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NAICU Survey Finds Impact from Student Loan Crunch, but No Widespread Loan Crisis for Fall 2008 Semester

NAICU Survey Finds Impact from Student Loan Crunch, but No Widespre...

October 21, 2008

FOR IMMEDIATE RELEASE
October 21, 2008

CONTACT: Tony Pals, tony@naicu.edu
office: 202-739-0474     cell: 202-288-9333

WASHINGTON, D.C., Oct. 21 - While there was no widespread student loan crisis this fall, there were multiple instances of students taking time off of school, switching to part-time status, and turning to alternative forms of financial support, according to the results of a survey conducted by the National Association of Independent Colleges and Universities. The survey, released today, also found a considerable amount of behind-the-scenes scrambling by private colleges to keep loan capital flowing to their students.

"In the main, the survey shows that independent higher education and our students weathered the student loan crunch through September," said NAICU President David L. Warren. "To varying degrees, individual students and institutions were impacted by the crunch, but no widespread access crisis materialized in the first half of the fall semester.

"However, the full-blown effects of the credit crunch and the nation's economic struggles are yet unknown," Warren said. "It is impossible to predict the possible future consequences of the nation's continuing economic struggles on students and colleges."

NAICU will continue to closely monitor the impact of the credit crunch and economic slowdown on institutional budgets, family financial need, and student choices for the coming semester and the next academic year.

RESULTS: For finding highlights, and survey questions and responses, go to
www.naicu.edu/StudentLoanReport

About the Survey
In September 2008, NAICU surveyed its 953 member institutions on the effects of the credit crunch on student loan availability for the beginning of the 2008-09 academic year. NAICU's September survey had a response rate of more than 50 percent, with 504 colleges and universities participating. Data collection was during the period of September 10-30, 2008.

About NAICU
NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 85 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

 

FOR IMMEDIATE RELEASE
October 21, 2008

CONTACT: Tony Pals, tony@naicu.edu
office: 202-739-0474     cell: 202-288-9333

WASHINGTON, D.C., Oct. 21 - While there was no widespread student loan crisis this fall, there were multiple instances of students taking time off of school, switching to part-time status, and turning to alternative forms of financial support, according to the results of a survey conducted by the National Association of Independent Colleges and Universities. The survey, released today, also found a considerable amount of behind-the-scenes scrambling by private colleges to keep loan capital flowing to their students.

"In the main, the survey shows that independent higher education and our students weathered the student loan crunch through September," said NAICU President David L. Warren. "To varying degrees, individual students and institutions were impacted by the crunch, but no widespread access crisis materialized in the first half of the fall semester.

"However, the full-blown effects of the credit crunch and the nation's economic struggles are yet unknown," Warren said. "It is impossible to predict the possible future consequences of the nation's continuing economic struggles on students and colleges."

NAICU will continue to closely monitor the impact of the credit crunch and economic slowdown on institutional budgets, family financial need, and student choices for the coming semester and the next academic year.

RESULTS: For finding highlights, and survey questions and responses, go to
www.naicu.edu/StudentLoanReport

About the Survey
In September 2008, NAICU surveyed its 953 member institutions on the effects of the credit crunch on student loan availability for the beginning of the 2008-09 academic year. NAICU's September survey had a response rate of more than 50 percent, with 504 colleges and universities participating. Data collection was during the period of September 10-30, 2008.

About NAICU
NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 85 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

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October 21, 2008

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Number of Private Colleges Participating in the U-CAN Consumer Information Initiative Tops 700

Number of Private Colleges Participating in the U-CAN Consumer Info...

August 13, 2008

 
Free Web Resource for Students and Parents to Mark First Anniversary with Enhanced Functionality and Record Campus Participation
 
WASHINGTON, D.C., Aug. 13-U-CAN (www.ucan-network.org), a voluntary consumer information initiative of the National Association of Independent Colleges and Universities (NAICU), has reached a milestone in campus participation. Nearly 11 months after the free, consumer-focused website was launched, the roster of private colleges and universities signed up to participate has grown to 711 institutions.
 
Since NAICU unveiled U-CAN on Sept. 26, 2007, with 600 private colleges and universities onboard, the number of participating institutions has grown by 19 percent. The association has 953 member schools, which enroll 85 percent of all students attending private colleges and universities in America.
 
With a design driven by consumer focus groups, the U-CAN site has been lauded for its rich and consumer-relevant information, and colorful, user-friendly format-by students, parents, college admissions counselors, and policymakers. Since U-CAN went live, more than 358,000 users have visited the site, viewing more than 850,000 pages.
 
U-CAN "2.0" to Launch in September 2008
 
U-CAN "2.0" will be launched in mid-September 2008, improving on a college search tool already noted for providing objective, comparable data on the factors that matter most to consumers: student costs broken out by category, tuition trends, admission and graduation rates, average student aid packages, average debt at graduation, and much more.
 
Site enhancements-growing out of user comments and focus groups with parents and students-will make it among the most searchable websites of its kind. The improved site will also provide guidance on how to prepare academically and financially for college, find the right fit, and navigate the admissions and financial aid processes. NAICU is exploring the development and addition of a new element that would allow consumers to see how colleges are spending their tuition dollars.
 
NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, two-year colleges, and schools of law, medicine, engineering, business, art, and other professions.
 
CONTACT:
 
Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333
 
###

 

 
Free Web Resource for Students and Parents to Mark First Anniversary with Enhanced Functionality and Record Campus Participation
 
WASHINGTON, D.C., Aug. 13-U-CAN (www.ucan-network.org), a voluntary consumer information initiative of the National Association of Independent Colleges and Universities (NAICU), has reached a milestone in campus participation. Nearly 11 months after the free, consumer-focused website was launched, the roster of private colleges and universities signed up to participate has grown to 711 institutions.
 
Since NAICU unveiled U-CAN on Sept. 26, 2007, with 600 private colleges and universities onboard, the number of participating institutions has grown by 19 percent. The association has 953 member schools, which enroll 85 percent of all students attending private colleges and universities in America.
 
With a design driven by consumer focus groups, the U-CAN site has been lauded for its rich and consumer-relevant information, and colorful, user-friendly format-by students, parents, college admissions counselors, and policymakers. Since U-CAN went live, more than 358,000 users have visited the site, viewing more than 850,000 pages.
 
U-CAN "2.0" to Launch in September 2008
 
U-CAN "2.0" will be launched in mid-September 2008, improving on a college search tool already noted for providing objective, comparable data on the factors that matter most to consumers: student costs broken out by category, tuition trends, admission and graduation rates, average student aid packages, average debt at graduation, and much more.
 
Site enhancements-growing out of user comments and focus groups with parents and students-will make it among the most searchable websites of its kind. The improved site will also provide guidance on how to prepare academically and financially for college, find the right fit, and navigate the admissions and financial aid processes. NAICU is exploring the development and addition of a new element that would allow consumers to see how colleges are spending their tuition dollars.
 
NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, two-year colleges, and schools of law, medicine, engineering, business, art, and other professions.
 
CONTACT:
 
Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333
 
###

 

August 13, 2008

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Caveat Lector: Don’t Let New College Cost Book Sucker You In

Caveat Lector: Don’t Let New College Cost Book Sucker You In

July 02, 2008

FOR IMMEDIATE RELEASE                                                                        

 

CONTACT: Tony Pals, tony@naicu.edu

office: 202-739-0474     cell: 202-288-9333

Caveat Lector:  Don’t Let New College Cost Book Sucker You In 

Washington, DC, June 27, 2008 – Thanks to new student aid initiatives at America’s private colleges and universities, many students and families are getting welcome news: a private college may be as affordable as a public university—and their best buy. 

 

Unfortunately, the growing trend of colleges replacing loans and grants—or undertaking other steps to minimize student out-of-pocket costs and debt—was not mentioned in a press release issued yesterday for the new book No Sucker Left Behind: Avoiding the Great College Rip-Off.  

 

The press release for No Sucker speaks darkly of “colleges [that] gather billions of dollars in their endowment funds and reward their employees with lavish salaries and perks.”  

 

Here’s what wrong with that false generalization of higher education.

 

  • First, the release does not mention that only a sliver of the nation’s higher education institutions have endowments of $1 billion or more.  Of the nation’s 1,600 private colleges and universities, only 46 fall into this category.  The remaining 1,554 private institutions have a median endowment of just $14 million (yes, that’s million, with an “m”). 

 

  • Second, the press release fails to note vital consumer information about bold new steps being taken by wealthy colleges to become more affordable.  Those institutions with robust endowments have taken advantage of the healthy stock market gains of previous years to dramatically increase the amount of institutionally provided grant aid to low- and middle-income students. The bottom line is that these schools have used their wealth to become among the most affordable options in American higher education.

 Using Endowments to Cut Out-of-Pocket Student Costs and Debt 

Dozens of initiatives have been announced since December 2007.  For example, beginning in 2008-09:

  • Amherst College will replace all loans with scholarships in its financial aid packages. The policy will eliminate loans for all students. It will affect incoming students in the Class of 2012 and current students.  In 1999, Amherst eliminated loans for low-income students.

 

  • Brown University will eliminate loans for students whose family incomes are less than $100,000, reduce loans for all students who receive financial aid, and no longer require a parental contribution from most families with incomes of up to $60,000.

 

  • At Dartmouth College, all students from families with incomes of $75,000 or less will receive free tuition. Dartmouth also will eliminate loans for incoming scholarship recipients. Over four years of enrollment, students will see loans that totaled as much as $17,500 replaced with scholarships. Currently enrolled students will see their loan expectation cut by 50 percent for each of their remaining years at the college.

 

  • At Harvard University, families earning $120,000 to $180,000 a year will pay, on average, no more than 10 percent of their income. Harvard will also eliminate loans in financial aid packages, replace them with grants, and remove home equity in determining a family's assets.

 

  • At the University of Pennsylvania, new and current students with calculated family incomes under $100,000 will receive loan-free aid packages, while families above that level will receive a 10-percent reduction in need-based loans. By fall 2009, all undergraduate students eligible for financial aid will receive loan-free aid packages, regardless of family income level.

 

  • At Yale University, families with incomes of less than $60,000 will not be required to pay anything toward the cost of a student’s education. Families with incomes of $60,000 to $120,000 will contribute from one to 10 percent of the student’s bill. The policy will apply to all students returning to campus in the fall as well as entering freshmen.

And the list goes on at www.naicu.edu/affordabilityinitiatives.

What Others Say 

Even people not employed by our organization, the National Association of Independent Colleges and Universities, have been impressed by these new programs.

 For example, Senator Charles Grassley, ranking member of the Senate Tax Committee, recently praised Harvard’s decision as “big news” and said that “students and parents are the winners with Yale announcing significant increases in financial aid.” The New York Times reported in March that recent financial aid announcements had “reshaped the financial aid landscape for students entering college next year.” 

Private Colleges Without Large Endowments Take Action 

What about private colleges with smaller endowments?  They are also enhancing affordability through innovative efforts, within their limited financial means.  Here are some examples of initiatives launched by schools that have fewer resources, for the 2008-09 academic year:

 

  • Blackburn College and Warner Pacific College are cutting tuition.

 

  • Incoming freshmen who are admitted to California Lutheran University and either the University of California, Los Angeles (UCLA) or University of California, Santa Barbara (UCSB) can attend CLU for the cost of attending the public university. 

 

  • Juanita College will guarantee that students graduate in four years. Students avoid an additional year of tuition payments and enter the workforce sooner than most of their peers at public universities.

 

  • Dickinson College will increase its discount on the 529 savings plan to four percent. Assuming a 6-percent annual increase in tuition, parents must save $32,596 today to buy a year's worth of tuition in 2023 -- $90,830 -- under the previous discount rate. With the four-percent discount, they will need to save $20,545 instead.

 For more information 

These examples are just a few of the many new and existing affordability initiatives ignored in the No Sucker press release. Go to www.naicu.edu/affordabilityinitiatives for a complete listing.

For free, consumer-friendly information on more than 600 private colleges and universities, including data on tuition trends, net tuition, student aid, and more, visit U-CAN at www.ucan-network.org.

 

###

FOR IMMEDIATE RELEASE                                                                        

 

CONTACT: Tony Pals, tony@naicu.edu

office: 202-739-0474     cell: 202-288-9333

Caveat Lector:  Don’t Let New College Cost Book Sucker You In 

Washington, DC, June 27, 2008 – Thanks to new student aid initiatives at America’s private colleges and universities, many students and families are getting welcome news: a private college may be as affordable as a public university—and their best buy. 

 

Unfortunately, the growing trend of colleges replacing loans and grants—or undertaking other steps to minimize student out-of-pocket costs and debt—was not mentioned in a press release issued yesterday for the new book No Sucker Left Behind: Avoiding the Great College Rip-Off.  

 

The press release for No Sucker speaks darkly of “colleges [that] gather billions of dollars in their endowment funds and reward their employees with lavish salaries and perks.”  

 

Here’s what wrong with that false generalization of higher education.

 

  • First, the release does not mention that only a sliver of the nation’s higher education institutions have endowments of $1 billion or more.  Of the nation’s 1,600 private colleges and universities, only 46 fall into this category.  The remaining 1,554 private institutions have a median endowment of just $14 million (yes, that’s million, with an “m”). 

 

  • Second, the press release fails to note vital consumer information about bold new steps being taken by wealthy colleges to become more affordable.  Those institutions with robust endowments have taken advantage of the healthy stock market gains of previous years to dramatically increase the amount of institutionally provided grant aid to low- and middle-income students. The bottom line is that these schools have used their wealth to become among the most affordable options in American higher education.

 Using Endowments to Cut Out-of-Pocket Student Costs and Debt 

Dozens of initiatives have been announced since December 2007.  For example, beginning in 2008-09:

  • Amherst College will replace all loans with scholarships in its financial aid packages. The policy will eliminate loans for all students. It will affect incoming students in the Class of 2012 and current students.  In 1999, Amherst eliminated loans for low-income students.

 

  • Brown University will eliminate loans for students whose family incomes are less than $100,000, reduce loans for all students who receive financial aid, and no longer require a parental contribution from most families with incomes of up to $60,000.

 

  • At Dartmouth College, all students from families with incomes of $75,000 or less will receive free tuition. Dartmouth also will eliminate loans for incoming scholarship recipients. Over four years of enrollment, students will see loans that totaled as much as $17,500 replaced with scholarships. Currently enrolled students will see their loan expectation cut by 50 percent for each of their remaining years at the college.

 

  • At Harvard University, families earning $120,000 to $180,000 a year will pay, on average, no more than 10 percent of their income. Harvard will also eliminate loans in financial aid packages, replace them with grants, and remove home equity in determining a family's assets.

 

  • At the University of Pennsylvania, new and current students with calculated family incomes under $100,000 will receive loan-free aid packages, while families above that level will receive a 10-percent reduction in need-based loans. By fall 2009, all undergraduate students eligible for financial aid will receive loan-free aid packages, regardless of family income level.

 

  • At Yale University, families with incomes of less than $60,000 will not be required to pay anything toward the cost of a student’s education. Families with incomes of $60,000 to $120,000 will contribute from one to 10 percent of the student’s bill. The policy will apply to all students returning to campus in the fall as well as entering freshmen.

And the list goes on at www.naicu.edu/affordabilityinitiatives.

What Others Say 

Even people not employed by our organization, the National Association of Independent Colleges and Universities, have been impressed by these new programs.

 For example, Senator Charles Grassley, ranking member of the Senate Tax Committee, recently praised Harvard’s decision as “big news” and said that “students and parents are the winners with Yale announcing significant increases in financial aid.” The New York Times reported in March that recent financial aid announcements had “reshaped the financial aid landscape for students entering college next year.” 

Private Colleges Without Large Endowments Take Action 

What about private colleges with smaller endowments?  They are also enhancing affordability through innovative efforts, within their limited financial means.  Here are some examples of initiatives launched by schools that have fewer resources, for the 2008-09 academic year:

 

  • Blackburn College and Warner Pacific College are cutting tuition.

 

  • Incoming freshmen who are admitted to California Lutheran University and either the University of California, Los Angeles (UCLA) or University of California, Santa Barbara (UCSB) can attend CLU for the cost of attending the public university. 

 

  • Juanita College will guarantee that students graduate in four years. Students avoid an additional year of tuition payments and enter the workforce sooner than most of their peers at public universities.

 

  • Dickinson College will increase its discount on the 529 savings plan to four percent. Assuming a 6-percent annual increase in tuition, parents must save $32,596 today to buy a year's worth of tuition in 2023 -- $90,830 -- under the previous discount rate. With the four-percent discount, they will need to save $20,545 instead.

 For more information 

These examples are just a few of the many new and existing affordability initiatives ignored in the No Sucker press release. Go to www.naicu.edu/affordabilityinitiatives for a complete listing.

For free, consumer-friendly information on more than 600 private colleges and universities, including data on tuition trends, net tuition, student aid, and more, visit U-CAN at www.ucan-network.org.

 

###

July 02, 2008

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National Initiative Aims to Set Record Voter Turnout at Colleges and Universities

National Initiative Aims to Set Record Voter Turnout at Colleges an...

May 23, 2008

FOR IMMEDIATE RELEASE

May 23, 2008

CONTACT: Tony Pals, tony@naicu.edu
office: (202) 739-0474 cell: (202) 288-9333

Libby May, libby@naicu.edu
office: (202) 739-0477 cell: (301) 529-7313

National Initiative Aims to Set Record Voter Turnout at Colleges and Universities

WASHINGTON, May 23 -- From the Iowa caucuses through Tuesday night's primaries in Oregon and Kentucky, the student vote has been an integral part of this primary season. To help ensure that students stay engaged through the general election, the National Campus Voter Registration Project has launched a nonpartisan, nationwide campaign to register college students, educate students about the issues and candidates, and motivate students to go to the polls on Election Day. The National Campus Voter Registration Project, is a joint effort of 50 national higher education associations that provides resources to the nation's 3,700 colleges and universities to aid campus efforts for the 2008 election.

Throughout the primaries, polls have shown record levels of engagement among the nation's youth, especially with college students, who have taken on active roles in the 2008 primary season. Research by the Center for Information and Research on Civic Learning and Education (CIRCLE) found that 79 percent of the youth voting, ages 18- 29, in the 2008 Super Tuesday primaries on February 5 had attended college. Never have the voter education and registration activities on America's campuses been more central and influential in a national election than they are shaping up to be in 2008.

The nonpartisan National Campus Voter Project has launched the Your Vote, Your Voice web site, www.YourVoteYourVoice.org. The site includes state-by-state details on voter registration, voter education and participation activities, and a wealth of timely and useful information. The campaign is targeted to provide information to campus organizers.

The project is co-chaired by the National Association of Independent Colleges and Universities (NAICU), American Association of State Colleges and Universities (AASCU), and Council of Independent Colleges (CIC).

"In the last two presidential elections, students saw the difference that each individual vote can make," said NAICU President David L. Warren. "Civic awareness and voter engagement is on the rise on campuses across the country. If the momentum continues through the party conventions and into the fall, the student vote will not only hit a record high but it could determine our next president."

"Traditionally America's colleges and universities have been deeply committed to preparing our students for citizenship and now this commitment is being matched by the enthusiasm and importance today's college students bring to participating in the civic life of America," said AASCU President Constantine Curris.

"If our democracy is to be sustained and strengthened, we must continue to educate students about their rights and responsibilities as citizens and to foster their engagement in the electoral process," Curris said.

"Fostering civic engagement among college students and preparing them for lives of active civic leadership is a basic responsibility of the nation's colleges and universities," said CIC President Richard Ekman. "Research provides ample evidence that youth who attend college are more likely to vote; to work full-time for or contribute financially to nonprofits; and to be involved in community service and volunteer activities.

"This voter registration project further instills in our students a commitment to the democratic process - which ultimately contributes to the betterment of society," Ekman said.

The National Campus Voter Registration Project is partially funded by the American Academic Leadership Institute. A complete list of the participating 50 national higher education associations can be found at www.yourvoteyourvoice.org.

###

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With nearly 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 85 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, and two-year colleges.

AASCU is the leadership association of 430 public colleges and universities Delivering America's Promise through their common commitments to access, affordability and educational opportunity. Enrolling more than 3 million students annually throughout the U.S. and its territories, these institutions fulfill the expectations of a public university by working for the public good through education, stewardship and engagement, thereby improving the lives of people in their community, their region and their state.

CIC is an association of more than 580 independent liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. The Council is headquartered at One Dupont Circle in Washington, DC.


FOR IMMEDIATE RELEASE

May 23, 2008

CONTACT: Tony Pals, tony@naicu.edu
office: (202) 739-0474 cell: (202) 288-9333

Libby May, libby@naicu.edu
office: (202) 739-0477 cell: (301) 529-7313

National Initiative Aims to Set Record Voter Turnout at Colleges and Universities

WASHINGTON, May 23 -- From the Iowa caucuses through Tuesday night's primaries in Oregon and Kentucky, the student vote has been an integral part of this primary season. To help ensure that students stay engaged through the general election, the National Campus Voter Registration Project has launched a nonpartisan, nationwide campaign to register college students, educate students about the issues and candidates, and motivate students to go to the polls on Election Day. The National Campus Voter Registration Project, is a joint effort of 50 national higher education associations that provides resources to the nation's 3,700 colleges and universities to aid campus efforts for the 2008 election.

Throughout the primaries, polls have shown record levels of engagement among the nation's youth, especially with college students, who have taken on active roles in the 2008 primary season. Research by the Center for Information and Research on Civic Learning and Education (CIRCLE) found that 79 percent of the youth voting, ages 18- 29, in the 2008 Super Tuesday primaries on February 5 had attended college. Never have the voter education and registration activities on America's campuses been more central and influential in a national election than they are shaping up to be in 2008.

The nonpartisan National Campus Voter Project has launched the Your Vote, Your Voice web site, www.YourVoteYourVoice.org. The site includes state-by-state details on voter registration, voter education and participation activities, and a wealth of timely and useful information. The campaign is targeted to provide information to campus organizers.

The project is co-chaired by the National Association of Independent Colleges and Universities (NAICU), American Association of State Colleges and Universities (AASCU), and Council of Independent Colleges (CIC).

"In the last two presidential elections, students saw the difference that each individual vote can make," said NAICU President David L. Warren. "Civic awareness and voter engagement is on the rise on campuses across the country. If the momentum continues through the party conventions and into the fall, the student vote will not only hit a record high but it could determine our next president."

"Traditionally America's colleges and universities have been deeply committed to preparing our students for citizenship and now this commitment is being matched by the enthusiasm and importance today's college students bring to participating in the civic life of America," said AASCU President Constantine Curris.

"If our democracy is to be sustained and strengthened, we must continue to educate students about their rights and responsibilities as citizens and to foster their engagement in the electoral process," Curris said.

"Fostering civic engagement among college students and preparing them for lives of active civic leadership is a basic responsibility of the nation's colleges and universities," said CIC President Richard Ekman. "Research provides ample evidence that youth who attend college are more likely to vote; to work full-time for or contribute financially to nonprofits; and to be involved in community service and volunteer activities.

"This voter registration project further instills in our students a commitment to the democratic process - which ultimately contributes to the betterment of society," Ekman said.

The National Campus Voter Registration Project is partially funded by the American Academic Leadership Institute. A complete list of the participating 50 national higher education associations can be found at www.yourvoteyourvoice.org.

###

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With nearly 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 85 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, and two-year colleges.

AASCU is the leadership association of 430 public colleges and universities Delivering America's Promise through their common commitments to access, affordability and educational opportunity. Enrolling more than 3 million students annually throughout the U.S. and its territories, these institutions fulfill the expectations of a public university by working for the public good through education, stewardship and engagement, thereby improving the lives of people in their community, their region and their state.

CIC is an association of more than 580 independent liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. The Council is headquartered at One Dupont Circle in Washington, DC.


May 23, 2008

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NAICU Survey Gives Early Snapshot of the Impact of the Credit Crunch

NAICU Survey Gives Early Snapshot of the Impact of the Credit Crunch

March 25, 2008

WASHINGTON, D.C., March 25—A significant number of private colleges and universities report reductions in student loan availability and borrower benefits, according to the results of a survey conducted by the National Association of Independent Colleges and Universities, and released today.

"While the comments offered by survey respondents indicate that there is little evidence of the credit crunch limiting access to student loans at the specific time of the survey, the data collected serves as a warning flare," said NAICU President David L. Warren.

"There is widespread uncertainty about what the full extent of the credit crunch and its impact on student borrowers will be, and what safeguards the federal government will have in place to avert a crisis," Warren said. "Institutions are looking for national guidance."

Private Label Loans 

Of NAICU’s 952 members, 315 institutions—or 33 percent—responded to the survey. Of the 176 responding institutions that reported receiving information from "preferred" lenders about their ability to make non-federal private label loans for the 2008-09 academic year:

  • 46 percent said that one or more of their lenders are tightening credit requirements for private label loans;
  • 43 percent said that one or more are no longer providing private label loans;
  • 30 percent said that one or more are reducing or eliminating borrower benefits; and
  • 20 percent say that one or more lenders are increasing interest rates.

Another 111 institutions reported they participate in non-federal, private label loans, but had not gotten any information from "preferred" lenders.

The NAICU survey asked institutions that participate in non-federal student loans what actions they would take if lenders were no longer available to some or all of their students to meet their financial needs. Of the 228 respondents participating in private label loans that answered the question:

  • 20 percent would offer budget counseling;
  • 15 percent would increase institutional funding for loans;
  • 15 percent would direct students toward other outside scholarships or alternative loans;
  • 12 percent would increase institutional funding for grants or work study;
  • 11 percent would increase PLUS loans; and
  • 6 percent would offer tuition payment plans.

For a number of reasons, 48 percent of the 228 respondents said they had no plan in place to respond to a shortage in private-label loans. Some institutions have not received indications that their individual lenders and students will be affected significantly by the credit crunch. Many do not have the financial resources needed to make up for a shortfall in private loans. Others indicate the uncertainty in the markets and among federal officials has placed their planning on hold.

Sixty percent of the 284 respondents participating in private-label loans that answered the question "how important is private student loan borrowing to your institutional financial health?" said they are either "very important" or "critically important" to their institutional financial health. Twenty-three percent reported private-label loans are "somewhat important" to their financial health. Eighteen percent said they were either "not very important" or "not at all important."

Federal Family Education Loan Program (FFELP)

Of the 211 responding institutions that reported receiving information from "preferred" lenders regarding their ability to make loans through the Federal Family Education Loan Program (FFELP) for the 2008-09 academic year:

  • 68 percent said that one or more of their lenders are cutting borrower benefits on FFELP loans, and
  • 57 percent said that one or more of their lenders are no longer providing FFELP loans.

(Note: When Congress reduced FFELP subsidies in 2007 to increase funding for Pell Grants and other student aid, cuts in borrower benefits were widely anticipated, and are not necessarily directly attributable to the current credit crunch.)

About the Survey

NAICU surveyed its 952 member institutions March 3-14. A total of 315 institutions responded, for an overall response rate of approximately 33 percent. Eighty-eight percent of respondents participate in FFELP loans, and 76 percent of respondents participate in private-label student loans. Twelve percent of responding institutions participate in the William Ford Direct Loan Program, compared to 16 percent of all private, not-for-profit institutions.

About NAICU

NAICU serves as the unified national voice of independent higher education. With nearly 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

► Survey results and questionnaire are available at http://www.naicu.edu/studentloansurvey.

CONTACTS:

###

WASHINGTON, D.C., March 25—A significant number of private colleges and universities report reductions in student loan availability and borrower benefits, according to the results of a survey conducted by the National Association of Independent Colleges and Universities, and released today.

"While the comments offered by survey respondents indicate that there is little evidence of the credit crunch limiting access to student loans at the specific time of the survey, the data collected serves as a warning flare," said NAICU President David L. Warren.

"There is widespread uncertainty about what the full extent of the credit crunch and its impact on student borrowers will be, and what safeguards the federal government will have in place to avert a crisis," Warren said. "Institutions are looking for national guidance."

Private Label Loans 

Of NAICU’s 952 members, 315 institutions—or 33 percent—responded to the survey. Of the 176 responding institutions that reported receiving information from "preferred" lenders about their ability to make non-federal private label loans for the 2008-09 academic year:

  • 46 percent said that one or more of their lenders are tightening credit requirements for private label loans;
  • 43 percent said that one or more are no longer providing private label loans;
  • 30 percent said that one or more are reducing or eliminating borrower benefits; and
  • 20 percent say that one or more lenders are increasing interest rates.

Another 111 institutions reported they participate in non-federal, private label loans, but had not gotten any information from "preferred" lenders.

The NAICU survey asked institutions that participate in non-federal student loans what actions they would take if lenders were no longer available to some or all of their students to meet their financial needs. Of the 228 respondents participating in private label loans that answered the question:

  • 20 percent would offer budget counseling;
  • 15 percent would increase institutional funding for loans;
  • 15 percent would direct students toward other outside scholarships or alternative loans;
  • 12 percent would increase institutional funding for grants or work study;
  • 11 percent would increase PLUS loans; and
  • 6 percent would offer tuition payment plans.

For a number of reasons, 48 percent of the 228 respondents said they had no plan in place to respond to a shortage in private-label loans. Some institutions have not received indications that their individual lenders and students will be affected significantly by the credit crunch. Many do not have the financial resources needed to make up for a shortfall in private loans. Others indicate the uncertainty in the markets and among federal officials has placed their planning on hold.

Sixty percent of the 284 respondents participating in private-label loans that answered the question "how important is private student loan borrowing to your institutional financial health?" said they are either "very important" or "critically important" to their institutional financial health. Twenty-three percent reported private-label loans are "somewhat important" to their financial health. Eighteen percent said they were either "not very important" or "not at all important."

Federal Family Education Loan Program (FFELP)

Of the 211 responding institutions that reported receiving information from "preferred" lenders regarding their ability to make loans through the Federal Family Education Loan Program (FFELP) for the 2008-09 academic year:

  • 68 percent said that one or more of their lenders are cutting borrower benefits on FFELP loans, and
  • 57 percent said that one or more of their lenders are no longer providing FFELP loans.

(Note: When Congress reduced FFELP subsidies in 2007 to increase funding for Pell Grants and other student aid, cuts in borrower benefits were widely anticipated, and are not necessarily directly attributable to the current credit crunch.)

About the Survey

NAICU surveyed its 952 member institutions March 3-14. A total of 315 institutions responded, for an overall response rate of approximately 33 percent. Eighty-eight percent of respondents participate in FFELP loans, and 76 percent of respondents participate in private-label student loans. Twelve percent of responding institutions participate in the William Ford Direct Loan Program, compared to 16 percent of all private, not-for-profit institutions.

About NAICU

NAICU serves as the unified national voice of independent higher education. With nearly 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

► Survey results and questionnaire are available at http://www.naicu.edu/studentloansurvey.

CONTACTS:

###

March 25, 2008

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About the items posted on the NAICU site: News items, features, and opinion pieces posted on this site from sources outside NAICU do not necessarily reflect the position of the association or its members. Rather, this content reflects the diversity of issues and views that are shaping American higher education.

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