“It’s just been nice not having to scrounge up every penny I have. I could never go out to dinner or out to eat with my friends, because if I did, I’d be $4 short for rent that month.”
– Ashley List, a former UWM student

Ashley List dropped out of college at the University of Wisconsin-Milwaukee after her third semester because she could no longer handle working to make ends meet while going to school.

Without financial help from her parents, List found it nearly impossible to deal with the strain of working nearly full-time to pay rent, while trying to keep up with her classes and schoolwork. She returned home to De Pere, Wis., after the fall 2004 semester.

Although List received some small financial aid loans, which she said totaled about $1,500 a semester, the money did not help her pay her rent or living expenses.

List said that the decision to postpone her education was beneficial to her peace of mind.

“It’s just been nice not having to scrounge up every penny I have,” List said. “I could never go out to dinner or out to eat with my friends, because if I did, I’d be $4 short for rent that month.”

Poverty a barrier

Statistics show that in 2004, 26 percent of residents in the city of Milwaukee lived in poverty. According to a report by the Milwaukee Journal Sentinel, 62,000 of those individuals were children. Many of those children will not have access to higher education because of financial and academic barriers.

State-determined tuition at UWM has doubled in the last 10 years, but university officials say that students with financial need should still have access to financial aid programs due to increases in state and federal aid.

The main reason for this dramatic tuition increase, said Beth Weckmueller, director of Enrollment Services, is that the state is providing less funding for education than it did 10 years ago. Weckmueller also said that tuition rates have been influenced by things such as a demand for technology. She added that the tuition hikes are not “a question of the university spending money foolishly.”

“If you look at the health care field, or the engineering field, or even the business field, there is a lot more technology, which can be pretty costly,” Weckmueller said.

Feeling the squeeze

No matter where the money goes, students are still feeling the pinch. A senior graduating this spring will have paid 46.4 percent more this year than he or she paid four years ago in his or her first year of college.

It is possible that some low-income students are intimidated by the climbing costs of a college education. However, help in paying tuition is readily available through the Department of Financial Aid at UWM.

This year 24,017 students applied for financial aid at UWM, and 19,717 received some amount of money. Jane Hojan-Clark, director of Financial Aid, said that the difference between the number applying for aid and the number who actually received it could, in part, be accounted for by freshmen who put multiple schools on their Free Application for Federal Student Aid (FAFSA) form, but ultimately did not choose to attend UWM.

Hojan-Clark said that if students choose to stay at UWM and do not receive financial aid, it would be plausible for them to pay tuition through a loan that is not awarded based on financial need, such as the unsubsidized Stafford Loan, which is offered through the federal government.

While she said that it is possible that some students drop out of the university because they were denied aid, she said that it was more likely for students to attend school part-time while working.

“It is my sense that students will move to less than full-time status before completely dis-enrolling,” Hojan-Clark said.

Sorting out aid options

The total cost of tuition for the 2005-2006 school year amounts to $5,494.32. The average amount of financial aid received was $10,506 per student. Hojan-Clark said this amount of money should also cover books, as well as part of room and board.

Hojan-Clark said financial need is not based strictly on income. Students receive financial aid based on their family’s monetary contribution, which is subtracted from the total cost of going to school. Students must fill out the FAFSA in January to get financial aid loans or grants for the coming school year.

“They’ll be considered for any kind of financial assistance — the grants, employment, loans,” Hojan-Clark said.

Hojan-Clark also said that the Federal Pell Grant, the largest federal need-based financial aid program, continues to expand. In addition, the Wisconsin Higher Education Grant’s funding was increased in this biennial period (2005-2007) in order to deal with higher tuition.

Loans, of course, must be repaid after graduation, but Hojan-Clark sees repaying loans as an opportunity, rather than a burden.

“Loans may be seen in a negative light, but they have provided (the) ability to many, many students to access higher education in this country,” she said. “They provide a mechanism for someone to repay the loan and establish a credit rating.”

Although loans may help establish a credit rating, they can also lead to long-standing debt if not repaid responsibly. The average UWM student graduates $17,500 to $18,000 in debt from student loans.

Distracted by finances

It can be more difficult for a low-income student to perform well in college, because financial problems can be very distracting for students, Hojan-Clark said. She said the Financial Aid department can help people.

“That’s why we encourage students, and make every effort to get the information out about the financial aid programs that are available,” Hojan-Clark said. “It’s a good investment for those individuals.”

In addition to grants and loans, a new program called the Life Impact Program started this fall. The Life Impact Program addresses the unique concerns of students who are eligible for W-2 assistance.

Pamela Fendt, a policy analyst for the university, said only parents can receive assistance through W-2, Wisconsin’s welfare reform program, which provides little or no support for education.

Help through welfare

The Life Impact Program intends to provide access to education to parents on welfare. In addition to monetary support, life coaches like Natalie Reinbold provide guidance on academic, personal and career issues.

“If they come to me and they have a concern about their childcare needs (or) transportation, I will help them problem-solve and identify resources either on campus or off campus, to help make sure that they’re going to be successful,” Reinbold said.

The Life Impact Program offers not only the opportunity to attend college, but also a real hope of graduation for low-income students who have children to support, most of whom would never have access to higher education without this program.

“Really, all of the support provided by the Life Impact Program is geared toward retention, because for a student to graduate is the ultimate goal and one of the major measures of success for the program,” Reinbold said.

Currently, 12 students receive money and support through the Life Impact Program. Each student receives a $5,000 scholarship, which is split into two payments during the academic year. Reinbold and Hojan-Clark hope the program will expand to include 25 students next year.

“We’re hoping that it will initiate interest in individuals who are thinking of going to college, but thought it wasn’t possible,” Hojan-Clark said. “It can really affect the next generation. We’re focusing on parents because we want to see the impact, not just on the student who is participating in the program, but also on their children.”

Hojan-Clark said that the children will see the benefit of a higher education, and will indirectly benefit from the program themselves.

“We believe this program is really fool-proof,” Hojan-Clark said. “We believe it has all of the right facets for success.”

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