Families increasingly seeking scholarship assistance

05.28.09
By Nicholas Storie

Although news about credit card debt and protection for consumers against predatory acts by card-issuing companies is grabbing headlines these days, another form of debt is taking on an increasingly prevalent role in the personal financial situation of families with college-age kids.

Earlier this year, Sallie Mae released a study detailing the emerging trend of how frequently college students are using credit cards to fund their education - and ultimately overpay for it.

The student loan provider reported that 30 percent of students surveyed put tuition on their credit cards and 92 percent of undergraduates with a credit card use it for textbooks, school supplies and other expenses related to their college education.

While tuition for college continues to go up and many families find themselves with less in savings or overall net worth, paying for higher education has become a struggle for many.

But Sallie Mae reminds American households that less expensive means of financial aid - including student loans - are available and often cheaper than accumulating credit card debt.

Another form of financial aid that may sometimes be overlooked is scholarship assistance. Money from scholarships, says one industry expert, can often "mean the difference between being able to afford college or not."

Clifford Stanley, president and CEO of Scholarship America, says that economic problems coupled with the steady rise in college tuition costs have spurred more families to seek scholarship assistance.

But for those unsure of how to get started in the scholarship application process, Stanley advises to begin researching the scholarship process early - even before your kids enter high school.

Stanley also encourages prospective students to talk with the colleges and universities they are considering attending to learn about potential scholarships offered through the institution or affiliates.

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Saving for college is increasingly difficult for some families