Disheartening news about the economy is coming at us from every angle, and it's continuing to hit close to home.
According to a university official, financial aid money will be significantly harder to come by next year.
Because of the economic recession, less state money for Pell Grants will be distributed than in the past, Robert Zellers, director of scholarships and financial aid, said. Private loans from banks will also be tougher to get as interest rates rise and banks have less capital to secure loans.
The problem is complicated by a major increase in competition for financial aid.
Traditionally during times of economic hardship, more people choose to pursue higher education because of a lack of available jobs and a desire to make themselves more marketable. This puts even more names than usual in the financial aid hat.
Also, the recession means families are making less money than they used to, so more people qualify for financial aid because of low income levels.
With more people in the mix and less money to go around, students looking for a little help next year are going to be hit hard.
Students have been growing more and more dependent on financial aid in recent years.
Ball State students borrowed more than half a million dollars in private loans for the 2000-01 school year, Zellers said. By the 2007-08 year, that number had increased to more than $14 million.
Take that money away, and a huge amount of students would no longer be able to attend college.
Financial aid is more important than ever for higher education, but the state of Indiana is looking to cut back on grant money.
President Barack Obama's stimulus plan has room in it for higher education aid, and Ball State is certainly in need.
Short-term patches are not going to help the United States' economic woes, but the long-term goal of increasing the number of college graduates might.
State money for financial aid is necessary for reaching that goal.
In a shaky economic climate, spending money on college students is a solid investment.
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