The Los Angeles Daily News reports “the percentage of college students borrowing money increased from about 51 percent a decade ago to about 74 percent in 2011-12.”
This has a drastic impact on our economy. College students who have accumulated more student debt after graduating are “less likely to own a home, purchase a car and may be less likely to invest in retirement.”
One reason why more California college students are taking out loans is because they do not fill out important forms such as the Cal Grant or Free Application for Federal Student Aid (FAFSA), which can assist in easing the burden of financial stress. It turns out, “only 61 percent of high school graduates last academic year completed the FAFSA form, while only 58 percent completed the Cal Grant.”
Those students are choosing to not take advantage of potential free money to help pay their college tuition. But at California State University, Northridge (CSUN), some 27,200 students are receiving some form of financial aid, while about half have taken out loans.
The economic recession is another reason why some many young adults are borrowing money to afford college. Many Americas have suffered from layoffs, pay cuts or just the lack of employment opportunities due to the recession. As a result, many American families struggle to find cash to help their son or daughter pursue higher education.
As more and more students apply to college, the main concern is not whether the student is going to be accepted, but whether or not the student can afford the education.
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