Saturday, June 19, 2010

Financial Aid, and Aid, and Aid......

My sister and I are only one year a part.  I won't bore you with the usual sibling arguing and what-not, but the upshot is, my mom and dad had 2 kids in college at the same time.  (Okay, at the time I didn't think I was a kid, but add a few decades and the perspective changes.)  We both attended the local, and good, community college, and then with the help of financial aid we both transfered to bigger schools and got degrees.  We both had a small savings but it was meager-I think I could have purchased two books with it.  The reality is, we were in no way prepared for the expense of college.  Thank goodness for financial aid-the job I have today was dependent upon my degree.  And I LOVE my job.
Now that I work at a college, I am more prepared for what college can cost-and I assume the price will continue to rise.  So for my sons I have a savings account.  Right now, they cannot afford college.  However, right now it is not an issue.  We have a few years to save.
Apparently this is the wrong thing to do.  Every article I have read on saving for education says DON'T.  Why you ask? Because if my kids have a savings account, they may not get financial aid. 
When did financial aid go from "helping those who need it", to "a way to avoid paying for college if you don't have too?"  Obviously I believe in financial aid.  I also believe that as college costs continue to rise at astronomical rates, more and more people will need it.  But whatever happened to "paying for college yourself"?  And what happens when A) you don't get that sports star scholarship?  B) your great grades are nothing special?  C) they simply run out of money and no matter how much you need it, it won't get it?  Not everyone who applies, gets financial help and if you have spent the last 18 years avoiding a savings account because of the assumption you will get some kind of financial aid, it's going to be rough.
Maybe I am leaping here, but it seems a repeat of the message "don't do for yourself what you think the government can do for you."  No fears-I am not turning into a conservative.  But I see a lot of good ideas morphed into something the were never intended to be because suddenly everyone wanted a piece, not just those the help was intended for. 

Examples? 
*The wealthy collecting Social Security because they think they are owed it. 
*The person Nick knew who got financial aid, then worked under the table for his dad and used the money for a new car instead of his education (why would he-financial aid paid for schooling.)
*A single parent receiving gov't aid even though child support is current and sufficient (dead-beat parents are a different issue).
*Collecting death benefits, even if a life insurance policy ensured it's own set of benefits.

There are legitimate reasons for using social programs, and that is what they are there for:  to help people.  But I get frustrated that everyone seems to think they are owed this help, whether they need it or not.  Hopefully, we won't need financial aid.  But I have no idea what the future holds and if our position changes, and we face financial hardship, I will apply like all other parents.  Help is there because you NEED it, not because you WANT it.

2 comments:

AMJ said...

Interesting blog. How do we decide who is rich and who is not? Many people are wealthy,but do not see themselves as such. Many people are considered poor but would rather pay things on their own and they do this, with out getting help. There are some lines where the need and the lack there of seem obvious. But in my life I've known people who are plenty well off, but claim to be broke and people who are broke but claim to be well off because they can afford to put everything on a credit card and they own a house....Then are those who are truly low income but manage to cover expenses anyway with out any government help because they actually learned how to save and live within their means instead of spending money on every last thing that came along. I don't claim to be any of these things. I could be better with the money I do have, I wish I had more than I did, but I have more than some and much less than others. I agree that people should save and could do with less material things. But I have seen people passed up for the help they need because on paper "they made too much" or were "deemed not eligible" for one reason or another. Things are often not as they seem. People should be saving, why have to take out a government loan or ask for help if you don't have to. But I am guessing that people who are afraid to open the account because of lack of eligibility for student aid, are worried that they won't have enough to go to college, but that they will have too much saved to get the help they need.

AMJ said...

PS did you ever know that some people thought we did not deserve financial aid because they thought mom and dad made too much??!!!! Or something like that. I also knew someone whose parents saved and helped put 2 kids through college at the same time with no loans. It is all relative. And by the way, social security was developed that you got out of it what you put into it. The idea was supposed be that everyone was entitled not just the needy. Hmmmm.........more food for thought! Love!