Todays News Feed

Duncan Testifies In Front Of Senate Budget Committee

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

On Tuesday, Secretary of Education Arne Duncan testified to the Senate Budget Committee on the Obama administration's 2014 education budget proposal.

ED Ranks Customer Satisfaction With Federal Loan Servicers

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

Higher education institutions indicate that Great Lakes Education Loan Services has the highest third quarter customer satisfaction among federal loan servicers, though others are not far behind.

Arne Duncan To Visit Hill On Student Loans

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"Education Secretary Arne Duncan and National Economic Council Director Gene Sperling will huddle with Democratic senators on Thursday to seek a way to prevent student loan rates from doubling in less than two weeks," Politico reports.

Are Universities The New Automakers?

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"The American automobile industry was once the envy of the world. But the automobile companies and their workers gradually slipped into complacency," MainStreet reports. NASFAA is mentioned in the article.

Taxpayers Pay Millions For Fed Workers' Student Loans

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"Congress may let student loan interest rates double July 1, but some federal workers and congressional staff likely are protected from the impact by a taxpayer-funded benefit that provided more than $20 million last year for them to pay down their college debts," USA Today reports.

Kansas: Veterans Still Pay Out-State Tuition As Bill Falters

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"Liane Larson grew up in Kansas. Her parents are military veterans who served in Kansas. She graduated from high school in Kansas, and her husband is from Kansas. But when Larson arrived at The University of Kansas, she didn’t qualify for in-state tuition," The Topeka Capital-Journal reports.

Louisiana: Analysis - More Talk, But No Action On TOPS Changes

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"Louisiana's free college tuition program called TOPS carries a hefty price tag in a state budget that has been throttled with cuts," The Shreveport Times reports.

Student Loan Rates Should Not Increase, Americans Say In Poll

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"A vast majority of voters want Congress to maintain the interest rates on federal student [loans] at their current level or lower them, a poll released Tuesday found," the Huffington Post reports.

Dem Committees Attack House Republicans On Student Loans

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"House and Senate Democrats are going on the offensive on student loans, accusing House Republicans of refusing to keep interest rates on student loans low," The Hill's Ballot Box reports.

Uncle Sam’s Growing Investment Portfolio

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"The federal government has been borrowing rapidly to finance recent budget deficits. But that’s not the only reason it’s gone deeper into debt. Uncle Sam also borrows to issue loans, build up cash, and make other financial investments," according to the Tax Policy Center's Tax Vox blog.

Colleges Can’t Collaborate—Except When They Can

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"The U.S. Department of Justice has opened an antitrust investigation into 'a possible agreement' among college presidents who have discussed ideas for reforming the student-aid system," The Chronicle of Higher Education's Head Count blog reports.

Student Stories From Gainful Employment Programs

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"Last week, Higher Ed Watch took a look at some of the gainful employment policy questions raised in the over 900 public comments submitted to the Department of Education. While policy discussions will ultimately be the most important considerations as the regulatory process moves forward, it's also important to remember that these issues do affect real people," the New America Foundation's Higher Ed Watch blog reports.

NYU's 'Toxic' Expansion Prioritizes Marketing Over Debt-Saddled Students, Professors Say

NASFAA — Wed, 19 Jun 2013 00:00:00 GMT

"In a time of growing alarm over soaring student loan debt, New York University -- which graduates the most indebted classes of students in the country -- has embarked on an ambitious real estate expansion that could make the school even more expensive," The Huffington Post reports.

Journal of Student Financial Aid Announces Rising Professionals Editorial Board Inaugural Cohort

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

The Journal of Student Financial Aid is pleased to announce the inaugural cohort of the Rising Professionals Editorial Board! This new board brings together a diverse group of talented early-career financial aid administrators, policy analysts, and doctoral students who will aid in the development and advancement of the Journal and NASFAA’s mission to bridge financial aid research and practice. NASFAA's new journal management system, launched last week, will help to streamline the process as board members go about their duties.

Will Colleges Weigh Income, Not Race?

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"In post-Great Recession America, which is the bigger barrier to opportunity — race or class?" an Associated Press article asks.

The Lights Are On ...

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"Six months after inauguration ... one of the biggest questions facing the Education Department is whether it has the personpower to carry out its ambitious, if still hazy, agenda," Inside Higher Ed reports.

Commentary: When College Becomes a Risky Investment

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"Economists mislead families by framing college attendance as an issue of capital investment rather than one of affordability," Robert E. Martin writes in The Chronicle of Education.

Opinion: Al Franken May Succeed in Simplifying the Financial Aid Process

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"Anyone who has ever applied for college financial aid knows how confusing it can be. Many times, students—and parents—will incur debt that will haunt them years after college is in the rearview mirror," Suzi Parker writes for TakePart.

Interest Rates On Student Loans: Another Crisis

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"The Republicans and Democrats are at in again, debating the future of college loan interest rates," Frank Palmasani, creator of Financial Fit, writes in the Huffington Post.

Drowning In Debt To Get A Degree

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"Colleges, universities and community colleges are centers of innovation, cultural hubs and engines of economic growth. In short, they are a tremendous public good," Randi Weingarten, president of the American Federation of Teachers, writes in the Huffington Post.

Groups Ask For More College Oversight On Private Loans

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

"In a letter to the Consumer Financial Protection Bureau on Monday, consumer advocacy groups, higher education associations and others asked the bureau to require that colleges give prior approval before students borrow private loans, saying that the bureau has the power to require full certification by institutions," Inside Higher Ed's Quick Takes reports.

ED Releases 2014-15 Information To Be Verified And Acceptable Documentation

NASFAA — Tue, 18 Jun 2013 00:00:00 GMT

In a recent Federal Register notice and Dear Colleague Letter, the Department of Education (ED) announced that “other untaxed income” will be added to the list of verification items for the 2014-15 application year. In addition, guidance was provided on acceptable documentation, verification tracking groups, and paper tax returns. ED will be offering an interest session on verification at the NASFAA national conference, which will included updated information for 2014-15 verification. The session is offered on Sunday, July 14 at 2:30 pm and on Monday, July 15 at 1:30 pm.

Student Loan Stalemate Deepens As Clock Ticks To Doubling Of Interest Rates

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"Congressional leaders remain at loggerheads over how to avert a spike in student loan interest rates as the clock ticks to July 1, when rates will double from 3.4 percent to 6.8 percent for millions of students if no action is taken," Talking Points Memo reports.

Senators Reintroduce Bill To Standardize Student-Aid Award Letter

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"A bipartisan group of U.S. senators on Friday reintroduced legislation designed to pave the way for a standardized letter on student financial-aid awards to be used by all American colleges," The Chronicle of Higher Education reports.

U.S. Opens Antitrust Investigation Into Colleges' Talk Of Student-Aid Reform

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"The U.S. Department of Justice has begun an investigation into 'a possible agreement' among colleges to reform their financial-aid policies, according to a letter sent last month to at least two college presidents," The Chronicle of Higher Education reports.

In Report On Paying Foreign Recruiters, Admissions Panel All But Punts

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"In a split-the-difference report that attempts to mollify everyone but is likely to please no one, a commission named by the National Association for College Admission Counseling, or NACAC, has recommended that the organization change its policies to state that members 'should not' pay commissions to international-student recruiters, from the current 'may not,'" The Chronicle of Higher Education reports.

Editorial: Obama’s Republican Student-Loan Plan

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"On July 1, the interest rate on new Stafford subsidized federal college loans is scheduled to double. Rather than trying to maintain the current rate, Congress should take this opportunity to restructure student aid, directing more money toward those with the greatest need," according to a Bloomberg editorial.

Opinion: The City Can Help You Save For College

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"San Francisco has come up with a simple yet radical idea: open college savings accounts for every single public school student in the city," Neil Kleiman and Jonathan Bowles write in the New York Daily News.

Senate Democrats Hamstrung By Obama On Student Loans

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"Senate Democrats are trying to pass a two-year extension of current law on student loan rates, but they have a problem: The Obama administration issued a proposal as part of its 2014 budget request that would change current law and is closer to a plan from Senate Republicans than one from Democrats," Roll Call's #WGDB blog reports.

Bankruptcy Case Offers Hope For Student Borrowers

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"A 10 year court battle waged by Michael Hedlund, a graduate of Willamette Law School, to discharge his student loans has recently ended with a 9th U.S. Circuit Court of Appeals decision partially discharging his loans," U.S. News & World

GOP To Obama: Work With Congress On Student Loan Interest Rate Fix

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"A key GOP senator is calling on President Obama to work with Congress to move a student loan debt fix before rates increase on July 1st," The Hill's Blog Briefing Room reports.

Details Emerge On Round 2 Of Gates Foundation’s Student-Aid Project

NASFAA — Mon, 17 Jun 2013 00:00:00 GMT

"Plans for the second phase of the Bill & Melinda Gates Foundation’s “Reimagining Aid Design and Delivery” project are under way, according to a news release issued by a recipient of the foundation’s grants," The Chronicle of HIgher Education's Head Count reports.

Arne Duncan Slams No Child Left Behind

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"Education Secretary Arne Duncan said Tuesday that he believes congressional leaders are moving toward a deal to prevent interest rates on college loans from automatically doubling on July 1," Politico reports.

Data Reveal A Rise In College Degrees Among Americans

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"The number of Americans graduating from college has surged in recent years, sending the share with a college degree to a new high, federal data shows," The New York Times reports.

Program Steers Struggling Students To Benefits That Help Them Stay In College

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"The Benefits Access for College Completion program, which began last year at Northampton [Community College] and six other institutions, challenges the colleges to figure out how to ease students' financial burden by helping them apply for public benefits and complete their degrees," The Chronicle of Higher Education reports.

Washington, D.C.: Howard University Responds To Leaked Letter About Financial Trouble

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"Officials at Howard University in Washington, D.C., are trying to calm students, alumni and staff after a letter with alarming assertions about the school's financial situation was leaked to the media," The Huffington Post reports.

Nebraska: Student Expelled For Being Gay And Charged $6,000 In Back Tuition Protests With Online Petition

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"When Danielle Powell signed a statement agreeing to follow the rules outlined in the student handbook at Grace University, a small Bible college in Omaha, she had never dated a woman and had no particular plans to do so," Inside Higher Ed reports.

Illinois: House Republicans Unveil Plan For New Tax Breaks For College

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"Republicans in the Illinois House have outlined new plans to make college more affordable," CBS Chicago reports.

What Reading 900+ Comments Tells Us About The Coming Gainful Employment Re-Regulation

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"Circle September 9 on your calendars. That's the date according to a Federal Register notice published yesterday that the Department of Education will bring together a committee to develop new regulations defining gainful employment," the New America Foundation's Higher Ed Watch blog reports.

Getting More Bang For The Buck In Higher Education

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"The rising cost of college and the soaring student debt burden have led some to conclude that a college education is a bad investment for young Americans," Laura D’Andrea Tyson, a professor at the Haas School of Business at the University of California, Berkeley, and former chairwoman of the Council of Economic Advisers under President Bill Clinton, writes in The New York Times's Economix.

Student Loan Rates: Let The Market Decide, Not Politicians

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"There may be few issues that Republicans and Democrats agree on these days, but protecting college students and graduates from sky-high student loan rates should be one of them," Steven Cruz, the press associate at The LIBRE Initiative, writes in The Hill's Congress Blog.

Yes, Congress Can Go Big On College Affordability

NASFAA — Fri, 14 Jun 2013 00:00:00 GMT

"For those seeking action on the crisis in college affordability, last week’s stalemate in the Senate on student loan interest rates was disappointing. Absent a compromise, subsidized student loan interest rates will double on July 1," Michael Dannenberg, director of higher education and education finance policy at The Education Trust and former senior education counsel to Sen. Edward M. Kennedy (D-MA.), writes in The Hill's Congress Blog.

Senators Condemn For-Profit Colleges' Use Of Military Tuition Aid

NASFAA — Thu, 13 Jun 2013 00:00:00 GMT

"Two Democratic senators used a Congressional hearing on Wednesday to condemn for-profit colleges as preying on active members of the armed forces to receive federal tuition aid by increasing enrollments but ignoring academic quality," The Chronicle of Higher Education reports.

Soaring College Costs Prompt Concern From Students, Economists

NASFAA — Thu, 13 Jun 2013 00:00:00 GMT

"Washington's Republicans and Democrats are haggling over how to finance higher education, including details like the interest rates that students pay for loans. But some economists say the real issue is controlling the soaring cost of college at a time when post-secondary schooling is crucial to getting a good job and a middle class salary," Voice of America reports.

Pa. Senate To Consider Financial Aid For Online Education

NASFAA — Thu, 13 Jun 2013 00:00:00 GMT

"The Pennsylvania Senate Education Committee has approved legislation to provide for financial aid for students pursuing degrees online," ABC 27 reports.

Opinion: Extending Lower Student-Loan Interest Rates Is Not The Answer

NASFAA — Thu, 13 Jun 2013 00:00:00 GMT

"The debate over student loans is a test of whether progressives can distinguish what we want from what we can afford, given political reality. So far, congressional Democrats are failing that test," Robert Gordon writes in the New Republic.

Five Key Points On Student Loan Interest Rates From The CBO

NASFAA — Thu, 13 Jun 2013 00:00:00 GMT

"[T]he Congressional Budget Office (CBO) released a brief on student loan interest rates. It’s a treasure trove of information, and it adds new information to the debate in Congress over how to set interest rates on student loans," the New America Foundation's Higher Ed Watch blog reports.

House Passes Student Loan Bill, So What's Next?

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"The House of Representatives passed, May 23, the Smarter Solutions for Students Act (H.R. 1911). This would tie interest rates to prevailing market trends. It will end federal rate subsidies," MainStreet reports. NASFAA is mentioned in the article.

Nonprofit Group Single Stop Helps Low-Income Students Avoid Financial Barriers

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"Needy students face long odds of getting to graduation. Only one in three low-income, first-generation college students earn a college credential, said Sara Goldrick-Rab, an associate professor of educational policy studies at the University of Wisconsin at Madison," Inside Higher Ed reports.

No Magic Bullet

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"Now that most traditionally aged students have been admitted to, and chosen, a college to attend this fall ... it appears that the shopping sheet made relatively few ripples in its first year in use, admissions officers at colleges and high school counselors say," Inside Higher Ed reports.

Education Dept. Seeks Members For Panel On 'Gainful Employment' Rules

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"The U.S. Department of Education announced on Wednesday that it would renew its flagging efforts to devise stricter standards for career-focused higher-education programs," The Chronicle of Higher Education reports.

Ohio College To Pursue More Student Debt Payments

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"A southwestern Ohio community college that wrote off millions of dollars in student debt is adopting a more aggressive approach to collect money owed, including turning collections over to the Ohio attorney general’s office if necessary," the Associated Press reports.

Commentary: How To Repair Income-Based Repayment Of Student Loans

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

"As Congress debates the issue of student-loan interest rates, several proposals have been put forward to extend current interest rates on subsidized Stafford loans or to reduce rates even further. However, if the goal is to protect students from unmanageable debt loads, income-based repayment is a far better tool than interest subsidies for both students and taxpayers, and should be the focus of reform efforts," Rep. Tom Petri (R-WI) writes in a commentary piece for The Chronicle of Higher Education.

Opinion: Student Loan Rates: Let The Market Decide, Not Politicians

NASFAA — Wed, 12 Jun 2013 00:00:00 GMT

Evaluating Options On Loans

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"The interest rate for new, federally subsidized student loans will increase to 6.8 percent on July 1 if Congress does not act. A Congressional Budget Office report released Monday put more numbers behind the various plans calling for changes to the loan program, estimating that keeping the rate at 3.4 percent would cost the government $41 billion over 10 years but that other changes might generate significant savings," Inside Higher Ed reports.

$1 Trillion Debt Crushes Business Dreams of U.S. Students

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"Former students hobbled by a collective $1 trillion in education loans can be hindered in expanding or forming small businesses and creating jobs for themselves and others. While self-employment among those 65 years old and over increased 24 percent in 2010 from 2005, it fell 19 percent among individuals 25 and under in the same period, according to the Small Business Administration," Bloomberg reports.

Lawsuit Over Michigan Student Loan Program Moves To Federal Court As Borrowers Seek Class-Action Status

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"A pair of student loan borrowers who were being sued by the Michigan Finance Authority in connection to a now-defunct interest rate reduction program have filed a counter-claim in federal court," MLive reports.

Louisiana: GSU Audit Finds Issues With Federal Student Aid Payments

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"Nearly 300 students who unofficially withdrew from Grambling State University may have continued to receive federal student aidduring the fall 2011 and spring 2012 semesters, according to an audit released Monday," The News Star reports.

Louisiana: Financial-Aid Worker Charged With Fraudulently Getting $23,196 In Aid For Daughter

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"A Marrero woman who has worked in financial aid for at least two local colleges was charged Monday with financial-aid fraud," The Times-Picayune reports.

Opinion: Stop Scaring Students

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"It is high school graduation time, and some columnists here in California and nationally, in platforms such as Forbes and U.S. News & World Report, seem to be heralding in the season by carrying articles questioning the value of a college education. They report record unemployment levels among recent college graduates as the rationale for pursuing a trade right out of high school rather than pursuing a college degree. What such articles fail to report is that the best insurance against unemployment is a college degree," Devorah Lieberman, president of the University of La Verne, writes in Inside Higher Ed.

Experts Agree, Student Loan Borrowers Need More Options

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"Student loan borrowers need as many options as we can give them, Robert Applebaum, an attorney from Staten Island and the founder of ForgiveStudentLoanDebt.com, told Campus Progress," Campus Progress reports.

Moral Bankruptcy On Student Loans

NASFAA — Tue, 11 Jun 2013 00:00:00 GMT

"Last week, the U.S. Senate failed to reach agreement on a plan to stop the interest rates on federal student loans from doubling, from 3.4 percent to 6.8 percent. Senator Elizabeth Warren rightfully called this failure 'morally wrong,'" Patricia McGuire, president of Trinity Washington University, writes in The Blog in The Huffington Post.

Expected Supreme Court Rulings May Impact Financial Aid

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

The Supreme Court is set to release decisions later this month in three cases that could have an impact on federal financial aid eligibility and access. Two cases that will be ruled on are considered landmark same-sex marriage cases and both could have an impact on federal financial aid eligibility to households headed by same-sex couples. The third case challenges whether consideration of race in admission is necessary and justifiable.

House Votes To Resume Deporting Young DREAM Act Immigrants

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

"The Republican-controlled House voted Thursday to resume the deportation of hundreds of thousands of immigrants brought illegally to the United States as children, the first immigration-related vote in either chamber of Congress this year and a measure of the daunting challenge facing supporters of a sweeping overhaul of existing law on the subject," Fox News reports.

Top 99 Twitter Accounts Covering Financial Aid

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

"Finding financial aid is a huge part of many students’ college search and application process. ... Fortunately, there is a huge community of financial aid experts, lending organizations, and even college financial aid offices on Twitter sharing excellent advice on how to go about getting financial aid," YesCollege.com reports. NASFAA's Twitter account is ranked third.

Opinion: For-Profit Colleges Wrong Solution To Higher Education Problem

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

"For-profit colleges are not the answer to the rising cost of higher education," Rodolfo F. Acuna, a professor at Cal State Northridge, writes in an opinion pice for the Kansas City Star.

Keep Student Loan Rates Low, Republicans Say In Address

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

"With less than a month to go before rates jump on some student loans, Republicans are returning pressure from the White House on whose plan is better to avert the spike," CNN's Political Ticker reports.

Student Loans: The Problem And Solutions

NASFAA — Mon, 10 Jun 2013 00:00:00 GMT

"Defaults on student loans are looming as the next big financial crises facing the United States. With collective student-loan debt now totaling more than $1-trillion, analysts are telling us that the impact of such enormous debt could be even more devastating than the housing crisis we are still trying to work our way out of," author William B. Bradshaw writes in the Huffington Post.

Senate Fails To Reach Agreement On Two Separate Student Loan Measures

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

Yesterday the Senate held two separate votes on competing student loan interest rate proposals. The votes were motions to proceed and each required a 60-vote threshold, which both bills failed to achieve. The bills up for consideration were the Comprehensive Student Loan Protection Act (S.1003), offered by Republican Sens. Coburn (R-OK), Alexander (R-TN) and Burr (R-NC) and the Student Loan Affordability Act (S.953) from Sens. Reed (D-RI), Harkin (D-IA), Reid (D-NV) and numerous other Democratic co-sponsors.

Financial Aid Administrators Discuss Issues Facing Student Veterans

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

A recent report released by the Government Accountability Office highlights challenges with the Department of Veterans Affairs’ (VA) implementation of the Post 9/11 GI Bill. Delays in VA benefit payments and limited direct support to veterans on campus can create financial struggles for veterans and threaten their academic success, the report says. Aid administrators spoke to NASFAA about the obstacles veterans face and their experiences working with VA benefits.

Student Loan Rate Stand-Off Driven By Politics

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

In a segment for Bloomberg's Television's "In The Loop" on Wednesday, chief Washington correspondent Peter Cook examines the possible rates students may see on their college loans and the fight in Washington over the plans to set those rates.

Nebraska: Local Experts Weigh In On Potential Student Loan Rate Hike

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

"Students across the country needing government-subsidized Stafford loans could feel the pinch July 1 — paying about $1,000 more a year in interest — if Congress doesn't act soon," Nebraska TV reports. NASFAA Board Member Mary Sommers is quoted in the article.

Commentary: The Changing Face Of Higher Education

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

"By 2025, the Colorado Commission on Higher Education, wants 66 percent of Coloradans aged 24-34 to hold high-quality postsecondary credentials...To meet our ambitious goal — which will mean over 230,000 additional credentials produced — we must eliminate the large and growing disparities in educational attainment across different groups of students, in particular those among low income students and students of color," Allegra Haynes and Regina Rodriguez, members of the Colorado Commission on Higher Education, write in The Hill's Congress Blog.

Student Loans On The Cheap

NASFAA — Fri, 07 Jun 2013 00:00:00 GMT

"As much as I think it would be good to help struggling students, I initially did not like" Sen. Elizabeth Warren's proposal to allow students to borrow for college at a 0.75 percent interest rate, the same rate that the Federal Reserve Board charges banks for borrowing reserves, Dean Baker, co-director of CEPR, writes in The Huffington Post.

NASFAA Releases Guidance On Interim Final Rules, Pell Grant Regulations

NASFAA — Wed, 05 Jun 2013 00:00:00 GMT

On May 16, the Department of Education (ED) published two notices that relate to federal financial aid. In the Federal Register, the Department announced interim final rules implementing the new limit on subsidized loan eligibility imposed by P.L. 112-141. NASFAA recently released a series of articles that provide guidance on the interim final rules and the Pell Grant regulations.

Financial Aid Administrators Are Mandated Reporters Of Suspected Child Abuse Or Neglect In Some States

NASFAA — Wed, 05 Jun 2013 00:00:00 GMT

Mandated reporting laws require that professionals who deal with children report suspicious circumstances suggestive of child maltreatment to child protective services. During the course of their work, especially when handling professional judgment situations such as dependency overrides, financial aid administrators may be privy to information that leads to suspicion that a child is abused or neglected. There is significant variation in the laws of states that include postsecondary employees as mandated reporters. For further information about the laws in your state, check out the resources NASFAA has listed.

Commentary: The Federal Parent Rip-Off Loan

NASFAA — Wed, 05 Jun 2013 00:00:00 GMT

"If your business depends on poor people with bad credit borrowing money at high interest rates in order to pay you, what kind of business are you really in? That question is at the heart of a growing controversy over Parent PLUS loans," Kevin Carey writes in The Chronicle of Higher Education.

Student Loan Fairness Act: Can We Afford To Bring Down Student Loan Rates?

NASFAA — Wed, 05 Jun 2013 00:00:00 GMT

"Current discussions within the House and Senate concerning changes to the interest rates charged on loans to college students provide an effective but painful illustration of the dysfunctionality of Congress," PolicyMic reports.

College Cost And Student Loan Debt

NASFAA — Wed, 05 Jun 2013 00:00:00 GMT

"Whatever their ambitions, whatever their job prospects in the current economy, whatever their pride in completing a college degree, new college graduates across America now face a sobering reality: It's time to start paying off those student loans," Samuel L. Stanley Jr., president of Stony Brook University, writes in The Huffington Post.

Student Loan Debt Is A Beast. Here Are Elizabeth Warren's, President Obama's, And The GOP's Plans To Fix It

NASFAA — Tue, 04 Jun 2013 00:00:00 GMT

"If you're one of the 37 million Americans with student loan debt, you're in for a real treat come July 1. That's when interest rates on federal student loans are set to rise to 6.8 percent—double the current rate of 3.4 percent," Mother Jones reports.

TN Report: Most Tennesseans Want To Limit Lottery Scholarships

NASFAA — Tue, 04 Jun 2013 00:00:00 GMT

"Recent opinion polling suggests a substantial majority of Tennesseans favor limiting state lottery-funded scholarships to students in financial need," The Murfreesboro Post reports.

East Texas Woman Arrested For Financial Aid Fraud And Witness Tampering

NASFAA — Tue, 04 Jun 2013 00:00:00 GMT

"A 31-year-old Flint, Texas woman has been arrested on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today," KLTV reports.

Opinion: Washington Must Focus On Keeping College A Reality

NASFAA — Tue, 04 Jun 2013 00:00:00 GMT

"What can be done to protect [the] investment in higher education and to protect the economy from being weighed down by the debt burden?" Lisa Cook, an assistant economics professor at Michigan State University and a former senior economist at the White House Council of Economic Advisers, writes in a Detroit Free Press opinion piece.

NASFAA Reauthorization Task Force Recommends Changes to Return of Title IV Funds

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

In this sixth article in the series, NASFAA’s Reauthorization Task Force's (RTF) recommendations regarding the return of Title IV funds (R2T4) process are reviewed. When RTF held listening sessions to identify membership concerns, the R2T4 process was the third most commented-on topic.

TEACH Grant Sequestration Cuts Changed for a Second Time

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

TEACH Grants first disbursed after March 1, 2013 must now be reduced by 6.0% as a result of sequestration, according to an Electronic Announcement released by the Department of Education (ED).

With Students As Backdrop, Obama Warns Of Doubling Of Loan Rates

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

"College students, freshly relieved of pressure from term papers and final exams, served as a backdrop for President Obama on Friday as he warned of another impending fiscal deadline: student loan interest rates are set to double in 30 days under current law," The New York Times reports.

McCaskill Talks Student Loans At MU As Hike Looms

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

"U.S. Sen. Claire McCaskill came to the University of Missouri Thursday to tout a plan that would drastically cut interest rates on federally subsidized student loans," The Associated Press reports.

Report Urges N.J. To Invest More In Higher Education

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

"In a report issued Thursday, a Trenton-based public policy group urged New Jersey to invest far more in higher education to create jobs and boost the economy while helping students pay for college," NorthJersey.com reports.

Commentary: Help 9 Million Students Now, Or Pay, Big-Time, Later

NASFAA — Mon, 03 Jun 2013 00:00:00 GMT

"A myth won’t educate a nation. The myth is that the U.S. should be doing a better job of preparing underprivileged high school students, so they can win scholarships to Yale, Harvard and other top schools. Then they can march across commencement stages into prosperous careers," Wick Sloane writes for Bloomberg News.

What Sallie Mae's Split Says About Student Loans

NASFAA — Fri, 31 May 2013 00:00:00 GMT

Sallie Mae on Wednesday announced that it "will split its growing, private student loan business from its shrinking government-backed loan servicing business," Forbes reports.

Opinion: Obama's Student-Loan Props

NASFAA — Fri, 31 May 2013 00:00:00 GMT

"President Obama's 2014 budget calls on Congress to prevent a doubling of interest rates on student loans and make the rates 'more market-based.' Last week House Republicans and four Democrats voted to prevent the rates from doubling and make the rates more market-based. Naturally, Mr. Obama is sitting down with the leaders of both parties in a good-faith effort to iron out their remaining differences before the July 1 rate increase. Just kidding," according to an editorial in The Wall Street Journal.

Obama Student Loan Speech Signals Renewed Battle With Republicans Over Interest Rates

NASFAA — Fri, 31 May 2013 00:00:00 GMT

"Even before President Barack Obama personally joins the debate over student loan interest rates on Friday, Republican lawmakers and higher-education professionals are lashing out at the White House for what they criticize as a campaign-style initiative unlikely to focus on the biggest student debt issues," The Huffington Post reports.

It’s Obvious Student Aid Is Driven By Politics. But Not This Obvious

NASFAA — Fri, 31 May 2013 00:00:00 GMT

"Federal aid for college students, it’s really no secret, is driven by what works politically, not what’s best for students," the Cato Institute's Cato At Liberty reports.

NASFAA’s Reauthorization Task Force Recommends Review of Consumer Information

NASFAA — Thu, 30 May 2013 00:00:00 GMT

The fifth article in this series highlights the recommendations NASFAA’s Reauthorization Task Force (RTF) regarding student consumer information. Topics reviewed include the effectiveness of current requirements; loan consumer information; targeted recipients; Constitution Day, voters registration, athletic disclosures; and state grant assistance information.

Enrollment, Expenditures, and Default Rates Have Risen Over Past Decade, NCES Reports

NASFAA — Fri, 31 May 2013 00:00:00 GMT

As millions more students enrolled in college and graduate school over the past decade, the federal government rapidly increased its financial contributions to postsecondary education. From academic year 2000-2001 to academic year 2010-2011, fall enrollment increased from 15 million students enrolled in college or graduate school to 21 million, according to “The Condition of Education 2013.” By Congressional mandate, the report is compiled by the National Center for Education Statistics (NCES) and released to the administration and Congress annually.

Obama Drawing Attention To New Student Loan Debate, But Not With Vigor Of Election-Year Pitch

NASFAA — Thu, 30 May 2013 00:00:00 GMT

"The government’s subsidized student loan program, a marquee issue for President Barack Obama last year as he courted young voters on the campaign trail, is back on the White House agenda one month before a scheduled interest rate increase. But Obama’s push to avoid the increase is far more low-key than it was in the election year," the Associated Press reports.

Money For College: It’s Out There — Here’s Help Finding It

NASFAA — Thu, 30 May 2013 00:00:00 GMT

"The excitement you feel when your child — or yourself — is admitted to the college of choice could be nothing compared to the fear churning in the pit of your stomach. How are you going to pay for this costly education, especially if there are more family members to follow? There are several websites that can help you find scholarships your college-bound student might qualify for, including some rather unusual ones," the Holland Sentinel reports. NASFAA is mentioned in the article.

Student Loan Rates To Double: How Will Congress React?

NASFAA — Thu, 30 May 2013 00:00:00 GMT

Sen. Jack Reed (D- RI) on Tuesday appeared on Bloomberg TV's "In the Loop with Betty Liu" where he discussed proposals on student loan rates by both the House of Representatives and the White House.

Boston Schools Back Warren’s Proposal To Stall Student Loan Interest Rate Increases

NASFAA — Thu, 30 May 2013 00:00:00 GMT

"As the deadline nears for the potential inflation of student loan interest rates, Congress can’t seem to agree on the best approach to help incoming students manage their money while pursuing a college education. But dozens of Boston area schools have stepped up in support of a proposal put on the table by Sen. Elizabeth Warren which would essentially stop interest rates for students to borrow from doubling, and set the rates equal to those given to large financial institutions like banks," Boston Magazine reports.

Commentary: Supporting Smart Saving For College

NASFAA — Thu, 30 May 2013 00:00:00 GMT

"The value of a higher education is undeniable — but its sticker price is undeniably too high," Michael L. Fitzgerald writes in a Roll Call commentary piece.

Are Student Loans Ruining The Economy?

NASFAA — Thu, 30 May 2013 00:00:00 GMT

"It’s no secret tuition increases are straining the finances of young adults," CNN Money reports.

University Aims To Increase Cost Transparency Through Guaranteed Net Tuition Price

NASFAA — Wed, 29 May 2013 00:00:00 GMT

The University of Dayton is pledging to hold students’ net tuition costs steady for four years in an effort to provide families with a clear picture of the total price of college. Calls for total cost clarity are increasingly common. At the University of Dayton, a private, Catholic institution in Ohio, students and their parents would often come to the financial aid office with complaints about increased costs after freshman year, according to Sundar Kumarasamy, vice president for enrollment management and marketing.

5-28: Net Price Calculator Template Update and Updated Frequently Asked Questions (FAQs)

NASFAA — Wed, 29 May 2013 00:00:00 GMT

The 2011-2012 version of the Department’s Net Price Calculator template is currently available, as well as other materials such as the 2011-12 template Quick Start Guide, source code, and the Expected Family Contribution (EFC) tables used in the template. The Department of Education has also updated the FAQs regarding the Net Price Calculator requirement.

Recent College Graduates' Employment Outcomes Vary By Major, Study Finds

NASFAA — Wed, 29 May 2013 00:00:00 GMT

"For all the concern these days about whether a college degree is still a good investment, bachelor's-degree recipients fare much better in the job market than do their less-educated peers. But not all college graduates do equally well—and the variation is linked to what they studied," The Chronicle of Higher Education reports.

Perks, Pitfalls Of Simplifying Student Loan Repayment

NASFAA — Wed, 29 May 2013 00:00:00 GMT

"Lapsing on student loan payments can make it hard for graduates to buy a home, a car or even land a job. With more than 11 percent of student debt in default, some experts are pushing for changes to repayment programs," according to U.S. News & World Report.

Editorial: Pricking The College Loan Bubble

NASFAA — Wed, 29 May 2013 00:00:00 GMT

"College loans remain a cruel charade. In the name of making higher education 'more affordable,' students are conned into borrowing far more than they can repay in return for a university degree," according to an editorial in The Washington Times.

Opinion: Lawmakers Must Not Short-Shrift Higher Ed

NASFAA — Wed, 29 May 2013 00:00:00 GMT

"As lawmakers negotiate a final compromise state budget for the next two years, they will be focused on many issues, from taxes and K-12 education spending to social services and the rainy day fund. Critical as all these issues are, we urge legislators also pay close attention to higher-education budget issues," Roy Heynderickx writes in The Bellingham Herald.

New Limit on Direct Loan Interest Subsidies: Borrower Responsibility for Accruing Interest

NASFAA — Tue, 28 May 2013 00:00:00 GMT

On May 16, The Department of Education published in the Federal Register interim final rules implementing the new limit on subsidized loan eligibility imposed by P.L. 112-141. Effective July 1, 2013, the law limits the benefits of the Direct Loan subsidy to an aggregated period of no more than 150% of program length for new borrowers. Once that limit has been exceeded, a student may borrow only unsubsidized loans, and will begin to incur interest charges on outstanding subsidized loans. This article examines the treatment of interest and is the fourth in a series exploring the interim final rules.

5-24: TPD Discharge Information - TPD Loan Holder Notification File for Use Beginning July 1, 2013

NASFAA — Tue, 28 May 2013 00:00:00 GMT

This is the second in a series of Electronic Announcements that we will publish relating to the changes to the total and permanent disability (TPD) discharge regulations that are effective July 1, 2013. In this announcement, the "TPD Loan Holder Notification File (TPD LHN File)" is explained.

More Kentucky Students File for Financial Aid—Most Won't Get It

NASFAA — Tue, 28 May 2013 00:00:00 GMT

"Officials with the state agency overseeing state financial aid say funds ran out earlier than ever before and most Kentucky students who are eligible for the aid programs will not receive funding this year," WFPL News reports.

Opinion: The Multiplier Effect Of Skimping On Higher Education

NASFAA — Tue, 28 May 2013 00:00:00 GMT

"Higher education in this state does not get the respect it deserves for the role colleges and universities play in powering Washington’s economy. Lawmakers meeting in special session to sort out a state budget need to remember the payoff that comes, literally, from investments in higher education," Lance Dickie writes in The Seattle Times.

House Passes Smarter Solutions for Students Act (H.R. 1911)

NASFAA — Fri, 24 May 2013 00:00:00 GMT

Yesterday morning the House passed the Smarter Solutions for Students Act (H.R. 1911) by a vote of 221 to 198, roughly along party lines. H.R. 1911 would tie the interest rates on student loans to market rates by using a formula based on the 10-year Treasury note plus an add-on of 2.5 percent for Stafford loans (with a cap of 8.5 percent), and an add-on of 4.5 percent for Graduate and Parent PLUS loans (with a cap of 10.5 percent). These rates would be variable, changing each year.

NASFAA’s Reauthorization Task Force Recommends Changes to Pell Grant Program

NASFAA — Fri, 24 May 2013 00:00:00 GMT

The third article in this series highlights recommendations of NASFAA’s Reauthorization Task Force (RTF) with regard to the Federal Pell Grant Program. Recommendations include: making it a true entitlement program, rescinding institutional ineligibility for Pell Grants due to loan default rates, allowing Pell Grant eligibility beyond 6 year Lifetime Eligibility Used (LEU) for a student's last term before completion, and revisiting the idea of Year Round Pell.

Though Enrolling More Poor Students, 2-Year Colleges Get Less Of Federal Pie

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"Community colleges have received a declining share of government spending on higher education over the last decade even as their student bodies have become poorer and more heavily African-American and Latino, according to a report to be released Thursday," The New York Times reports.

TG Report Explores The Financial Ramifications Of Transferring

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"Given the hard economic times, some students opt to keep college debt down by beginning their postsecondary education at a community college. But a recently released four-page report by the Texas Guaranteed Student Loan Corporation (TG) calls into question the notion that beginning at a community college and transferring to a four-year university will significantly lower debt for transfer students," Diverse Issues in Higher Education reports.

NC College Could Lose Aid For Not Reporting Crimes

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"Elizabeth City State University could face the loss of federal financial aid as well as nearly $4.4 million in fines for not reporting more than 120 crimes as required by law," the San Francisco Chronicle reports.

Opinion: Nobel Winner: Cut Student Loan Rates

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"A proposal by Sen. Elizabeth Warren, D-Mass., to reduce interest rates on student loans has one big economic backer: Nobel Prize laureate Joseph Stiglitz," USA Today reports.

Feds Profit Off Student Aid

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"The federal government is making huge profits when it lends money to college students and their parents. According to a recent Congressional Budget Office report, the government pockets a tidy sum for each student loan dollar you borrow," Frugal Dad reports. NASFAA's summary matrix is referenced in this article.

Dallas Woman Charged With Fraud For Pocketing Student Financial Aid And Dropping Out Of Colleges

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"When Sussette Sheree Timmons, of Dallas, enrolled in several online colleges, she had no intention of becoming educated, federal authorities said. Timmons, 30, instead kept the financial aid she applied for and withdrew from the colleges and universities, which offered 'distance learning' programs on the Internet, the U.S. attorney’s office said," The Dallas Morning News Crime Blog reports.

Student Loan Standoff to Test Hill’s Summer Tone

NASFAA — Fri, 24 May 2013 00:00:00 GMT

"The White House and most congressional Democrats say the GOP plan would revive the culture of predatory adjustable-rate mortgage lending that fueled the housing collapse of the recession, and that lower-income students would end up ruing the day they signed up for Stafford loans," David Hawkings writes in a blog post for Roll Call.

Interest Rate Debate Heats Up as Bill Goes to House Floor