Tuition rising faster than inflation

By BETH LUCAS
Collegian Staff Writer

The average national cost of tuition continues to increase at double the rate of inflation, causing many problems for graduating students.

Penn State's 1997 and 1998 tuition increases were a low 3.7 percent compared to the average national increases of 5 and 4 percent for the same years. For the same years, inflation in the United States was 1.6 percent and 2.9 percent, respectively.

Penn State's lower rate of increase, however, can be deceiving. The university's average tuition costs are higher than other national public universities -- the Penn State increase this year was $225 while the national average was $132.

The high cost may pose a problem for graduates because most loaning institutions give them only 10 years to pay off their loans.

The Pennsylvania Higher Education Assistance Agency, however, has programs to help extend the payback time, said Stephanie Suran, public relations assistant for the agency. The use of these programs has been slowly increasing.

Of about 290,000 matured loans in 1997, 141,000 were given an extension or smaller payments, 31,000 were deferred and 120,000 had payments made.

In 1998, more than 147,000 students were assisted with payments, 32,000 were deferred and 123,000 loans were paid back on schedule.

The trend of tuition increases at rates higher than inflation is not new. According to CNN's World Wide Web site (www.cnn.com), tuition and fees have risen by 50 percent nationally since 1989.

But PHEAA's grants and subsidized and unsubsidized loans also have been increasing, Suran said.

"In the last four years, the state grant program has increased more than 42 percent," Suran said.

This year, more than 150,000 students are expected to receive grants averaging $2,078. In 1996, average grants were $1,862.

However, Bob Gentry, branch manager for College Financial Services, said the increased need is not being met fully by the increased aid.

"Five years ago, 60 percent of aid was free and 40 percent (were) loans," he said, but now it is the other way around.

The trend may cause more long-term problems for college graduates, such as trying to save for their children's education while paying off their own loans.

Angela Canfield (sophomore-communication disorders) had to take out loans to pay for her education, unlike her parents.

She plans on saving for her children's education despite having to pay off her own.

"I'll just do a little at a time," she said. "I am hoping to get mine out of the way fast so I can start saving."