As is the case with everything else the cost of college education has gone up greatly. Tuition increases in excess of 6% per year are commonplace now. For instance, back in 1973 the price to register at The University of California (UCLA) was about $200 per quarter and now it is well over $2,000 per quarter.

That tenfold increase in cost is not at all abnormal and many things now cost ten times more than they cost 20 or 25 years ago. On the other hand, incomes have risen roughly threefold in this same time period from in the region of $15,000 - $30,000 per year to about $39,000 - $42,000 per year. The numbers vary by age, gender and more although as a guide a threefold increase is about right.

Happily there is some good news. There are many more forms of financial help available now to parents and students than ever before. Financial aid, as its name suggests, is money that students and parents receive from grants, scholarships and loans granted by Federal and private lenders to assist students to pay for their college education.

Previously, students were dependent almost totally on Stafford loans and Pell grants to finance their education costs and college living expenses. Today Pell grants are still issued although they are needs based and represent a very small proportion of the education cost today. A Stafford college loan is similarly needs based but can meet 25% to 40% of the average cost of school nowadays. Another type of financial aid is Perkins loans that are similar to Stafford loans but that are reserved for particularly low income families.

Happily, PLUS loans are also available these days and these were not an option 25 years ago. Despite the fact that they are called student PLUS loans are provided for parents and not students to assist them to pay for their child’s college education. Interest rates for PLUS loans are reasonable and there are some restrictions and fees to pay but they often form part of the student’s overall package of funding.

One very quick note on the subject of fees. Many loans are for a specific sum like $6,000 per year disbursed in several payments (often one payment each semester). But it is common for up to 4% in fees to be deducted from that amount before the funds are disbursed. That 4% fee on your $6,000 equals $240 that you will not see but that you must repay. Whenever you are looking for a loan ensure that you do your homework and look for a low-fee or no-fee loan.

Despite the fact that Federal loan programs like the subsidized Stafford loan program carry low fees and the government pays the interest, they are not the only form of financial aid nowadays and are not always the best option.

Meeting the money to cover the cost of college nowadays is a complex operation and the majority of students will need to assemble a package of funding that includes scholarships, grants, government loans and private financing.

Happily, there are now many more sources of finance available than we have seen for a long time and market competition from private lenders in particular means that you can get funds at a price that is not going to break the bank.

You are also fortunate to be living at a time when getting hold of the information that you need about college grants and loans to make good decisions about the options open to you is also fairly simple.