Glimmer of Hope for Student Aid in a Bad Economy

True, it's not a great time financially to be going or sending a kid to college. But from the success of a bailout to the federal student loan system, to the tuition "deals" some colleges are offering, there's more good news out there on college costs and financial aid than some families recognize.

A look at the good and the bad for the college-bound:

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TUITION

BAD: State budgets are still in flux, but when they're done, many public universities are likely to impose sharp tuition increases. During the last decade, tuition at public colleges has been rising at a rate of 4 percent per year — above overall inflation.

GOOD: With help from federal stimulus money, some public colleges will manage more modest price increases as they drastically cut spending. Maryland will try to freeze in-state tuition for a fourth straight year. Others will keep it closer to their usual increases, like Kentucky, with increases set for between 3 and 5 percent.

Many private colleges have announced their smallest increases in years. Becker and Merrimack colleges in Massachusetts are among those freezing tuition, room and board. William Jessup University in California will cut tuition 2.5 percent.

Some are offering "specials." Laid-off employees get one-time tuition and application fee waivers at Kent State-Trumbull in Ohio. Mercer University in Georgia and Manchester College in Indiana promise to cover the costs of additional time if students stay on track but are unable to graduate in four years. Manchester will even refund a year's tuition if you don't have a job or a slot in grad school within six months of graduation.

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FINANCIAL AID FROM COLLEGES

BAD: The average college endowment is down around one-fourth. Many colleges, particularly regional universities, will be unable to offer as much scholarship support.

GOOD: The National Association of Independent Colleges and Universities says more than 90 percent of private colleges will increase aid next year. The group recently surveyed about 200 institutions and found they planned average tuition increases of 4 percent, but aid increases of 9.8 percent.