studentaid

A $10,000 Degree in Texas

The University of Texas of the Permian Basin has introduced five bachelor's degrees in science fields for which the price tag for students will total $10,000 for a four-year degree, The Midland Reporter-Telegram reported. The degrees fulfill a challenge by Texas Governor Rick Perry, a Republican, to create $10,000 programs. Students in other programs at Permian Basin are charged about $25,000 for a four-year degree.

 

Plan floated in Britain for investors to pay tuition and for students to repay based on income

Leader of British university group floated idea of letting private investors pay tuition for some students, who would then repay a share of their subsequent income.

Study Questions Impact of Aid for Community College Students

A study released today questions the extent to which Pell Grants and other need-based financial aid improved the retention and success of academically underprepared community college students in Louisiana. The study, conducted by researchers at Noel-Levitz and the American Institutes for Research and funded by the Bill & Melinda Gates Foundation, found that increasing the amount of financial aid awarded to Louisiana community college students who needed remedial coursework did not improve their academic performance.

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More Conflict Over Interest Rate

WASHINGTON – The House of Representatives passed a bill Friday to keep the interest rate on federally subsidized student loans at 3.4 percent for another year, but President Obama threatened to veto the measure because it would cover the $6 billion cost of the extension by cutting money in the health care reform law for preventive care and public health. Obama has seized the student loan issue as the campaign for the general election begins in earnest, touring college campuses and calling on Congress to act to stop the interest rate from doubling to 6.8 percent in July. 

Democrats in the House and Senate proposed paying for the extension through either changing tax laws that allow owners of some corporations to avoid payroll taxes, or through cuts to oil subsidies. Republicans previously said they wanted a long-term solution rather than a short-term extension, and passed a budget for fiscal year 2013 that allowed the interest rate to increase.

Friday's bill passed 215-195. 

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Report: Simpler FAFSA Would Mean Few Changes to State Grants

Simplifying the Free Application for Federal Student Aid would have little effect on eligibility for need-based state grants, according to a College Board study that could allay the concerns about relying only on Internal Revenue Service data -- not a more detailed listing of a student or parent's income and assets -- when awarding financial aid. The authors of the report, "Simplifying Student Aid: What It Would Mean For States," examined the possible consequences of relying only on data transferred from the IRS, which would make filling out the complex form much less difficult for students. (Some fear that the application process itself discourages students who would qualify for need-based financial aid.)

In a sample of five states that award need-based grants, the simpler form would have little effect: the number of eligible students decreased by less than 1 percent in Kentucky and Ohio and would increase slightly in Minnesota, Texas and Vermont, the study's authors found.

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More Negotiated Rule Making Planned

The Education Department just finished two rounds of negotiated rule making on financial aid issues -- one on student loan regulations and one on the rules that govern financial aid for teacher preparation programs -- but is already planning a third. The department will focus on creating new regulations to prevent fraud in financial aid programs, as well as possibly changing financial aid delivery to electronic funds transfers. The department may also "update and streamline" the rules for campus-based financial aid programs, such as Perkins Loans and Federal Work-Study, wrote David Bergeron, deputy assistant secretary for policy, planning, and innovation in the department's Office of Postsecondary Education.

Public hearings on the rule making process are scheduled for May 23 in Phoenix and May 31 in Washington, D.C.

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Veterans' Group Lists For-Profits Where It Revoked Charters

The Student Veterans of America this month announced that it has suspended 40 chapters at for-profit institutions, saying that they were "using the SVA brand to legitimize their programs." At the time, the group did not name the chapters. Today it released a list of 26 chapters at for-profit institutions that continue to have their charters revoked. "In addition to being a peer support group, SVA chapters exist as campus and community based advocacy organizations. It appears that some for-profit schools do not understand our model, or worse, they understand our model and they choose to exploit it for personal gain," said a statement from Michael Dakduk, executive director of the association.

 

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Republicans Release Bill to Stop Interest Rate Increase

As President Obama continued his barnstorming tour to campuses in key election swing states calling for Congress to stop the interest rate on federally subsidized student loans from doubling, several bills were introduced to do just that, including one from House Republicans. The key difference among the bills is how they would pay for an extension of the 3.4 percent interest rate, estimated to cost about $6 billion in the first year. A bill from Senator Tom Harkin, an Iowa Democrat, would pay for the extension by changing a tax loophole for so-called S corporations. A House version announced by Representative George Miller, a California Democrat, would cut oil subsidies, and a version from House Republicans, introduced by Illinois Republican Judy Biggert, would cut money from a portion of the health care law used for disease prevention and public health.

The bill represents a reversal for House Republicans, who had previously said they weren't interested in a short-term extension. Future debate is likely to center around what will be cut to pay for the extension, without which student loan rates will increase July 1.

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Bill Introduced to Stop Interest Rate Increase

As President Obama began a three-state tour of college campuses, making a speech in North Carolina about the importance of keeping the interest rates for federally subsidized loans at 3.4 percent, House and Senate Democrats said they intend to introduce legislation today to stop the rate from doubling and pay for the extension by ending a tax break for self-employed. The interest rate for subsidized loans, currently at a historic low, is scheduled to double to 6.8 percent on July 1 if Congress takes no action.

The bill, the Stop the Student Loan Interest Rate Hike Act of 2012, would pay for the lower rate -- which costs about $6 billion per year -- by limiting a tax provision that allows owners of certain kinds of corporations, called S corporations, to avoid payroll taxes on their earnings. About 4 million S corporations exist in the US, including many professional offices like doctors or law firms, the Associated Press reported. They do not pay corporate earnings taxes, instead redirecting the income to their owners, who pay income taxes on that money (but not payroll taxes for Medicare or Social Security). Under the Democrats' bill, such corporations making more than $250,000 per year and with fewer than three owners would no longer be able to avoid payroll taxes.

It was unclear whether the plan would get any Republican support.

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Facing Complaint, Madison Changes Scholarship Letter

The University of Wisconsin at Madison has agreed to change the language in a letter it sends to accepted graduate students, following a complaint that one part of the letter was deceptive, The Wisconsin State Journal reported. The letter references a stipend and tuition waivers, and the wording that has been questioned also pledged "an additional year of support" for completing a master's degree. What the letter didn't reference was that the additional year involved a smaller stipend and a requirement to work as a teaching assistant.

 

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