Tips on financing college today
Arizona, like many other states, is facing a large budget deficit this year and next. Education accounts for approximately 50% of the state's budget, and therefore, it is incurring some of the biggest cuts at this time. Last week our legislature made decisions to cut upwards of $100 million dollars in K-12 education expenses and an additional $142 million in post-secondary education. Those cuts must happen now as these actions are to balance the 2008-2009 state budget. According to Arizona legislators, even deeper cuts will be required for the 2009-2010 budget.
Parents, students, educators, and community advocates have all rallied in support of minimal cuts to education, but the realities of needing to reduce such a large deficit are indisputable. College students and faculty expressed their great concerns at the capital recently. No one knows exactly what the repercussions will be, but students are nervous about paying for tuition, getting the classes they need for graduation, and programs being cancelled.
Our son Jake's tuition scholarship (which was awarded for four years) may get slashed in this budget cycle. We will not know for a couple of months. As we await state budget and federal stimulus package decisions related to education funding, it will be business as usual for us. Taxes will be finished within the next two weeks, and the FAFSAs for each of our boys can then be completed. In the face of so many unknowns during this recession, I would offer the following suggestions to parents and students also going through the college application and financial aid process:
- Don’t postpone the "to-do's" on the college planning list. While changes related to college, state, and federal budgets are fast-moving targets right now, no news is good news. Proceed as if nothing is different. It may not be.
- Pay attention to what's going on in your state (or the state where the student will be attending college) with regards to the educational budget and potential cuts. Keeping current will allow you to ask questions as potential issues arise and adjust your plan accordingly.
- Identify a "Plan B." Play the "what if" game. What if this group or company no longer offers this scholarship? What if tuition is increased? What if there is a job loss in the family? Whatever the possible challenges may be - play them out until you have exhausted all options. Replace fear of the unknowns with a creative and solid planning process so that you are not easily sidetracked if Plan A should go awry. Talk with other parents who have children getting ready for (or already in) college to get additional insight and ideas. We're all facing similar challenges.
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