5.3: Objective 5.3
Establish effective funding mechanisms for postsecondary education Other Information:
The financing of postsecondary education continues to be a challenge for many students and their families. According to the
College Board, the average costs of attendance for 2001-2002 are $17,123 for four-year private institutions (up 5.5 percent
from the previous year); $3,754 in four-year public institutions (up 7.7 percent from the previous year); and $1,738 for two-year
public institutions (up 5.8 percent from the previous year). With tuitions rising faster than inflation, students are borrowing
more money than in the past to attend college. The median student federal loan amount tripled between 1990 and 1999, rising
from $4,000 to $11,199, and students are increasingly turning to non-federal sources of loans including credit cards to pay
college expenses. These trends are occurring even though funding for Pell Grants, Supplemental Educational Opportunity Grants
and other campus-based aid programs continue to grow. In response to the concerns about the price of college, the Department
will create a study group to examine the factors that contribute to the rising costs of postsecondary education. Through the
study group, the Department will seek ideas and suggestions for achieving cost efficiencies and cost reductions among postsecondary
institutions. The group will also consider effective funding strategies for nontraditional and part-time students, including
those participating in distance learning via technology. The Department will then disseminate the findings. In addition, the
Department will continue to work toward a more efficient Title IV aid process for the benefit of all parties participating
in these programs.
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