There is no doubt that the pandemic has hit America hard. From the lockdowns to the lost jobs, millions of Americans have been impacted, even if they did not contract the disease. For thousands of college students across the country, the impact of the pandemic might be felt for a lifetime.
Not only has the pandemic upended how they learn but is has eviscerated the job market for graduates in most fields. Add to this the high cost of getting a higher education, and many students are scrambling to find ways to pay for college during a pandemic. With that in mind, here are some insights from college officials and students alike.
How Did We Get Here?
It is no secret that paying for college has become harder for many American families. Part of the reason is the tuitions at most colleges have increased faster than inflation for close to three decades while wages have remained stagnant over the same period. While this laid the groundwork for the crisis, the pandemic has pushed many families over the edge.
You have probably heard the stories about well-off families, some making hundreds of thousands of dollars a year who have been thrown into turmoil due to an unexpected job loss or illness. Sadly, this has become all too common in America today as many people do not precisely live beyond their means, but they fail to plan.
Add to this the economic shock from the pandemic and the subsequent lockdowns, and we are reaching a perfect storm moment when it comes to how people pay for college. Given this uncertainty, most colleges are expecting an influx in financial aid applications, and possibly a flood of appeals, for this coming school year.
However, what few analysts know if the system will be able to withstand the stress. As such, it is expected that some students might choose a less expensive college, or even a community college, especially for their freshman and sophomore years. Doing so would help students and families pay for an education without amassing a mountain of debt.
This shift in educational choice could have massive ramifications for many colleges and universities across the country – especially mid-tier institutions without the large endowments needed to see them through the crisis.
For these schools, they could face falling enrollments, which could shine a light on some of the questionable financial decisions they have made in the last decade or two. This includes investments in facilities that may not have been necessary to achieve their institution’s mission.
But this does not mean that colleges will cut their tuition any time soon. If anything, they are trying to hold the line by claiming that transitioning to online learning has ended up costing them money.
What Are Students Doing?
As mentioned, many students are actively looking at lower-cost alternatives such as going to community colleges or favoring an in-state public college over an expensive private institution. But this will only go so far as even public universities have needed to increate tuitions in recent years.
Beyond financial aid applications, many scholarship and grant committees, including those for college students in Central Oregon, have seen a surge in applications this year. According to observers, this move is clearly due to the economic uncertainty that has left many families scrambling.
According to Qapital, “merit-based scholarships and grants available to students who have excelled academically, socially, or athletically, as well as scholarships that exist specifically to help students from underrepresented backgrounds attend college.” But these options might not be open for all students – especially borderline students.
In that case, another option is to take a reduced course load or to take a year off. While both approaches have their risks, as students who take a reduced course load or extended time off tend not to complete their studies. However, the financial implications of the COVID pandemic might leave students and families with no other choice.
When considering a reduced course load, some students are even looking at online options as this would allow them to get course credit while learning from the safety of their homes. Though this approach does not give them the full college experience, the fact that these courses tend to cost less than in-person offerings might make them more appealing in the short-term.
Lastly, there is the option of taking on more loans. However, this is not without it risks as some banks might be reticent to cover up to full tuition for some students, and then there is the risk of graduating without employment and with a mountain of debt.
Getting a college education has never been easy, but the economic impacts of the pandemic have changed the plans of thousands of students across the country. While it is too early to tell the long-term impact of these changes, the reality is that many students are facing difficult choices this coming semester.
