Community Colleges get more money

President Obama is ramping up funding to community colleges. This is great for those people looking to start their education and keep costs down. I know community colleges get a bad rap from the other higher ed folks. But community colleges always get the low end of the stick when it comes to funding. With the additional funding, perhaps they can finally meet the needs of the population they service.

Financial Aid Month

February is financial aid month. By the way the FAFSA form in now online!!!

Everyone needs and education

“…We must make sure that people who have the grades, the desire and the will, but not the money, can still get the best education possible.”

--President Barack Obama

Now more than ever it is important that everyone receive an education. We have seen unprecedented job loss. Many of those losing jobs have an education. But what an education affords you is options. And many people that have lost jobs don't have options.

So, in order to have more options, we need something to fall back on. And that something is an education. And...we need to have more students get money to go to college. So, let's support education reform and giving more students money for college.

Crisis in college lending still growing

This is a very serious matter. Parents should take a look at what might happen to their students in the wake of the current credit crunch. And it is still growing. By this time next year, we will be talking about how our children's education has been hijacked.


Banks Avoid Lending to Less Competitive Colleges

By Jonathan D. Glater, The New York Times 02 Jun 2008 04:34 AM ET

Some of the nation’s biggest banks have closed their doors to students at community colleges, for-profit universities and other less competitive institutions, even as they continue to extend federally backed loans to students at the nation’s top universities.

Some less-selective four-year colleges, like Eastern Oregon University and William Jessup University in Rocklin, Calif., say they have been summarily dropped by some lenders.

The practice suggests that if the credit crisis and the ensuing turmoil in the student loan business persist, some of the nation’s neediest students will be hurt the most.
The difficulty borrowing may deter them from attending school or prompt them to take a semester off.

When they get student loans, they will wind up with less attractive terms and may run a greater risk of default if they have to switch lenders in the middle of their college years.

Tuition and loan amounts can be quite small at community colleges. But these institutions, which are a stepping stone to other educational programs or to better jobs, often draw students from the lower rungs of the economic ladder.
More than 6.2 million of the nation’s 14.8 million undergraduates — over 40 percent — attend community colleges.

According to the most recent data from the College Board, about a third of their graduates took out loans, a majority of them federally guaranteed.

“If we put too many hurdles in their way to get a loan, they’ll take a third job or use a credit card,” said Jacqueline K. Bradley, assistant dean for financial aid at Mendocino College in California. “That almost guarantees that they won’t be as successful in their college career.”
So far, financial aid administrators say they have been able to find fallback lenders that students can switch to, but the hurdles are costly to students — in money and time....

Loans threatened by financial debacle

I've been watching the student loan issue for the past several weeks. It has gotten worse since I last blogged. Therefore, it is going to take a greater toll on students this fall than first expected. When this country is suffering from "brain paralysis", we can't afford to disenfranchise anyone willing and able to go to college. Here is the lastest article out on MSN.com regarding the issue:


Sallie boss warns of student loan ‘train wreck’
House OKs measure to get more money to struggling lender
Associated Press
April 16, 2008

WASHINGTON - Sallie Mae says it cannot write money-losing student loans indefinitely.
Top executives are holding “daily deliberations” about just how long the nation’s largest student lender can afford to sacrifice its bottom line for the sake of college-bound Americans, Sallie Mae CEO Albert J. Lord said Thursday.

Lord told analysts on an earlier conference call: “We’ve been predicting something of a train wreck” in mid-2008 without prompt changes in a market hit by fallout from the subprime mortgage crisis and cuts last year in federal subsidies to student lenders. Read more

Financial Aid Reminder

Where I live, the deadline for financial aid is March 10. What people don't realize is that the deadline is really for state aid (grants, scholarships). However, the federal portion (Pell Grants) isn't due until July. Then why try to get people to finish their applications by March? Because the state aid can help supplement what you get from the federal aid if you qualify. Many students miss out on this money because they don't do the application in enough time.

I realize, and so do many Indiana college professionals, that the March 10 deadline is a bit too early for seniors in high school. As we have discussed in the past, it takes seniors in high school until April to realize that high school does end and life has to go on. Each state has a different application deadline. For instance the deadline for California is June 30. So parents and students need to be aware of their state deadline.

Fortunately, I don't have to do a FAFSA anymore. Believe me, I celebrated! My daughter, although in graduate school, has an assistantship -- a job! Although I filled out the FAFSA forms when she was in undergrad, we never got any federal money. But she did get scholarships and most of them wanted her to have a FAFSA on file. So, no matter if you get money or not, just do FAFSA.

Focus on Student Loans

Seems like the "credit panic" resulting from the recession has finally hit the student loan market. For months now I have advocated trying not to rely on student loans for financial aid. Many people graduate with huge amounts of debt. I realize there are some professionals -- like doctors -- that come out with a lot of debt because of the extended training that is needed. However, if you graduate with a four year degree and your debt is enough to buy a starter home, you've spent too much in my opinion.

Here is an article from the Higher Ed Watch Blog:
http://www.newamerica.net/blog/higher-ed-watch/2008/answers-student-loan-credit-crunch-2693

This article is trying to keep people calm in the wake of a perceived shortage of student loans in the coming academic year that has resulted because of the credit crunch. Some have felt that the non-governmental loan people will tighten their belts on students loans -- much like they are doing in the mortgage industry. My opinion: they will tighten the belts. They may not cut out loans, but you can believe they won't be as liberal as in the past. So, that is a reason to start looking for scholarships, workstudy and any other FREE money that is out there to supplement.

More Kids Need Support

I was reading about a survey from Learn More Indiana. It found that of juniors in high school without family members who have college experience, 56 percent expect to attend a four-year college and just 31 percent think they can afford it. Some, the survey went on to say, feel as though college just isn't for them.

Well, first of all there is money for college. No, the full scholarships are not as plentiful as they used to be, but there are still grants, workstudy, and loans.

Maybe a four-year is not for everyone. That is why there are community colleges (most students in America start there anyway).

To see if college is for you, enroll in a program such as Talent Search. It is a program geared to introducing and helping students prepare for college. What is Talent Search?

This program identifies and assists individuals from disadvantaged backgrounds who have the potential to succeed in higher education. The program provides academic, career, and financial counseling to its participants and encourages them to graduate from high school and continue on to the postsecondary institution of their choice. Talent Search also serves high school dropouts by encouraging them to reenter the education system and complete their education. The goal of Talent Search is to increase the number of youths from disadvantaged backgrounds who complete high school and enroll in postsecondary education institutions of their choice. (http://www.ed.gov/programs/triotalent/index.html)

Check with your local high school to find out where the nearest program is located.