When the economy started to fall, colleges started to panic thinking that they wouldn’t find any students that would be willing to pay their tuitions. So most colleges dramatically increased the amount of grants and scholarships they offered to their students accepted for the class of 2013. Now college aid officers are planning on cutting back on the amount of offers they give out because they feel more families can afford more now than they had estimated last year.
Many families and/or students have to take out loans to pay for their educations. Student loans are classified as “good” debt because it can be a smart investment in your future. On the other hand sometime debt can get out of control and by the time you graduate you’re stuck with hundreds of dollars a month of bills that will last 30 years.
In 2007 The College Cost Reduction and Access Act was signed into law which created the new Income-Based Repayment Program to help make student loans more manageable. According to CNN, “The Income-Based Repayment program is designed specifically for those students who have high loan amounts and low income. To continue to qualify for the repayment plan, every year borrowers will have to provide information on their income and family size. When income increases, the payments will revert back to the standard amounts (2009).”