Economy may complicate paying for college

Kim Bonney knew the first thing she'd tell her daughter when she got back from a financial aid seminar: "Study and bump up that ACT score."

With a slight increase, her daughter would be eligible for more scholarship money from Southeast Missouri State University.

"This is her future. There is only so much a parent can do. But we've always shown her that going to college would give her the most opportunities," Bonney said.

With the economy slowing and trust funds shrinking, paying for college may be particularly stressful this year. Experts say more people may be battling for scholarships, more may be eligible for need-based aid and more may choose to stay local or in-state.

Kathy Rodgers said her daughter, a senior at Jackson High School, will attend Southeast and live at home because she "kind of realized 'well, I need to.'" The family is also trying to balance medical bills. "She'll probably have to do student loans," Rodgers said.

While nearly 170 lenders have stopped offering federally backed loans, Cape Girardeau students have not been as affected as students elsewhere.

"Some students may have had to switch from a lender they used in the past, but they've been able to find lenders. I have not had any say 'I cannot find a lender,'" said Karen Walker, financial aid director at Southeast.

Freshman Precious Dela Rosa of St. Louis said she's heard friends describe difficulties they've had getting loans in Iowa. Aware of potential problems, she filled out financial aid paperwork in January, the earliest it's allowed. She said she was able to get a federally backed loan with relative ease.

The same was true for freshman Joeisha Cofer, who said she had "surprisingly no problems" obtaining a loan. She said a majority of her bill is being paid through scholarships or grants.

Last year, 758 out of 1,365 Southeast freshmen were determined to have financial need. The average financial package awarded was $6,592.

Dr. Debbie Below, director of admissions at Southeast, warns students about accepting loan packages worth more than what the student needs. She called debt, especially credit-card debt, an "epidemic" on college campuses.

In 2007, 60 percent of students graduated with debt; the average was $17,142. Nationally, the average for public universities was $19,400, according to The Project on Student Debt.

Below said it is too early to determine the effect of the economy on admissions. Current numbers are similar to what they were last year, she said.

"There are two things that could happen. We could have more come to us because our incidental fees are lower, and there's a chance more students will look at us. But there's a chance that more students from out of town could decide to stay at home," Below said.

Jackson High School counselor Melanie Duncan said she has to work to educate parents that college is an investment. In 2007, 55 percent of graduates entered a four-year college or university and about 7 percent entered a community college.

"A lot of our parents don't see their kids taking out loans and going into debt as an option. For a majority of people here, if they can't pay for college, they don't see they can go. We've tried to educate parents that 'yes, you can, and here are the options,'" Duncan said.

lbavolek@semissourian.com

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