Sunday, March 29, 2009

Universities Respond Differently During Recession

By: Jeremy Radnor

In life today, it is still extremely important to receive an education.  Unfortunately, with todays current economic situtation, it is becoming increasingly difficult to pay for one.  It is no suprise that the Federal Student Aid has seen a surge in applications.  As of February of 2009, the Federal Student Aid had already processed nearly three million applicants for financial aid.  This is a 20% increase compared to the previous year.  In addition, the government's direct student-loan program is up to more than $7 billion this academic year and the Federal Family Education Loan program has seen an increase by $6.2 million.

Not only scholarships have been forced to adjust to the current economic  situation.  Universities all across the country are responding differently in order to cope.  The University of Maryland has started the Keep Me Maryland campaign.  This is a donation based campiagn to raise money for additional scholarships.  UMD has already raised an additional $80,000 for scholarship funds in just one month.  This initiative feeds into the general goal to raise $350 million for scholarships and $1 billion for the university overall.  

Other universities have not been fortunate enough and are being forced to cut scholarship programs in order to maintain academic programs.  Miami University of Ohio is anticpating cutting 1,100 scholarships next year .  This would be a 25% reduction overall.  


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