- More
than half of families whose children intend to go to college are saving the same
amount or more for college than they did last year. Sallie Mae published report
"How Americans save for College".
- The
White House continues to push for the elimination of the federally backed private
student loan FFELP program
- NY
Governor David A. Paterson announced the launch of the New York State Higher
Education Services Corporation's (HESC) Student Loan Marketplace, a dynamic,
interactive Web site that provides the first transparent, online information and
comparison service for private student loans.
- NCES
study advises that college enrollment has increased steadily, with the number of
degrees conferred on the rise among White and minority students. Despite the
gains in enrollment, college enrollment gaps have continued to widen among
Hispanic and Black populations.
Private
FFELP Student Loan Program Fading (Chattanooga Times Free Press)The
White House is pushing to eliminate federally backed private student loans in a
move to save billions of dollars and make the federal government the only
provider of student loans, the Chattanooga Times Free Press reports. Financial
aid officers and lawmakers in Tennessee and Georgia are critical of the plan,
saying it could squelch competition and cut 'back-end' benefits -- such as lower
interest rates -- students can get through private companies. ... Yet some say
loan discounts -- which could get as high as 2 percent -- are a thing of the
past. Mark Kantrowitz publishes
FinAid.org, a Web site that tracks financial
aid. He said that when Congress cut lender subsidies in late 2007, many lenders
responded by cutting their discounts to students. And with the recession
limiting cash flow, many banks are selling their loans to the Department of
Education, which doesn't allow discounts that aren't set by the federal
government, he said.
NY
Launches On-Line Student Loan Site (The Gouverneur Times)
On
May 22,2009 Governor David A. Paterson announced the launch of the New York
State Higher Education Services Corporation's (HESC) Student Loan Marketplace, a
dynamic, interactive Web site that provides the first transparent, online
information and comparison service for private student loans. The new
State-sponsored student loan, the New York Higher Education Loan Program
(NYHELPs), will also be available in HESC Marketplace for the Spring 2010
semester. HESC Marketplace ensures that New York's private student loan
borrowers will have easy access to the unbiased facts and information they need
to evaluate and decide on the college financing options that best suit their
individual situations,said Governor Paterson. This valuable resource will bring
transparency and clarity to the often confusing process of choosing the right
student loan.
A Steep
Climb for Indebted College Grads (BusinessWeek)
For most people,
taking on debt to pay for college or graduate school is a good long-term
investment. College graduates on average earn 61% more than those with just a
high school diploma over the course of a 40-year career, according to a 2007
analysis of census data by the College Board, BusinessWeek reports. But in the
short term, it's hard for many younger workers to see the payoff as they
struggle to make loan payments and gain a foothold in a difficult job market.
Consider this: The average college graduate who borrows the full cost of tuition
and fees at a public university will be 33 before accumulated net earnings catch
up to counterparts who enter the workforce directly from high school -- after
factoring in tuition costs, interest, and earnings foregone during the years in
school -- according to the College Board study. Those who borrow more to attend
a private college or graduate school take even longer to match high school grads
in net earnings.
NCES
Issues Condition of Education 2009
The National Center for
Education Statistics (NCES) issued its 34th annual "Condition of
Education" report for 2009. The Congressionally mandated study provides
information on 46 education indicators and serves as an annual "check up" on the
nation's state of education.
According to the report, college
enrollment has increased steadily, with the number of degrees conferred on the
rise among White and minority students. Despite the gains in enrollment, college
enrollment gaps have continued to widen among Hispanic and Black populations. On
degree attainment, the report found that the number of postsecondary degrees
conferred by public and private institutions generally increased for each type
of degree, with the largest increase seen in the bachelor's degree category.
With regards to financial aid, the report found that in academic year
2006-2007, about 73 percent of full-time, first-time degree /certificate seeking
undergraduates at 2- and 4-year colleges participated in some type of financial
aid program. Undergraduates at private, not-for-profit institutions received the
most financial aid at 85 percent, compared with 70 percent at public
institutions.
Despite
Downturn, Families Continue Saving for College, Study Finds (The Chronicle of
Higher Education)
More than half of families whose children intend
to go to college are saving the same amount or more for college than they did
last year, despite the economic downturn, according to a new study, The
Chronicle of Higher Education reports. A report on the study, 'How America Saves
for College,' was released by Sallie Mae and Gallup to coincide with '529
College Savings Day.' The new study found that nine in 10 parents with children
under the age of 18 expect their children to pursue some higher education, and
62 percent of such families are saving for college. About half of families
saving for college make regular contributions to some type of savings
vehicle.
