- Student are paying more for
college, however schools are spending less on instruction.
- An SLA recent survey of
Financial aid officers indicates that approximately 58% of the respondents
are either Very Concerned (14%) or Somewhat Concerned (44%) about the
availability of private loans, with 4-year private institutions showing the
highest level of concern.
- CT. Gov. M. Jodi Rell has signed a bill that allows Connecticut credit
unions to provide low-interest student loans with the backing of a partial
government guarantee.
Report: Characteristics of Private Student Loan Borrowers Who Do Not Use Federal
Education LoansMark Kantrowitz, Publisher of
FinAid.org and
FastWeb.com, has released a new study that explores several reasons why some
students do not "borrow federal first." Kantrowitz reports that the most
significant cause of private student loan borrowers failing to borrow from the
federal Stafford loan program is failure to submit the Free Application for
Federal Student Aid (FAFSA) - not a surprise. But he also points out that "more
than 250 community colleges, who disproportionately serve at-risk populations
which are more likely to default on student loans, have opted out of the federal
education loan programs in order to preserve eligibility for the Pell Grant. But
many students at these colleges must still borrow to pay for living expenses,
despite the low institutional costs. This forces them to borrow from higher cost
private student loan programs."
(Read entire report)
Survey
Finds More Students Forgoing Dream Schools in Favor of Affordability (press
release from the National Association for College Admission Counseling)
June
9, 2009 (Arlington, VA) - A majority (70 percent) of high schools reported an
increase in the number of students who felt the need to modify their ambitions
and choose more affordable options over their "dream schools." The
reverberations of a shaky economy were also felt on the college side, as 45
percent of colleges reported a decrease in the number of students accepting
admission offers, also known as yield rates in the admission office, compared to
2008. The survey also found that 35 percent of the reporting colleges
experienced budget cuts. The 2008-2009 college admission cycle took place during
a period of heightened economic uncertainty. Concerns over potential budget
cuts, and unpredictable yield rates inspired NACAC to survey its high school and
college membership for an evaluation of the admissions climate. "The potential
effects of the economy loomed large over this admission cycle," stated Joyce
Smith, NACAC Chief Executive Officer. "It appears that students and families
were more concerned about cost, and plans about whether or where to enroll were
changed as a result. The colleges' experience this year is more difficult to
generalize, though budget cuts and declining yield rates are indicative of a
tougher year at many institutions
Students
Pay More as Colleges Spend Less on Instruction, Study Finds (The Chronicle of
Higher Education)
Over the past two decades, tuition has risen at
public colleges while money spent on classroom instruction has dropped,
suggesting that students are paying more for less, says a report released today
by the Delta Project on Postsecondary Education Costs, Productivity, and
Accountability, The Chronicle of Higher Education reports. The report is based
on a study that used 20 years of publicly available data from nearly 2,000
higher-education institutions to estimate the full cost of a bachelor's degree,
taking into account variables like state subsidies and private donations. The
report was presented here today at a conference sponsored by the U.S. Education
Department's Institute of Education Sciences. The study found that, at public
research institutions, nearly all of the revenue gained through tuition
increases is used to offset losses in other revenue categories, such as state
funds.
SLA Powerpoint
presentation regarding the availability of Private Loans from a Financial Aid
officer perspective. (Student Lending Analytics)
SLA
sent out a survey recently to Financial Aid Officers and received close to 200
responses. Highlights include:
- Overall, 58% of
survey respondents are either Very Concerned (14%) or Somewhat
Concerned (44%) about the availability of private loans, with 4-year
private institutions showing the highest of concern
- 53%
of respondents believe lender approval rates on private loans are
either Much Lower (7%) or Lower (46%) than last year's approval levels
(Read more)
Connecticut:
Credit Unions To Provide Low-Interest Student Loans (Hartford
Courant)
Hoping to help college students and their families squeezed
by the credit crunch, Gov. M. Jodi Rell has signed a bill that allows
Connecticut credit unions to provide low-interest student loans with the backing
of a partial government guarantee, the Hartford Courant reports. Under the
financial partnership, participating credit unions can offer loans at 5.75
percent or 6 percent interest, depending on the length of the loan, to students
who qualify for a credit union membership and attend an accredited school in
Connecticut. The legislation, which takes effect immediately, gives credit
unions an incentive to participate because it authorizes the Connecticut Health
and Education Facilities Authority to guarantee 20 percent of the
loan.
