Posted by Jonah Mytro on July 2nd, 2009
College students are often forced to make a decision between two life paths: one that feeds the soul and one that feeds the bank account. Rarely do the two meet. As a result, the average college grad — who leaves school with about $23,000 in student-loan debt — either slogs along during those first few work years in satisfying (yet typically low-paying) jobs or makes a play for grinding corporate gigs that pay the bills and deaden the heart.
But all that stands to change on July 1 with the start of an income-based repayment (IBR) plan. The goal of the government initiative, which has been championed by Massachusetts Senator Ted Kennedy, is to prevent payments on federal student loans from exceeding 15% of a borrower’s disposable income above 150% of the poverty level. Borrowers who earn below that threshold (which in most states is about $16,000 for a single person with no dependents) wouldn’t have to make any monthly payments at all. (See how Americans are spending now.)
These changes, alongside a $619 increase in the maximum Pell Grant and a reduction in the interest rate on new federal loans, arrive at a moment of seemingly runaway college costs on one end and a dismal economic outlook on the other. The Obama Administration is trying to lessen the pressure on aspiring students in ways both big and small. Last week, Secretary of Education Arne Duncan announced a plan to simplify the Free Application for Student Aid (FAFSA) — the form to apply for federal dollars — cutting at least 20% of the questions and making it easier to fill out online. For months now, Duncan has discussed the possibility of making Pell Grants an entitlement or guaranteed benefit like Social Security that would be protected from annual budget cuts. Duncan is also trying to transition to a system in which students get all their college loans from the government, rather than going through banks and other private lenders. The new IBR program does not apply to private loans. (See pictures of the college dorm’s evolution.)
Add up these steps, and the Obama Administration appears to be attacking the staggering cost of higher ed from the back end — that is, if we can’t fix how much college costs, at least we can try to fix how you pay that cost back. “There’s clearly a lot of work to do in bringing down the cost of college,” says Edie Irons, spokesperson for the Project on Student Debt. “But even if you froze college tuition at every institution tomorrow, you’d still have this problem where people are borrowing incredible amounts of money to take important jobs that may not pay very well.”
In the past, federal-loan repayment was structured so that a graduate would have to pay a certain amount of money each month, regardless of his or her income at the time. Under the IBR program, if you lose your job or are forced to take a pay cut, the amount you have to pay back per month will drop. If, however, your salary subsequently increases, your payments will still be capped at 15% of your disposable income. That is, of course, if you are eligible to participate in the program; grads with private loans are exempted as well as those who owe less than they earn in a year (use this calculator to figure out if you qualify). It’s all based on a debt-to-income ratio and is fluid and flexible in a way that most government systems are not. And if the Education Department is serious about abolishing the two-track loan system (in which it provides direct loans as well as subsidizes private-lender loans), this is just one more way of convincing borrowers to throw their hat in with the feds.
One big upside is likely to be a reduction in the number of people who default on their student loans, a financial disaster that can destroy credit ratings and hike up interest rates on future loans. “In this economic recession, a lot of students are having a difficult time just paying for normal things like groceries or rent,” says Carmen Berkley, president of the U.S. Student Association, an advocacy group. “This is really going to make sure that students are able to keep up with their loans and don’t have to default. We want to be able to have good credit, to eventually be able to buy cars and houses too.” (See TIME’s special report on paying for college.)
Under the IBR program, if students are still paying back college loans after 25 years, they will be eligible to have all debt erased (though, if the law stands as is, much of that remaining balance will be taxed as income). And if students go into a public-service career, they are eligible for loan forgiveness after a mere 10 years. While participants in programs such as AmeriCorps, the Peace Corps, the military and other such institutions have long been eligible for loan reduction or forgiveness, this new program expands such mercy to potentially hundreds of thousands more students who won’t be forced to make that knee-jerk decision between ideals and salary. “We really need college graduates to go into fields like teaching and social work and public-interest law and rural medical services,” says Irons. “And because of the way people are forced to pay for education, they are less and less able to do those jobs. For society’s sake, we should make it easier for them to do so.”
Time.com
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Posted by Jonah Mytro on June 29th, 2009
Two schools — the University of Phoenix and Bryant & Stratton College — handed out degrees to more than 400 students this month at the Richmond Convention Center.
A third school — South University — will open in Henrico County on Oct. 5 behind the Whole Foods Market on West Broad Street. It is now enrolling students for its local campus and online classes.
The three schools offer classes at a traditional campus as well as online-only.
Online learning is gaining credibility and gaining ground in the higher-education field.
About 12.2 million consumers enrolled in roughly 11,200 college-level distance-education programs during the 2006-07 academic year, the latest figures available, according to the U.S. Department of Education. That’s up from the 3 million consumers enrolled in 2,320 distance-learning programs in 2000-01.
Most traditional colleges and universities now offer online courses as part of their regular degree programs, as well. Some, such as the University of Richmond School of Continuing Studies, offer a few specialized degree programs entirely online.
Are you thinking of earning an online degree? If so, here are some things you need to know:
* You need the right stuff in order to succeed. “Because there’s no structured class schedule, it takes a lot of self-discipline,” said James Campbell, director of marketing at the University of Richmond’s School of Continuing Studies.
Students who fail at online learning do so for the same reasons as those in a normal class setting, said Walter Green, chairman of the Emergency Services Management degree program in UR’s School of Continuing Studies.
“They just don’t do the work.”
Those diligently engaged in their coursework who regularly interact with other students and the instructor usually succeed, he said.
* Be certain that the school is certified and accredited.
It should be certified by the State Council of Higher Education in Richmond and accredited by an organization recognized by the U.S. Department of Education or the Council for Higher Education Accreditation.
“Institutions that are approved by the U.S. Secretary of Education will be of high quality,” said Terry Hartle, an official at the American Council on Education, a trade organization.
The North Central Association of Colleges & Schools is the recognized accreditation board in the region that includes Virginia.
* Be sure the school offers financial aid. Title IV funding from the federal government — including student loans and grants — should be available, said Susan S. Whisenhunt, director of academic affairs at the University of Phoenix in Richmond.
* Tuition varies. Expect to pay $365 per credit hour for an online undergraduate degree at the University of Richmond and $361 per credit hour online at South University. The average annual tuition and fees at the University of Phoenix is about $12,000.
* Don’t assume that online learning is a piece of cake. Course loads are normally just as rigorous as classroom learning.
* You’ll find it convenient. Some of the students enrolled in UR’s online Emergency Services Management or Disaster Science programs are shift workers — firefighters, EMS technicians, even emergency-room physicians. They log in when they can grab the time, maybe even at 3 a.m., UR Program Coordinator Bo Harris said.
“You can study anywhere and anytime,” Hartle said.
* You will communicate electronically with your instructors. But you may not meet them face to face until graduation.
* You won’t feel isolated from classmates. “The students typically are very connected to their colleagues” through online forums and a chat room, Whisenhunt said.
“I see great friendships developing.” It’s like social networking, she said.
TimesDispatch.com
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Posted by Jonah Mytro on June 26th, 2009
The Obama administration took dead aim yesterday at one of the biggest headaches faced by college students and their families — how to fill out what has become a lengthy and complicated application for financial aid.
Education Secretary Arne Duncan outlined a series of changes that could allow some applicants to skip many of the 153 questions.
“Too many students who qualified found applying for student loans was too difficult to understand,” Duncan said. “Too often, they simply got frustrated and they gave up. The form itself was liter-
ally a barrier to entry in college. That has to change.
“Next year’s applicants should see a 20 percent reduction in the number of questions and a 50 percent reduction in the number of Web pages to navigate,” Duncan said.
He also asked Congress to adopt a sweeping overhaul aimed at making the form easier to fill out, including allowing families to attach their tax returns from the Internal Revenue Service to the application. Currently, families have to include separate investment and banking records.
As tuition soars, financial assistance is crucial to keeping students in college. Of the 60,000 students at Ohio State University and its regional campuses, more than 32,000 receive financial aid.
The reforms are aimed at the Free Application for Federal Student Aid, known as FAFSA. The six-page application is so complex that last year former Education Secretary Margaret Spellings jokingly complained, “It asks you how old you are three different ways.”
In the final months of the Bush administration, Spellings asked Congress to reduce the number of questions in the form to just 27. Congress never acted on that.
“It’s a good step,” said Tally Hart, senior adviser for economic access at Ohio State. “That form is really a deterrent in its existing structure because it looks so intimidating. and the problem is the greatest for the people it should serve the most.”
Educators and financial-aid specialists hailed the move, saying it eventually could lead to more students applying for financial aid.
“Could the department have gone further? Yes,” said Terry Hartle, senior vice president of the American Council on Education, which represents the nation’s universities. “Some people think you should get them on a postcard. But the fewer the questions, the less accuracy you have. What the department is trying to do is balance the importance of simplification with accuracy.”
Beginning this summer, students who have reached the age of 24 or are married may skip 11 questions dealing with their parents’ financial history. Men older than 26 will not have to answer the question about Selective Service registration. And when the new forms are made available in January, low-income students will not be asked about assets.
In another effort to simplify federal assistance, the Education Department has been giving students instant estimates of Pell Grant and student-loan eligibility since May.
Columbus Dispatch
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Posted by Jonah Mytro on June 22nd, 2009
Low-income students and recent college graduates may reap dramatic gains beginning July 1 as a result of far-reaching changes in financial aid grant and loan programs.
While some of the gains – such as a significant hike in Pell Grants – have received attention, others that affect interest rates and student loan repayment schedules are just getting on the radar screens of policymakers and students. One of the most significant changes is the introduction of income-based repayment, through which students can reduce their monthly payments based on their earnings – a move of particular help to graduates in low-paying public service jobs.
“We estimate hundreds of thousands will take advantage of this,” said Edie Irons, spokeswoman for the Project on Student Debt in Berkeley, Calif. “But it’s not automatic. You have to apply for this.”
Students seeking income-based repayment must contact their lenders. But the switch should be easy to make, said Mark Kantrowitz, publisher of FinAid.org, a web site focused on the federal financial aid system. “If you’re in a public service job, it’s best to start sooner rather than later,” he told Diverse.
The U.S. Education Department has published a detailed chart of how income-based repayment, or IBR for short, may affect certain borrowers. For example, a single person earning $20,000 a year would face a monthly repayment of only $47. Adjustments may occur each year based on earnings and debt. (The chart is at http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp#content).
“The main goal of IBR is to make sure that your student loan repayment doesn’t ruin you financially,” Irons told Diverse.
Another major change involves consolidation loans. Borrowers with variable-rate loans before July 2006 could convert to consolidation loans with interest rates as low as 2 percent, Kantrowitz said. Such changes apply to those with variable Stafford or PLUS loans.
“It’s extremely unlikely that interest rates will ever get lower,” he said. With interest rates starting to rise again, the next adjustment in 2010 is likely to carry a higher rate.
Here is a look at other financial aid changes taking place next month:
* Pell Grants: The maximum grant for needy students will increase from $4,731 to $5,350 – a jump of more than $500. Legislation approved by Congress also will allow for year-round grants to students seeking to accelerate their education. The minimum Pell Grant will increase from $400 to an annual rate equal to 10 percent of the maximum grant.
* New student loans: New fixed-rate Stafford Loans will see their interest rate drop from 6 percent to 5.6 percent. Origination fees on Stafford Loans also will drop by half-a-percentage point.
* Part-time students: Students enrolled at least half time will get access to the Academic Competitiveness and SMART Grant programs, which provide additional aid to Pell-eligible students who have completed a rigorous high school program.
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Posted by Jonah Mytro on June 18th, 2009
The U.S. Department of Education said it awarded contracts to SLM Corp (SLM.N) and three other companies to service its $550 billion student loan portfolio, as the government prepares to shift much of the nation’s student lending into a direct loan program.
The government said it also awarded servicing business to Nelnet Inc (NNI.N), American Education Services/PHEAA and Great Lakes Education Loan Services Inc. It said the contracts run for five years, and can be extended for five more.
Eligibility for the servicing program became more important to student loan companies after President Barack Obama in February submitted a fiscal 2010 budget calling for the end of the Federal Family Education Loan Program by July 2010.
The president proposed to shift most of the nation’s $90 billion of student lending into a direct loan program, possibly saving taxpayers more than $4 billion a year.
Education Secretary Arne Duncan on Wednesday said the servicing contracts will help ensure that “all eligible students” will have access to federal student loans.
The department did not say how it plans initially to allocate the servicing business.
SLM, which better known as Sallie Mae, said it has the scale to add more than $100 billion of new volume under its servicing platform. Smaller rival Nelnet said it expects its participation to add to earnings, excluding start-up costs.
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Posted by Dan on June 17th, 2009
When most people think of a career in education, they immediately think “teacher”. There are a variety of career positions for those interested in pursuing a career in education. Superintendent, Principal, Professor, Dean, CEO even can be an obtainable title when you earn a college degree in education. Careers in Demand examines how returning to school via an online college and earning a degree in education is a sure fire way to open new career paths for those in today’s tough job market.
A career in education has been identified by the Wall Street Journal and Yahoo News as one of the fastest growing career fields in the US. The demand for teachers currently is at an all time high. An online education offers the convenience and flexibility that many busy adults need to complete their college degree program. Some adults have selected to pursue an online bachelor’s degree in education despite being currently employed in a non related career field. Employees and job seekers are searching for stability and growth opportunities. Education and Teaching offers both of those to you if you are interested.
Current teachers understand the importance of education and their career demands that they continue to take certificate and seminar programs to help keep their teaching skills fresh and sharp. it should be no surprise then that the rise in online masters degrees in education has outpaced the past two years in the first 6 months of 2009. Working as a teacher demands long work weeks often involving bringing your work home with you after the final school bell has rung. Online Colleges offer current working teachers the flexibility to build their Master’s Degree curriculum around their schedule. There is no hassle of driving to a campus, finding parking, sitting in a class, and then driving home.
While many may find that their career in education starts as a teacher, the ability to continue their education and learning, allows for the potential of a promotion or more senior positions. You may decide that post-secondary education is important to you, so you pursue your online Ph.D and earn a tenured faculty position at a local college. Salary for a college professor often starts at $70,000 according to Payscale.com. As you continue your career, the opportunity to join the Adminstrative Board of a College or be promoted to a Dean position are all available for the motivated individual.
A career in education can be very rewarding. Many who choose to enter this profession have a profound love for knowledge and sharing that knowledge with students. They embody mentor qualities and can often be very creative in their teaching approaches. Those who choose to do so can aspire to high career positions with large six figure salaries. Most educators will enjoy a work year that consists of 200 days or less. Compared to those working in Accounting, Marketing, Communications, Print Media, and other career fields at 337 days a year (4 weeks vacation). Earning an online degree in education offers the potential for a tremendous career filled with great opportunity.
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Posted by Jonah Mytro on June 8th, 2009
Business professionals who wish to increase their competitive edge and earn a graduate business degree through online education can now log in to Rochester Institute of Technology’s newest virtual classroom opportunity.
RIT’s E. Philip Saunders College of Business has announced a partnership with Toronto-based online services provider Embanet to launch an e-learning Executive MBA program this fall. The 72-week program is identical to the curriculum taught on site–and includes an international trip for students to explore the global influence of business. Classes begin in September.
According to Saunders Dean Ashok Rao, RIT and faculty of the Saunders College will receive a full range of services and support from Embanet in developing and designing online curriculum, as well as marketing and admissions for the new program.
“Our business school faculty have been impressed with the commitment of Embanet’s instructional team to help translate our demanding EMBA curriculum to an online platform that is innovative, highly interactive and easy to use,” Rao explains. “Embanet’s expertise and resources will allow us to reach highly qualified students across the globe–expanding our reach while maintaining our stringent admission standards.”
Stanley Widrick, director of RIT’s new online EMBA program and professor of marketing and international business in the Saunders College, says the AACSB-accredited Executive MBA will give working executives the flexibility they need to access course content, post discussions and brainstorm with peers at their convenience.
“Our EMBA is designed specifically for busy professionals whose time is valuable,” Widrick says. “It can be accessed at anytime of the day or night from anywhere with an Internet connection.”
As a leading full-service provider of online learning solutions for more than a decade, Embanet offers support for students, faculty and administrators through a dedicated 24/7/365-toll free number, live online chat, e-mail and self-help “frequently asked questions” support portal.
“Our full-service model is focused on providing integrated services to our esteemed university partners that reflect their quality, standards and culture,” says Stephen Fireng, CEO and president of Embanet. “Rochester Institute of Technology is committed to excellence in serving its students, and as their program partner it is our mission to help them meet that commitment online as well as on-ground.”
Rochester Institute of Technology (www.rit.edu) is internationally recognized for academic leadership in computing, engineering, imaging technology, and fine and applied arts, in addition to unparalleled support services for students with hearing loss. Nearly 16,500 full- and part-time students are enrolled in more than 200 career-oriented and professional programs at RIT, and its cooperative education program is one of the oldest and largest in the nation.
For two decades, U.S. News & World Report has ranked RIT among the nation’s leading comprehensive universities. RIT is featured in The Princeton Review’s 2009 edition of The Best 368 Colleges and in Barron’s Best Buys in Education. The Chronicle of Higher Education recognizes RIT as a ‘Great College to Work For.’
One of eight colleges at RIT, the E. Philip Saunders College of Business is accredited by the Association to Advance Collegiate Schools of Business International (AACSB International) and enrolls more than 1200 undergraduate and graduate students.
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Posted by Jonah Mytro on June 5th, 2009
Students who wait until July 1 this year to consolidate their variable-rate federal student loans will benefit from the lowest fixed interest rates in the history of the federal loan system.
Mark Kantrowitz, the financial aid expert who founded FinAid.org, and FastWeb.com, writes that beginning July 1, the interest rate for a consolidated Stafford loan while a student is still in school will be 2 percent, and during the repayment period it will be 2.5 percent. The interest rate for consolidating PLUS loans will be 3.38 percent.
“Borrowers who wait until July 1, 2009 to consolidate will save big over the life of the loan,” he notes.
A $20,000 Stafford loan with a standard 10-year repayment plan at 6.8 percent would typically cost $230 monthly and nearly $8,000 in interest over the life of the loan. The new 2 percent rate would allow students to pay $184 a month for the same loan, with just over $2,000 in interest over the life of the loan–a whopping 73 percent savings in interest.
Kantrowitz said that consolidating loans can cut back on paperwork by combining all loans into one, he told Rochester, New York’s Democrat and Chronicle. Additionally, consolidation can make it easier to borrowers to take advantage of different repayment options, including the new Income-Based Repayment program, which allows smaller monthly payments based on the amount of one’s loans, income and family size.
Kantrowitz added that consolidation also lets some borrowers to take advantage of public service loan forgiveness, which allows workers to have their loans forgiven after 10 years of employment in public service. He noted that the government’s definition of “public service” includes anything from teaching to working for a nonprofit.
There are some caveats: Borrowers who already consolidated their loans cannot take advantage of the new interest rate, and loans originated after July 1, 2006 are also not eligible. The federal consolidated loan cannot include private loans, and students still in school cannot consolidate loans until after they graduate.
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Posted by Dan on June 4th, 2009
Let me start by asking a question. What current entertainment industry is poised to grow to a 65 billion dollar business by 2012? If you said, “movies”, you would be wrong. It is not digital music downloads either. It’s video games. Video games have come a long way since PONG, introduced the world to digital entertainment. Video games are big business all around the world. Led by the ultra successful, Nintendo Wii, video games now serve as the leading source of home entertainment for more than 50 million people worldwide.
In the troubling economic environment, video games have continued to grow in revenue despite some games costing more than $70! As the industry continues to grow, game development companies will look to grow their employee base. Earning your online game design degree from an accredited college today can lead to a very rewarding and lucrative career in the near future for this industry. Named by Yahoo!, as one of the fastest and most secure jobs in America, game design, is becoming one of the hottest college degrees across the US. Cracking into the game industry is often the most difficult step in this career process. Many of today’s top game designers will admit to starting on the bottom as a game tester. We feel this is a tremendous first step into understanding if a career in video games suits you. Working in the game industry demands time and dedication from all of its members. Often work weeks will exceed 60 hours and weekend hours are typically mandatory near the final stages of game development. Due to the demanding schedule, continuing your education at a traditional college setting would be almost impossible. Earning a Bachelor’s Degree in Game Design from Westwood College Online while continuing to work as a game tester or intern, is a fantastic opportunity to achieve the education requirements necessary for landing a position in game design. The flexiblity of an online game design degree allows students to attend classroom lectures, read assignments, and complete college projects at their own pace. An online degree program is a perfect compliment to a working adult’s hectic schedule.
While working in the game industry can be intimidating due to its erratic schedule and demanding nature, the rewards are well worth the sacrifices. Game designers salary often start at $70,000, which is almost $15,000 more than the average bachelor’s degree starting salary nationwide. Talented and motivated game designers can establish a respected name for themselves within a company and the gaming audience. When this occurs, salary’s easily pass into the 6 digit range. Game designers also benefit from the commercial success of their products. Video game companies often provide incentive bonuses to all members of the team based on the number of copies a game sells and how well it is received by the gaming public.
By enrolling in an online game design program, students prepare themselves for a growing career field that shows no signs of slowing down. If you are creative, motivated, talented, and dedicated, a career in game design may provide a lifetime of career and creative successes.
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Posted by Jonah Mytro on June 1st, 2009
Ashford University has awarded 10 full-ride online degree program scholarships to working parents from across the nation through a partnership with eLearners.com and its Project Working Mom and Dads advocacy campaign. Bridgepoint Education, Inc. (NYSE: BPI) is a provider of postsecondary education services.
“Project Working Mom…and Dads, Too!” was developed by eLearners.com, a Web resource of EducationDynamics, to help send parents back to college - tuition free - in these difficult economic times.
This latest campaign, the third in a series and the first to include fathers, received more than double the number of applications submitted in the first two rounds held in 2008 combined. More than 315,000 applications were generated, including some of the most painful, touching and inspiring essays as part of the process. With five online universities and colleges participating, Ashford University was chosen by more than 41 percent of the applicants, accounting for nearly 130,000 applications.
“The overwhelming response to this scholarship opportunity and the stories of sacrifice and determination from the applicants have been a stark reminder of the struggles parents face in balancing life, work and school and how online education helps people achieve their goals,” Jane McAuliffe, president and chief executive officer of Ashford University said.
Ashford University faculty members spent hundreds of hours reviewing applications, resulting in 10 deserving recipients receiving the life-changing call.
Four of the scholarship winners reside in California. They include Erin Buck from Vacaville, Clara Galvan from Alta Loma, Donna Perry from Los Angeles and Cecilia Portugal from Daly City. Richard Shields of Longmont, Colorado, and Gail Kenny from Prescott Valley, Arizona, are also Western states winners.
Two of the scholarship recipients are from Maryland. They include Agaba Bisengo from Silver Spring and Terry Satchell from Easton. Michael Kurilovitch from Niagra Falls, New York, and Jacklyn Schmetzer from Ashburn, Virginia, round out the list of Eastern states winners.
Ashford University’s full-ride, tuition-free scholarships are for online degree programs ranging from associate’s to the doctorate level. Collectively, the scholarships total nearly $500,000.
“The escalating interest in this campaign illustrates the importance of higher education to working parents across America,” said McAuliffe. “Online higher education provides working parents with flexibility in earning their degrees.”
“As a working mom myself, I am proud to impact these scholarship recipients in a positive way,” said McAuliffe. “What gives me the most satisfaction is knowing that each of these winners has a child who will experience a parent bettering themselves by earning his or her college education. These winners are role models.”
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