a college degree is essential in these times. With the increasing importance of education, the prices of educational institutions are also increasing. Because of stagnant student aid, students are forced to borrow more for their college education.
From the last 12 years this rate has been increasing. In 1996, about a third of students need to borrow loans to pursue their college education, the average debt load of about $ 13,000. And in 2008, two-thirds of the students had to borrow loans for college and their debt load has increased over $ 23,000. Starting amount students are borrowing more than $ 25,000 has increased from 4 percent to 24 percent over the same time span. This amount of loan debt can have serious and lasting consequences for students.
The Department of Education has reported that every year more than 400,000 students who are well-qualified high school graduates choose to go to college because of financial barriers and the amount of credit they would need to borrow.
However, President Barack Obama released a plan for the education budget that makes the most historic and profound investment in support of students ever seen. The Fiscal Responsibility Act sharply increased the Pell grant. The Pell Grants when it was originally founded in the 70s could finance about 72 percent of college education, but due to the economic crisis and it is reduced to about 32 percent.
Increasing Pell grant from $ 5,500 in 2010 to $ 6,900 by 2019, more college students will have access to Community College, more students have access to Pell Grants, open the door and the promise of a college education.
Also, community colleges have been international organizations are under appreciated and underfunded for so many years. By making investments in community colleges, now we can ensure that we are developing reduction we need to fill the jobs that our economy is recovering.
And by creating a powerful Perkins loan program, schools can steer students away from private student loans, which are much less favorable terms because they can not usually get government funding .