Student Loan Blog : Continuing Education

Two-Year Schools Waiving Tuition For Laid-Off Workers

Student Loan Girl — Tue, 09 Dec 2008 23:17:00 GMT

Typically, when the economy is down, enrollment is up at the nation’s community colleges. However, in the current economy, in which the unemployment rate is at a record high, Americans who find themselves recently unemployed can’t afford to further their education even at inexpensive local institutions.

In an effort to help, some community colleges in Pennsylvania are waiving tuition for local residents who were recently laid-off, reports Inside Higher Ed (“The Jobless Discount,” Dec. 5, 2008).

Reading Area Community College in Reading, Pa., extends a waiver to local residents who have been laid off within a year of applying to the school. The waiver, which represents a potential savings of $962, is valid for one semester to qualified students for up to 13 credits.

The tuition waiver benefits both students and the institution, since RACC students will get financial assistance furthering their education in the hopes that they’ll continue their education and become paying students once they’re employed, said David Zimmerman, a career services officer at RACC.

“It’s good will, and it’s good PR,” Zimmerman said. “It helps the community and helps people get back into the work force.”

This year, participation in the tuition waiver program is higher than in previous years, Zimmerman said. He speculates the closing of two local business plants owned by the Hershey Company and Tyco Electronics Corporation may be contributing to the spike in interest.

Tuition Waivers May Cost Pa. School $100,000 in Lost Revenue

Northampton Community College, located in Bethlehem, Pa. announced that starting next semester it would begin waiving tuition for those who were recently laid off due to plant or local business closings.

Under the waiver, qualified students will be able to take a maximum of 12 credits at a reduced cost beginning in January 2009. Students would be required to pay $28 in fees per credit, for a total savings of $900. The number of students allowed to enroll under the waiver program would be limited to the number of empty seats available in each class section.

Northampton President Arthur Scott said offering a tuition waiver may cost his school more than $100,000, because the school isn’t adding sections or other resources to accommodate for students who take advantage of the waiver, meaning the waiver isn’t considered an institutional expense, but rather lost revenue.

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Government Warns: Pell Grant Program in Trouble

Student Loan Girl — Mon, 22 Sep 2008 21:47:00 GMT

Without additional taxpayer funds next year, the government’s “most important” federal financial aid program may be unable to provide Pell Grants to millions of eligible low-income students, likely pricing these students out of a higher education, according to an article in The New York Times (“Pell Grants Said to Face a Shortfall,” Sept. 17, 2008).

In a memorandum issued last week, the Department of Education warned that it predicts a $6 billion shortage for the federal Pell Grant program next year, stemming from continuous budget shortfalls and compounded by the record-high number of students qualifying for the federal Pell Grant program.

Rising tuition costs, shrinking state aid to colleges and universities, and a growing number of adults who are reenrolling in college are all putting a strain on federal financial aid resources, particularly on Pell Grants, which don’t have to be repaid. This school year alone, six million students out of the nine million who applied for federal financial aid received Pell Grants, some of the highest numbers the program has seen since its inception in 1972.

“It’s the mother of all shortfalls,” said Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers. “There’s more unmet need than anyone predicted.”

Last year Congress appropriated nearly $14 billion for the Pell Grant program, but as the troubled economy continues to force adults out of the workforce and back into the classroom, the Department of Education said it will either need to allocate more taxpayer money to the Pell Grant program or decrease the grant award amounts students can receive next year.

Should the Education Department decide to reduce Pell Grant awards, it would make an announcement detailing its decision sometime in February 2009, according to the memorandum.

“If [the Pell Grant program] is threatened, you’ll hear about it,” said Edward M. Elmendorf, senior vice president of the American Association of State Colleges and Universities. “The decibel level will be deafening.”

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Veterans See Education Benefits Double as New GI Bill Becomes Law

Student Loan Girl — Mon, 30 Jun 2008 21:00:00 GMT

The new GI Bill, signed by President Bush on June 30, more than doubles veterans’ education funds from the current $40,000 to $90,000, and is seen as a return to the same generous benefits extended to veterans of World War II, according to an Associated Press article (“Bush Signs $162 Billion War Bill,” June 30, 2008).

The new legislation will allow veterans who served in the wars in Iraq or Afghanistan for at least three years to attend the most expensive public institution in their state, all expenses paid. Soldiers will also receive a small monthly stipend for housing and may transfer their benefits to their spouse or children.

For those veterans who opt to attend more expensive private schools, the new GI Bill will match any aid that their institutions provide above the cost of the most expensive public college in their state.

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Adult Students Forgo Federal Aid; Use Cash for College

Student Loan Girl — Fri, 02 Mar 2007 19:15:00 GMT

The raging debate across the nation is college affordability/access and the escalating cost of attending college. With many bills pending approval and yet to become law, the U.S. population is becoming more educated regarding college aid legislation and what actually could happen if these bills become law.

Whatever occurs, it appears that students may not be getting as much federal aid help as originally anticipated. As I recently found out though, not every college student depends so heavily on federal aid. This specifically applies to the adult education market, or those engaging in continuing education and professional programs.

Only 28 Percent of Adult Learners Depend on Federal Aid

According to the Feb. 27, 2007 article by Elyse Ashburn titled “Adult Learners Tend to Rely on Cash and Employer Assistance to Pay for College, Survey Finds” that appeared in The Chronicle of Higher Education:

“Most students in adult, continuing-education, and professional programs at American colleges and universities rely on personal savings and employer-provided tuition assistance to pay for their education, according to a new report based on a survey of 25,000 current and prospective students.

“Of those surveyed, 50 percent said they used or planned to use cash and nearly half (48 percent) said they used or planned to use tuition assistance to pay for at least part of their college courses, while about a quarter identified federal student loans (28 percent) and scholarships (22 percent) as financial resources. Responses in those categories overlap because most of the respondents used at least two financial sources.”

Survey Implications, Suggestions

Obviously, the survey is not conclusive, but what I got out of it was that there is a large segment of the college student population that largely disregards federal funding or student loans. Instead, they opt to use cash savings and tuition assistance from their employers. While this is not the answer for the current college funding problems facing the average college student, it is certainly an interesting twist.

Sean R. Gallagher, a program director and senior analyst at Eduventures Inc., said that “State and federal policy makers also should consider tools, like tax-exempt saving accounts, that would better assist adult learners in saving for lifelong learning,” according to the article.

In an earlier blog, I talked about how beneficial I believe that tuition tax credits and incentives will prove to be down the road. This new idea of tax-exempt savings accounts for college is another fantastic suggestion that, if combined with the other tax incentives, could go a long way in actually helping college students.

Other Survey Points According to the Article:

· “Generally, students’ reliance on cash savings and tuition assistance, rather than federal or private loans, increased along with their income.

· Most students taking courses for personal enrichment or to change careers used cash savings (60 and 57 percent, respectively), while the biggest share (41 percent) of students interested in completing a degree used federal loans.

· Workers in the utilities, manufacturing, and mining industries were the most likely to have employer-provided tuition assistance, while those in retail; arts, entertainment, and recreation; and accommodations and food services were least likely to receive tuition assistance.

· By field of study, students in subjects related to engineering, transportation, or business were the most likely to receive employer assistance.”

The student loan advisers at NextStudent are helpful and knowledgeable about student loans. They are a trusted source in getting you the appropriate information about your student loan consolidation, student loan options and helping students get the college financing they need. Go to www.nextstudent.com for more information.

Be sure to tune in next Thursday for my next blog on student loan advice.

Student Loan Girl

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