake in excess profits from their high-interest student loans has reached new heights. Investigations of student lending are being conducted in several states, even as universities and lenders settle allegations of loan fraud with New York's attorney general.

ISSUE TRACKER for Related Reports
College Financing
Oct. 21, 2011  Student Debt
Jan. 25, 2008  Student Aid
Dec. 05, 2003  Rising College Costs
Nov. 20, 1992  Paying for College
May 19, 1989  What's Behind High College Price Tags
May 23, 1986  Student Aid
Aug. 14, 1981  Tuition Tax Credits
Feb. 24, 1971  College Financing
Nov. 27, 1968  Financing of Private Colleges
Mar. 25, 1959  Costs of Education
May 04, 1955  Higher Education For The Millions
BROWSE RELATED TOPICS:
College Financing and Funding
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