Students might need a bailout to afford college education as stocks stumble, college saving plans plummet in value and financial assistance is harder to find.
The economic downturn could make money less available for students if the number of endowed scholarships and loans continues to decrease but institutional aid remains the same, according to Sondra Williams, director of Financial Aid.
The options that students have (for receiving aid) are different than what they were a few years ago
said Williams.
Last December, Ohio State University started a Students First program that shifted $1 million from a rainy-day fund to offer students some financial relief.
Ohio University doesn't have this exact type of program but does offer a similar one that's been in place for decades, Williams said.
If students have a temporary cash flow problem the university gives out $300 on average to help the students until they receive more money, and that amount must be paid back within 60 days.
OU also offers long-term loans of $1,000, which require a cosigner and are usually paid back within 5 to 7 years with 5 percent interest.
These programs used around $750,000 from the university's general fund last school year.
Williams said she hasn't seen an increase of people applying for these programs because they are short-term and are not enough to help pay off a substantial part of college.
While OU has no plans to start a Students First program, Williams said the university does offer other programs to help students applying to the university-wide scholarships and looking into OU's Change of Income application if a student, or their parents, lose a job or source of income.
Endowed scholarships will be less available to students because donors are earning less interest on investments. Institutional aid money will increase because more students are retaining the Gateway Award Program.
The government is also aiding students by increasing the Federal Pell Grants Programs by nearly $500 for next year to $5,350, a $600 increase from last year.
In addition, more students are applying for the Free Application for Federal Student Aid program. Williams said FAFSA applications are up 4 percent from last year with 12,107 applications compared to 11,643 applications last year as of the end of February.
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Jordan Valinsky
