Vice President Joe Biden intends to make higher education a reality for more young people, the Associated Press reports, in part by closing the gap between families’ incomes and rising college costs (“Biden Wants to Make Higher Ed More Affordable,” USA Today, April 18, 2009).
At a town hall–style meeting he hosted in St. Louis Biden told about 300 people that he’ll be asking the Treasury Department to figure out how to make college savings plans more effective and more reliable.
“We’re going to make a series of investments, investments in our families and our students,” he said, highlighting the administration’s efforts to improve tax breaks for families and increase need-based grants for low-and middle-income families.
White House Taps Existing Programs to Increase College Affordability
Since so many families save for college using tax-deferred 529 savings plans, which allow families to set aside funds to cover future tuition expenses, fees, books, and supplies, the Obama administration is examining a program that would allow families to take out low-interest loans against their 529 plans to help them cover college costs.
Obama has already increased funding for the need-based federal Pell Grant program, which helps low-income students afford school, but Biden said the Obama administration also wants to ensure continued Pell Grant funding by setting up the program to be automatically subsidized each year.
The government is also considering extending The American Opportunity Tax Credit beyond 2010, which allows families to claim a $2,500 tax credit for college expenses for up to four years.
But by far the most sweeping proposal from the Obama administration, which has drawn fierce criticism from leaders in the student loan industry, is the suggested cancelation of the federally funded student loan program.
Lenders say that cancelling the program will eliminate families’ option to choose from a variety of private lenders and federal student loan incentives and, instead, require them to borrow federal student loans through government’s Direct Loan Program.
Biden alleges that the move to cancel the federal student loan program would result in up to $94 billion in savings to the federal government over the next 10 years, which he said, “We can take … and reinvest … in more loans, more grants and more access to college.”
Tuesday, October 20, 2009
student loan debt
College graduates who were lured into high-need fields, including teaching, nursing, and public service, by programs that would forgive a portion or all of their student loans are receiving this sobering news: The cavalry isn’t coming after all.
These graduates, who in some cases were enticed by the loan forgiveness programs to take out student loans that exceeded their earning potential, are now discovering they’re on the hook for their large debts — and are struggling to pay them — because the state agencies originally offering the loan forgiveness can no longer afford to do so.
“We’d gotten married in June and bought a house, pretty much planned our whole life,” said Travis Gay, a special education teacher in Kentucky (“Recession Imperils Loan Forgiveness Programs,” The New York Times, May 27, 2009).
Gay and his wife, Stephanie, also a teacher, thought they had a handle on repaying the $100,000 they owed in combined student loans. They were under the impression that a portion of their college loans would be forgiven each year over the next five years under a state program offering loan forgiveness for schoolteachers.
Then the Gays received a letter from the Kentucky Higher Education Student Loan Corporation, the lending agency that offered the program, “saying that our forgiveness this year was next to nothing.”
The student loan agency contends that it never promised the thousands of indebted public school teachers and nurses who have been affected by cuts to the program that their loans would definitely be forgiven. Financing for the loan forgiveness program was never actually guaranteed, says Ted Franzeim, vice president of customer relations for the student loan agency.
And it’s not just Kentucky borrowers who are being hurt by program cuts. Student loan forgiveness programs are on the chopping block throughout the country as the state agencies and nonprofit student loan organizations that sponsor these programs reel from dwindling government aid and strained market conditions.
The New Hampshire Higher Education Loan Corporation, for example, suspended its loan forgiveness program for teachers, and the Pennsylvania Higher Education Assistance Authority has put the brakes on its loan forgiveness program for nurses and people called to active duty in the military.
These graduates, who in some cases were enticed by the loan forgiveness programs to take out student loans that exceeded their earning potential, are now discovering they’re on the hook for their large debts — and are struggling to pay them — because the state agencies originally offering the loan forgiveness can no longer afford to do so.
“We’d gotten married in June and bought a house, pretty much planned our whole life,” said Travis Gay, a special education teacher in Kentucky (“Recession Imperils Loan Forgiveness Programs,” The New York Times, May 27, 2009).
Gay and his wife, Stephanie, also a teacher, thought they had a handle on repaying the $100,000 they owed in combined student loans. They were under the impression that a portion of their college loans would be forgiven each year over the next five years under a state program offering loan forgiveness for schoolteachers.
Then the Gays received a letter from the Kentucky Higher Education Student Loan Corporation, the lending agency that offered the program, “saying that our forgiveness this year was next to nothing.”
The student loan agency contends that it never promised the thousands of indebted public school teachers and nurses who have been affected by cuts to the program that their loans would definitely be forgiven. Financing for the loan forgiveness program was never actually guaranteed, says Ted Franzeim, vice president of customer relations for the student loan agency.
And it’s not just Kentucky borrowers who are being hurt by program cuts. Student loan forgiveness programs are on the chopping block throughout the country as the state agencies and nonprofit student loan organizations that sponsor these programs reel from dwindling government aid and strained market conditions.
The New Hampshire Higher Education Loan Corporation, for example, suspended its loan forgiveness program for teachers, and the Pennsylvania Higher Education Assistance Authority has put the brakes on its loan forgiveness program for nurses and people called to active duty in the military.
NextStudent Tool Helps Students Find Online Education Degree Programs
Students looking to finish their college degree, start a new career, or increase their earning potential now have a quick and easy way to find the best online education degree program that meets their needs, with NextStudent’s new eLearners college search program.
This free interactive tool allows students to search for online colleges and universities and to browse through thousands of online courses in hundreds of fields including:
* Game Design
* Criminal Justice
* Forensics
* Counseling
* Education
* Web Development
* Fashion and Design
* Business Management
* Public Health
* Nursing
* Computer Science
NextStudent’s eLearners college search program delivers results at the click of a button and helps students research thousands of higher education options:
* Over 6,500 courses
* Over 1,700 degree programs
* More than 450 certificate and diploma programs
* More than 140 accredited online schools
Once students have used the eLearners program to narrow down their list of accredited online colleges and the fields of study they would like to explore, students are put in touch with education advisors at the nation’s top accredited online schools that meet their search criteria.
Online Degree Programs Fit Student Lifestyles
With online degree programs, students are able to decide the “when, where, and how” of getting their degree. Enrolling in an online college is a convenient way for student to get a college degree on their own time and terms.
Students can study and attend classes on their own schedule, participate in class discussions without leaving home, eliminate commutes and scheduling conflicts, and work at their own pace to master subjects that are more difficult.
This free interactive tool allows students to search for online colleges and universities and to browse through thousands of online courses in hundreds of fields including:
* Game Design
* Criminal Justice
* Forensics
* Counseling
* Education
* Web Development
* Fashion and Design
* Business Management
* Public Health
* Nursing
* Computer Science
NextStudent’s eLearners college search program delivers results at the click of a button and helps students research thousands of higher education options:
* Over 6,500 courses
* Over 1,700 degree programs
* More than 450 certificate and diploma programs
* More than 140 accredited online schools
Once students have used the eLearners program to narrow down their list of accredited online colleges and the fields of study they would like to explore, students are put in touch with education advisors at the nation’s top accredited online schools that meet their search criteria.
Online Degree Programs Fit Student Lifestyles
With online degree programs, students are able to decide the “when, where, and how” of getting their degree. Enrolling in an online college is a convenient way for student to get a college degree on their own time and terms.
Students can study and attend classes on their own schedule, participate in class discussions without leaving home, eliminate commutes and scheduling conflicts, and work at their own pace to master subjects that are more difficult.
business school
BearStearns CEO, Jimmy Cayne, seems to have been the only former Stearns employee to make it out of the JPMorgan Chase buyout relatively unscathed — at least in non-CEO terms — walking away with $61.3 million in sold shares. Even though, in his own high-priced executive world, Cayne took his buyout at a massive loss: Just a year ago, his entire Stearns portfolio was valued at almost $1 billion.
Former Bear Stearns employees, along with Cayne, saw the value of their shares plummet 85 percent in the buyout to a mere $10 a share. Bears Stearns shares were trading at about $67 two weeks before the buyout and as high as $170 a year ago.
Now add to the list of people adversely affected by the Stearns debacle, business-school students whose full-time job and summer internship offers from Bear Stearns have recently been rescinded, according to a BusinessWeek article by Alison Damast (“Bear Stearns Rescinds Job Offers,” April 3, 2008).
A spokesman from JPMorgan Chase won’t disclose how many job offers to soon-to-be college graduates and MBAs have been affected by the dissolution of the firm, at least 12 students at New York University’s Stern School of Business have already received their unhappy phone calls from the company.
According to The New York Times, the final count of rescinded job and internship offers will tally in the dozens (“J.P. Morgan Said to Withdraw Bear Job Offers,” April 3, 2008).
Students Left Out in the Cold
When JPMorgan announced its takeover of failing Bear Stearns on March 16, the status of the student jobs and internships was still uncertain. It wasn’t until April 2 that students who were offered positions in the investment banking, sales, and trading and research units of the former company were notified about the fate of their job and internship positions.
Over the next few weeks, as the school year draws to a close, these students will be frantically trying to nail down offers for replacement positions.
“I’m not sure what we are all supposed to be doing now with the few weeks before start-dates, but I would imagine that, like me, the other 25 or so students who were to start as associates are all in a mad scramble to figure out what the future holds,” one student told BusinessWeek.
In the meantime, students who had their full-time job offers rescinded will be allowed to keep their signing and relocation bonuses and will also be able to use JPMorgan’s career-service resources.
And for those students who will no longer be interning with the company this summer, JPMorgan has offered a full 10 weeks’ pay if they find a new summer position with a nonprofit organization instead.
To Fear or Not to Fear the Economy
Although Bear Stearns is the only investment firm so far this recruiting season to withdraw already-extended job offers, fears about the current state of the economy and its effect, in particular, on the financial-services sector have left business-school students and administrators wondering about the security of jobs and job offers with other firms.
To some, the rescinded Bear Stearns offers recall the results of a similar economic downturn in 2001, Damast writes, when several companies that had hired students were forced to scale back.
Tom Kozicki, board president of the MBA Career Services Council, says he believes the Bear Stearns situation doesn’t necessarily foreshadow what lies ahead for the financial industry, but is definitely something business students need to keep in the back of their mind as they prepare for this particularly shaky job market.
“It sounds like the shoe has dropped. I think it’s unfortunate, but I don’t think it comes as a surprise to most people,” Kozicki told BusinessWeek. “The economy is shaky, [Fed Chairman Ben] Bernanke has indicated that he thinks we are going into a recession and I think that students need to be prepared for some uncertainty in the market.”
Former Bear Stearns employees, along with Cayne, saw the value of their shares plummet 85 percent in the buyout to a mere $10 a share. Bears Stearns shares were trading at about $67 two weeks before the buyout and as high as $170 a year ago.
Now add to the list of people adversely affected by the Stearns debacle, business-school students whose full-time job and summer internship offers from Bear Stearns have recently been rescinded, according to a BusinessWeek article by Alison Damast (“Bear Stearns Rescinds Job Offers,” April 3, 2008).
A spokesman from JPMorgan Chase won’t disclose how many job offers to soon-to-be college graduates and MBAs have been affected by the dissolution of the firm, at least 12 students at New York University’s Stern School of Business have already received their unhappy phone calls from the company.
According to The New York Times, the final count of rescinded job and internship offers will tally in the dozens (“J.P. Morgan Said to Withdraw Bear Job Offers,” April 3, 2008).
Students Left Out in the Cold
When JPMorgan announced its takeover of failing Bear Stearns on March 16, the status of the student jobs and internships was still uncertain. It wasn’t until April 2 that students who were offered positions in the investment banking, sales, and trading and research units of the former company were notified about the fate of their job and internship positions.
Over the next few weeks, as the school year draws to a close, these students will be frantically trying to nail down offers for replacement positions.
“I’m not sure what we are all supposed to be doing now with the few weeks before start-dates, but I would imagine that, like me, the other 25 or so students who were to start as associates are all in a mad scramble to figure out what the future holds,” one student told BusinessWeek.
In the meantime, students who had their full-time job offers rescinded will be allowed to keep their signing and relocation bonuses and will also be able to use JPMorgan’s career-service resources.
And for those students who will no longer be interning with the company this summer, JPMorgan has offered a full 10 weeks’ pay if they find a new summer position with a nonprofit organization instead.
To Fear or Not to Fear the Economy
Although Bear Stearns is the only investment firm so far this recruiting season to withdraw already-extended job offers, fears about the current state of the economy and its effect, in particular, on the financial-services sector have left business-school students and administrators wondering about the security of jobs and job offers with other firms.
To some, the rescinded Bear Stearns offers recall the results of a similar economic downturn in 2001, Damast writes, when several companies that had hired students were forced to scale back.
Tom Kozicki, board president of the MBA Career Services Council, says he believes the Bear Stearns situation doesn’t necessarily foreshadow what lies ahead for the financial industry, but is definitely something business students need to keep in the back of their mind as they prepare for this particularly shaky job market.
“It sounds like the shoe has dropped. I think it’s unfortunate, but I don’t think it comes as a surprise to most people,” Kozicki told BusinessWeek. “The economy is shaky, [Fed Chairman Ben] Bernanke has indicated that he thinks we are going into a recession and I think that students need to be prepared for some uncertainty in the market.”
College Crisis
College Crisis – Are Tuition Free Programs On Their Way Out?
November 7, 2008 by lawlibrarian
Not even 24 hours ago, I posted on students seeking tuition free colleges in the face of economic turmoil. Now, the New York Times is reporting that the economic crisis is hitting colleges particularly hard and the effects are being felt in layoffs, hiring freezes, postponed construction projects, and tuition increases. The article specifically notes that Tufts University, which currently has a need-blind admissions policy, is reconsidering that position:
“The target of being need-blind is our highest priority,” said Lawrence S. Bacow, president of Tufts. “But with what’s happening in the larger economy, we expect that the incoming class is going to be needier. That’s the real uncertainty.”
On the other hand, some colleges, such as Vassar, are actually committing more to financial aid, in spite of the crisis:
Vassar College will give out $1 million more in financial aid this year than originally budgeted, even though the endowment, which provides a third of its operating budget, dropped to $765 million at the end of September, down $80 million from late June. President Catharine Bond Hill of Vassar said the college would reduce its operating costs, but remain need-blind.
In the face of these stories, I can’t help but think that programs offering free tuition to the neediest students will be the first to be cut. Hopefully, Obama’s economic stimulus package will take higher education costs into account.
November 7, 2008 by lawlibrarian
Not even 24 hours ago, I posted on students seeking tuition free colleges in the face of economic turmoil. Now, the New York Times is reporting that the economic crisis is hitting colleges particularly hard and the effects are being felt in layoffs, hiring freezes, postponed construction projects, and tuition increases. The article specifically notes that Tufts University, which currently has a need-blind admissions policy, is reconsidering that position:
“The target of being need-blind is our highest priority,” said Lawrence S. Bacow, president of Tufts. “But with what’s happening in the larger economy, we expect that the incoming class is going to be needier. That’s the real uncertainty.”
On the other hand, some colleges, such as Vassar, are actually committing more to financial aid, in spite of the crisis:
Vassar College will give out $1 million more in financial aid this year than originally budgeted, even though the endowment, which provides a third of its operating budget, dropped to $765 million at the end of September, down $80 million from late June. President Catharine Bond Hill of Vassar said the college would reduce its operating costs, but remain need-blind.
In the face of these stories, I can’t help but think that programs offering free tuition to the neediest students will be the first to be cut. Hopefully, Obama’s economic stimulus package will take higher education costs into account.
College Scholarships
An anonymous donor is playing secret Santa with at least a dozen colleges and universities nationwide, but instead of giving $5 trinkets this Santa has left schools with $1 million to $10 million gifts, The New York Times reports (“Anonymous Donor Gives Millions to Colleges,” April 24, 2009).
Over the past two months the donor has given away $70 million to select schools. To remain anonymous, the donor employs a bank to contact the schools either with a call or letter that relays sentiments similar to what was written in one letter: “It is hoped that this will make a substantial difference to your students during these challenging times… enabling a more confident, sharper focus on their studies with improve career and life prospects.”
None of the school officials at the selected schools know whether the donations are coming from a man, woman, or organization, and no one seems to want to jeopardize their gift by speculating too much about the reasoning behind the donor’s selections. There’s a pretty clear consensus, however, that the schools share one common trait: they’re all led by women.
Lois DeFleur, president of Binghamton University in New York, is more than fine with this reasoning, if it is indeed the case, “The actions say, ‘I’m investing in an institution because it has achievements and I believe that with women leaders it will have future accomplishments.’ That’s pretty powerful in my view.”
The donations, which at some schools have been the single largest donation in the school’s history, have ranged from the $10 million given to Michigan State University, to the $1.5 million given to the University of North Carolina in Asheville. In return the donor has asked for complete anonymity and for the majority of the donation — 50 percent to 80 percent of the total donation in each case — to be used for financial aid.
The schools say they are extremely grateful for being chosen, particularly since higher education institutions across the country have seen an increasing demand for financial aid at the same time that state funding and endowments are drying up.
“In the best of times we never have enough scholarship money for students who have financial need,” said Susan Cole, president of Montclair State University in New Jersey. “In these difficult times, that is multiplied. The gift is incredibly important to us. I cannot adequately express the depth of our gratitude.”
Over the past two months the donor has given away $70 million to select schools. To remain anonymous, the donor employs a bank to contact the schools either with a call or letter that relays sentiments similar to what was written in one letter: “It is hoped that this will make a substantial difference to your students during these challenging times… enabling a more confident, sharper focus on their studies with improve career and life prospects.”
None of the school officials at the selected schools know whether the donations are coming from a man, woman, or organization, and no one seems to want to jeopardize their gift by speculating too much about the reasoning behind the donor’s selections. There’s a pretty clear consensus, however, that the schools share one common trait: they’re all led by women.
Lois DeFleur, president of Binghamton University in New York, is more than fine with this reasoning, if it is indeed the case, “The actions say, ‘I’m investing in an institution because it has achievements and I believe that with women leaders it will have future accomplishments.’ That’s pretty powerful in my view.”
The donations, which at some schools have been the single largest donation in the school’s history, have ranged from the $10 million given to Michigan State University, to the $1.5 million given to the University of North Carolina in Asheville. In return the donor has asked for complete anonymity and for the majority of the donation — 50 percent to 80 percent of the total donation in each case — to be used for financial aid.
The schools say they are extremely grateful for being chosen, particularly since higher education institutions across the country have seen an increasing demand for financial aid at the same time that state funding and endowments are drying up.
“In the best of times we never have enough scholarship money for students who have financial need,” said Susan Cole, president of Montclair State University in New Jersey. “In these difficult times, that is multiplied. The gift is incredibly important to us. I cannot adequately express the depth of our gratitude.”
community college
Although school administrators across the nation are reporting an increase in applications, they’re worried about just how many college students will actually enroll in their institutions this fall as families continue to tighten their budgets amid this recession, reports Inside Higher Ed (“Parents’ View of the Economy,” March 30, 2009).
However, a new survey of parents of college students indicates that while administrators’ concerns are valid, the economy may not have affected parents’ finances as much as educators originally thought, particularly among parents whose children are entering their freshmen year. Eduventures, an organization that tracks higher education trends, surveyed 7,000 parents with college-age children at a mix of 19 public and private colleges and universities.
Eduventures found that a majority of parents with freshmen — about 66 percent — said the downturn won’t affect how they will finance their children’s education this upcoming fall.
Overall, relatively few parents told Eduventures that they would not enroll their children in college due to lack of funding, although some parents indicated that they might choose to enroll their children in less expensive institutions to cut costs.
Of those parents with students at private schools, less than 12 percent indicated that their children were considering transferring to a less expensive school, and nearly 7 percent said they would encourage their children to take some classes at a community college. Of these same private school parents, less than 3 percent indicated that their students wouldn’t be returning to college in the fall, and less than 0.5 percent said that their children were considering dropping out of college permanently.
The numbers were only slightly different for parents whose children attend public colleges, with almost 9 percent saying that their children may have to consider transferring schools and less than 3 percent who believed that their children would need to look at dropping out of college. Nearly 6 percent of these parents thought that their children would need to live at home instead of on campus this fall.
However, a new survey of parents of college students indicates that while administrators’ concerns are valid, the economy may not have affected parents’ finances as much as educators originally thought, particularly among parents whose children are entering their freshmen year. Eduventures, an organization that tracks higher education trends, surveyed 7,000 parents with college-age children at a mix of 19 public and private colleges and universities.
Eduventures found that a majority of parents with freshmen — about 66 percent — said the downturn won’t affect how they will finance their children’s education this upcoming fall.
Overall, relatively few parents told Eduventures that they would not enroll their children in college due to lack of funding, although some parents indicated that they might choose to enroll their children in less expensive institutions to cut costs.
Of those parents with students at private schools, less than 12 percent indicated that their children were considering transferring to a less expensive school, and nearly 7 percent said they would encourage their children to take some classes at a community college. Of these same private school parents, less than 3 percent indicated that their students wouldn’t be returning to college in the fall, and less than 0.5 percent said that their children were considering dropping out of college permanently.
The numbers were only slightly different for parents whose children attend public colleges, with almost 9 percent saying that their children may have to consider transferring schools and less than 3 percent who believed that their children would need to look at dropping out of college. Nearly 6 percent of these parents thought that their children would need to live at home instead of on campus this fall.
Harvard University
Harvard University’s whopping $34 billion endowment is declining in the current economic crisis, and the hits could keep coming, wrote university president, Drew Gilpin Faust, in a recent e-mail sent to students and employees (“A Sober Message From Harvard’s President,” The Chronicle of Higher Education, Nov. 10, 2008).
While it is not known just how deep Harvard’s endowment losses go, Moody’s Investors Service projects that the value of college and university endowments, in general, have decreased by 30 percent this fiscal year. For Harvard, the nation’s wealthiest university, that would mean an $11 billion drop.
The declines mean that Harvard will have to make tough choices in the months ahead, Faust wrote, in anticipation of continued losses to an endowment that pays for more than one-third of the university’s operating budget.
“We must recognize that Harvard is not invulnerable to the seismic financial shocks on the larger world,” Faust wrote. “Our own economic landscape has been significantly altered.”
Although markets could improve, she added, “We need to be prepared to absorb unprecedented endowment losses and plan for a period of greater financial constraint.”
Harvard Exploring Cost-Cutting Measures
To cut costs, Harvard is in the process of reviewing its compensation expenses, which account for nearly half of the school’s budget, as well as reassessing its ambitious expansion program, which includes plans to build campus additions across the Charles River.
Like fellow Ivy League schools Brown University and Cornell University, which are delaying planned projects and implementing hiring freezes due to the effects of the economy, Harvard is also considering a budget freeze on all programs and a wage freeze for administrators and faculty. The Faculty of Arts and Sciences alone — Harvard’s largest body of instructors — has lost roughly $4.5 billion of its own endowment, or $225 million in net budget losses, a Harvard official familiar with the school’s financial picture told The Boston Globe (“Harvard Looks to Tighten Its Belt,” Nov. 11, 2008).
Despite Harvard’s belt-tightening measures, the school says it still intends to implement new initiatives that expand financial aid offerings for low- and middle-income families.
While it is not known just how deep Harvard’s endowment losses go, Moody’s Investors Service projects that the value of college and university endowments, in general, have decreased by 30 percent this fiscal year. For Harvard, the nation’s wealthiest university, that would mean an $11 billion drop.
The declines mean that Harvard will have to make tough choices in the months ahead, Faust wrote, in anticipation of continued losses to an endowment that pays for more than one-third of the university’s operating budget.
“We must recognize that Harvard is not invulnerable to the seismic financial shocks on the larger world,” Faust wrote. “Our own economic landscape has been significantly altered.”
Although markets could improve, she added, “We need to be prepared to absorb unprecedented endowment losses and plan for a period of greater financial constraint.”
Harvard Exploring Cost-Cutting Measures
To cut costs, Harvard is in the process of reviewing its compensation expenses, which account for nearly half of the school’s budget, as well as reassessing its ambitious expansion program, which includes plans to build campus additions across the Charles River.
Like fellow Ivy League schools Brown University and Cornell University, which are delaying planned projects and implementing hiring freezes due to the effects of the economy, Harvard is also considering a budget freeze on all programs and a wage freeze for administrators and faculty. The Faculty of Arts and Sciences alone — Harvard’s largest body of instructors — has lost roughly $4.5 billion of its own endowment, or $225 million in net budget losses, a Harvard official familiar with the school’s financial picture told The Boston Globe (“Harvard Looks to Tighten Its Belt,” Nov. 11, 2008).
Despite Harvard’s belt-tightening measures, the school says it still intends to implement new initiatives that expand financial aid offerings for low- and middle-income families.
tuition
Students who receive above-average scores on standardized college admissions tests, such as the SAT, may benefit the most from commercial test preparation services, according to new report from the National Association for College Admission Counseling, although the benefits of such test preparation may not outweigh the costs for many families (“Test Preparation May Help High Scorers Most, Report Says,” The Chronicle of Higher Education, May 20, 2009).
Research indicates that commercial test preparation services may raise students’ SAT scores by up to 30 points, however the score gains may not be directly attributable to the coaching alone, says author of the NACAC report Derek Briggs, associate professor of education at the University of Colorado at Boulder.
In his report, “Preparation for College Admission Exams,” Briggs suggests that students who don’t use test prep services may still be able to achieve the same range of score increases seen by those students who do use the services just by purchasing a test preparation handbook and taking a series of practice tests.
“If there are effects to be gained through preparation,” Briggs said, “can you get the same effect without spending the money? That’s a pertinent question in this economy.”
Does Test Prep Coaching Improve Admissions Chances?
Of all the colleges Briggs surveyed in his study, only one third said that in some cases an increase of 20 points on the math portion of the SAT or an increase of 10 points on the critical-reading section could “significantly improve” an applicant’s chance of being admitted. This was especially true, the report indicated, at highly selective colleges where applicant scores tend to fall within a narrow range.
“If you come from a wealthy family and have high scores to begin with and can spend $1,000, then test prep might be worth it for those 30 points,” Briggs said. “What’s unfortunate is if middle- class or poorer families think test prep is going to raise their scores by 300 points. If you’re a kid with scores between 400 to 500, I’m not sure it’s going to make any difference.”
Seppy Basili, a vice president at Kaplan Test Prep and Admissions, is concerned what effect Brigg’s findings might have on test takers, especially black and Hispanic students who typically don’t score as high as white students on the SAT.
Basili said, “I wouldn’t want the message to minority students to be that you can’t benefit by preparing.”
Research indicates that commercial test preparation services may raise students’ SAT scores by up to 30 points, however the score gains may not be directly attributable to the coaching alone, says author of the NACAC report Derek Briggs, associate professor of education at the University of Colorado at Boulder.
In his report, “Preparation for College Admission Exams,” Briggs suggests that students who don’t use test prep services may still be able to achieve the same range of score increases seen by those students who do use the services just by purchasing a test preparation handbook and taking a series of practice tests.
“If there are effects to be gained through preparation,” Briggs said, “can you get the same effect without spending the money? That’s a pertinent question in this economy.”
Does Test Prep Coaching Improve Admissions Chances?
Of all the colleges Briggs surveyed in his study, only one third said that in some cases an increase of 20 points on the math portion of the SAT or an increase of 10 points on the critical-reading section could “significantly improve” an applicant’s chance of being admitted. This was especially true, the report indicated, at highly selective colleges where applicant scores tend to fall within a narrow range.
“If you come from a wealthy family and have high scores to begin with and can spend $1,000, then test prep might be worth it for those 30 points,” Briggs said. “What’s unfortunate is if middle- class or poorer families think test prep is going to raise their scores by 300 points. If you’re a kid with scores between 400 to 500, I’m not sure it’s going to make any difference.”
Seppy Basili, a vice president at Kaplan Test Prep and Admissions, is concerned what effect Brigg’s findings might have on test takers, especially black and Hispanic students who typically don’t score as high as white students on the SAT.
Basili said, “I wouldn’t want the message to minority students to be that you can’t benefit by preparing.”
American Council on Education
Students attending Hartwick College in New York may now be able to save over $40,000 on their education by enrolling in a new three- year college degree program, according to a recent news release from the college (“Hartwick College Announces Three-Year Bachelor’s Degree,” Feb. 24, 2009).
The new initiative will reduce colleges costs for the school’s students and their families by 25 percent at a time when the country remains deeply mired in a recession, but, Hartwick officials contend, the program will maintain the “rich educational experience” that is characteristic of the school.
“This three-year program will deliver the same educational opportunity to qualifying students as our four-year program,” said Dr. Margaret Drugovich, Hartwick’s president. “We believe it is imperative for the higher education community to preserve the option of a top-quality education for any student who seeks it, regardless of the prevailing economic challenges or personal circumstances.”
To qualify for the three-year college degree program, students must have graduated high school with at least a 3.0 GPA. Once enrolled, students must take 40 credits each academic year instead of the usual 30, and take classes during a special January term each year in order to complete the standard 120 credits needed to graduate. The required extra winter session will allow students to keep their summers free for study abroad, internships, research practicums, or spending time with family.
Increased Interest in Three-Year Programs
Drugovich is anticipating a great deal of interest in the three-year degree program, but her students aren’t the only ones taking notice of these types of programs. With the skyrocketing cost of college continuing to squeeze families often already hard-pressed to come up with money for school, the concept of a cheaper three-year degree may be gaining favor.
At the American Council on Education’s annual meeting held earlier this month, Sen. Lamar Alexander, R-Tenn., a former university president, urged more college presidents to consider three-year college degrees at their institutions, the Associated Press reports (“Some Colleges Offering Degrees in 3 Years,” Feb. 24, 2009).
And lawmakers in Rhode Island are drafting legislation that would encourage three-year college degree completion. Their bill would create standardized college-level classes for the state’s high schools that would be intended to enable all students to complete college in only three years.
Three-Year Degrees Face Uncertain Future
But prior to the country’s recession, three-year degrees had largely failed to catch on.
At Upper Iowa University, only five students have chosen to pursue the school’s three-year degree program over the five years it has been in existence and every one of those five students ended up taking four or more years to complete their degree. The school has not had a single student interested in the program since.
Educators attribute the lack of participation in these accelerated programs to the fact that students may still prefer the full four- year college experience, academically, socially, and athletically, Joy Newcom, spokeswoman of Waldorf College, told the Associated Press about her Iowa school that is just now phasing out its last three-year program due to lack of student interest.
Newcom said, “What we’re finding they’re saying is, ‘Why did I want to grow up so fast?’ .”
The new initiative will reduce colleges costs for the school’s students and their families by 25 percent at a time when the country remains deeply mired in a recession, but, Hartwick officials contend, the program will maintain the “rich educational experience” that is characteristic of the school.
“This three-year program will deliver the same educational opportunity to qualifying students as our four-year program,” said Dr. Margaret Drugovich, Hartwick’s president. “We believe it is imperative for the higher education community to preserve the option of a top-quality education for any student who seeks it, regardless of the prevailing economic challenges or personal circumstances.”
To qualify for the three-year college degree program, students must have graduated high school with at least a 3.0 GPA. Once enrolled, students must take 40 credits each academic year instead of the usual 30, and take classes during a special January term each year in order to complete the standard 120 credits needed to graduate. The required extra winter session will allow students to keep their summers free for study abroad, internships, research practicums, or spending time with family.
Increased Interest in Three-Year Programs
Drugovich is anticipating a great deal of interest in the three-year degree program, but her students aren’t the only ones taking notice of these types of programs. With the skyrocketing cost of college continuing to squeeze families often already hard-pressed to come up with money for school, the concept of a cheaper three-year degree may be gaining favor.
At the American Council on Education’s annual meeting held earlier this month, Sen. Lamar Alexander, R-Tenn., a former university president, urged more college presidents to consider three-year college degrees at their institutions, the Associated Press reports (“Some Colleges Offering Degrees in 3 Years,” Feb. 24, 2009).
And lawmakers in Rhode Island are drafting legislation that would encourage three-year college degree completion. Their bill would create standardized college-level classes for the state’s high schools that would be intended to enable all students to complete college in only three years.
Three-Year Degrees Face Uncertain Future
But prior to the country’s recession, three-year degrees had largely failed to catch on.
At Upper Iowa University, only five students have chosen to pursue the school’s three-year degree program over the five years it has been in existence and every one of those five students ended up taking four or more years to complete their degree. The school has not had a single student interested in the program since.
Educators attribute the lack of participation in these accelerated programs to the fact that students may still prefer the full four- year college experience, academically, socially, and athletically, Joy Newcom, spokeswoman of Waldorf College, told the Associated Press about her Iowa school that is just now phasing out its last three-year program due to lack of student interest.
Newcom said, “What we’re finding they’re saying is, ‘Why did I want to grow up so fast?’ .”
private student loans
A bill to overhaul the student loan industry may reach Congress as early as next week; education-committee chairs are working behind the scenes on a piece of legislation that would eliminate the third-party student loan system called the Federal Family Education Loan Program, The Chronicle of Higher Education reports (“Behind the Scenes, a Student-Loan Overhaul Takes Shape,” June 16, 2009).
Although few details have been released about the proposed legislation, lenders and a large number of Congressmen are hoping the FFEL program won’t end up on the chopping block like President Obama has proposed. Already as many as 13 counterproposals to the elimination of FFELP have begun circulating Congress, including a detailed plan from lending giant Sallie Mae.
It’s not likely, however, that the FFEL program will survive this legislative session, some Congressmen say, considering taxpayers could see as much as $94 billion in savings over the next 10 years if FFELP were eliminated, according to estimates from the Congressional Budget Office.
Obama had originally suggested that these savings, which have been readjusted down to $87 billion, could be used to increase Pell Grants award amounts each year at a rate equal to the Consumer Price Index. It now looks like Congress will, instead, propose that the money be infused into the Pell Grant program to allow appropriators to “continue to set the maximum [Pell Grant] award” so as not to end up capping the maximum award amount.
Although few details have been released about the proposed legislation, lenders and a large number of Congressmen are hoping the FFEL program won’t end up on the chopping block like President Obama has proposed. Already as many as 13 counterproposals to the elimination of FFELP have begun circulating Congress, including a detailed plan from lending giant Sallie Mae.
It’s not likely, however, that the FFEL program will survive this legislative session, some Congressmen say, considering taxpayers could see as much as $94 billion in savings over the next 10 years if FFELP were eliminated, according to estimates from the Congressional Budget Office.
Obama had originally suggested that these savings, which have been readjusted down to $87 billion, could be used to increase Pell Grants award amounts each year at a rate equal to the Consumer Price Index. It now looks like Congress will, instead, propose that the money be infused into the Pell Grant program to allow appropriators to “continue to set the maximum [Pell Grant] award” so as not to end up capping the maximum award amount.
California State University system
Following a tuition-increase protest last month by students in the University of California and California State University systems that resulted in 16 arrests, California educators are voicing grievances of their own.
Tens of thousands of teachers at nearly 900 schools throughout Los Angeles left their classrooms Friday to protest California Governor Arnold Schwarzenegger’s proposed state budget cuts to education, according to an article in The New York Times ("California Teachers Challenge Proposed Cuts," June 7, 2008).
During the scheduled hour-long protest, teachers and parents voiced their opposition to the budget cuts, which, if passed, would reduce funding for Los Angeles schools next year by $340 million, says A.J. Duffy, president of the United Teachers of Los Angeles union representing 48,000 teachers.
Teachers took to the streets, despite an attempt by Los Angeles Unified School District officials last month to win a court injunction that would have prevented the educators from leaving their classrooms to join the picket line.
To account for the teachers’ absence, administrators and substitute teachers from neighboring districts were brought in to sit with students in school auditoriums, gymnasiums, and on playgrounds, writes New York Times reporter Rebecca Cathcart.
The suggested education budget cuts and college tuition hikes are part of Schwarzenegger’s plan to help reduce the state’s projected $17-billion budget deficit.
Tens of thousands of teachers at nearly 900 schools throughout Los Angeles left their classrooms Friday to protest California Governor Arnold Schwarzenegger’s proposed state budget cuts to education, according to an article in The New York Times ("California Teachers Challenge Proposed Cuts," June 7, 2008).
During the scheduled hour-long protest, teachers and parents voiced their opposition to the budget cuts, which, if passed, would reduce funding for Los Angeles schools next year by $340 million, says A.J. Duffy, president of the United Teachers of Los Angeles union representing 48,000 teachers.
Teachers took to the streets, despite an attempt by Los Angeles Unified School District officials last month to win a court injunction that would have prevented the educators from leaving their classrooms to join the picket line.
To account for the teachers’ absence, administrators and substitute teachers from neighboring districts were brought in to sit with students in school auditoriums, gymnasiums, and on playgrounds, writes New York Times reporter Rebecca Cathcart.
The suggested education budget cuts and college tuition hikes are part of Schwarzenegger’s plan to help reduce the state’s projected $17-billion budget deficit.
Quick Student Loans
Quick Student Loans...When You Need to Borrow Money Quick
When "quick student loans" are what you're looking for, you want to know how fast you can get the money. If you need loans to pay bills right away or if your computer died and you need to know where they'll finance no credit check computers, (try Blue Hippo or rent-a-center) normal college loan services won't do.
Your financial aid office is your first stop. Almost every college has funds set aside for student emergencies. No, of course they don't have a sign on the door saying, "How to get quick money- knock here."
But short-term loans called, "university student loans" can be obtained at very reasonable rates (usually under 8%) from your college. You have to go there, explain your situation and ask/beg.
In the fall of 2009, many students experienced delays with their FFELP federal student loans. They were able to get bridge loans to pay bills and buy food. Extensions for college tuition prices were also granted.
But this is short-term money. The schools generally expect payment in full by the end of the semester.
Your other option is a:
Pay Day Loan- Low Rate
Low rate? Well, no, not really. For a loan of 13-35 days, companies will charge from 15-25%. So, you only take this option if:
* you know for certain that you have money coming to you at a specific date
* the amount of interest you'll be paying is less than whatever costs you'll bear without the money
* you don't have cash available on a credit card (where for the same time period, you can pay it off without interest- only fees
You can get money in your checking account within 24 hours, (some places say 1 hour) but don't even bother looking unless you can prove income (at least $800 per month). There is no credit check, but they do want a pay stub.
If you are working, this is a short-term way to bridge a money gap. Do not let the loan rollover- the amount you owe will skyrocket.
Here are some lenders for you to compare. Do not worry about too many applications in too short a time for this type of loan- they won't be pulling any credit reports:
1. Secure Moneystore
$1000 FAST cash!
2. Team Quick Cash
$1000 FAST cash!
3. Magic Payday
$1000 Cash Now!
When "quick student loans" are what you're looking for, you want to know how fast you can get the money. If you need loans to pay bills right away or if your computer died and you need to know where they'll finance no credit check computers, (try Blue Hippo or rent-a-center) normal college loan services won't do.
Your financial aid office is your first stop. Almost every college has funds set aside for student emergencies. No, of course they don't have a sign on the door saying, "How to get quick money- knock here."
But short-term loans called, "university student loans" can be obtained at very reasonable rates (usually under 8%) from your college. You have to go there, explain your situation and ask/beg.
In the fall of 2009, many students experienced delays with their FFELP federal student loans. They were able to get bridge loans to pay bills and buy food. Extensions for college tuition prices were also granted.
But this is short-term money. The schools generally expect payment in full by the end of the semester.
Your other option is a:
Pay Day Loan- Low Rate
Low rate? Well, no, not really. For a loan of 13-35 days, companies will charge from 15-25%. So, you only take this option if:
* you know for certain that you have money coming to you at a specific date
* the amount of interest you'll be paying is less than whatever costs you'll bear without the money
* you don't have cash available on a credit card (where for the same time period, you can pay it off without interest- only fees
You can get money in your checking account within 24 hours, (some places say 1 hour) but don't even bother looking unless you can prove income (at least $800 per month). There is no credit check, but they do want a pay stub.
If you are working, this is a short-term way to bridge a money gap. Do not let the loan rollover- the amount you owe will skyrocket.
Here are some lenders for you to compare. Do not worry about too many applications in too short a time for this type of loan- they won't be pulling any credit reports:
1. Secure Moneystore
$1000 FAST cash!
2. Team Quick Cash
$1000 FAST cash!
3. Magic Payday
$1000 Cash Now!
University Student Loans Are Sometimes An Option
University Student Loans Are Sometimes An Option
University student loans are institutional loan programs that are available at some schools.
These loans are typically financed by alumni gifts to the school and money is repaid directly into these funds.
One great thing about these loans, is that student loans consolidation is available (unlike consolidating private loans from banks, right now).
Loans come in all shapes and sizes. Their terms are set by the college itself, so no federal guidelines need to be met.
The college literature that is mailed to you before you enroll will usually not mention university loans. You need to either call the school's financial aid office or search the school's website to find out what is available.
Each school that offers this type of program has its own criteria for entry. Some of the ways that colleges determine who is eligible are:
1. Financial need
2. Creditworthiness
3. Academic qualifications
University loans may be long term loans or short term loans. Some schools, like the University of Florida , offer both types.
Amounts can vary widely, depending on the type of loan and how much money is available in the program. For instance, Idaho State University has a maximum amount of $500 for their program, while Yale's maximum is $4,400 per year.
Generally when a graduating student has a combination of loans that includes a university loan, the school prioritizes payments, so that federal obligations are paid first. This means that the school assumes a higher level of risk when it makes an institutional loan.
When is a University Loan Not Really A University Loan?
The answer is: When a college simply labels any loan serviced by their financial aid office as a "university student loan". Check into the details of what each school you're interested in actually offers. If a university loan is listed as offered, it could be just a federal loan distributed by the college.
Also, some schools will not loan students money from these accounts unless they have been preapproved for the funds in their award letter. (Northwestern, for one) So if it is not mentioned there, you cannot apply later.
Student University Loans- Better or Worse than Private Loans?
It depends. If you can't afford to pay it off while you are in school, then do not take a short term university loan. Go for a private loan that can be deferred until after graduation.
If you are looking for a kind of bridge loan to meet expenses until some other funds kick in for you, then a short term university loan is probably right. Most of these are available at a low interest rate.( 1% for University of Florida) Some colleges will take advantage of your temporary shortage, (Ohio State at 7%!) but its still better than many private interest rates.
Long term rates vary from school to school:
* Some want a cosigner. (Vanderbilt, for example)- Others emphasize that they are student loans- no cosigner needed (and they will not give any loan info out to parents)
* Some offer fixed rates. (ranging from the University of Rhode Island's 5% to Brown's 9%)- others offer variable rates from around 3%-10%
* Most loans need to be repaid in ten years. (The shortest period I found was seven years for the University of Missouri.)
* Most loans have a six-month grace period. Some do not have any (University of Florida) and some give you nine months- Penn State University .
A new twist on university student loans is now offered by the UC Davis School of Law. Annual interest-free loans are given to graduates who take jobs with nonprofit or government agencies and make less than $60,000 per year. The loans must be used to pay off student loans and each one will be forgiven at the end of the year. These loans may be taken out for ten years (long enough to clear student loan debt).
The point is, what's right for your situation? It may be easier for you to get approved for a loan from the school you attend, than from a bank or a loan company.
The fixed rate offered by university student loans may be an attractive feature for you, because you will know what to expect to pay. Just remember that student university loans cannot be consolidated with your federal loans.
University student loans are institutional loan programs that are available at some schools.
These loans are typically financed by alumni gifts to the school and money is repaid directly into these funds.
One great thing about these loans, is that student loans consolidation is available (unlike consolidating private loans from banks, right now).
Loans come in all shapes and sizes. Their terms are set by the college itself, so no federal guidelines need to be met.
The college literature that is mailed to you before you enroll will usually not mention university loans. You need to either call the school's financial aid office or search the school's website to find out what is available.
Each school that offers this type of program has its own criteria for entry. Some of the ways that colleges determine who is eligible are:
1. Financial need
2. Creditworthiness
3. Academic qualifications
University loans may be long term loans or short term loans. Some schools, like the University of Florida , offer both types.
Amounts can vary widely, depending on the type of loan and how much money is available in the program. For instance, Idaho State University has a maximum amount of $500 for their program, while Yale's maximum is $4,400 per year.
Generally when a graduating student has a combination of loans that includes a university loan, the school prioritizes payments, so that federal obligations are paid first. This means that the school assumes a higher level of risk when it makes an institutional loan.
When is a University Loan Not Really A University Loan?
The answer is: When a college simply labels any loan serviced by their financial aid office as a "university student loan". Check into the details of what each school you're interested in actually offers. If a university loan is listed as offered, it could be just a federal loan distributed by the college.
Also, some schools will not loan students money from these accounts unless they have been preapproved for the funds in their award letter. (Northwestern, for one) So if it is not mentioned there, you cannot apply later.
Student University Loans- Better or Worse than Private Loans?
It depends. If you can't afford to pay it off while you are in school, then do not take a short term university loan. Go for a private loan that can be deferred until after graduation.
If you are looking for a kind of bridge loan to meet expenses until some other funds kick in for you, then a short term university loan is probably right. Most of these are available at a low interest rate.( 1% for University of Florida) Some colleges will take advantage of your temporary shortage, (Ohio State at 7%!) but its still better than many private interest rates.
Long term rates vary from school to school:
* Some want a cosigner. (Vanderbilt, for example)- Others emphasize that they are student loans- no cosigner needed (and they will not give any loan info out to parents)
* Some offer fixed rates. (ranging from the University of Rhode Island's 5% to Brown's 9%)- others offer variable rates from around 3%-10%
* Most loans need to be repaid in ten years. (The shortest period I found was seven years for the University of Missouri.)
* Most loans have a six-month grace period. Some do not have any (University of Florida) and some give you nine months- Penn State University .
A new twist on university student loans is now offered by the UC Davis School of Law. Annual interest-free loans are given to graduates who take jobs with nonprofit or government agencies and make less than $60,000 per year. The loans must be used to pay off student loans and each one will be forgiven at the end of the year. These loans may be taken out for ten years (long enough to clear student loan debt).
The point is, what's right for your situation? It may be easier for you to get approved for a loan from the school you attend, than from a bank or a loan company.
The fixed rate offered by university student loans may be an attractive feature for you, because you will know what to expect to pay. Just remember that student university loans cannot be consolidated with your federal loans.
Federal Student Loans
Federal student loans are great. Parents love them, students love them, banks love them and other loan companies love them. Here's why:
* Federal interest rates are the lowest.
* There are no credit checks- just about everyone qualifies.
* Loans are guaranteed by the U.S. Department of Education (either directly through the Direct Federal Student Loan program or indirectly through the FFELP).
* Students are given a grace period before repayment begins.
* Government loans include many forbearance options.
With these easy terms, its also easy to identify someone who defaults as the worst possible credit risk. No one should ever have to default on a federal student loan.
Okay, so this sound like your best loan choice, right? Well yes, except for one thing...
Federal College Loans Won't Be Enough
...except if you go to a state university or a community college. If you were hoping to finance college using only government loans, you will need to come up with substantial funds to make up the difference between what a private school costs and what the government will lend you.
These are the maximum amounts allowed:
Dependent Students
1st year $5,500 ($3,500 subsidized)
2nd year $6,500 ($4,500 subsidized)
3rd, 4th years $7,500 ($5,500 subsidized)
Grad programs $20,500 ($8,500 subsidized)
Independent Students
1st year $9,500 (of which $3,500 may be subsidized)
2nd year $10,500 (of which $4,500 may be subsidized)
3rd, 4th year $12,500 (of which $5,500 may be subsidized)
Grad programs $20,500 (of which $8,500 may be subsidized)
These limits are for federal Stafford loans. Stafford loans are the most widely used federal student loans. (And soon, all Stafford loans will be federal direct student loans.)
Another type of loans are the federal Perkins student loans. There are benefits to getting a Perkins loan, but unless your FAFSA shows dire financial need, you will not be offered one.
Okay so, unless you have one of these...
federal student loans1
...you have a large gap between what the federal government is willing to give you and what you're going to need to go to college.
Therefore, its decision time for you and your family. You can:
1. choose to go to a state university or community college
2. take out a private loan
or
you can use one other type of federal student loan...
College Loans For Parents
The Parent Plus Loan can make up the gap. Parents are allowed to borrow up to the difference between the cost of attending college and all other financial aid received. You need to be very, very sure before you commit to this loan. It does not have many of the user-friendly features that other federal loan choices have.
Some things you will want to consider before taking this step are:
* Can you afford to make the payments now, while your child is in school? (Congress just passed a law this year that allows parents to defer payments until after graduation, but who knows if it will continue in the future.)
* Will getting a degree from a more expensive college add real value to your child's future earnings?
* Does your child have a defined major and a chosen career path?
* Is your child fully committed to going the distance towards a four year degree?
If any of these issues are in doubt, rethink parent college loans.
If you take out college loans of any kind, make sure you have a plan for paying off student loans even before your grace period ends.
college loan consultant plan for paying off student loans works for federal student loans Federal student loans are a necessary part of your college financial plan, but ultimately they are only one piece of the college funding puzzle.
* Federal interest rates are the lowest.
* There are no credit checks- just about everyone qualifies.
* Loans are guaranteed by the U.S. Department of Education (either directly through the Direct Federal Student Loan program or indirectly through the FFELP).
* Students are given a grace period before repayment begins.
* Government loans include many forbearance options.
With these easy terms, its also easy to identify someone who defaults as the worst possible credit risk. No one should ever have to default on a federal student loan.
Okay, so this sound like your best loan choice, right? Well yes, except for one thing...
Federal College Loans Won't Be Enough
...except if you go to a state university or a community college. If you were hoping to finance college using only government loans, you will need to come up with substantial funds to make up the difference between what a private school costs and what the government will lend you.
These are the maximum amounts allowed:
Dependent Students
1st year $5,500 ($3,500 subsidized)
2nd year $6,500 ($4,500 subsidized)
3rd, 4th years $7,500 ($5,500 subsidized)
Grad programs $20,500 ($8,500 subsidized)
Independent Students
1st year $9,500 (of which $3,500 may be subsidized)
2nd year $10,500 (of which $4,500 may be subsidized)
3rd, 4th year $12,500 (of which $5,500 may be subsidized)
Grad programs $20,500 (of which $8,500 may be subsidized)
These limits are for federal Stafford loans. Stafford loans are the most widely used federal student loans. (And soon, all Stafford loans will be federal direct student loans.)
Another type of loans are the federal Perkins student loans. There are benefits to getting a Perkins loan, but unless your FAFSA shows dire financial need, you will not be offered one.
Okay so, unless you have one of these...
federal student loans1
...you have a large gap between what the federal government is willing to give you and what you're going to need to go to college.
Therefore, its decision time for you and your family. You can:
1. choose to go to a state university or community college
2. take out a private loan
or
you can use one other type of federal student loan...
College Loans For Parents
The Parent Plus Loan can make up the gap. Parents are allowed to borrow up to the difference between the cost of attending college and all other financial aid received. You need to be very, very sure before you commit to this loan. It does not have many of the user-friendly features that other federal loan choices have.
Some things you will want to consider before taking this step are:
* Can you afford to make the payments now, while your child is in school? (Congress just passed a law this year that allows parents to defer payments until after graduation, but who knows if it will continue in the future.)
* Will getting a degree from a more expensive college add real value to your child's future earnings?
* Does your child have a defined major and a chosen career path?
* Is your child fully committed to going the distance towards a four year degree?
If any of these issues are in doubt, rethink parent college loans.
If you take out college loans of any kind, make sure you have a plan for paying off student loans even before your grace period ends.
college loan consultant plan for paying off student loans works for federal student loans Federal student loans are a necessary part of your college financial plan, but ultimately they are only one piece of the college funding puzzle.
COLLEGE FUNDING
An anonymous donor is playing secret Santa with at least a dozen colleges and universities nationwide, but instead of giving $5 trinkets this Santa has left schools with $1 million to $10 million gifts, The New York Times reports (“Anonymous Donor Gives Millions to Colleges,” April 24, 2009).
Over the past two months the donor has given away $70 million to select schools. To remain anonymous, the donor employs a bank to contact the schools either with a call or letter that relays sentiments similar to what was written in one letter: “It is hoped that this will make a substantial difference to your students during these challenging times… enabling a more confident, sharper focus on their studies with improve career and life prospects.”
None of the school officials at the selected schools know whether the donations are coming from a man, woman, or organization, and no one seems to want to jeopardize their gift by speculating too much about the reasoning behind the donor’s selections. There’s a pretty clear consensus, however, that the schools share one common trait: they’re all led by women.
Lois DeFleur, president of Binghamton University in New York, is more than fine with this reasoning, if it is indeed the case, “The actions say, ‘I’m investing in an institution because it has achievements and I believe that with women leaders it will have future accomplishments.’ That’s pretty powerful in my view.”
The donations, which at some schools have been the single largest donation in the school’s history, have ranged from the $10 million given to Michigan State University, to the $1.5 million given to the University of North Carolina in Asheville. In return the donor has asked for complete anonymity and for the majority of the donation — 50 percent to 80 percent of the total donation in each case — to be used for financial aid.
The schools say they are extremely grateful for being chosen, particularly since higher education institutions across the country have seen an increasing demand for financial aid at the same time that state funding and endowments are drying up.
“In the best of times we never have enough scholarship money for students who have financial need,” said Susan Cole, president of Montclair State University in New Jersey. “In these difficult times, that is multiplied. The gift is incredibly important to us. I cannot adequately express the depth of our gratitude.”
Over the past two months the donor has given away $70 million to select schools. To remain anonymous, the donor employs a bank to contact the schools either with a call or letter that relays sentiments similar to what was written in one letter: “It is hoped that this will make a substantial difference to your students during these challenging times… enabling a more confident, sharper focus on their studies with improve career and life prospects.”
None of the school officials at the selected schools know whether the donations are coming from a man, woman, or organization, and no one seems to want to jeopardize their gift by speculating too much about the reasoning behind the donor’s selections. There’s a pretty clear consensus, however, that the schools share one common trait: they’re all led by women.
Lois DeFleur, president of Binghamton University in New York, is more than fine with this reasoning, if it is indeed the case, “The actions say, ‘I’m investing in an institution because it has achievements and I believe that with women leaders it will have future accomplishments.’ That’s pretty powerful in my view.”
The donations, which at some schools have been the single largest donation in the school’s history, have ranged from the $10 million given to Michigan State University, to the $1.5 million given to the University of North Carolina in Asheville. In return the donor has asked for complete anonymity and for the majority of the donation — 50 percent to 80 percent of the total donation in each case — to be used for financial aid.
The schools say they are extremely grateful for being chosen, particularly since higher education institutions across the country have seen an increasing demand for financial aid at the same time that state funding and endowments are drying up.
“In the best of times we never have enough scholarship money for students who have financial need,” said Susan Cole, president of Montclair State University in New Jersey. “In these difficult times, that is multiplied. The gift is incredibly important to us. I cannot adequately express the depth of our gratitude.”
COLLEGE FINANCIAL AID
Students who receive above-average scores on standardized college admissions tests, such as the SAT, may benefit the most from commercial test preparation services, according to new report from the National Association for College Admission Counseling, although the benefits of such test preparation may not outweigh the costs for many families (“Test Preparation May Help High Scorers Most, Report Says,” The Chronicle of Higher Education, May 20, 2009).
Research indicates that commercial test preparation services may raise students’ SAT scores by up to 30 points, however the score gains may not be directly attributable to the coaching alone, says author of the NACAC report Derek Briggs, associate professor of education at the University of Colorado at Boulder.
In his report, “Preparation for College Admission Exams,” Briggs suggests that students who don’t use test prep services may still be able to achieve the same range of score increases seen by those students who do use the services just by purchasing a test preparation handbook and taking a series of practice tests.
“If there are effects to be gained through preparation,” Briggs said, “can you get the same effect without spending the money? That’s a pertinent question in this economy.”
Does Test Prep Coaching Improve Admissions Chances?
Of all the colleges Briggs surveyed in his study, only one third said that in some cases an increase of 20 points on the math portion of the SAT or an increase of 10 points on the critical-reading section could “significantly improve” an applicant’s chance of being admitted. This was especially true, the report indicated, at highly selective colleges where applicant scores tend to fall within a narrow range.
“If you come from a wealthy family and have high scores to begin with and can spend $1,000, then test prep might be worth it for those 30 points,” Briggs said. “What’s unfortunate is if middle- class or poorer families think test prep is going to raise their scores by 300 points. If you’re a kid with scores between 400 to 500, I’m not sure it’s going to make any difference.”
Seppy Basili, a vice president at Kaplan Test Prep and Admissions, is concerned what effect Brigg’s findings might have on test takers, especially black and Hispanic students who typically don’t score as high as white students on the SAT.
Basili said, “I wouldn’t want the message to minority students to be that you can’t benefit by preparing.”
Research indicates that commercial test preparation services may raise students’ SAT scores by up to 30 points, however the score gains may not be directly attributable to the coaching alone, says author of the NACAC report Derek Briggs, associate professor of education at the University of Colorado at Boulder.
In his report, “Preparation for College Admission Exams,” Briggs suggests that students who don’t use test prep services may still be able to achieve the same range of score increases seen by those students who do use the services just by purchasing a test preparation handbook and taking a series of practice tests.
“If there are effects to be gained through preparation,” Briggs said, “can you get the same effect without spending the money? That’s a pertinent question in this economy.”
Does Test Prep Coaching Improve Admissions Chances?
Of all the colleges Briggs surveyed in his study, only one third said that in some cases an increase of 20 points on the math portion of the SAT or an increase of 10 points on the critical-reading section could “significantly improve” an applicant’s chance of being admitted. This was especially true, the report indicated, at highly selective colleges where applicant scores tend to fall within a narrow range.
“If you come from a wealthy family and have high scores to begin with and can spend $1,000, then test prep might be worth it for those 30 points,” Briggs said. “What’s unfortunate is if middle- class or poorer families think test prep is going to raise their scores by 300 points. If you’re a kid with scores between 400 to 500, I’m not sure it’s going to make any difference.”
Seppy Basili, a vice president at Kaplan Test Prep and Admissions, is concerned what effect Brigg’s findings might have on test takers, especially black and Hispanic students who typically don’t score as high as white students on the SAT.
Basili said, “I wouldn’t want the message to minority students to be that you can’t benefit by preparing.”
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