News about People Capital
This past week we have expanded the information available on our public website. We provide answers to Frequently Asked Questions to
help you understand the People Capital borrowing and lending process.
People Capital was featured in 529 ways to pay for college published by The News & Observer. |
 Industry News and Trends
Listed below is a weekly compilation of Industry updates. The
major highlights include:
- A new start-up attempting to tap the power of social media sites to aid young adults in paying off student debt.
- Two
opening statements on the affordability and completion of college by
President Obama, and a subsequent article detailing the interaction of
the two.
- A look at rising tuition rates in 08-09.
- An increase in student borrowing and its implications.
- The 6 most important new developments in college financial aid.
(Student Lending Analytics)
Feed My Future, which is in start-up
mode or alpha pre-release as their website describes it, wants to tap the powers of social media to help
young adults repay their student debt. The
website will allow family members and friends of, say, a recent college
graduate to make secure contributions that go directly toward paying down that
person's student loans. The team also plans to create widgets that people can
put on their Twitter pages, Facebook profiles, and other social networking
sites to bring people to their Feed My Future Web page.
(Read More)
Toward A New Beginning (Diverse)
"We will provide the support necessary for you to complete college
and meet a new goal: by 2020, America will once again have the highest
proportion of college graduates in the world." President Barack Obama, Feb. 24, 2009
"I challenge state, college and university leaders to put affordability
front and center as they chart a path forward. I challenge them to follow the
example of the University [System] of Maryland, where they're streamlining
administrative costs, cutting energy costs, using faculty more effectively,
making it possible for them to freeze tuition for students and for
families." President Obama, April 24, 2009
With these two statements, President Obama articulated two key challenges that
the higher-education community faces: completion and affordability. The global
recession has highlighted the vital nature of these concerns. It's universally
accepted that the U.S. must improve educational attainment if it wants to rank
among the world's leaders in creativity and innovation in the knowledge
economy. At the same time, the recession has also underscored the clear
correlation that exists between the two. For many, the cost of pursuing a
college degree can short-circuit their progress toward that goal.
(Read More)
While College Tuition Rates Rose by 5.9% to 6.4% in 2008-2009...
(Student Lending Analytics)
Consumer prices dropped by 2.1% for 12 months ending July 2009 however the College Board notes increases in college prices.
Average College Prices 2008-09:
- Private four-year
$25,143 (up 5.9 percent from last year)
- Public
four-year $6,585 (up 6.4 percent from last year)
(Read More)
Students Borrow More Than Ever for College (Wall Street Journal)
Students are borrowing dramatically more to pay for college,
accelerating a trend that has wide-ranging implications for a generation of
young people.
New numbers from the U.S. Education Department show that federal student-loan
disbursements grew about 25%, to $75.1
billion. The amount of money students borrow has long been on the rise but
last year far surpassed past increases, which ranged from as low as 1.7% in the
1998-99 school year to almost 17% in 1994-95, according to figures used in
President Barack Obama's proposed 2010 budget.
The sharp growth is "definitely above expectations," says Robert
Shireman, deputy undersecretary of the Education Department. "But we're
also in an economic situation that nobody predicted." The eye-opening
increase in borrowing is largely due to the dire economic environment, which is
causing more people to seek federal loans, he says.
(Read More)
What's New in College Financial Aid? (US News and World Report)
The college financial aid system rivals only the IRS in its
complexity. But change is on the way. Sandy Baum, professor of economics at
Skidmore College and special consultant to the College Board, details the six most
important developments.
(Read More)
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