<p>Obviously, in recent months, a number of highly selective colleges and universities have made financial aid policy shifts, moving towards the expansion of financial aid for lower income families. I believe that this is admirable, and allowing people with low incomes to be able to attend college is a great thing. However, I think the problem that we’re going to see play out is a major squeeze on the middle class. If a student goes to Columbia now, and their parents made $60,000/year or less, they don’t have to pay anything for their education. If parents are wealthy, and can pay the full price of tuition, then there is no need for financial aid. </p>
<p>Now, the point of this discussion is more about the impact of loans in financial aid. For those students coming from the lowest income backgrounds, financial aid packages are often chiefly composed of grants. For those with middle range income, at least in my experience, financial aid is primarily composed of loans. My problem with this is, after college, when the students are paying off the loans, they’re in the same place. My parents will not be helping me to pay off loans, which are my own responsibility. A student from a lower income family, who now has a college degree, and a far lower amount of student loans, will actually be in a significantly better position than me. Your ability to repay loans is not dependent on your family income (unless your parents are able to substantially help you), so why should low income students be given more grant money in place of loans? It seems as though grants and loans should be equally dispersed among all students who need financial aid, as the burden of loans will effect all of them equally after graduation, when they all have degrees and are left to sink or swim on their own.</p>
<p>Obviously, the particular details of financial aid are heavily dependent on the ability of a college to implement them. Very few colleges have the financial resources to take the sorts of steps that the Ivies currently are. But I do not think that placing a heavy loan burden on middle class students is an optimal situation.</p>
<p>I hope that that argument makes sense. What do parents think of this? Will you be helping your child with their loan burden?</p>