economics and college

Richard Zhang

As times gets tough, colleges turn to sponsors? According to NYTimes, one public college in California is turning to sponsors due to budget cuts. Even though, the college has cut many classes in its curriculum and raised its tuition, there is still a significant budget gap. US News reports that there is another reason that colleges are feeling overwhelmed. More and more students are applying for college and there are simply not enough seats for them in this economy. As more and more students are seeking higher educations, there isn’t enough financial aid to go around. Why are there such a high number of students searching for financial aid? Due to the recession, many college saving accounts has lost a good portion. Furthermore, colleges have raised their tuition to deal with the budget and endowment cuts. This is affecting under privileged students, especially students who come from financially difficult background. Yet, these students are hit the hardest in this economy. These students depend heavily on the scholarships, grants, and loans. With these financial options cut, these students are feeling the full blunt of this economic recession. Even students with wealthier background are feeling the pinch. Many applied to state schools in order to make college more affordable. Most families cannot afford to keep their children in college for five years. Even so, a lot of high school graduates are going to continue their education because they cannot find any work after high school. As the economy continue to slum, college students are adapting to a more career concentrated college years.