Students interested in attending private, for-profit colleges or career schools may find that the financing options available to them—which have always been somewhat limited--are growing even smaller in number.
Traditionally, students attending these colleges and schools could count on some federal assistance (Pell Grants and Stafford Loans) and some private assistance (institutional discounts/grants and loans from private lenders).

But many private lenders are now reconsidering whether or not it is appropriate to provide funding to students who are attending colleges and schools that may have retention and graduation rates lower than what is generally considered acceptable. This has the potential to make it much harder for students to finance this kind of education.

Where does that leave you? Well, it depends. Some of the larger for-profit colleges and schools are rethinking the types of financial aid programs they participate in and the kinds of funding they offer. Students who have borrowed through private lenders may find that they now have to borrow directly through the school. Other students may find that they do not have educational loan opportunities at all and will have to self-finance. Still others will see no change at all in the kind of loans available; but will see a change in which companies are providing the funding.

What do you do? I certainly do not advocate switching colleges or schools if the program offered is one that truly fits your interests and needs. But, financing the cost of your education is a major concern; and you should have a plan in place in case of contingencies.

Therefore, I really encourage students who have financing concerns—regardless of the type of college or school they attend—to visit directly with both the financial aid office and the business office at the school. Because there is so much variation in aid availability, financing options, payment plants, discounts, etc., interaction with these offices is absolutely essential to academic success.

Cost should never be the number one factor in making a determination of which college or school you should attend. But, it is a factor; and one that has to be dealt with well in advance of your educational commitment. So, pursue the education you want at the college or school that best suits your interests and needs; but know your financing options before you fully commit. Don’t let your educational progress be hampered by an inability to pay the bill.

Until next time!

Lynn Byrne

Preparing for college admissions? Trying to find direction? Need a little help with the planning? Check out College Planning Made Easy. The planning and preparation workbook for the take charge, college-bound student.