All Articles Tagged "clark atlanta university"
When most Americans leave college, they not only leave with a degree but debt. And, according to a new analysis by US News & World Report, if you are a student at HBCU Clark Atlanta University, you will leave with more debt than the average American college student.
The study found that the average debt of a 2011 Clark Atlanta graduate is $47,066, and 94 percent of students borrow money to attend the school. The magazine ranked a total of 270 colleges. On the flip side, another HBCU, Howard University, came in sixth on the list of colleges where students had the least debt. Howard students graduate with an average debt of $15,080.
There are ways to avoid debt while in college. As we reported before, Pell grants offer up to $5,550 to the neediest students. There are also work-study programs, which are need-based.
Income-based repayment, a program started under Obama in 2009, allows borrowers to adjust monthly payments to 15 percent of their income, which will erase the debt in 15 years. According to Bloomberg Businessweek, however, the program hasn’t worked as well as hoped — at least not yet. One reason is many students don’t know about the program or if they qualify. “To get into the program, you have to apply through the bank that services your loan, but many banks don’t tell borrowers about the program. They aren’t required to do so, and… they make more money if monthly payments are higher,” the magazine says. To encourage more participation, the Obama administration will drop the threshold from 15 percent to 10 percent for some borrowers.
Michael Szarek, the founder and president of College Counseling for the Rest of Us, emailed us nine suggestions for reducing your college debt.
1) Actually, don’t stay out of debt completely. In other words, DO borrow. Some. But only borrow from the Federal Direct Loan Program. (This will cap your lending at $31,000 for your undergraduate career).
2) If possible, only borrow a portion of your loan eligibility. You are under no obligation to borrow all of it, and too many families look at the decision to borrow as “all or nothing.”
3) Determine what you can pay out of pocket via a monthly payment plan. Every dollar paid directly is money not borrowed.
4) Know your college’s costs before enrolling. Many students start a college program without knowing or understanding the actual cost. Like all major purchases, know the actual price before buying.
5) If you can’t afford that particular school, don’t go. That can be a hard decision to make, but you can use community college credits to save money, work to earn money, or both.
6) Finish in four years. If you thought college was expensive, try adding an extra year or two.
7) Earn community college credit in the summer and winter. But make sure – beforehand – that the credits will transfer back to your baccalaureate institution.
8) Avoid credit cards. There is a reason why so many campuses ban credit card sales representatives.
9) If you have to borrow, do borrow for an education, not for a iPod or gaming device.
(AJC) — A student housing project at Clark Atlanta University has run into financial trouble that could push nearly $52 million of the Atlanta Development Authority’s bonds into default, recent bond filings indicate. A nonprofit company that was created by the Atlanta Development Authority to funnel money to the student housing project “has experienced significant operating deficits” as a result of vacancies and “might not be able to continue as a going concern,” Atlanta accounting firm Reznick Group warned bond investors in a recent filing. The Atlanta Development Authority issued $51.9 million worth of bonds on behalf of the university in 2004 to refinance an earlier $20.7 million bond issue and to expand the student housing facility by 598 beds, according to bond documents. The so-called revenue bonds were structured so that they will be repaid over the next 25 years from rental revenue from the student housing project. Beyond that, the development authority isn’t on the hook for the debt. Clark Atlanta University has struggled financially in recent years, and it cut staff in 2009 after seeing a drop in enrollment.
(AJC) — The revelation that Clark Atlanta University paid its former president more than $1 million the year he retired shocked and angered faculty and many alumni, but the chairwoman of the university’s board of trustees says it was a good deal for the financially struggling school. In his final year at Clark Atlanta, 2008, Walter Broadnax was among the 30 highest-paid private-college presidents in America, according to the annual salary study by the Chronicle of Higher Education, which was released last week. His total payout that year came to $1,158,537. “The contractual payout amount was not out of line with the job we were asking Dr. Broadnax to do,” board chairwoman Juanita Baranco said. “He came in and literally transformed the university, so the contract was a sound business judgment when we entered into it in 2002.. I do want to emphasize that this was a unique situation.”
(Atlanta Journal Constitution) — The American Association of University Professors censured Clark Atlanta University Saturday over the institution’s decision to fire 55 full-time faculty members in 2009. The group said the professors were fired without faculty consultation or proper due process. The association said the university used a false “enrollment emergency” as a pretext for the firings.