Student Loan Blog : Next Student

Some Students Could Get Boost in Financial Aid This Summer

Student Loan Girl — Tue, 08 Jul 2008 19:46:00 GMT

This year, college students who are still struggling to get the money they need to pay for school may be able to take advantage of a phenomenon, colleges and universities refer to as the “summer melt” — the phase where students make last-minute decisions not to attend a school because of high tuition costs.

When that happens, schools are under extra pressure to fill their freshmen classes and may offer students more financial aid, according to an Associated Press article (“Students Can Find Aid, Even at Last Minute,” July 6, 2008).

“The later in the year we get, the more valuable each student becomes and the harder they are to replace,” said Lynn Nichelson, director of financial aid at Illinois Wesleyan University in Bloomington. “The quality student is in demand all over the place.”

Before ruling out a school because of costs, experts recommend that students contact their financial aid office to discuss additional financial aid options. Some evidence suggests that, as more colleges and universities are doing away with their early-decision programs, schools have been more willing to offer students more money in grants, student loans, and scholarships in order to keep their enrollment numbers up.

But parent Debbie Bloss, whose son attends Drury University in Missouri, says you really have to do your homework.

“It’s a lot of work, and it’s painful because there’s a lot of reading, a lot of investigating, a lot of understanding involved,” she said. “And the key is finding someone in the financial aid office who’s willing to take the time to help you get all that you can get.”

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College Valentine’s Day: ‘Here, Near But Nothing to Fear’

Student Loan Girl — Sat, 10 Feb 2007 04:54:00 GMT

Forget the boxes of expensive candy and the overdone roses—ever hear of the freshman 15 (pounds that is)? And for those of you who think you are clever, lingerie may look good at first glance, but where is that going to get you, seriously? I am talking long-term, quality relationships based on mutual respect.

Me? I am shooting for original and creative this Valentine’s Day. Here is a great idea guaranteed to score you major bonus points. It works best for those of you still clinging to long-distance relationships, however remote.

Seriously Sentimental Gift Idea:

1) Write out a really heartfelt poem, letter, or whatever you think is APPROPRIATE to the one you “love.”

2) When your masterpiece is perfected, buy a white or other colored puzzle.

3) Carefully write your message on the puzzle, making sure it actually is readable.

4) When you are done, break the puzzle into pieces, put it in a can, and then box it for shipping.

5) Include a short note wishing the person a Happy Valentine’s Day that also asks the person to check inside the can.

6) Wait for that juicy phone call of appreciation that enhances your value and self-esteem.

Gifts that Really Are a Bad Idea (courtesy of the Amazon.com Web site):

The book, “You on a Diet.”
“Do I look like a people person?” T-shirt.
The book, “Fart Proudly: Writings of Benjamin Franklin You Never Read in School.”
A giant ant farm.
“Why You’re Dumb, Sick & Broke ... And How to Get Smart, Healthy & Rich!” a book by Randy Gage.

For those of you who have absolutely no inkling to try the above cheesy tactic, and now have a clue of what NOT to do, take heart. Here are some great flicks that you and yours could watch that may increase the romance factor right away.

Movies to Get You and Your Date ‘In the Mood’ (along with memorable quotes):

“Body Heat” – “You aren’t too smart. I like that in a man.”
“The Big Easy” – “If I can’t have you, can I at least have my gator?”
“Flirting” – “Football. It’s a form of mating ritual.”
“Jerry Maguire” – “You had me at ‘hello.’”
“Secretary” – “Who’s to say that love needs to be soft and gentle?”
“Say Anything” – “I gave her my heart, she gave me a pen.”

And finally, for those with absolutely no creative bone in your body but an insatiable desire to please, go to this Web site to hire someone to write that romantic poem for you: http://www.poemstogo.tv/happyvalentinesday.html. Second thought, do it yourself and save the $65 bucks.

The Education Finance Advisors at NextStudent can help you figure in all your college expenses so that you get the student loan that best suits your needs. Don’t get caught short. Go to www.nextstudent.com for all your student loan needs.

Check back here next Friday for my next blog on Campus Life.

Student Loan Girl

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Perkins Program Cuts: Hint of More to Come?

Student Loan Girl — Thu, 08 Feb 2007 20:46:00 GMT

This past week I have reported on what is happening with the FY08 budget, a big part of which is the increase in the Pell Grant from $4,600 this year up to $5,400 by 2012. The question on everyone’s mind is: Where is all that extra money going to come from? Many have speculated that the $2 billion-plus required to cover the increase would come from cutting other federal programs or grants that favor low-income students and their families.

According to a Feb. 6, 2007 article by Karin Fischer titled, “Perkins Career and Technical Education Program Survives but Would Be Cut in Half” that appeared in The Chronicle of Higher Education, there may be a partial answer. Apparently, President Bush is slashing funding for the Carl D. Perkins Career and Technical Education program that serves low-income families. My guess is that this action is the beginning of several cuts yet to come that likely will cover the $2 billion Pell Grant shortfall.

Funds Slashed, But Program Retained

Fischer wrote, “Under the president’s budget plan for 2008, which was released on Monday, the vocational-education program would receive $617.4-million, down 52.6 percent from the 2006 fiscal year, the most recent year in which a federal budget was signed into law.”

Earlier, Bush commented that the program was “ineffective,” the article said, intending to eliminate it altogether. In fact, according to the article, “In his 2007 budget proposal, President Bush had called for the elimination of all federal technical-educational spending, saying that the Perkins program had ‘produced little or no evidence of improved outcomes for students despite decades of federal investment.’ ”

The article continued, “But administration officials were persuaded not to press again to scrap Perkins after changes were made during the program’s reauthorization last summer (The Chronicle, August 4, 2006).”

Either way you look at it, the money has to come from somewhere, and that means cuts to valuable programs of debatable value, depending upon with whom you talk. This implies growing pains for those who see their funding disappear, pains that likely will be isolated to the low-income college student camp.

Low-Income Students, Community Colleges Most Affected

The intended cut has received much criticism. The article quoted David S. Baime, vice president for government relations at the American Association of Community Colleges, who said, “Our colleges cannot comprehend that an administration that is so laudatory of their work would slash a program that is so essential to their quality. It is just totally bewildering to us.”

This community college segment of the student population is the one that may be hardest hit. “About 40 percent of Perkins funds go annually to community colleges to prepare students from low-income families for the workplace,” the article stated.

Here is the rundown from the article on the specifics of the cuts: “The budget plan would cut the amount of money awarded in state grants through the Perkins program by nearly 50 percent from the 2006 fiscal year allocation, to $600-million. And it would eliminate federal support for the Tech-Prep program, which gives students a technical education spread across two years of high school and two years of community college. About $104.8-million in Tech-Prep grants were awarded in 2006.”

We Got Our Wish—Or Did We?

So, as college students, we got what we asked for: increased Pell Grants. For that I am encouraged and thankful. However, I wonder the real long-term effects and how they will “shake out.” Will we really be reaping the benefits, as the government says, or are we simply witnessing a shifting of funds from one program to another, due to popular demand? Only time will tell.

The student loan advisors 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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Budget Picture FY08

Student Loan Girl — Wed, 07 Feb 2007 20:43:00 GMT

As I reported earlier this week, President Bush released his FY08 Budget on Monday, Feb. 5, 2007. And although it promises to increase the maximum Pell Grant to $4,600 this year up to $5,400 by 2012, he will use funds from other grants for low-income students to support the increase. However, how much value do presidential budget requests really hold, and what do lenders thing about Bush’s budget?

According to a Feb. 6, 2007 article by Doug Lederman titled “The Bush Budget, 2008” that appeared in Inside Higher Ed, “Even in the best years, presidential budget requests are of uncertain value, because they mark only the starting point for a long and often tortured process of deliberation, negotiation and, sometimes, outright war. The value of the White House’s 2008 budget is diminished further because Congress has yet to finish its work on the final budget for the 2007 fiscal year. That reality renders the numbers in the Bush budget for 2008, if not meaningless, at least hazier and fuzzier than usual.”

Changing the Budget Could Mean Complications for Legislators

By earmarking funds that would go to other low-income grants to help solve the Pell Grant initiative, Bush seems to complicate the college funding crisis even further. Lederman reported, “The budget picture is complicated even further by the fact that the administration would seek to pay for some of its new initiatives with changes in mandatory spending programs that would require the kinds of major alterations in federal student aid law that legislators are loathe to make in the budget-setting process.

“The more than $2 billion that the department would try to squeeze from lender profits to pay for the 2008 Pell Grant increase, for instance, would be possible only if Congress were to include such changes in legislation to renew the Higher Education Act, or pass a complicated budget reconciliation measure, in conjunction with the annual appropriations bills. Those prospects are dicey, casting further doubt on the likelihood that the Bush budget numbers will come to pass.”

What the Lenders Say

The new budget also proposes to “cut the interest rate subsidiary” that private lenders receive for funding federal student loans “by 0.5 percentage points” in a bid to raise the additional 12.4 billion needed to increase the Pell Grant to $5,400 by 2012, the article said.

In the article, Lederman quoted Joe Belew, president of the Consumer Bankers Association, as saying “Student lenders cannot sustain cuts of this magnitude, which would cut margins by about 20 percent. Driving away banks from this program will leave students with either a government monopoly or an oligopoly of loan providers and few if any of the benefits currently provided by competition. These include lender-paid origination fees, financial literacy and default prevention counseling, rate reductions for timely repayments, and quality customer service. Without banks in the student loan program, graduates can look forward to IRS-style quality of service.”

It is important to keep up to date on the effects of legislation and news on student loans and education. What goes on in government and in your state can have a great impact on your student loans and your college education.

For all the information you need about student loans, go to www.nextstudent.com.

Be sure to tune in next Wednesday for my next blog on student loan legislation in the news.

Student Loan Girl

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Pell Grant Gets Welcome Boost in 2007-2008 Budget Plans

Student Loan Girl — Tue, 06 Feb 2007 22:14:00 GMT

In previous blogs, I addressed that college education is becoming more and more unobtainable for low-income students. Many are opting out of the system, choosing to attend community colleges or not to attend at all, since the debt load required for attendance is overwhelming. Many financial aid advocates have been lobbying the federal government to increase the Pell Grant, as it has remained at its present level for years, and is a key consideration for those lower income students when financing their education.

Now it appears that the many voices of students, parents and advocates have been heard and is being acted upon. “Momentum to increase the Pell Grant has been accumulating in recent months, amid a blizzard of reports about insufficient access to higher education for students from low and moderate income families and, especially, in the wake of the clarion call by Spellings’s own Commission on the Future of Higher Education to raise the purchasing power of the maximum Pell Grant to 70 percent of the average in-state annual tuition at a four-year public college (it now rests somewhere in the mid-40s),” according to a Feb. 2, 2007 article by Doug Lederman titled “Upping the Ante on Pell Grants” that appeared in Inside Higher Ed.

Spellings Unveils Long-Term Solution

In a recent speech at a conference at North Carolina State University, the article reported that Secretary of Education Margaret Spellings reiterated the very thing I mentioned above. She said, “For low-income, mostly minority students, college is becoming virtually unattainable. States, institutions and the federal government — we all must increase need-based aid. The president plans to do just that. When he unveils his budget next week, the president will call for the biggest increase to the Pell Grant Program in over 30 years.” Spellings added that there will be provisions for “real money that will help more low-income kids realize the dream of a college education.”

As I mentioned in my blog yesterday, Feb. 5, 2007, the proposed Pell increase now has come one step closer to reality, as Spellings “announced that President Bush’s 2008 budget would call for increasing the maximum grant by another $290, to $4,600, next year and to $5,400 over five years,” the article reported. This is on the heels of the 2007 budget plan raising “the maximum Pell Grant by $260, to $4,310,” according to Lederman.

Concerns Regarding Cost of Increase Voiced

Although many leaders are quite thrilled with the planned increase, there are some significant concerns as to how the cost of the raise will be covered over the years, including fears that the money will be siphoned from other programs, soon to be cut.

Lederman reported, “For many of them, though, the elation was muted by the fact that administration officials declined to provide details about how they would pay for what they called the ‘largest Pell Grant increase in three decades.’ (The maximum grant rose from $452 to $1,050 in 1974-5, the program’s second year.) In advance of Thursday’s announcement, speculation had been building among college lobbyists that the White House would propose a Pell Grant increase, but would pay for it largely with money snagged by ending other student-aid programs, including the Supplemental Educational Opportunity Grant Program, which provides about $770 million a year to low-income students.”

My thinking is that while these proposed budget increases for the Pell certainly are something in favor of the average college student, a lot remains to be seen. If the government is looking to up the “ante” for the much-publicized and well-known Pell Grant, while cutting or eliminating other less common programs, I wonder what the real long-term benefit will be, if anything.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Tuesday for my next blog about this week in student loans.

Student Loan Girl

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Education and the Budget Proposal for FY08

Student Loan Girl — Mon, 05 Feb 2007 21:44:00 GMT

Good news for the Department of Education, as it looks like the White House is set to increase the Pell Grant even more than the $260 proposed by the Democrat’s “Joint Funding Resolution” that I reported on Thursday, Feb. 1, 2007. According to a briefing titled “FY08 Budget Proposal” that appeared in the Feb. 5, 2007 issue of the National Council of Higher Education Loan programs, Inc.’s Daily Briefing, “President Bush this morning issued his FY 2008 budget proposal to the Congress that sets funding levels for the Department of Education and other federal agencies,” initially, “The proposal includes a $500 increase in the Pell Grant maximum award to $4,600.”

Graduated Plan

Similar to the interest rate cut on subsidized federal student loans proposed and passed by the House earlier this month, the increase in the Pell Grant would be laid out in installments, starting in 2009 and ending in 2012. The briefing reports, “The maximum Pell Grant would increase by $200 annually from 2009-2012 to $5,400,” the Daily Briefing reported.

For those of you not familiar with the Pell Grant program, it is defined by Loma Linda University (http://www.llu.edu/ssweb/finaid/glossary.html#P) as:

“Pell grants are awarded solely on demonstrated financial need to every eligible undergraduate student who hasn’t already earned a bachelor’s or professional degree. The amount of your Pell grant will depend on your financial need, your college costs, and whether you’re attending college full time or part time. The funds can be used for tuition, fees, and living expenses. For the 2006-2007 award year, Pell grants for full-time students ranged from $400 to $4,050.”

Other Allowances in the FY08 Budget Proposal

The FY08 Budget proposal includes spending plans for all areas of the government. However, the Daily Briefing went on to list only those areas that affect the student loan industry. Those include:

“Increase the annual amount of student loans juniors and seniors can borrow by $2,000 to $7,500
Reduce interest subsidies to lenders by .5 percent
Reduce default insurance from 97 percent to 95 percent
Reduce guaranty agency default collection payments
Move guaranty agency account maintenance fees to a unit cost basis
Increase consolidation lender fee to 1 percent”

It is important to keep up to date on all the news regarding student loans and education.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Monday for my next blog on student loan issues in the news.

Student Loan Girl

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Social Networking: Hip, Cool and Fun … But Be Smart

Student Loan Girl — Fri, 02 Feb 2007 18:19:00 GMT

There now is little doubt about social networking becoming an integral part of our culture. It almost is a foregone conclusion. I know you and your friends for years have been into MySpace, YouTube, Facebook, and many other such networks. But mom and dad—“the parent generation”—are just starting to get a clue.

I realize that last week I touched on social networks and how to get a job through them. This week I want to issue a caution for all of you out there who have become totally absorbed, dare I say obsessed, with meeting people and “doing your thing” online.

Do Not Let This Be You

Just ask Cameron Walker or Kurt Vachon. A few years back they had a short stint of fame I am sure they would rather forget, and quickly. Remember, they were the guys from Fisher College in Boston who tried to get a security guard fired by setting up a petition and posting it on Facebook.com? Both ended up getting expelled from school. Here is the story if you missed it: http://www.physorg.com/news8698.html.

Another interesting tidbit I found on Wikipedia gives details on how Facebook “is increasingly being used by school administrations and law enforcement agencies as a source of evidence against student users.” Here is the link: http://en.wikipedia.org/wiki/Facebook's_use_in_investigations.

You seriously need to look into this and pay attention. I do not say this to scare you or even to get you to close your Facebook account. No, what I am attempting to impart to you is a bit of wisdom. Be smart in what you say and how you say it. Honestly, is it a good move to air your dirty laundry, or give far too many incriminating details that could come back to haunt you later?

Most recently the CIA set up a Facebook page (see my blog from Jan. 26, 2007) and joins many other employers in the social network community. Do you really think that these employers want to hire someone who “parties all the time” or engages in behavior perceived as blatantly irresponsible?

Simple Solution With Minimum Hassle

Here is a great idea: If you absolutely must brag to your friends about a recent event that was so earth-shattering it was practically religious in nature, why not try more conventional methods. Like contacting your core group of friends directly through e-mail, instant messaging, or, in the case of MySpace, send an announcement. This may well keep you out of trouble and below the radar. And no, just for the record, I am not condoning methods that enable you to conceal immature behaviors or break the rules of your school behind the backs of college administrators.

Bloggers: Take Note

For all you bloggers out there, both those who post and those who comment, be careful too. This past Sunday, Jan. 28, 2007, a blogger by the name of Shoemoney (Jeremy Shoemaker) got a rude awakening, and it was not from anything he did. Shoemoney was served a subpoena to testify in a slander lawsuit stemming from a comment someone made on his blog. Unreal! Here is the story: http://www.revenews.com/carstencumbrowski/2007/01/legal_issues_with_blog_comment.html.

So, if you have a blog, conservative or outlandish, just be sensitive of the content you post. If someone posts a comment that is way over the top, is slanderous or just plain mean or evil, you may want to consider removing it, for your sake.

Check back here next Friday for my next blog on Campus Life.

Student Loan Girl

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2007 Budget Update

Student Loan Girl — Thu, 01 Feb 2007 22:45:00 GMT

It looks like Pell Grants are going to be getting the financial face-lift about which people have been buzzing on Capitol Hill. According to a Jan. 31, 2007 article by Doug Lederman titled “A Pleasant Budget Surprise” that appeared in Inside Higher Ed, the Democrats on Jan. 29, 2007 introduced a joint funding resolution that would raise the maximum Pell Grant by $260.

Lederman reported that the “resolution called for shifting a total of $2.3 billion (out of an overall budget of $463.5 billion) to health, education and labor programs, including an additional $620 million for biomedical research at the National Institutes of Health (to a total of $28.969 billion, a rise of 2.2 percent) and nearly $1 billion more for the Pell Grant Program. The new funds for Pell, which would bring funding for the program to $13.66 billion, would allow the maximum grant for low-income students to rise by $260 to $4,310, which would be the first increase in grant size in five years.”

College Lobbyists Happy

After a year of pushing for an increase in the Pell Grant, college lobbyists are happy to see their efforts culminate in a possible increase in funding. Lederman quoted Pat White, director of federal relations at the Association of American Universities, as saying, “Within the constraints of what the House and Senate leadership and the appropriators were facing, what they were able to do is heroic.” She continued, “With so many other competing priorities, for them to take the longer view and make investments in research and education is, to me, really inspiring.”

Democrats Eliminate Earmarks

So, where is the money coming from to fund this proposed increase in Pell Grants? According to Lederman, “Democrats appear to have come up with the extra funds partly by eliminating most earmarks and partly by moving out of the bill money that the government was planning to spend on military base closings. Republicans derided the latter move, particularly, as a bit of smoke and mirrors magic that will require the government to pay up later, but it wasn’t clear how aggressively Republican members of Congress would fight the Democratic measure.”

The White House will be releasing its budget for 2008 on Feb. 5, 2007. According to the article, there is speculation that the White House budget will also include an increase on Pell Grants but that the funds will be sourced from existing financial aid monies. Lederman wrote, “Speculation has been growing in recent days that the administration will propose a sizable increase in the Pell Grant Program – but that it will do so, in large part, by proposing to shift funds away from other student aid programs, most likely the Supplemental Educational Opportunity Grants Program, which provides additional funds to low-income students, most of whom are Pell recipients.”

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

Student Loan Girl

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Grant Process Closed on Strengthening Institutions Program

Student Loan Girl — Wed, 31 Jan 2007 21:55:00 GMT

Grants are an important source of funding for any institution and organization in need of money. Not only do grants help students defray the cost of attendance, they also help colleges keep their tuition costs in check because awarded funds can help strengthen developing academic programs.

According to a Jan. 30, 2007 article written by Elyse Ashburn titled “Education Dept. Won’t Open Grant Process This Year for Program Serving High-Need Institutions” that appeared in The Chronicle of Higher Education, “The U.S. Department of Education announced on Monday that it would not take new applications this year for the Strengthening Institutions Program, which provides grants to institutions that predominantly serve students from low-income families.”

With all the talk on Capitol Hill about slashing student loan interest rates and raising Pell Grants in a bid to help more low-income students achieve the dream of a higher education, this move by the Department of Education seems somewhat counterintuitive.

Grants Still Being Awarded

It is to be noted, however, the Department of Education will still award grants this year. It is just the “process” of accepting new applications that is being nixed. Ashburn reported, “The department instead will award grants to 2006 applicants that were of high quality but did not make the cut last year.”

Basically the thinking is that by not opening the review “process,” all monies available will be awarded as grants, with none going to pay for the manpower to review the applications. However, Ashburn goes on to report, “advocates for community colleges, which are the primary beneficiaries of the program, questioned the fairness of that approach and said that a new application process should be held.”

Ashburn quoted David S. Baime, vice president for government relations at the American Association of Community Colleges, as saying, “Community colleges across the country will be disappointed to learn that the department is not holding a new competition for this program.” Baime explained, “Simply dusting off last year’s applications and going down the list seems quite unsatisfactory from a good-government point of view.”

Where the Funds Go

So, in the long-run there, institutions that did not receive grants from the Strengthening Institutions Program last year, will be receiving funds this year, which although might not seem fair to all, is at least helping the community the grants were intended to help. Ashburn wrote, “Grants from the program can be used for a variety of projects, including improving faculty development, establishing endowments, and strengthening academic programs. The program received about $80-million in the 2006 fiscal year. Congress has not finalized its 2007 allocation.”

To find out more about free money, check out NextStudent’s Scholarship Search Engine: http://www.nextstudent.com/scholarship_search/scholarship_search.asp. And remember, the key to finding free money to help fund your college education is to search early and search often.

For all the information you need about student loans, go to www.nextstudent.com.

Be sure to tune in next Wednesday for my next blog on student loan legislation in the news.

Student Loan Girl

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Where the Money Is: Online Private Universities

Student Loan Girl — Wed, 31 Jan 2007 20:33:00 GMT

Founded in 1976, the University of Phoenix, the largest private university in the country, started the “trend” of online private education companies catering to working students. Many such colleges and schools have followed in its footsteps, with varying degrees of success.

It seems that the private sector of college education may encounter less regulation by the same government entities that often dictate policies to public institutions, which may indiscriminately stifle profits. Thus, many schools appear to be transitioning from public for-profit models to fully private institutions, like the University of Phoenix.

A case in point is Laureate Education, which owns another online college named Walden University. According to a Jan. 30, 2007 article by Doug Lederman titled “Another Move From Public To Private” that appeared in Inside Higher Ed, “Laureate Education, Inc. plans to become the latest publicly traded for-profit provider of higher education to enter the potentially friendlier confines of the private markets.”

Show Me the Money, College-Style

Many such schools like Walden University and Concorde Career Colleges appear to be positioning themselves to reap such benefits as higher profit margins and large-scale expansion, not as easily achieved in a public, for-profit capacity. One of many such deals in recent years, Laureate Education, Inc. has agreed to sell to a group of private investors.

The details of the deal, outlined in the article are as follows:

“The Baltimore-based company, which operates the online-only Walden University in the United States but has a large and expanding international operation, announced Sunday that its board had agreed to sell to an investor group that is led by its chairman and chief executive officer, Douglas L. Becker, and includes some of the country’s major private equity firms.

“The deal is valued at $3.8 billion, which tops the $3.4 billion value of the sale of Education Management Corp. last March. In June, the smallest of the other 10 publicly traded higher education companies, Concorde Career Colleges, announced that it, too, would be sold.

“The price tag for Laureate, which educates 240,000 students in 15 countries, most of whom are adults, could conceivably climb even higher. In their announcement, company officials said that Laureate’s Board of Directors had endorsed the offer from Becker and the 10 firms, valued at $60.50 a share, over two other offers.”

Transitioning From Public to Private Expands Possibilities

“Analysts also viewed the Laureate announcement as both reflective of the recent boomlet of deals in which private equity firms have purchased publicly traded postsecondary companies, and as likely to accelerate the trend,” Lederman wrote in his article. In addition, those who track the higher education market “said they believed that going private could give Laureate more latitude to pursue an aggressive strategy of expansion, at a time in which Wall Street may be more skeptical of such growth amid fears. Laureate’s November announcement that it was establishing its first partnership with a university in Turkey is indicative of its perceived thirst to expand. Company officials have long had their eye on China, for instance, but have not extended their reach there yet,” the article said.

So what does this all mean? Not necessarily that bigger schools mean better education. Not that I condone all those private equity deals where companies “spread the love” through billion dollar acquisitions. But what I see happening with the expansions I outlined above is the spreading of educational opportunities, both across the globe and in terms of the variety of programs and degree options offered. Now that is good news, anyway you look at it.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Tuesday for my next blog about this week in student loans.

Student Loan Girl

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U.S. Education Department’s Official on Accreditation Leaves Job

Student Loan Girl — Mon, 29 Jan 2007 22:06:00 GMT

According to a Jan. 29, 2007 article titled “U.S. Accreditation Official Out of a Job” written by Doug Lederman that appeared in Inside Higher Ed, John W. Barth, the director of accreditation and state liaison at the Department of Education, has transferred to a position at the Federal Student Aid Ombudsman’s office. The article said, “The department’s official stance, through a spokeswoman, was only this terse statement: ‘John Barth has accepted a new position at FSA.’ Another department official framed Barth’s decision as routine and his choice, but the available evidence overwhelmingly suggests otherwise.”

Although the move looks routine it has raised suspicions because of its timing and its abruptness. Lederman reported, “Barth’s shift comes in the wake of some publicly visible conflict over the department’s approach to accreditation. In the wake of the report of the Secretary of Education’s Commission on the Future of Higher Education, the department’s top officials have pushed aggressively on a range of fronts to carry out its recommendations, particularly those that would require colleges to better measure and report how much their students learn.

Department officials have focused significant attention on accreditation as a wedge for doing that, because changes in accrediting standards — some of which department leaders believe can be accomplished without the need for new laws or rules (and therefore without the approval of Congress) — have the potential to directly influence hundreds or thousands of colleges.”

National Advisory Committee on Institutional Quality and Integrity

The Department of education holds a semiannual meeting “that reviews and regulates accrediting agencies,” the article said. “In the months before each meeting, the Education Department’s staff prepares a report on each accrediting group up for review, and the advisory panel uses those reports as the starting point for its own deliberations about whether to renew the group’s authority to operate. As the top career staff person (which in Washington parlance means not a political appointee) on accreditation issues, Barth oversaw those staff reviews,” Lederman reported.

More interesting, the article said that, “three accrediting agencies discovered that their staff reports had been rewritten to add new issues or significantly change the findings against them, all in ways that left them in hot water. In two cases, involving the Western Association of Schools and Colleges and the American Academy of Liberal Education, the agencies were confronted with heightened requirements about how they measure student learning; in the other, the American Bar Association’s accrediting arm was told that it faced punishment if it did not alter a standard it used to ensure racial and ethnic diversity among law school student bodies.”

Changes in the Political Climate

There really is no hard evidence as to why Barth was transferred to a new position. However, with so many changes in Washington it may be due to new political pressures. Lederman reported, “The suddenness of his departure — and the fact that it came about so quietly — is widely seen as evidence that the department’s political leaders are moving as aggressively as they can, through any and all avenues available to them, to bring about the changes they want in accreditation, and in higher education generally.

‘Any administration has the legal authority to move a senior civil servant from one job to another,’ said Terry W. Hartle, senior vice president for government and public affairs at the American Council on Education. ‘What causes concern in this case is the fear that someone who was tough but fair will be replaced with someone who is tough and unfair.’”

The article reported that Hartle said, “The simultaneity of this change coupled with the initiation of negotiated rulemaking before Congress has acted on reauthorization suggests that the department is very anxious to impose a new agenda on accrediting agencies.”

Accreditation ensures that institutions of higher education meet acceptable levels of quality. There are agencies that oversee accreditation and those agencies are then overseen by the U.S. Department of Education. Changes in accreditation could affect the types of federal loans for which colleges qualify, especially online institutions; therefore it is important to check a college’s accreditation before enrolling.

It is important to keep up to date on all the news regarding student loans and education.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Monday for my next blog on student loan issues in the news.

Student Loan Girl

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CIA Socializes: Getting a Job through FaceBook, MySpace, Whatever

Student Loan Girl — Fri, 26 Jan 2007 20:18:00 GMT

Could it be that social networks are becoming an embedded piece of our culture, no longer just limited to college geeks, party mongers, and those who are hip and in the know? That would appear to be the case.

Just last month the CIA, that is, the Central Intelligence Agency, got friendly with FaceBook. It has been using the popular social networking site to recruit potential employees into its organization. And get this, it even uses a promotional YouTube video to get you interested. Here’s the page: http://www.facebook.com/group.php?gid=2223915657.

Do What Gets You Hired

Responding to newspaper ads and competing with hundreds of other applicants for a single position does not give you great odds for getting hired. Resume experts and career coaches point to statistics that say most people, in excess of more than 70 percent, get jobs through people they know or from hearing about jobs “on the street.” That is good news for those of you who are into FaceBook, MySpace and other social networking sites. Chances are your network already is established, even if it is filled with college buddies or those with whom you associate for entertainment or dating value.

So, it would not be that much of a stretch to use your network, or more likely expand what you already have for the purpose of searching for your ideal job.

Be Careful What You Post

But before you get started, heed this: Clean up your profile and make sure that you do not reveal any information that could harm you or defeat your job search before you start. Though there is a definite difference between a “public” and a “private” persona, employers may not get this.

Several weeks back, there was a lot of talk flying around about how employers do not have the right to (or should not) check out MySpace and other social networking sites when screening potential employees. The fact remains that employers do this, regardless of what we would prefer. So, here’s my unsolicited advice: Do not brag on and on about the latest frat party where you won numerous dubious awards for certain behaviors that likely will not endear you to your future employer.

Other Avenues

Besides searching employers’ profiles, developing your network, and asking your existing network if anyone knows someone in the industry or of a job for which you may be interested, you could try some of these techniques.

· Check out career networking sites like www.LinkedIn.com.

· Use the Jobs section on MySpace. You can search for positions as well as post your resume. Go here: http://jobs.myspace.com/index.cfm?fuseaction=careers.

· Start a blog. You either could write one about your career interests or give a firsthand account of your job search. Both ways may serve to market you as a potential job candidate. Use: www.blogger.com, www.blog-city.com or www.wordpress.com (they all are free).

Check back here next Friday for my next blog on Campus Life.

Student Loan Girl

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College Tuition: Illusions in Financial Aid?

Student Loan Girl — Thu, 25 Jan 2007 19:24:00 GMT

Recently I watched this great movie called “The Illusionist” with Edward Norton, Paul Giamatti and Jessica Biel. Great flick. Lots of smoke and mirrors and a great ending – with a major twist – that you never would expect.

Princeton has received much press, accolades and positive response to its recent decision to freeze tuition next year. What does it all mean in the long run?

According to the article “Keeping (Tuition) Up With The Jones,” written by Scott Jaschik that appeared in the Jan. 24, 2007 edition of Inside Higher Ed, on Jan. 21, 2007 “Princeton University shocked many higher education observers by announcing that it would freeze tuition next year, prompting speculation on whether other institutions would follow. Some experts believe that Princeton’s move could prompt similar decisions from the relatively few private colleges that compete with that university not only for students but in terms of wealth.”

Consider ‘Bad’ May Be ‘Good’

Upon closer examination and according to opponents, the move may not be what it appears. Jaschik wrote that “while experts on higher education have been reluctant to criticize Princeton’s move, a number make the point that its decision – popular with students and generating lots of good press – will most help the wealthiest families.” At first glance it would seem that the school is leading the charge to assist lower-income students’ goal of attaining a higher education. In reality, it may be that it accomplishes little for that demographic, ending up benefiting those who may not readily need the help.

Since I regularly have assumed such actions as Princeton’s (tuition freezes/decreases, etc.) to be positive ones, I often have failed to dig deeper. I heard that the tuition freeze at Princeton was accompanied by a significant increase in room and board. What are we to make of that?

Which Is It?

A school by the name of Grinnell College soon will move its tuition UP to Princeton’s level, conceivably to “make the college more affordable and more equitable for low-income students,” the article said. So, if I understand correctly, BOTH an increase and a decrease in tuition are supposed to somehow benefit students, in particular, those of low income. What should we believe?

Russell K. Osgood, Grinnell’s president, made a very interesting point that causes one to pause and consider. Jaschik reported, “Osgood said that he realizes that many people associate tuition rates with actual cost, and so are quick to applaud a move like Princeton’s and criticize one like Grinnell’s. But he argued for an emphasis on what students actually pay — in which case he said that his college’s tuition increase will be a benefit for low-income students. ‘I believe the focus ought to be on guaranteeing access for people who have need,’ he said.”

Check the Facts and Be Wise

The moral of the story? Dig deep, check facts and see if things add up. The media may position certain events so they appear to be something they are not – in other words an illusion of sorts. And when it comes to financial aid and news relating to college costs, you have to keep on top of things. After all, it is your money and your education that is at stake.

The student loan advisors 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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Hope On The Horizon: Student Debt Relief Act in Senate

Student Loan Girl — Thu, 25 Jan 2007 03:47:00 GMT

I have posted blogs in the past several weeks regarding states that are implementing college financial aid programs at the community college or public college level, making education an affordable reality for lower-income students. Just yesterday a major Ivy League school announced that it was freezing tuition for an entire year (see my Thursday, Jan. 25, 2007 post for more info). While this all is good news, nationwide reform implies national legislative action.

It seems that everyone is waiting to see what will happen in the U.S. Senate now that H.R. 5 has passed the House. Hot on its heals comes a tandem effort by Sens. Edward Kennedy, D-MA, and Barbara A. Mikulski, D-MD, introducing the Student Debt Relief Act, whose purpose is to supply college student aid to borrowers who use loans to cover costs of their education, according to a Jan. 23, 2007 press release titled “Mikulski Fights For Student Debt Relief” issued from Mikulski’s office.

American Dream or Financial Nightmare?

According to a statement by Mikulski, who also serves as a member of the Health, Education, Labor and Pensions (HELP) Committee, “College tuition is on the rise across America. Our students are graduating with so much debt it’s like their first mortgage,” said Mikulski. “American families are stressed and stretched, and students are looking for help. We must make access to higher education a priority for everyone.”

College Affordability Solutions on the Way

Our government officials, in particular Mikulski and Kennedy, who also serves as chairman of Senate Health, Education, Labor and Pensions, finally may have given voice to what many college students and their parents have known for quite some time. It is getting exorbitantly expensive to achieve the American dream of attending college. A recent survey I came across stated that many students now are “settling” for their second choice of schools, in order to incur less debt. Hopefully, the new bill, which appears poised to help borrowers and instigate much-needed change, will quickly become law.

According to the press release, “The legislation outlines relief for student debt by addressing a number of critical issues including:

· Pell Grants: Increases maximum Pell Grant to $5,100.

· Interest Rates: Cuts student loan interest rates in half – to 3.4 percent for subsidized undergraduate student loans over 5 years.

· Debt Relief: Caps federal student loan payments at 15 percent of a borrower’s monthly discretionary income, and forgives student loans after 25 years.

· Public Service Loan Forgiveness: Provides loan forgiveness for social workers, teachers, police officers and other public sector employees after 10 years.

· College Tuition Tax Deduction: Extends college tuition tax deduction and increases allowable deduction to $12,000.

· Consolidation/Reconsolidation: Allows students to reconsolidate loans, repeals the elimination of in-school consolidation.

· Origination Fees: Reduces origination fees in Direct Loan program by 1 percent to track FFEL program origination fee reduction, and gives secretary explicit authority to reduce origination fees (as FFEL lenders have).”

For all the information you need about student loans, go to NextStudent.com. And to find more information on debt relief for unsecured debt visit ThinkDebtRelief.com.

Be sure to tune in next Wednesday for my next blog on student loan legislation in the news.

Student Loan Girl

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Proposed Law Opens Door to Higher Education for Low-Income Students

Student Loan Girl — Wed, 24 Jan 2007 15:42:00 GMT

In a post in December I commented on how many states and even the federal government is beginning to set up programs and legislation that favors higher education opportunities for lower-income students. A case in point is the $4,000 college tuition deduction for households with incomes of less than $65,000. These lower-income households are a population segment that often patronizes community colleges over elite four-year public institutions as a matter of affordability.

New legislation proposed in the state of Virginia is poised to make the dream of a quality education a reality, but one that is affordable specifically for low-income students. According to the article written by Josh Keller titled “Virginia Lawmakers Consider Bill to Encourage Students to Start at 2-Year Colleges” that appeared in the Jan. 19, 2007 edition of The Chronicle of Higher Education, “A lot of students are self-selecting out because they just don’t believe it’s going to be affordable,” said Yvonne B. Hubbard, director of student financial services at the University of Virginia. “What this does is allow us to say, ‘Here’s how you can do it, here’s how it’s going to work,’ ” she finished.

Elite Public Schools May Be Possible

The article states that “the legislation could also help attract low-income students to the state’s four-year colleges, which recently increased the amount of their financial aid to needy students and guaranteed spots on some campuses to some community-college graduates with good grades.” It would do this by allowing qualified “transfer students to pay the same tuition and fees at public four-year institutions that they paid at a community college. Each student who transferred to an in-state private college after graduating from a community college would initially receive a voucher worth about $2,150 a year,” the article said.

In addition, the measure, if it becomes law, would help Virginia accommodate an influx of 20 percent to 25 percent “in college enrollment in the state over the next six years,” the article said. To qualify, students must graduate with a grade point average of 3.0 or higher from a community college, “and come from families with incomes of less than 150 percent of a state or local median,” the article said.

Solution to Uneven Disbursement of Pell Grants

One reason that Virginia appears to be so serious about assisting lower-income students may be the low percentage of Pell Grants disbursed. According to the article, during the 2005-06 school year “only 7.6 percent of undergraduates at the flagship University of Virginia received federal Pell Grants – the lowest proportion among the nation’s elite public colleges, according to a Chronicle analysis. Pell Grants typically are awarded to students from families with incomes of $40,000 or less. A university survey found that more than 60 percent of last year’s undergraduates came from families with annual incomes of $100,000 or more.”

This trend, favoring higher-income students with Pell Grants while neglecting those for which the grants were created, is a national one, seen at many elite public institutions across the country. The federal government has received much pressure to change the system so that lower-income students and their families receive a more equal share of the federal financial aid pie.

According to the article, Glenn DuBois, Virginia Community College system chancellor, said that “community colleges are an ideal ‘on ramp’ for students who might otherwise bow out of higher education altogether.” DuBois summarized his position and stated that, “We have a reality in Virginia where at least in three or four of these public institutions, you have to be graduating at the very top of your high-school class,” he said. “Now there’s another way to get there, guaranteed.”

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Tuesday for my next blog about this week in student loans.

Student Loan Girl

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