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Student Financial Aid


RIP you college flunk-out loser

Bangor, Maine, Daily News - Opinion Piece
May 15, 2012

Those who blame the borrowers are being unfair. Colleges use bait and switch in offering the typical financial aid package that does not usually cover all the costs for the year and at the last minute, usually after the student has committed to that school, a shortfall appears requiring yet another loan. To make matters worse, many colleges do not guarantee the free aid, or college grants, for all four years so many students will find themselves way short in subsequent years and are forced to borrow more money to stay at that college.

Higher Education and Debt: Another Perspective

Huffington Post - Opinion Piece
May 15, 2012

Lawrence M. Schall, president, Oglethorpe University, writes:  In the New York Times' "A Generation Hobbled by Debt," the top of the fold color picture features Kelsey Griffith, age 23, in debt $120,000 from her college loans, now working two restaurant jobs. I don't quarrel with much in the article, except the proclivity to feature extreme cases like Kelsey's. She represents one in a hundred, but the story focuses on her and others like her. It makes for dramatic reading, I suppose, but I'd prefer to focus on the more typical student with a more typical debt burden. That story is compelling enough.

Senate Fails to Consider Student Loan Interest Fix

NAICU Washington Update
May 14, 2012

Senate Democrats attempted on May 8 to gain floor consideration of a bill extending the 3.4 percent interest rate on subsidized student loans for one year, but they were unable to get Republicans to consider their version of the bill.  Leaders of both parties agree that the interest rate should not revert to 6.8 percent on July 1, as will happen automatically if no action is taken to prevent it.  But a bi-partisan approach on funding the extension of the reduced rate will have to be reached before the end of June.

More private colleges offering tuition discounts

McClatchy Newspapers
May 14, 2012

As more students question whether to take on massive tuition debt only to end up with degrees but no jobs, many private colleges are offering discount deals that cut, freeze or even eliminate tuition altogether for incoming students. Some private colleges even waive tuition altogether for eligible students; eligibility standards vary. Five years ago, only a handful of colleges offered these kinds of promotions, said Mark Kantrowitz, who publishes the college planning websites FinAid.org and Fastweb.com.

Student loan blues

Los Angeles Times
May 13, 2012

Despite the perception of educational debt as a twentysomething phenomenon, Americans of all ages are on the hook for student loans that in some cases were taken out several decades earlier. And many middle-aged people are taking out new loans as they go back to school or finance their children's educations. Of the estimated 37 million Americans with outstanding student loans, nearly 5.5 million are 40 to 49 years old, and more than 6.3 million are 50 or older, according to the Federal Reserve Bank of New York.

Students lament debts as loan battle gains steam in Congress

USA Today/Detroit Free Press
May 13, 2012

Sean Doerr, like thousands of college graduates this spring, is trapped between a rock and a hard place. To get a good job, he knew he needed a college degree. But graduated Thursday from the College for Creative Studies in Detroit with more than $85,000 in debt. He's far from alone: Millions of Americans now owe more for student loans than credit cards. The loans can top $100,000 - even $200,000 - and often translate into payments of more than $1,000 a month.

A Generation Hobbled by the Soaring Cost of College

New York Times
May 13, 2012

Crippling debt is no longer confined to dropouts from for-profit colleges or graduate students who owe on many years of education. Now nearly everyone pursuing a bachelor's degree is borrowing. As prices soar, a college degree statistically remains a good lifetime investment, but it often comes with an unprecedented financial burden. Ninety-four percent of students who earn a bachelor's degree borrow to pay for higher education - up from 45 percent in 1993, according to an analysis by The New York Times of the latest data from the Department of Education. This includes loans from the federal government, private lenders and relatives.

Student Loans Have Become 'Pawn in the Latest Political Fight'

Chronicle of Higher Education
May 13, 2012

Unless Congress acts soon, the interest rate on subsidized Stafford loans will rise from 3.4 percent to 6.8 percent, on July 1. Democrats and Republicans both want to postpone the increase for a year, to placate student voters, but they disagree on how to cover its cost. Lost in the political posturing and campaign rhetoric is the fact that the interest-rate increase would have a modest effect on student debt, costing the average undergraduate borrower just $7 to $9 a month. Only a third of newly issued federal student loans will qualify for the low rate; graduate students will still pay more, as will all borrowers with unsubsidized student loans.

Fear of finance can impede college access

Quad-City Times, Davenport, Iowa - Column
May 11, 2012

Researchers from Stanford, Harvard and the University of Toronto, in partnership with H&R Block, found that when families with incomes under $45,000 sought tax preparation help and were then offered immediate assistance with filing the FAFSA - which, with the help, took a mere 8 minutes to complete - their college attendance rates went up. Best of all, the findings seem to indicate that this nudge even helped keep students in school for subsequent years, increasing the likelihood of graduation. The research underscores the high degree of hand-holding that families with no prior college experience need.

The Real Price Of College

NPR - Planet Money Podcast
May 11, 2012

There's a huge gap between the sticker price and what the average student actually pays after figuring in grants and scholarships. That's true at private colleges around the country. Nationwide, the average sticker price is more than twice as high as the price students actually pay, and the gap is getting wider. It turns out, it makes economic sense to have a high sticker price and offer lots of discounts. On the show today, we explain why.

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