Newswise — The current financial instability and credit downturn are raising concerns about how to pay for college.
But Larry Moeder, assistant vice president for student life and director of student financial assistance and admissions at Kansas State University, says students and their families still have plenty of options and help is available.
"We have been getting more questions from concerned students and families because of the current economic conditions," Moeder said. "The calls have been mostly from prospective students and parents who are new to the student aid process and are just now starting to face how they will pay for college. Current students have a better understanding of what costs will be and the aid process. They also know that the K-State financial aid office will be very responsive to their individual financial needs."
Moeder said all K-State students are assigned their own financial aid adviser who can evaluate their unusual or changed financial situation and make the necessary adjustments to the student's financial aid eligibility.
This spring, K-State began the process of ensuring financial stability for its students by shifting the funding source for all of its federal student loans programs away from the private sector to directly from the federal government. Moeder believes the timing was perfect for such a move, since during the summer months many private lenders began withdrawing from their participation in the federal student loan programs. As a result of this move, loan funds for K-State students remain stable.
Moeder said the best thing for students — whether current or prospective — and their families to do is to contact their school's student financial assistance office.
"At K-State we're paying attention to the current financial situation and preparing to help students as much as possible," Moeder said. "Families have some real concerns about their finances. Some may have been relying on savings that may be diminishing because of the economic instability, while others have concerns about their job.
"Our staff is available to work with each student and their family about obtaining assistance to help pay for college. Call. Talk it through with us," Moeder said. "There are different kinds of aid possibilities available, such as scholarships and grants, work-study and student loans."
Getting advice is especially important before filling out the federal financial aid application, due March 1, 2009, Moeder said. The federal application also is used by the state of Kansas to determine eligibility for state aid programs.
"While federal aid is usually based on the prior year's income, that amount may no longer be a true picture of what a family's ability to pay is, particularly if their income has changed because of the loss of a job," Moeder said. "The government, though, allows schools to then use the family's estimated income. That means the amount of financial assistance available can be recalculated and possibly increased."
In addition to identifying additional federal and state assistance, the university is able to help students meet their college costs through K-State grants and loans, Moeder said.
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