Why are states cutting higher education funding?

Federal and state funding into higher education has not been moving in the right direction for years now. Unfortunately, this is causing significant problems for families who rely on government-provided financial aid. At the same time, there are ways to overcome the stresses and challenges presented by funding cuts from states. First, it's important to know how this is playing out in certain areas. 

The states that currently appear to be in the worst positions with respect to higher education funding are those that rely upon natural oil and gas as their economic foundations. MarketWatch recently reported that direct lines can be traced between the significant reduction of oil prices across the nation throughout the past year and the decline of state-funded higher education in these areas. According to the news provider, some analysts have seen administrators plan not only reduce scholarships and financial aid packages, but also increase tuition due to the severity of budgetary shortfalls. 

Budget cuts are becoming increasingly prominent in higher education. Budget cuts are becoming increasingly common in higher education.

The source pointed out that the states where this has been most obvious include Wyoming, Louisiana and Oklahoma. Many Midwest states are suffering from the same dilemmas, while those on the coasts – including ones that do not necessarily rely on natural gas as a financial resource – have seen plenty of cuts throughout the past few years as well. 

Rather than following the news and getting worried about the implications for your student, consider getting smart with your college funding search. Schedule an appointment with one of our Smart TrackTM college funding professionals to discuss how you can overcome state cuts to higher education funding, and position your child for a successful career in a university.