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CNN Live At Daybreak

Rising Cost of College Really Sticking It to Middle Class

Aired May 02, 2002 - 05:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It seems the cost of going to college is constantly going up, and that's really sticking it to the middle class, because they often make too much to qualify for grants, and too little to foot the bill themselves.

Our Anne McDermott has more on this dilemma.

(BEGIN VIDEOTAPE)

ANNE MCDERMOTT, CNN CORRESPONDENT (voice-over): I know why you're crying, because when you get to college, it could cost as much as $70,000 a year. Fortunately, a year in a public school in northern California will only cost Maggie Shiebie (ph) about - oh - 17 grand. Dad's a little dazed.

MR. SHIEBIE, FATHER OF FUTURE COLLEGE STUDENT: First I thought, wow, this is really exciting for Maggie, that she made it into a really good school like UC Santa Cruz.

MCDERMOTT: And his second thought? Well it was something along the lines of, Yeow! In other words, how do you pay for it? Well you never know what the mail will bring or won't.

SHIEBIE (ph): The Pell scholarship that we got, that we applied for, we weren't eligible because we make too much money. The middle- class dilemma. Mom and dad both work. Have nice but not extravagant lives. So Maggie will do her part.

MAGGIE SHIEBIE (ph): I'll probably get a job.

MCDERMOTT: And probably say, you want fries with that - over and over. Folks like the Shiebies (ph) have a fair number of options, though: tax deferred education IRAs, negotiating aid packages with schools, employer education assistance programs. And if you don't qualify for need-based scholarships, how about merit scholarships, or sports scholarships. Maggie might qualify. The girl can golf. And then there's student loans. But I asked an expert; doesn't that create a lot of debt?

UNKNOWN FEMALE: The sad thing is, many of our students graduate with greater credit card debt than student loan debt.

MCDERMOTT: OK, watch those cards. As for the Shiebies (ph), they figure they'll do a little of this, a little of that, and they'll make it work.

What's going to be the biggest adjustment when your daughter goes to college?

UNIDENTIFIED MALE: Uh ...

MCDERMOTT: Well it won't be so much the money as that empty room come September.

Anne McDermott, CNN, Las Angeles.

(END VIDEOTAPE)

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