FINANCIAL AID

Education in regards to financial aid for undergraduates

Education in regards to financial aid for undergraduates

Introduction

The costs associated with obtaining higher education make financial aid a necessity for many students. While now best known for its student loan programs, the federal government has offered various forms of aid to higher education throughout its history. Long had the education been a topic of discussion especially in the United States. Every year more and more employment positions are requiring a higher level of education. There is a large debate on whether or not education allows individuals to move from their lower status in society to a higher status, or if the education system is maintaining the inequalities of society (Wong, 2009).

Discussion and Analysis

Financial aid provides money, including grants, scholarships, employment, and loans to assist students in paying for college costs. Allowed costs include tuition, fees, books and supplies, living expenses, and other educationally related costs to attend college. Funding sources for financial aid include the U.S. government, state governments, private foundations, and the colleges themselves.

Approximately $65 billion in federal funds were used for student financial aid last year. Until the 1992 Higher Education Amendments (HEA), federal law addressed traditional term-based academic programs. High-profile fraud and abuse by some colleges—especially correspondence schools—caused the U.S. government to heavily restrict financial aid for students studying through nontraditional academic programs. In an effort to prevent fraud and ensure quality educational programs, the 1992 HEA restricted federal funds for nontraditional education including distributed education programs such as distance learning and correspondence courses. The law limits distributed education programs and the amount of federal financial aid available to students enrolled in them. Institutions have also faced problems administering federal financial aid for students enrolled in distributed education programs. These problems have mainly been with using information ...