In recent years, colleges have begun experimenting with a number of techniques to make textbooks more affordable for, and more likely to be purchased by, college students.  From on-demand textbook printing at the University of Michigan to on-campus and online textbook rental options nationwide, it seems like at least two or three textbook pricing revolutions roll out each year.  This year, however, Williams College in Massachusetts is trying something entirely different:  giving textbooks away for free.

Starting this fall, students who receive financial aid at Williams will be able to charge their textbooks to their bursar accounts–an option available to students at many colleges–and then will receive college-based grants for the amount of their textbook purchase, which as far as Williams officials know, is an offer unique to their campus. The textbook program, as well as the reasons for its inception, were highlighted in a recent blog post in the New York Times’ college admissions blog, The Choice.

Williams previously offered financially needy students $400 book grants each semester, but found that some students still weren’t buying all their required textbooks, as they felt the money they spent on books was still coming out of their own pockets.  A textbook lending program through the library was used to supplement it, but there were concerns that students couldn’t make full use of borrowed books.  To allow students to highlight and annotate books, as well as reference them in subsequent semesters, the college decided to make sure students were able to purchase all required texts.  Thus, the current grant program was born, which Williams officials expect to cost roughly the same as the combination of the previous grant and library lending programs but to serve students more completely and efficiently.

Little touches like free textbooks can go a long way towards swaying students still working on their college search.  Regardless of the college you attend, you may want to factor textbooks into your scholarship search, as well.  While textbooks don’t seem like much individually, when the costs are added up, they can become a sizeable portion of a student’s college costs.  With many students paying for textbooks out-of-pocket, they can quickly create a problem with money management, increasing work burdens, credit card balances, or student loan debt.

Posted: under College Costs, College Grants.
Tags: books, College Costs, College Grants, institutional aid

Comments (0) Oct 27 2009

The House of Representatives is poised to vote today on legislation to eliminate the Federal Family Education Loan Program and increase funding for Federal Pell Grants.  The bill, currently known as the Student Aid and Fiscal Responsibility Act of 2009, is widely expected to be approved by the House, possibly with some amount of bipartisan support.  While most of the provisions in the bill have relatively widespread backing, one element has generated a fair amount of controversy.  Under the proposed legislation, all federal student loans, such as Stafford Loans and Plus Loans, originated after July 1, 2010 would be part of the Federal Direct Loans Program, rather than the current bank-based system.

While initially both sides appeared ready for battle over the proposed legislation, controversy and rhetoric have cooled since the legislation was introduced.  Alternative proposals that preserve some element of FFEL or otherwise grant a larger role to banks than in the bill currently before Congress have been proposed, but ultimately failed to generate the savings the Congressional Budget Office estimates this plan to carry, and thus have gained little momentum. Some Representatives still suggest submitting the proposal for further study and reviewing alternatives, but the plan to eliminate FFEL has gained the most widespread support.

Many Republican lawmakers still oppose the proposal to switch entirely to Direct Loans, with some making comparisons to the bank bailouts of earlier this year and the healthcare legislation currently being debated.  The move to direct lending has also been repeatedly framed as eliminating choice for students, though the choice of direct loans versus bank-based loans has always rested with colleges and never with student borrowers.

Despite these objections, though, the bill appears to have the support necessary to pass the House and move on to the Senate, where it may face greater challenges.  The option of passing it through the process of budget reconcilliation, which requires only a majority vote in the Senate, has been proposed, but whether the Senate goes that route remains to be seen.

Posted: under College Grants, College News, College in Congress, Financial Aid, Student Loans.
Tags: College Grants, College in Congress, college news, Direct Loans, FFEL, Financial Aid, stafford loans, Student Loans

Comments (0) Sep 17 2009

Earlier this summer, it came to light that for some students in Illinois, being accepted by state colleges was less about what they knew than who they knew, as an investigation into admission practices revealed the existence of a special clout list of well-connected applicants to the University of Illinois.  Now, the Associated Press is reporting that some college scholarships in the state may be governed by a similar principle.

Each Illinois state representative is given the equivalent of two four-year full-tuition scholarships to award to his or her constituents each year.  Some representatives choose to break up their scholarship awards into eight one-year full-tuition awards, while others choose to hand out two-year or four-year scholarships.  At least 83 of these scholarships went to students with some form of political connections between 2008 and 2009.  Of these scholarships, 41 went directly to the children of donors to the politician making the award.

While the lawmakers award the scholarships, the universities are responsible for finding the funding for each award.  After state colleges and universities, as well as the majority of the state’s grant programs for low-income students have faced steep budget cuts this year, these General Assembly scholarships have drawn substantial ire from critics who feel the $12.5 million currently allocated to the program could go to better use elsewhere.

Representatives deny impropriety, but it seems that families in Illinois who have seen their 529 plans shrink in the recession may want to consider taking their college savings and investing them in their representative’s next reelection campaign.

Posted: under College Culture, College Grants, College News, College and the Economy, Scholarships.
Tags: College and the Economy, College Culture, College Grants, college scholarships, local scholarships, Scholarships, state news, state scholarship

Comments (0) Aug 26 2009

As the start of the fall semester approaches, students across the country are finding themselves in a precarious position when it comes to financial aid.  As we’ve previously mentioned, several states have been forced to make deep budget cuts this year, canceling or reducing funding for scholarships and grants, in some cases after award notices have already been sent to students.  This has left students scrambling for last-minute student loans, and in some cases facing the difficult decision of whether to take a semester off while trying to procure alternate funding.

The Wall Street Journal and U.S. News both feature articles this week that offer up alternatives for students who have come up short on funding for the fall.  While scholarship opportunities are still available for the coming academic year and should be pursued, students who need immediate sources of funding may want to check out private loans, peer-to-peer lending, and emergency loans and other aid offered by some universities and state agencies.  Reducing to part-time enrollment or transferring to a cheaper school are also last-resort options that may be better choices than taking an entire semester off or putting tuition on a credit card.

An appeal to your college’s financial aid office can also produce more financial aid, especially if your financial situation has changed since you completed the FAFSA, or if your parents were turned down for a federal PLUS loan.  Additional loans, and even some grant aid, may be available if you ask.

In addition to trying to find new sources of funding, some college students are also petitioning their state legislators to get grant and scholarship funding restored.  Lawmakers in Utah have listened, promising to reinstate full funding to the state’s New Century Scholarship program, whose awards they had previously planned to cut nearly in half.  Students in Michigan also may yet get a reprieve from budget cuts, as the governor of Michigan and numerous state legislators are vowing to do what they can to keep the state’s popular Promise Scholarship program intact.

Even if states manage to find funding for grants and scholarships this year, the next fiscal year could also prove challenging.  Students in cash-strapped states who are planning to rely on state scholarships to pay for college may want to start looking into alternate funding now.  One of the best ways to do this is to start with a free college scholarship search.

Posted: under College Costs, College Grants, College News, College and the Economy, Financial Aid, Tips.
Tags: College and the Economy, College Costs, College Grants, college news, Financial Aid, Scholarship Search, state grants, state news, state scholarship, Student Loans, Tips

Comments (0) Aug 19 2009

Rising unemployment rates and other symptoms of the ongoing recession continue to drive more people to attend college and look for ways to pay their bills, causing an uptick in state and federal financial aid applications. However, states are also hurting for money to meet financial aid requests and other budget demands. According to the Associated Press, 12 states have made significant cuts to state grant programs so far this year, with additional cuts likely. At least anecdotally, these cuts are already leading to more reliance on student loans, especially among groups that, according to a brief published this week by the College Board, may already be finding themselves overburdened with debt.

This week, the College Board released some new numbers on student debt loads and borrowing habits, culled from the National Postsecondary Student Aid Study, data released every four years by the Department of Education.  Students at for-profit colleges are the most likely to borrow (96-98 percent graduate with some amount of loan debt), have the largest average debt loads at graduation, and are also some of the poorest college students (students at for-profit schools received 19 percent of the federal Pell Grants disbursed in 2007-2008 despite making up only 7 percent of the college-going population).  With additional sources of need-based aid drying up, these students may find themselves even more burdened with debt.

Students at other types of schools have also had to do more borrowing in recent years, according to the study.  A full 59 percent of college students graduate with some amount of student loan debt, including 66 percent of bachelor’s degree recipients.  While most students took on manageable amounts of debt, 10 percent of students at four-year public schools, 22 percent of students at four-year private colleges, and 25 percent at four-year for-profit colleges borrowed more than $40,000 to attend college.

The average loan debt of undergraduate students in 2007-2008 was $15,123 (this is all students, not graduates), up 11 percent from the last time the survey was conducted.  While increases in loan burdens were most modest at four-year state and non-profit colleges, reductions in state grant programs that are often earmarked for students at state colleges or nonprofit private colleges could send these numbers climbing.

You may want to consider statistics on student debt as a factor in your college search, but keep in mind that there are alternatives to borrowing.  Scholarship opportunities exist for students at every type of college pursuing many different types of degree programs.

Posted: under College Costs, College Grants, College News, College and the Economy, Financial Aid, Student Loans.
Tags: College and the Economy, College Costs, College Grants, college news, Financial Aid, grants, private loans, state colleges, state grants, state news, student debt, Student Loans

Comments (0) Aug 12 2009

While it may be grabbing most of the headlines, the federal “Cash for Clunkers” program is not the only government grant program to run out of money well ahead of schedule this year.  The state funding allocated to Illinois Monetary Awards Program (MAP) grants, college financial aid awards for needy students, was slashed during state budget cuts this year. As a result awards have been cut in half for all students and have been denied outright to over 130,000 students who applied after May 15, a significantly earlier cutoff date than previous years.

Typically, Illinois MAP grants award up to $5,000 per year to the neediest college students in the state, provided they submit their financial aid applications by mid-August.  This year, however, the deadline was moved up to mid-May due to budget cuts.  Even students who applied on time will still receive reduced funding, as the current budget for the program can only cover grants for one semester of study.  Students at community colleges, who typically apply for financial aid later in the year and often have access to fewer financial resources, are likely to be the hardest hit.

Illinois isn’t the only state forced to make cuts to its college grant programs.  California and Ohio are among others that have recently gained attention for cutting aid to college students.  If you live in a state that’s been forced to reduce student financial aid, you still have options to pay for college.  Before looking into student loans or considering a semester off, conduct a free college scholarship search. Scholarships, including state and local scholarships, are still out there despite the recession.

Posted: under College Grants, College News, College and the Economy, Financial Aid.
Tags: College and the Economy, College Grants, college news, Financial Aid, grants, state grants, state news

Comments (0) Jul 31 2009

When choosing a college, a number of factors come into play, but for students applying for admission in the middle of a recession, expected salaries undoubtedly play a major role.  The website Payscale.com recently published a list of both starting and mid-career salaries, as reported by users of the site, broken down by both college and major.  The New York Times Economix blog provides a useful breakdown of this information, which may come in handy for students beginning the college search process.

In general, graduates of top colleges earned more than graduates of less competitive schools, especially at the mid-career point.  Starting salaries were also high for graduates from schools that focus on training students for highly technical lines of work.  Students majoring in engineering, economics, physics, and computer science had the highest salaries, while social work, elementary education, and theology were the lowest-paying majors.  Music also falls near the bottom: not surprising, since few musicians will have as lucrative of careers as, say, Michael Jackson, and American Idol often seems to be as viable a route to success as earning a music degree.

There were some surprises, though.  For example, philosophy majors actually outranked information technology majors for mid-career salaries, and engineering schools ousted many Ivy League universities for top starting salaries.  Additionally, the spread between the top salaries and bottom salaries at many universities was wide–for example, the top quarter of graduates from the lowest-paying school still earned more than the bottom 10 percent of those from the school with the highest median mid-career salary.

While the Payscale report relies on self-reported information from users of the site, rather than a scientific study with random data samples, it still could be useful in choosing a college or choosing a major, especially when paired with other information about the highest paying majors and the value of a college degree.  In the end, your choice of major, your choice of college, and your personal drive and abilities will all affect your starting salary and lifetime earning potential.  While choosing schools and majors that produce the highest salaries is tempting, playing to your stengths is still likely to pay off the most in the end, and may also give you a better college experience regardless of where you end up.

Posted: under College Grants, College Majors, College and the Economy, Tips.
Tags: choosing a college, college admissions, College and the Economy, college benefits, College Majors, College Search, Tips

Comments (0) Jul 21 2009

Yesterday, the House of Representatives formally introduced legislation to reshape federal student loans, federal Pell Grants, and other aspects of student financial aid.  The Student Aid and Fiscal Responsibility Act of 2009 builds on presidential budget recommendations and features several substantial changes to student aid.

A preliminary breakdown of the bill provided by the National Association of Student Financial Aid Administrators lays out the following proposed changes:

• Dividing the Federal Pell Grant into mandatory and appropriated funding, then fixing the mandatory portion to the consumer price index plus 1 percent.  Currently, the mandatory portion of the grant is $490 and the appropriated portion is $4860, so if these proportions remain the same, increases in the Pell Grant would still largely be at the whim of Congress each year.
• Eliminating several questions on the FAFSA related to assets, but preventing anyone with assets of over $150,000 from qualifying for federal student aid.
• Ending the Federal Family Education Loan Program and moving all federal Stafford Loans to Direct Loans.
• Ending subsidized Stafford Loans for graduate and professional students in 2015.
• Reverting to a variable interest rate that would be capped at 6.8 percent for subsidized Stafford Loans.
• Expanding the federal Perkins Loan program, with part of the new funding going specifically to schools that keep tuition low and graduate a high proportion of Pell-eligible students.
• Changing the rules for drug offenses to make students ineligible for aid only if they’ve been arrested for selling a controlled substance.

The Democratic majority in the House has indicated a strong intention to pass this bill quickly, with the Committee on Education and Labor planning to vote on it as early as next week.

Posted: under College Grants, College in Congress, FAFSA, Financial Aid, Student Loans.
Tags: College Grants, College in Congress, Direct Loans, FAFSA, FFEL, Financial Aid, graduate students, Perkins Loans, stafford loans, Student Loans

Comments (0) Jul 16 2009

Congress has passed and President Obama has signed a bill that provides “technical corrections” to the Higher Education Act, which Congress renewed last year.  In addition to offering clarification on several points and correcting minor errors, the Technical Corrections bill also makes some useful changes to federal student financial aid.

Minor clarifications include:

• Updating the list of veteran’s benefits not counted as financial aid to include benefits from the new GI Bill that goes into effect this year
• Stating that lenders can provide both entrance and exit loan counseling to students
• Setting 2010-2011 as the year in which the EZ FAFSA will need to be implemented

More substantial changes include:

• Authorizing the Department of Education to buy up rehabilitated student loans (loans that have gone into default and since had consistent payments made on them) under the provisions outlined in ECASLA–previously students who had defaulted on loans and since resumed payments would find their loans stuck in default status due to the credit crunch.
• Creating a new grant program for dependents of soldiers killed in Afghanistan or Iraq since September 11, 2001
• Making Pell-eligible dependents of soldiers killed in Afghanistan or Iraq after September 11, 2001 eligible for an automatic 0 expected family contribution on the FAFSA
• Changing the information schools must provide to lenders when students apply for private loans

The Chronicle of Higher Education has more information on the HEA Technical Corrections legislation here.

Posted: under College Grants, College and the Economy, College in Congress, FAFSA, Financial Aid, Student Loans.
Tags: College and the Economy, College Grants, College in Congress, credit crunch, FAFSA, Financial Aid, military, Student Loans

Comments (0) Jul 07 2009

Earlier this week, the National Association of Independent Colleges and Universities released information on tuition increases at private colleges and universities for the 2009-2010 academic year.  While tuition is increasing on average, the good news is that the tuition increase is the lowest in 37 years.

Tuition and fees are projected to go up an average of 4.3 percent at private colleges and universities nationwide, with some colleges managing to hold their increases even lower or freeze tuition rates to help students struggling to pay for school in the current economic climate. While it still greatly outpaces inflation, it’s lower than the average increase over the last 10 years, which has been around 6 percent.  The survey did not address changes in the cost of room and board.

Meanwhile, private colleges are also increasing institutional grant and scholarship aid.  On average, schools allocated 9 percent more to college scholarships and grants for 2009-2010 than the previous academic year.

Posted: under College Costs, College Grants, College News, College and the Economy.
Tags: College and the Economy, College Costs, College Grants, college scholarships, private colleges, tuition

Comments (0) Jul 02 2009