Many of the largest for-profit schools are boosting their enrollment during these economic times because they are making more loans directly to cash-strapped students.  Even though, they recognize many of the loans will probably never be repaid for the amounts that were borrowed.

However, the schools still make money and profit because they increase their enrollment, which brings tuition dollars that are subsidized by the government to the schools.  Some schools that have seen their enrollment significantly increase are the University of Phoenix, Westwood College, and ITT.  ITT has seen new enrollments rise by 33 percent and seen profits increase 50 percent from last year.

Many of the students at these schools finance their education through tuition grants from the government and take out loans for the rest of their costs.  However, with the economic difficulty, it has become more difficult for students to get bank loans, so schools have stepped up and are extending credit to students.

In some cases students are getting better terms, but many have taken loans that are worse. Students need to check around and make sure they are taking the best loan.  Go over it thoroughly and understand everything before you sign it.

For-profit schools have seen the proportion of students borrowing at least $40,000 nearly triple to 30 percent.  These schools are also showing that 43 percent of students took out private loans in 2007-08.  College can be expensive, and students need to prepare for that.

Despite the expense, students are returning to school because they have either been laid off from work or have decided to take advantage of increased government aid. Education is never something that invidividuals resent having.  They understand that despite the time, energy, and money it took to earn a degree, it was a wise investment in their future.

Since states are experiencing budget shortages in the billions, many states have decided to drastically cut college financial aid programs.  Students, who need money the most for college will have to try and find other sources of funding.

At least 12 states are reducing award sizes, eliminating grants, and more rigidly controlling eligibility guidelines.  Even though the states are cutting or winding down these programs there are a greater number of students seeking financial aid. 

Many of the programs that are being affected by these changes are need-based grants that provide money which helps students in addition to financial aid being offered by schools and the federal government.

Illinois is one state that is cutting the funding for a student award program which will affect 145,000 students.  Ohio is eliminating grants up to $2,496 for low-income students and Wisconsin has determined 20,000 low-income students will not be receiving their grants.

Without this cash for rent and groceries, some students will be forced to go into debt, transfer to cheaper schools, or drop out.  Experts are worried that because of the cuts students will take on too much debt or spend even more time working as they pursue their degree.

Since hundreds of thousands of workers are unemployed right now, many of those individuals have decided to pursue their education.  The increase in demand for financial aid and the fact there is limited funding creates a huge problem.  The U.S. Department of Education has reported that roughly 620,000 students applied for federal aid in the first quarter of this year, which is a 25 percent increase over last year.

Not only are loans a problem, but grants are too.  Thousands of students especially low-income students are missing out on their grants, because the programs have run out of money. So in order to continue or finish up their degrees, many have decided to tackle more student loans.  

Currently student loans are at an all time high on an individual basis.  Not only are these debts difficult to pay back, but the high loans could eventually cause a reduction in access to higher education and more students defaulting on their loans.

Students have a tough road ahead and will have to determine whether pursuing an education is worth it right now.  Students can pursue a degree if they wish, but they will have to work diligently not only in school but also at work.  Funding for college is going downhill and students will have to consider other ways to pay for college if they had previously been depending on financial aid.

On Aug 2 President Obama marked the launch of the Post-9/11 GI Bill with an invitation to veterans. The launch marks an unprecedented opportunity for post-9/11 veterans to seek post-secondary degrees.

“We do this not just to meet our moral obligation to those who sacrificed greatly on our behalf and on behalf of the country,” said Obama. “We do it because these men and women must now be prepared to lead our nation in the peaceful pursuit of economic leadership in the 21st century.”

The Post-9/11 GI Bill will cover up to 100 percent of student costs such as tuition, housing, books and supplies. The amount depends on the state in which individuals attend school. For instance, an individual enrolled in a Texas school could be eligible to receive $28,126 a semester. An individual enrolled in Colorado would be eligible to receive $43,035. The VA has determined that individuals in Florida are eligible for up to $62,000 per term.

With the Post-9/11 GI Bill, tuition and fees are paid directly to the school. The bill will pay up to 100 percent of veteran’s tuition.  Veterans also receive a monthly housing stipend and a $1,000 stipend a year for books and supplies. Individuals are also eligible for tutorial assistance adding up to a yearly total of $1200, or $100 a month. The costs for licensing and certification tests may also be reimbursed up to $2,000.

Students that want to attend school part-time, receive only a portion of the payment based on the number of credits they take. The bill is available to veterans up to 15 years after their date of discharge so it is recommended that veterans take advantage of these new benefits as soon as possible.

Are you ready to take advantage of the Post-9/11 GI Bill? Visit ClassesandCareers.com and fill out their form. An education counselor will show you how to use the bill to get the degree you want.