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.
Tuesday, October 20, 2009
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.
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