The Pennsylvania Higher Education Assistance Agency (PHEAA) realized that the nature of student learning is changing, and an increasing number of students are taking the majority of their classes online: Whereas in 1999 Harrisburg Area Community College (HACC) had 120 students enrolled in its online program, the school now has more than 5,000 students in the same program.

Pennsylvania universities (including schools such as Bloomsburg University, Lock Haven University and West Chester University) have witnessed a rise in online enrollment across the board, and increased their offering of 2,959 courses in 2010 to the current number of 3,764 online courses.

Hence, the agency decided to investigating altering the policy for the 2012-2013 school year.

Jim Carideo, director of financial aid at HACC, said he estimates that about 200 students lose their eligibility for financial aid due to the current rule regarding online class enrollment.

Yet online college students are one of the fastest growing education segments in the state and throughout the world, and many government officials and members of administration are concerned about keeping up with the future of education.

Senator Stewart Greenleaf of R-Montgomery Country, for example, said the standing rules regarding grant money are discriminatory and online college students should have the same opportunities as those students who attend traditional brick and mortar college classes.

Still, PHEAA and those who support a change in policy want to ensure that the state has the resources required to meet the demands of growth in online education, if a change in policy really does take place.

Therefore, evaluation of the current grant limitations will be executed with a study to prove the importance of changing the limitations, with a distance-education study group supervised by PHEAA. The group will be comprised of 8-12 higher education students who will meet starting May 2011, with initial findings revealed February 2012.

Greenleaf said he is confident that the study will result in the necessary change of policy, as the study reveals the major effect the standing rule has on students who can’t afford to take all the classes they desire.

Likewise, university programs across the nation are hoping for similar changes in policy.

For example, the California university program has about 2,000 students enrolled in online courses, but the number should witness substantial growth in the coming years.

California University’s director of web-based programs Millie Rodriguez said she thinks the student enrollment levels in online classes will increase as limits in grant eligibility are lifted.

She encourages the raising of grant limits, saying Web-based course work should be viewed as the norm in the modern age.

California university students who are currently enrolled exclusively in online classes can receive loans, but not grant funding.

Rodriguez said thinks students would benefit from a change in policy and enroll in even more online classes as grant funding becomes more readily available.

A $13.8 billion tuition tax credit boost called the American Opportunity Tax Credit reimburses 100 percent of the first $2,000 of educational expenses for lower income students. For the next $2,000 spent, students receive a 25 percent reimbursement. In short, qualifying, lower income students can receive $2,500 in education reimbursements per year.

The bill also features other benefits for low-income students. Families that do not earn enough to pay income taxes can receive a $1,000 education refund.

“These kinds of incentives from the government don’t come along very often,” says Marcus Varner, education analyst at ClassesandCareers.com, a free college information service. “If people have been thinking of going back to school, now would be the time to do it. If they are hurting financially, they may qualify for the aid they need to get a degree.”

These benefits are set to expire after the 2010-2011 school year.

Fortunately, thanks to a growing number of online education options, degree-seekers can take advantage of these benefits without leaving their jobs. Sites like ClassesandCareers.com help degree-seekers qualify for these benefits and enroll in online universities.

“People can learn what options are available to them,” saysVarner. “All they have to do is visit our form and fill it out. We guide them through the rest.”

Find out if you qualify for these unprecedented benefits. Visit ClassesandCareers.com and complete their financial aid assessment tool. An education advisor from a top school will help you determine if you qualify for these education benefits and answer your questions about degree programs and financial aid.

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.