Student Loan Blog : AP

College Board Settles Inquiry into Its Student Loan Practices

Student Loan Girl — Thu, 11 Dec 2008 23:40:00 GMT

The College Board, which administers the SAT, ACT, and AP college admissions tests, has agreed to resolve an investigation by New York Attorney General Andrew Cuomo and Connecticut Attorney General Richard Blumenthal into its student loan practices.

As part of the settlement agreement, the College Board — which exited the student loan business last year — will allocate $675,000 to developing a set of tools, including calculators, that would help families and financial aid administrators across the country to compare student loan offers (“College Board Rapped for Student Loan Marketing,” North County Gazette, Dec. 8, 2008).

The tools will “help parents, students and educators with the college loan process” by identifying the lowest cost student loan options, said Jennifer Topiel, a spokeswoman for the College Board, in an emailed statement.

“Our investigation of the student lending industry revealed arrangements — concealed from students and families — between the College Board and financial-aid offices at several schools,” Blumenthal said in a statement December 8. “The College Board provided discounted equipment and services to the schools in exchange for a coveted spot on the schools’ preferred-lender lists.”

Cuomo characterized the College Board’s loan arrangement with colleges as deceitful, although he did say that the testing company, with “its national reach and extensive expertise in higher education,” was well-suited to help parents and students “borrow smartly” (“College Board Resolves Two State Student-Loan Probes,” Bloomberg.com, Dec. 8, 2008).

“Loans are hard enough to come by these days; the last thing we need are deceitful arrangements like this one that stand squarely in the way of students and parents getting the facts,” Cuomo said. “We should be doing absolutely everything we can to guide students to the least expensive, least complicated option for affording higher education.”

Code of Conduct Seeks to Protect Students

Should the College Board ever resume its college lending programs, it has said it will abide by the Attorney General’s Direct-to-Consumer Marketing Code of Conduct, which prohibits lenders and marketers of student loans from using deceptive marketing practices.

The code of conduct is the result of Cuomo’s investigations into the student loan industry that have uncovered widespread conflict of interest practices among colleges and student loan lenders. Colleges and financial aid officers received both payments and perks from lenders in exchange for placement on schools’ preferred lender lists.

Cuomo spokeswoman Emily Browne said that 22 lenders and 26 institutions have pledged to sever financial ties and abide by a code of conduct that prohibits accepting gifts or payments from lenders.

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Economy Takes Its Toll: Some Small Colleges to Shut Their Doors

Student Loan Girl — Wed, 19 Nov 2008 22:59:00 GMT

Americans could see more college closures, particularly among small schools with shrinking enrollment numbers as the slowing economy continues to claim more victims across every sector, The Associated Press reports (“College Closings Rare, but Could Rise in Downturn,” Nov, 17, 2008).

While the American Council on Education reported that only four out of 4,400 colleges closed in all of 2007, this year alone, four schools have announced they will either shut down certain branch campuses or close entirely by next school year.

Tuition costs that far exceed what state schools charge, diminishing enrollment numbers, and mounting debt loads have made it increasingly difficult for some small colleges, most notably those with religious affiliations, to stay afloat in recent years.

And now the same effects from the mishaps that took down the mortgage industry have bled into the higher education sector. Some schools may be discovering, much like many American consumers and homeowners, that the allure of low-interest loans caused them to take on more debt than they should have. The median debt of private colleges has increased 50 percent in the last five years, according to Moody’s Investors Service.

But now, like homeowners with variable-rate mortgages, some schools have seen their once low debt payments skyrocket to unmanageable proportions.

“Instead of holding long-term debt at lower interest rates, they have gotten stuck with short-term obligations at higher rates — a scenario [colleges] knew existed on paper but never expected to happen,” writes Justin Pope of The Associated Press.

Faith-Based Schools Hardest Hit by Economic Decline

Cascade College, a small Christian school in Portland, Ore. with just 280 students, announced it will be shutting down after the current academic year as it continues to struggle with a $4 million debt load. as will Pillsbury Baptist Bible College in Owatonna, Minn. and Vennard College in University Park, Iowa. Vennard, with just 80 students, will close its doors two years shy of its 100-year anniversary.

Taylor University in Indiana, another Christian institution, will shut down the undergraduate program at its Fort Wayne branch.

Paul Corts, president of the Council for Christian Colleges & Universities, said the financial crisis has become a “very serious” problem. “I think people are sensing that this is not short-term. It’s something that’s going to take a couple of years to play out.”

Enrollment at the council’s 102 member schools grew 71 percent between 1990 and 2004, and Corts said he doesn’t foresee that many of its schools will be closing.

He adds, however, that school closures may be difficult to predict because, “Nobody knows what the ultimate extent of this whole financial crisis is going to be.”

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State Higher Education Commission Urges Indiana Schools to Graduate 10,000 More Students a Year

Student Loan Girl — Wed, 10 Sep 2008 20:58:00 GMT

A new plan unveiled Monday by the Indiana Commission for Higher Education calls for the state-supported colleges and universities in Indiana to graduate 10,000 more students with bachelor’s degrees each year — an increase of 33 percent — and to graduate these students in just four years, according to the Associated Press (“Indiana Seeks 10,000 More College Graduates a Year,” Sept. 9, 2008).

Under the proposed plan, Indiana would rank among the top 10 states in the nation for college degree completion by 2012. Indiana is currently 10th in the nation for the number of its high school graduates who enroll in college — 62 percent — but 57 percent of the state’s college students take six years to graduate and only 36 percent graduate within four years.

“We want more degrees and we want them on time,” said commission member Gerald Bepko, former chancellor at Indiana University-Purdue University Indianapolis.

To motivate state schools to improve their four-year graduation rates — a move that the commission contends will reduce students’ college costs and student loan debt — the commission proposes that state funding be tied to a college’s degree completion rate rather than its enrollment growth.

“They used to say, ‘Give us more money and we’ll do a better job,’ ” said Stan Jones, state commissioner of higher education. “We’re saying, ‘Do a better job and we’ll give you more money.’ ”

The commission also hopes to build up the state’s community college system to make it easier, financially, for students to complete their bachelor’s degree in four years. The commission recommends that community colleges work to double their enrollment over the next 10 years and make the first two years of community college tuition free for students whose families earn less than $50,000 a year.

The plan would, in addition, make more families eligible for state financial aid by raising income limits.

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Sex Offenders May Lose Pell Grant Eligibility Under Revised Higher Education Act

Student Loan Girl — Mon, 04 Aug 2008 23:49:00 GMT

Starting July 1, 2009, sex offenders confined in treatment centers throughout the country may no longer be eligible to receive need-based federal Pell Grants, under a new provision of the reauthorized Higher Education Act, according to an article in the Associated Press (“Congress Cuts Off College Aid For Sex Offenders,” Aug. 4, 2008).

President Bush has yet to sign the act into law, but after the act passed through Congress July 31, Rep. Ric Keller, R-Fla., said, “Today, the most insane wasteful spending program in America comes to an end.”

Keller cited an AP article from March that revealed dozens of rapists and child molesters had taken higher education classes at taxpayers’ expense while confined to treatment centers after serving their prison sentences. Some prisoners were using the financial aid to buy clothes, DVD players, and music CDs even after they had dropped their classes in some cases.

While the U.S. Department of Education does not know exactly how many sex offenders receive Pell Grants, spokeswoman Stephanie Babyak predicted that making sex offenders ineligible for the aid would save taxpayers millions.

Critics say the new measure may rule out a higher education for sex offenders who are trying to rehabilitate themselves. Instead of cutting off grant aid to all sex offenders, Congress should better regulate how it administers the program in order to help prevent abuses, said Michael Macleod-Ball, chief legislative and policy counsel for the American Civil Liberties Union.

The grant aid provision would affect the 20 states that allow violent sex offenders — those who it is believed would likely repeat their crimes if they were to be released — to be held indefinitely in treatment facilities after they have served their prison sentences. Prison inmates have been ineligible for Pell Grants since 1994, but sexual offenders can qualify for the grants once they are transferred from prison to treatment centers.

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Wilkes University Puts Freshman Recruits Front and Center and Billboard-Size

Student Loan Girl — Sun, 04 May 2008 22:56:00 GMT

Wilkes University, a small, private school in northeastern Pennsylvania, is using a quirky new in-your-face $120,000 ad campaign to get the attention of today’s media- and marketing-savvy students.

The university is plastering personalized messages on billboards, pizza boxes, gas pumps, and even on MTV, VH1, and Comedy Central to students it wants to make a part of its freshman class, reports Michael Rubinkam in a story by The Associated Press (“Pennsylvania College Woos Students by Putting Them in Ads,” April 30, 2008).

The “trendsetting and forward-thinking” marketing campaign appeals to the “look-at-me generation,” teens comfortable sharing all-things-personal on social networking sites like Facebook and MySpace, says Nancy Costopulos, chief marketing officer of the American Marketing Association.

The Message: Personalized and Not for the Shy

Wilkes features applicants in its ads who have a “mix of talents and determination” and who live in markets where the university wants to promote itself, says Jack Chielli, the school’s director of marketing. Students must also consent to having their names used.

The ads, writes Rubinkam, are meant “to convey the message that the school gets to know its students personally and pays close attention to their needs.”

To get messages with the right personal touch, 160over90, the Philadelphia marketing firm contracted by Wilkes, interviews participating students and their friends and families, uncovering likes, dislikes, hobbies, nicknames.

The agency uses the information it gleans from these in-depth interviews to design the highly personalized ads that have turned some college-bound seniors into quasi-celebrities in their high schools and communities:

“Lake Lehman senior Greg Heindel: You give your time at the soup kitchen, the firehouse, and your church summer camp. Wilkes University would like to give you something — a top-quality education.”
“Hey Kristen Pecka. Only your closest friends at Central Catholic call you Pecka-lecka-lecka. Choose Wilkes University and add 2,362 more people to that list.”
“Scranton High senior Nicole Pollock: Our goal at Wilkes University is to be as much a mentor as your mother has been. (Now, if we could only make her ravioli.)”

Each ad includes an invitation to “call a Colonel” (the school’s mascot) and provides a phone number that plays a recorded message from a current Wilkes student.

It’s the Thought That Counts

Even if targeted recruits end up choosing another school, says Chielli, he considers the ads successful as long as they continue to grab attention and get other students to think about Wilkes.

But besides drawing more students to apply, the school wants to help make it possible for them to actually attend: Nearly all students receive some form of financial aid apart from student loans to help cover the $25,000 price tag. Wilkes awards $22 million in financial aid each year.

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College Board to Eliminate Four AP Programs by Next School Year

Student Loan Girl — Fri, 11 Apr 2008 02:26:00 GMT

The College Board’s decision to drop four Advanced Placement classes and subject exams by the end of the 2008–09 academic year is expected to affect about 12,500 students and 2,500 teachers worldwide.

The AP program allows high school students to take college-level courses at their high schools. AP students can earn college credit at most colleges and universities by scoring high enough on national AP tests given at the end of each academic year.

The AP program currently offers 37 courses and exams across 22 subject areas, but officials of the nonprofit College Board have announced plans to eliminate Italian, Latin literature, French literature and computer science AB from the AP program.

Lack of Student Participation Spurs Cuts

The decision came after officials discovered only a fraction of underrepresented minority students take AP exams in those subject areas, writes Education Week reporter Scott Cech (“College Board Intends to Drop AP Programs in Four Subjects,” April 4, 2008).

Italian, which officials say might still be saved if the program receives outside funding, was 400 percent over budget due to the small number of students taking the exams.

“For us, [the question is], are we able to achieve our mission of reaching a broader range of students?” said Trevor Packer, College Board vice president of the AP program.

Budgets of Remaining AP Programs Expected to Grow

Packer said the decision to eliminate the four programs was not connected to the results of a recently released national quality-control audit intended to gauge whether the rapid expansion of the college-preparatory program over the past decade had led to a decline in the rigor for which it has been known.

Of the 146,671 AP courses submitted for review nationwide, 136,853 — 93 percent — were approved, reports The Washington Post (“Nearly All Area AP Teachers Get Passing Grades in Audit,” March 25, 2008).

The 33 remaining AP programs are expected to have their budgets increased.

“We don’t want any AP subject area to be deemed a so-called second-class citizen,” Packer said. “Our top funding requirement should be … professional development and instructional materials.”

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Not Just Your Virtual Diary Anymore, Blogging Is Big Business

Student Loan Girl — Wed, 09 Jan 2008 23:23:00 GMT

A decade ago, blogging was a way for anyone with a computer to get a high from posting their personal ramblings to the Web and sharing their now-published thoughts with the online world.

Narcissistic? Maybe. Therapeutic? Definitely. Profitable? Questionable.

But not anymore.

Thanks to our obsession with the Internet and our undying need for ever-more information at our fingertips, blogging has evolved into a powerful and profitable business venture that almost anyone can do.

Big-Buck Bloggers

Take Zach Brooks, for example. This Manhattanite has turned his love affair with greasy food into Midtownlunch.com, a blog devoted to spotlighting cheap eateries in New York for nearly 2,000 daily readers.

The website, which focuses on restaurants where you can get lunch for under $10, can sometimes net Brooks $1,000 a month, writes Associated Press reporter Candace Choi (“Casual Blogging Not Just Lunch Money Now,” Dec. 26, 2007).

Then there’s Samuel Chi, who started BCSGuru.com “as a way to demystify the convoluted universe of college football rankings for fellow fans,” Choi writes. This season, Chi, a former sports journalist with a background in statistics, earned about $8,000 from his blog.

With the help of PayPerPost, BlogAds, Google’s AdSense, and similar programs that help advertisers place ads on large and small sites, bloggers, who write on everything from the latest tech gadgets to politics to the celebrity train wreck of the day, can earn money based on their site’s popularity — the more people who click on the ads on their site, the more money they make.

Turn Your Blog into a Cash Cow

Write about your obsessions, make the most of your advertisers, and you may never again have to hawk your clothes or sell your plasma to get that extra cash.

Last year, total online ad revenue was nearly $20 billion, so there’s plenty of money to go around.

The Washington Post suggests a few different ways to get your share as a blogger:

Let online ad programs work for you. Sell ad space on your blog, and you can get paid each time someone clicks on your ads.

Take control of your ad sales. Not a fan of pay-per-click ads? Use BlogAds. Join its database of advertisers — free of charge — and set your own ad prices. Companies then find you and purchase ad space for a set period of time. You keep 70 percent of your add fees and turn over 30 percent to BlogAds.

Be the middleman. Join a company’s affiliate program: Post an ad on your blog that links to their site, and every time one of your readers clicks on the ad, goes to the company’s site, and the visit results in a purchase, you’ll receive a small commission. You can earn as much as 10 percent per referral sale from businesses like Amazon, eBay, and Match.com. Use affiliate marketing networks like LinkShare or Commission Junction to browse hundreds of companies with affiliate programs.

Get your fans involved. Give your loyal and dedicated readers an opportunity to show their support. Post a donation button from online payment services like PayPal or the Amazon Honor System, and set yourself up to receive monetary donations.

Sell blog-branded gear. If asking for a handout isn’t your thing, slap your company logo on T-shirts, coffee mugs or caps and create your own online store. CafePress offers you more than 50 products to choose from.

What Are You Waiting For? Express Yourself.

Know the best places to find a bargain? The best sports bars to watch a game? How to make the most out of your college loans?

Launch a blog. It’s so easy you’ll wonder why you didn’t do it before.

Just go to any popular blog platform site, like WordPress, Blogger, MySpace or Weebly, and create your blog for free. And let your love of all things you make the extra cash for you.

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