BANGALORE Sallie Mae and Wells Fargo & Co are among private lenders set to step into a student funding vacuum as the U.S. government tightens the tap on college loans and under-fire education firms raise tuition fees.
TORONTO -- San Fransisco Bay-area couple Kate and Dale never expected to be landlords. But that's exactly what happened when they decided to buy a three-bedroom townhouse for their daughter in her sophomore year at University of Washington in Seattle.
Forget about good old cheap State U. Tuition and fees at public four-year colleges rose almost 8 percent for in-state students this year, the College Board reported. There were fat increases at all kinds of schools: Costs for out-of-state students were up 6 percent; two-year schools raised their tuition and fees by 6 percent and private nonprofit schools, already pretty pricey, raised their tuition and fees 4.5 percent. All increases far outstripped inflation and wage growth.
What constitutes an emergency in college has never been well defined. For freshman Hannah Li, for instance, this month it has already meant a manicure, a J. Crew sweater and a plane ticket to Paris for spring break. "Now you see why we put her on a $1,000 limit," Hannah's mother, Alice Park, said of her 18-year-old's "emergencies-only" prepaid credit card. "We want to teach her independence — just not with free access to our money."
Here's a reality check for any new parent trying to do what's "best" for their child: go into a high-end baby store and ask for their best stroller. Chances are, it will cost nearly as much as your monthly mortgage payment.
Issues and Analyses
- Republican win to deal only tweaks to healthcare
- Republican wins to halt Obama's clean energy plans
- Congress likely to be divided, gridlocked
- Republican resurgence a warning for Obama for 2012
- Could Congress reduce the budget deficit next year?
- Republican election wins may tilt tax policy
- What U.S. vote means for G20 summit
- Tea Party makes big entry into Congress
- Analysts views on election results
- Can healthcare overhaul be repealed?
Factboxes and Background
- Results of key races in midterm elections
- Likely lineup of new House Republican chairs
- GOP set to win control of House Banking panel
- What they're saying about midterm elections
- Congress in "lame-duck" session after election
- Key players in the Tea Party movement
- Obama's daunting post-election agenda
- Promises, promises: How Obama has fared