Howard University Suspends All Athletics
- Thread starter Nonchalant
- Start date
jsupop33
Loyalty & Respect
It's coming...
Obama outlines plan to control rising college costs
The president first announced the outlines of the financial aid proposal during Tuesday's State of the Union address. His plan targets what is known as "campus based" aid given to colleges to distribute in areas such as Perkins loans or in work study programs. Of the $142 billion in federal grants and loans distributed in the last school year, about $3 billion went to these programs. His plan calls for increasing that type of aid to $10 billion annually.
He also wants to create a "Race to the Top" competition in higher education similar to the one his administration used on K-12 to encourage states to better use higher education dollars in exchange for $1 billion in prize dollars. A second competition called "First in the World" would encourage innovation to boost productivity on campuses.
Obama is also pushing for the creation of new tools to allow students to determine which colleges and universities have the best value.
Education secretary, Arne Duncan, said today that institutions of higher learning should get federal dollars based in part on their performance.
"Historically, we've funded universities whether or not they've done a good job of graduating people, whether or not they've done a good job of keeping down tuition," Duncan said on MSNBC's "Morning Joe."
Some in the higher education community are nervous that the Obama administration could be setting a new precedent in the federal government's role in controlling the rising costs of college.
The administration has already taken a series of steps to expand the availability of grants and loans and to make loans easier to pay back. During the State of the Union, Obama spelled out other proposals to make college more affordable, such as extending a tuition tax break and asking Congress to keep loan interest rates from doubling in July.
Personally, I say cut off Title IV eligibility for schools who raise tuition above CPI.
JR
Well-Known Member
Yeah it is getting out of hand. They have some plans for the public institutions. But I doubt you can regulate a private one. Those schools don't rely on federal or state monies to stay open.
JR
Well-Known Member
Yeah, but aren't they getting money because their top faculty know how to obtain Federal Grants? The Federal government isn't going to make Yale, Harvard, Duke, Stanford, Georgetown or any of those kind of private schools lower their tuition. No way I believe that will happen. Now the public universities I can see coming under the gun. But those private institutions will operate like always.
JSUDMJ2004
JSU enuff said!
Working in a private higher ed I can tell u most private schools jack the prices as soon as its time for a new building...
You're talking about loans?
SoloMan
Well-Known Member
If you speaking about a loan, why not? The student has to repay the load. I believe Harvard pays for students who parents income is below 65K from their endowment.
jsupop33
Loyalty & Respect
Huh,
What are you talking about man. Every Federal Student Loan now comes directly from the government. The FFEL program ended in 2010.
jsupop33
Loyalty & Respect
Personally, I don't think that the original intent of loans was to subsidize middle class families to take out mega loans to go to uber expensive elite colleges. As far as repaying the loans, have you looked at the delinquency rates lately? Check out the report the federal reserve put out about Student loan debt last month.
You are correct about Harvard and I was just using them as an example. At some point, the feds are going to have to seriously consider the risk of loans they make to individuals for school. The current system only encourages schools to raise their tuition.
Huh? So they don't use Sallie Mae, ACS, etc anymore?
jsupop33
Loyalty & Respect
Sallie Mae and ACS are still servicing their loans but all new loans now come directly from the Federal Govt per the Student Aid and Fiscal Responsibility Act of 2009. It was a rider on the Healthcare bill.
Last edited:
JROCK
Preeminent
True.....
SoloMan
Well-Known Member
Most middle class parents only qualify for very small federal student loans based upon their income, so they get their education loans from banks. By the way the federal government is good at wasting money, see the current wars we having been waging now for more than a decade. Politicians only talk about saving money when the are campaigning.
jsupop33
Loyalty & Respect
Have you heard of parent-plus loans? If you are taking out private directly from the banks (no more FFEL remember) then I really would be careful because the numbers behind those are not good.
The rest I agree with you on.
SoloMan
Well-Known Member
I'm not familiar with parent-plus. After completing the FAS application for my son we only qualified for $3000 federal loan for the year, which I felt was no help so I didn't apply for it. His freshman year I took out an education loan from my credit union, the next 3 years I wrote checks. I don't know what you mean by the numbers behind then not being good.
jsupop33
Loyalty & Respect
Credit Union is good. Those private loans have some bad track records man.
A New Type of Student Loan, but Still a Risk
jsupop33
Loyalty & Respect
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child's education expenses as long as certain eligibility requirements are met. Graduate and professional students may apply for PLUS Loans for their own expenses; click here for details.
To be eligible for a Direct PLUS Loan for Parents:
* The parent borrower must be the student's biological or adoptive parent. In some cases, the student's stepparent may be eligible.
* The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Programsm. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
* The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.
* The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs. For additional information on eligibility requirements, go to the student aid eligibility page.
