Student Loan Blog : universities

The Three-Year College Option

Student Loan Girl — Wed, 19 Aug 2009 20:17:00 GMT

For some students, four years of a college education is simply too much to afford. But by accelerating their college career to reduce the amount of time they spend in the classroom, these student are able to reduce their overall cost of college.

How do they do it?

For many students, the three-year college plan starts in high school. High school students can accumulate college credits by taking and scoring well on Advanced Placement examinations. Generally, the cost of an AP exam is much less than the cost of a college course, and for public school students whose high schools offer AP courses, the cost of instruction is generally free.

Both high school and college students may be able to accumulate college credits by taking classes online. Many colleges and universities are now offering online courses that may be used to fulfill both general education and college major requirements. The added advantage of online courses is that students can take the courses year-round, logging on at their convenience to complete their work or take exams, without having to be on campus.

Summer breaks present students an opportunity to grab a few extra classes at typically lower tuition rates. Summer classes usually take two to three months (half a semester) to complete and can offer the same number of credits toward graduation as a semester-long class.

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$17,000 Obama Scholarship to Be Awarded to 1,600 Arizona Students

Student Loan Girl — Fri, 15 May 2009 21:01:00 GMT

Arizona State University officials have decided to rename the school’s largest financial aid program after President Barack Obama in honor of his commencement address to ASU’s 2009 graduating class, reports The Arizona Republic (“1,600 ASU Freshmen Will Qualify for Obama Scholarship,” May 7, 2009).

Approximately 1,600 incoming ASU freshmen could now qualify for an award under the President Barack Obama Scholars Program, after the school increased the qualifying family income from $25,000 to $60,000. Worth up to $17,000, the need-based scholarship will cover tuition, fees, books, and room and board and will require recipients to take on a work-study job on campus.

The decision to rename the scholarship program came shortly after ASU began receiving negative publicity for not choosing to award President Obama with an honorary degree. ASU President Michael Crow apologized for the stir created by the university’s controversial decision but stood by his adherence to the school’s policy, which doesn’t allow for honorary degrees to be awarded to sitting politicians.

Crow says that the scholars program meets Obama’s goal of allowing more students to attend college. He said, “This is an important commitment on our part to make certain (that) students still have access to the universities.”

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After 86% Tuition Increase, Texas Senate Says “Enough Is Enough”

Student Loan Girl — Thu, 14 May 2009 19:09:00 GMT

The Texas Senate has voted to limit future tuition hikes, including a 5–percent yearly cap for the largest universities in the state, after seeing the state’s 35 public universities increase tuition and fees 86 percent since 2003, reports The Dallas Morning News (“Bill Limiting College Tuition and Fee Hikes Clears Texas Senate,” May 5, 2009).

Under the proposed law, all colleges and universities whose rates currently exceed the state’s median tuition and fee rate would either have to hold their tuition and fees at 5 percent or at the average rate of inflation, whichever figure is lower. If the bill becomes law, the new restrictions would apply to 17 state universities.

The bill will “make sure all Texans who seek the opportunities higher education can provide are not priced out of a world-class education,” said Lt. Gov. David Dewhurst.

Six years ago lawmakers handed over the control of setting tuition rates and fees to the governing boards of the state’s colleges and universities, a move that legislators have since regretted after seeing tuition jump so dramatically in such a short period of time, according to The Dallas Morning News.

Sen. Judith Zaffirini, the bill’s sponsor, drafted the legislation not only in the hopes of preventing similar tuition increases in the future, but also to remove the possibility of wiggle room for schools when setting their tuition and fees: the measure includes provisions that expressly prohibit schools from raising fees or levying any additional charges of any kind.

“There will be no more games played” by universities with tuition and fees, Zaffirini said, citing complaints from Texas families statewide.

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Attention Freshmen and Transfer Students: Colleges Still Have Openings

Student Loan Girl — Thu, 07 May 2009 22:25:00 GMT

Almost 260 colleges and universities around the country still have openings for students, and most of these schools still have ample financial aid available, according to survey results from the National Association for College Admission Counseling (“NACAC Survey: Space and Financial Aid Still Available for Students On College Campuses,” May 2009).

Results from this year’s NACAC annual survey, Space Availability Survey: Openings for Qualified Students, indicated that schools still have spaces available for both freshmen and transfer students who may have not been accepted to their first choice schools or who have yet to apply to college. And, 97 percent of the institutions said they had housing space remaining.

The survey, conducted shortly after the May 1 “decision date” deadline, by which many schools require students to confirm their attendance and submit deposits, is designed as a tool for families, counselors, and teachers to help students who have not yet completed the college admissions process.

More than 70 percent of the 258 NACAC member schools that, in the survey, said they still had spaces available were private institutions. Many of these schools had anticipated lower enrollment numbers this fall after a separate survey found that the recession was forcing one out of six students to change their college plans (“Will the Economy Really Change Students’ College Plans? Signs Say Yes,” The Chronicle of Higher Education, April 24, 2009).

That survey, conducted by the College Board and the higher-education consulting firm the Art & Science Group, indicated that 41 percent of students were seriously considering a public college closer to home over a private institution.

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Dorms Add to Community Colleges’ Appeal

Student Loan Girl — Tue, 14 Apr 2009 23:19:00 GMT

In an attempt to offer a low-cost alternative to college students who typically attend more expensive private and public institutions, community colleges have started building on-campus dorms, a move that may soon alter the commuter culture at such schools, reports the Los Angeles Times (“Community Colleges Add Dorms to Boost Appeal,” April 7, 2009).

With tuition rising at most colleges and universities across the country, experts say that larger numbers of college-age students are opting to enroll in two-year schools offering the same type of college dormitory life traditionally found only at a four-year university. And many community colleges are actively promoting their on-campus housing amenities in their recruitment of international students and athletes, two demographics who often prefer on-campus housing.

“We do think it’s a trend for more community colleges to provide residential housing for students,” said Norma Kent, spokeswoman for the American Association of Community Colleges.

States Responding to Need for Community College Dorms

Dorms at community colleges are being built in Washington state, Florida, Texas, Minnesota, and California, where both the University of California and the California State University systems have said they will severely limit freshmen enrollment this fall.

Educators believe that California — with nearly 2.8 million community college students or roughly 25 percent of the nation’s total community college population — may be particularly ripe for adding new dorms.

With both of the state’s university systems accepting fewer freshmen this year, many of the 4,000 first-year students who’ve been denied admission to those four-year schools may be more likely to consider a two-year school that offers on-campus housing versus one that doesn’t.

And what may come as a surprise, the Los Angeles Times reports, is that 11 community colleges in the state already have dorms, although many of those decades-old dorms resemble 1950s-era military barracks. Other dorms, like those at Sierra College near Sacramento, have been updated and include meal plans honored at local restaurants, one of many features intended to lure students to its campus.

Cerro Coso Community College, a 300-student school located in Mammoth Lakes, says that its South Gateway Student Apartments — an $8.5 million residence hall built last August that can house 59 students — is the first new community college housing to go up in California in 20 years. Funded by a grant from the Mammoth Lakes Foundation, the new dorms aren’t cheap: $900 a month for a single room or $750 a month for a shared room, plus meals.

Feedback from students regarding community college dorms is largely positive. Some students say they’re succeeding at school for the first time and that they enjoy the intimate surroundings and small class sizes that community colleges can offer.

Sharon Carroll, a student at Cerro Coso Community College, said that if she had to fight the traffic and large class sizes of an urban community college, “I would have been sick of school already. I figured out a lot from being here. It made me want to go to a four- year college.”

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2010 College Enrollment Numbers May Not Be So Bad, Survey Reveals

Student Loan Girl — Thu, 02 Apr 2009 21:51:00 GMT

Although school administrators across the nation are reporting an increase in applications, they’re worried about just how many college students will actually enroll in their institutions this fall as families continue to tighten their budgets amid this recession, reports Inside Higher Ed (“Parents’ View of the Economy,” March 30, 2009).

However, a new survey of parents of college students indicates that while administrators’ concerns are valid, the economy may not have affected parents’ finances as much as educators originally thought, particularly among parents whose children are entering their freshmen year. Eduventures, an organization that tracks higher education trends, surveyed 7,000 parents with college-age children at a mix of 19 public and private colleges and universities.

Eduventures found that a majority of parents with freshmen — about 66 percent — said the downturn won’t affect how they will finance their children’s education this upcoming fall.

Overall, relatively few parents told Eduventures that they would not enroll their children in college due to lack of funding, although some parents indicated that they might choose to enroll their children in less expensive institutions to cut costs.

Of those parents with students at private schools, less than 12 percent indicated that their children were considering transferring to a less expensive school, and nearly 7 percent said they would encourage their children to take some classes at a community college. Of these same private school parents, less than 3 percent indicated that their students wouldn’t be returning to college in the fall, and less than 0.5 percent said that their children were considering dropping out of college permanently.

The numbers were only slightly different for parents whose children attend public colleges, with almost 9 percent saying that their children may have to consider transferring schools and less than 3 percent who believed that their children would need to look at dropping out of college. Nearly 6 percent of these parents thought that their children would need to live at home instead of on campus this fall.

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Number of Students With Unpaid Tuition Bills Growing

Student Loan Girl — Tue, 13 Jan 2009 23:24:00 GMT

Colleges and universities all across the country are seeing larger numbers of students who may soon be forced to drop out of college due to unpaid bills, according to a recent survey (“Unpaid College Tuition Bills Rise, Survey Finds,” U.S. News & World Report, Jan. 9, 2009).

The American Association of Collegiate Registrars and Admissions Officer s found that of the 43 college registrars it surveyed, more than 65 percent said that they’d experienced an increase in unpaid bills over the previous year. At Spelman College in Atlanta, for example, nearly 25 percent of the student body — a record-breaking 500 students — is behind on their bills by an average of $3,000; nearly double the number of students who fell behind last year.

5 Things Cash-Strapped Students Can Do to Stay in School

In order to avoid being kicked out of college, students may take the following five steps to resolve their unpaid tuition bills:

Contact the registrar.
Some schools are willing to work with students to bring their accounts up to date. Schools may offer students an “emergency” loan, or give them the option of using a payment plan that allows a student to pay off the total amount they owe in small payments over a period of time.

Stop by the financial aid office.
There may be several school-sponsored scholarships available to students that schools didn’t offer before. To help students affected by the recession, some schools have raised additional funds to expand or create new financial aid programs, although aid may be limited.

Complete last year’s FAFSA.
Students who fill out the Free Application for Federal Student Aid could still retroactively receive college grants and low-cost loans that they would’ve qualified for last year. If nothing else, by filling out the FAFSA now, students may qualify for a federal student loan that could get help them get through the next semester.

File a “PJR”
If a student’s or a family’s financial circumstances have changed, such as a job or income loss, a student may request a PJR, a “professional judgment review,” from their financial aid office. During a PJR, the financial aid office may determine that a student needs more funds for college and could award them emergency or other aid.

Try peer-to-peer lending.
Once all other options are exhausted, students may want to explore borrowing money from extended family members, friends, or even strangers through social lending sites like GreenNote or LendingClub. But students should read the fine print on any loan documents to ensure they understand their rates and terms before borrowing.

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Note to College Donors: Make the Check Out to Students

Student Loan Girl — Fri, 21 Nov 2008 23:28:00 GMT

As the economic downturn continues to impact families’ ability to pay for college, schools are redirecting their fundraising efforts to focus on financial aid, reports The Wall Street Journal (“Colleges Shift Donor Appeals Toward Student Aid,” Nov. 19, 2008).

In order to help meet the increased demand for financial aid, some schools are urging donors to contribute money directly to a school’s general fund, which universities reserve for their most pressing needs, or to a school’s scholarship program, rather than to new building construction.

Bobbi Mark, vice president of institutional advancement at Barnard College in New York, said it makes more sense for colleges to delay the construction of a new building than to “say to the entire sophomore class: Why don’t you take a year off?

“Certain things have to be priorities,” Mark added, “and financial aid is one of them.”

What Some Schools Are Doing To Boost Financial Aid

To help students get the financial aid they need, some schools are giving their priorities a makeover:

Barnard College is asking donors to participate in its endowed scholarship giving program to make up for a reduction in family contributions and to meet an anticipated $1.2 million increase in demand for aid. The program’s donors agree to pledge $100,000 to help a particular student meet his or her tuition costs.

With its families taking a big hit from the mortgage crisis and unemployment, Stanford University has seen an “increase in demand for aid above and beyond our expanded aid commitment,” said Karen Cooper, director of financial aid. The school plans to delay certain building projects and cut its $800 million general funds budget — which pays for faculty and staff salaries, administrative costs, and non-research-related expenses — by 10 to 12 percent over the next few years.

The University of Texas at Austin, which has seen its state funding decrease, recently announced a new $3 billion fundraising campaign with a “primary focus” on making school affordable, said Carolyn Connerat, the school’s campaign director. Giving toward scholarships is up by $4 million this year compared to last year.

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Direct Loan Program Gaining Ground on Bank-Based FFEL Program

Student Loan Girl — Wed, 29 Oct 2008 23:27:00 GMT

According to a recent survey of college financial aid directors, the federal government’s Direct Loan Program — through which families get federal student loans directly from the Department of Education — could eclipse the government’s now dominant Federal Family Education Loan Program by next school year.

The survey’s findings reveal that the bank–based FFEL program is losing its hold as schools’ loan program of choice, now that 168 FFELP lenders have suspended all or part of their federal student loan programs. Third-party lenders have continued to drop out of the FFEL program as the ongoing credit crisis has choked investor interest in federal student loans, crippling lenders’ ability to sell loans in order to originate enough capital to issue new ones.

Of the 416 colleges and universities surveyed in a Web-based poll by Student Lending Analytics, a company that provides colleges with financial aid advice, 6 percent of schools currently using the bank-based system plan to switch to direct lending for the 2009–10 academic year, and 29 percent are considering a migration to direct lending (“Direct Lending Could Overtake Bank-Based Student Loan Programs Next Year,” The Chronicle of Higher Education, Oct. 28, 2008).

If only 57 percent of those schools who said they were considering the switch actually made it, The Chronicle suggests, the Direct Loan Program would edge out the FFEL program as the leading supplier of federal student loans.

Currently, 1,458 colleges and universities use the Direct Loan Program, up from 1,010 colleges last school year, while the number of colleges using the FFEL program is down from 4,417 schools to 4,274.

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Student Loan Providers May Get Government Help for One More Year

Student Loan Girl — Thu, 18 Sep 2008 00:08:00 GMT

With problems in the credit markets continuing to plague student loan providers, the U.S. House of Representatives overwhelmingly approved a year-long extension of the Ensuring Continued Access to Student Loans Act, which allows the secretary of education to buy student loans from cash-strapped lenders.

If approved by the Senate, the measure, which Congress originally passed last spring, would extend the education secretary’s loan purchasing power through July 1, 2010 to help ensure that students have access to federal student loans for the 2009–10 academic year. The bill was set to expire July 1, 2009.

The act gives the Department of Education the authority to buy student loans from third-party private lenders in the Federal Family Education Loan Program who have been unable to sell their loans to investors following fallout from the subprime mortgage crisis.

“Our rough economy is already dealing a huge blow to American families and we can’t allow trouble in the credit markets to further price students out of a college degree,” said Rep. George Miller, D-Calif., chairman of the Committee on Education and Labor (“House Moves to Protect Student Loans,” Associated Press, Sept. 15, 2008).

“With market conditions showing no signs of letting up,” Miller added, “it’s only prudent to make sure that students have every assurance that the federal student loans they need will be there next year.”

The measure would also extend the secretary’s authority to advance federal funds to guarantee agencies so those agencies can make loans, if necessary, as a “lender of last resort” for the nation’s colleges and universities.

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Kentucky Student Loan Provider Is Out of Money

Student Loan Girl — Wed, 13 Aug 2008 21:08:00 GMT

The Kentucky Higher Education Assistance Authority, the state agency that provides college loans to students attending colleges and universities in Kentucky, will “effectively run out of money” Friday while it waits to receive a $50 million loan from the federal government on August 21, reports the Lexington Herald-Leader (“Student Loan Agency to Run Out of Money,” Aug. 13, 2008).

The one-week funding shortage may temporarily inconvenience KHEAA’s student loan borrowers, some of whom will not likely receive their student loans before classes begin as early as August 18 at some schools.

KHEAA, also known as The Student Loan People, has been in communication with the financial aid offices of affected universities, asking them to be patient until the $50 million “bridge loan” from the government arrives. With the loan, the KHEAA will issue $35 million in financial aid to 16,000 students, says James Ackinson, KHEAA’s executive vice president.

“The issue will not delay or prevent any of our students from beginning classes,” says Shelley Park, director of financial aid at Eastern Kentucky University, which begins classes August 25. Students who rely on their student loans to buy textbooks will get school-issued vouchers to cover the cost until they receive their KHEAA-issued student loans and can repay the school.

By Friday, when the KHEAA will temporarily run out of money, the state loan agency will have issued $40 million in loans to 18,000 students since July 1.

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