studentaid

Donation to U.Va. Will Provide More Aid, but Won't Shift Policy

A multimillion-dollar donation by a University of Virginia board member will help low-income students affected by the university's decision to scale back a popular financial aid program. U.Va. Trustee John Griffin gave the university a $4 million challenge grant last week, which he and the university hope will be at least matched by other donors. The money will help provide $500,000 in need-based aid to students over the next four years, as well as help fund an endowment set aside for financial aid.

Last year, the university altered its AccessUVa need-based aid program in an effort to curb costs. Starting this fall for incoming students, U.Va. is going to make some low-income students borrow up to $28,000 instead of guaranteeing them a debt-free graduation as it had in the past. Some said that with the new donation, the university was effectively reversing its decision, which has prompted significant opposition. It's unclear, however, to what extent the philanthropy will be used by the university to cover the bases AccessUVa has. 

A university spokesman, McGregor McCance, said the university does not known how many students will receive assistance from the endowment or the value of those scholarships. Nor is it clear how many students will be helped by the $500,000 per year of grants over the next four years. "For some students, this could partially or fully eliminate loans or work study components of financial aid packages," he said.

The university had said it would turn to donors to try to help low-income students even as it was cutting its no-loan guarantee. The cost curbing to AccessUVa will eventually save about $6 million a year.

A current university board member and the student newspaper have both criticized U.Va. for relying on philanthropy to help its poorest students. 

Still, fans of AccessUVa were pleased. "This announcement is effectively a reversal because before they were cutting grant aid to the poorest students, and now they’re investing a sizable infusion of funds directly back into those students," Mary Nguyen Barry, a graduate who received the no-loan version of AccessUVa, said in an email.

Ad keywords: 

Comments on College Ratings Plan

National Associations

American Association of Colleges of Osteopathic Medicine

American Association of University Professors

American Council on Education

American Psychological Association

Association of American Medical Colleges (AAMC)

Association of American Universities

Association of Community College Trustees

Association of Public and Land-grant Universities

Association of Specialized and Professional Accreditors

Council for Christian Colleges & Universities

National Association for College Admission Counseling

National Association of Financial Aid Administrators

National Association of Independent Colleges and Universities

State Higher Education Executive Officers Association

Veterans groups

Regional Associations

Association of Independent Colleges & Universities in Massachusetts

Association of Vermont Independent Colleges

Kansas Independent College Association

Minnesota Private College Council

Public and private, nonprofit colleges & universities in Wisconsin

Western Interstate Commission for Higher Education

Advocacy Groups/Think Tanks

American Institutes for Research

Center for Postsecondary and Economic Success

College Educational Quality

Institute for Higher Education Policy

National Center for Learning Disabilities

New America Foundation

OneGoal

Postsecondary Analytics

Student Press Law Center

The Aspen Institute College Excellence Program

The Institute for College Access & Success

Young Invincibles

Businesses

ACT, Inc.

Equifax Workforce Solutions

Higher One, Inc.

The College Board

University Systems

California Community College system

California State University System

State University of New York

Texas Higher Education Coordinating Board

University of California system

University of North Carolina system

Individual Institutions

Adrian College

Arkansas State University-Beebe

Athens State University

Athens State University

Brown University

Chesnut Hill College

Clemson University

Columbia College of Missouri

Cornell University

DeVry Education Group

Duke University

East Arkansas Community College

Empire State College

Fisher College

Forsyth Technical Community College

Furman University

Gordon College

Higher Education Consortia at the University of Delaware

Iowa Vocational Rehabilitation

Kaplan Inc.

Lasell College

Le Moyne College

Lebanon Valley College

LeTourneau University

Metropolitan State University of Denver

Mount Aloysius College

Newman University

Northeastern University

Ohio Wesleyan University

Pace University

Roosevelt University

Saint Leo University

Saint Louis University

Santa Clara University

School of the Art Institute of Chicago

Shaw University

Southern Adventist University

Southern Methodist University

Stanford University

The Cleveland Institute of Art

The Ohio State University

Tri-County Technical College

University of Alaska

University of California, Berkeley

University of Colorado Boulder

University of Pennsylvania

University of Washington

University of Wisconsin-Madison

Washington State University

Webster University

Wheelock College

Widener University

Williams College

Ad keywords: 

Higher ed needs better data to spur reform (essay)

While there is heated debate over how best to fix America’s higher education system, everyone agrees on the need for meaningful reform. It’s difficult to argue against reform in the face of college attainment rates that are stalled at just under 40 percent and the growing number of graduates left wondering whether they will ever find careers that allow them to pay off their mounting debts.

Any policy debate should start with a clear picture of how the dollars are being spent and whether that money is achieving the desired outcomes. Unfortunately, a lack of accurate data makes it impossible to answer many of the most basic questions for students, families and policy makers who are investing significant time and money in higher education.  

During the recent State of the Union address, President Obama talked about shaking up the system of higher education to give parents more information, and colleges more incentives to offer better value. Though he provided little detail, this most certainly referred to the broad vision for higher education reform he outlined over the summer centered around a new a rating system for colleges and universities that would eventually be used to influence spending decisions on federal student financial aid.

However, the President’s proposal rests on a data system that is imperfect, at best. As former U.S. Secretary of Education Margaret Spellings said of the President’s plan, “we need to start with a rich and credible data system before we leap into some sort of artificial ranking system that, frankly, would have all kinds of unintended consequences.”

The American Council on Education, which represents the presidents of more than 1,800 accredited, degree-granting institutions, including two- and four-year colleges, private and public universities, and nonprofit and for-profit entities, agrees on the need for better data as well.

A senior staff member at ACE has been quoted to say that “if the federal government develops a high-stakes ratings system, they have an obligation to have very accurate data,” and that he was “surprised that anyone would think it controversial that having such data is a prerequisite.”

In order to bridge the data gap, we introduced the Student Right to Know Before You Go Act, which would make the complete range of comparative data on colleges and universities easily accessible to the public online and free of charge by linking student-level academic data with employment and earnings data.

For the first time, students, and policy makers, would be able to accurately compare -- down to the institution and specific program of study -- graduation and transfer rates, frequency with which graduates go on to pursue higher levels of education, student debt and post-graduation earnings and employment outcomes. Such a linkage is the best feasible way to create this data-rich environment.

None of these metrics is currently available to those seeking to evaluate a school or program, though plenty of misleading data are out there.

For example, Marylhurst University, a small liberal arts school in Oregon, was assessed with a 0 percent graduation rate by the U.S. Department of Education. This is because the department's current metrics account only for first-time, full-time students, and Marylhurst serves nontraditional students who are part time or have returned to school later in life. Schools like this that serve nontraditional students -- who now make up the majority of all students -- don’t get credit for their success, at least not according to current federal evaluations.

With so many in the higher education community bemoaning the lack of quality data, and clear solutions forward on how to attain better data, why hasn’t it happened?

A major part of the answer: institutional self-interest. Every school in the country has widely disparate performance outcomes depending on the category, and many college presidents are in no hurry to make their less-than-appealing outcome data available for public scrutiny.

There’s a fear that students and families will vote with their pocketbooks and choose different schools that better meet their needs. The abundance of inaccurate and incomplete data provides institutional leaders with a line of defense: so long as such data are the norm upon which they are ranked and rated, they can defend themselves on the basis of flawed methodology. 

Not all schools fear the implications of better quality data; in fact, many schools crave these data and want them made public. They know they’ll stack up well against their competition.

Moreover, many schools realize that getting better data is critical to helping identify what’s working and what’s not for their students in order to build stronger programs. Nevertheless, some of the “Big Six” higher education associations still cling to the status quo and represent a key challenge to realizing these commonsense reforms.

It is long past time for these important actors to look away from their self-interest and toward what’s in America’s collective interest -- a future where higher education produces better outcomes for students and the economy -- by supporting the Know Before You Go Act.

U.S. Sen. Ron Wyden is an Oregon Democrat, and U.S. Sen. Marco Rubio is a Florida Republican.

Editorial Tags: 

Most Teen Workers Don't Save for College

The percentage of employed teenagers has declined over the last decade, but what working high school seniors spend their earnings on has not changed much, researchers have found. Most of the money earned goes toward temporary wants or needs, meaning shopping trips, lunch and dinner dates, movies, music and more -- not saving for college. The information was gathered through surveys given to high school seniors by the University of Michigan Institute for Social Research.

Authors Jerald Bachman, Jeremy Staff, Patrick O'Malley and Peter Freedman-Doan wanted to learn what teenagers did with their earnings and to see if any patterns affect academic achievement. What they discovered is 17 percent took half or more of their income and put it toward their educations. Those who saved for college were less likely to work more than 15 to 20 hours a week because they wanted to focus on school. They weren’t at high risk of smoking cigarettes. The high school students who juggle school and work to help fund their higher education deserve to be recognized, the researchers say.

Ad keywords: 

Leading Democrat on House Education Committee to Resign

Representative Rob Andrews of New Jersey, one of the top Democrats on the House education committee, announced Tuesday that he was resigning from Congress later this month.

Andrews told supporters that he was leaving Congress to join a Philadelphia-based law firm. He told The New York Times that his decision had nothing to do with an ethics investigation into his alleged misuse of his campaign funds.

Andrews has been a longtime supporter of for-profit colleges in Washington, especially compared with some of his Democratic colleagues in the Senate who have been critical of the sector. He most recently joined a letter expressing concern over the Obama administration’s efforts to impose “gainful employment” regulations on the industry.  

Andrews's resignation follows the announcement last month by Representative George Miller, the top Democrat on the House education panel, that he will not seek re-election at the end of this year. 

Ad keywords: 

Lawmaker alleges colleges require aid applicants to fill out fee-based form

Smart Title: 

Congressman accuses elite colleges of misleading students into believing they must fill out fee-based form to qualify for federal aid.

Tenn. Governor Seeks Free Community College Tuition

Gov. Bill Haslam of Tennessee burnished his credentials as a higher education governor Monday night by promising in his State of the State speech to make two years of a community or technical college education free to graduating high school seniors in the state.

Haslam, whose state has aggressively overhauled its postsecondary system under both him and his predecessor, Phil Bredesen, proposed using lottery reserve funds to create an endowment to cover the tuition and fees of high school graduates who attend a community college or one of the state's colleges of applied technology. He called it the "Tennessee Promise."

"It is a promise that we have an ability to make," he said in a prepared text of his remarks. "Net cost to the state, zero. Net impact on our future, priceless."

The governor's 2014-15 budget proposal also calls for expanding the Degree Compass program developed at Austin Peay State University to help students navigate academic paths and creating a data system to help colleges identify adults who are likely to return to college and earn a degree.

Consumer Bureau Says Loan Servicing Issues Vary

Continuing its focus on problems with the servicing of private student loans, the U.S. Consumer Financial Protection Bureau on Monday released an analysis of its voluntary request for information from the private student loan industry. The bureau was especially interested in information about how loan servicers process the payments of borrowers seeking to pay down their debt ahead of schedule. The CFPB has said it’s concerned that some loan servicers apply prepayments in a way that maximizes their profits but makes the cost of the loan more expensive for borrowers.

In its report, the CFPB found that servicers varied in how they apply prepayments to student loans. Some were able to accept a borrower’s instructions through their online payment platform, while others were did not accept such instructions for certain types of loans. The bureau did not release the names of which entities responded to its request for information.

Rohit Chopra, the bureau's assistant director and student loan ombudsman, vaguely alluded to potential compliance issues in Monday’s report. He noted that it is illegal for companies to charge student loan borrowers a penalty for making early payments on their debt and said that one way for some servicers to ensure compliance with that requirement would be to automatically direct prepayments to a borrower’s loan with the highest interest rate first. In analyzing the servicers' prepayment policies--all of which were submitted voluntarily -- the CFPB did not check to see whether the policies were complying with the law. However, prepayment issues on private student loans could become a focus of the agency's efforts when it officially begins its supervision of large student loan servicers in March. 

Ad keywords: 

Cost estimates for federal student loans are unreliable, report says

Smart Title: 

A new federal report says that it's impossible to set interest rates on federal student loans in advance so that the government breaks even on the program.

Survey: Parents Up College Savings Goals

A survey by Fidelity of parents who are already saving for college for their children found that 60 percent have a goal of saving more in 2014 than they did in 2013. Including those parents, 88 percent said that they plan to save at least as much as they did in 2013. Of the majority of such parents who have a specific target for savings, the average is $405 per month.

 

Pages

Subscribe to RSS - studentaid
Back to Top