The cost of earning a higher education degree rises every year, leaving many students no other option but to take out student loans to pay for their degrees. The end result around $1.3 trillion in student loan debt, and the average borrower has $28,000 in student loan debt.
Many students rely on financial aid other than student loans to help them pay for their education. A new report claims that receiving financial aid is tantamount to their success in school, especially for low income students who do not receive any assistance from their families.
The report found that as low income students in a two-year program receive more aid, they were more likely to graduate or transfer to a four-year program.
Nearly half of those who received more than $7,500 in financial aid graduated or transferred to another program, compared to the 17% of students who received between $1,001 and $2,500 in aid. Those who were awarded a combo of federal, state, and institutional aid had the highest success rates.
According to the Association of Community College Trustees, one of the sponsors of the study, notes that this research proves that state and federal grant aid, an instrumental tool for paying for college, is a crucial component in the success and ability of many students.
In fact, a study by Professor Sara Goldrick-Rab of Temple University found that 74% of ninth-graders from low-income families expected to attend college, but just 51% of those who graduate from high school will make it to college. She noted that the U.S. spends around $200 billion a year on financial aid, but only 2 in 5 will earn a degree of any kind within six years.
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