Tuesday, November 09, 2021
Student aid isn't exactly a hot topic-- unless you are repaying your own student debt or that of someone else.
Baylor is doing some explaining right now, as a Wall Street Journal report revealed that Baylor's practice of urging poorer families to finance a kid's Baylor education through "Parent Plus" loans with a stiff origination fee and relatively high interest rates has backfired. Apparently, just 28% of Baylor parents had begun repaying the loans within two years (repayment is supposed to start right away), suggesting a strikingly high default rate and unmistakable strain on working class families. This was the worst repayment rate in the nation-- in second place (well, second-to-last place) was Liberty University in Virginia, Jerry Falwell's school.
The problem has been exacerbated by Baylor's rapid rise in tuition-- something we have seen at schools across the country, both public and private. In 2000, undergrad tuition there was just under $12,000, but now it is $50,232 per year. Yikes!
Baylor has adjusted to this problem by shifting from need-blind admissions (where wealth is not considered when applications are considered) to need-aware admissions (that consider ability to pay). But... is it really so great to let in fewer kids who are not wealthy?
