All Articles Tagged "cost of college"
In an effort to collect on student loan repayments as the number of delinquencies rise, schools are increasingly turning to the court system for help. The result is lawsuits filed against graduates who are falling behind in payments.
According to the Today show, colleges and universities across the nation, including Ivy League schools like the University of Pennsylvania, are using the courts to compel students to repay loans that the schools, by law, have to collect on. Unlike other debt, graduates can’t shake student loan debt even through bankruptcy proceedings.
Lowering the financial burden of getting a college education was one of the big points President Obama made during his State of the Union address in January. This Washington Post article makes the case that for most people, college debt is not as crushing as some of the extreme stories we’ve been hearing lately would indicate. In fact, if you study something that leads to a well-paying career, college education is as valuable as it ever was.
But the case has also been made for the fact that tuition and college costs keep rising at a time when the job market is in trouble. Moreover, the jobs that some students are preparing for do not reflect the way that the market is going, where digital technology, innovation, and other qualities are more highly valued.
In an op-ed from a couple of weeks ago Charles Blow writes in The New York Times that we’re entering an era of “the new normal” where “students and their families to continue to make increasingly greater financial sacrifices in order to complete a postsecondary education.” And the burden is being felt most among those in the lower income brackets.
Just this week, the Obama administration cut commissions for the collectors who chase borrowers for repayment, Bloomberg reports. This should push collection companies to adhere to federal laws which state that collectors should offer repayment terms that help borrowers get back on track. Previously, collectors could make thousands of dollars by forcing borrowers to pay more than they could afford to get themselves on a better financial footing.
Be strategic folks. If you’re planning for college — or any big purchase — be realistic about what you can afford, save your money, and move at the pace that will allow you to reach your goal without a debt that will follow you for decades.
Last night, President Obama gave the first State of the Union address of his second term (we live tweeted it here) and he raced through a number of big issues that he’d like to see Congress act on in the coming months. One of those issues, and possibly most unexpected, was a higher minimum wage.
But there were others that will be up for debate — among Congresspeople and voters alike. Here, we outline nine of the big ones. And in the comments, feel free to chime in with your thoughts and debate. That’s democracy at work!
Given the relatively high rate of unemployment and the dismal job growth projections, how important is a college degree? From recent graduates new to the job market to 20-year veterans who find themselves recently unemployed, the scarcity of jobs has forced many professionals to accept positions that pay less and have a lower education requirement. This has prompted some people to question the value of pursuing a college education.
(Bankrate) — As college tuition continues to skyrocket, studying abroad may appear an academic luxury. But for even the financially neediest of students, study abroad remains within reach, experts say. So instead of putting the brakes on your kid’s desire to roam the world, it’s time to get that passport ready. “The biggest thing in study abroad, if budget is a big concern, is that the student plan ahead,” says Brett Berquist, executive director of the Office of Study Abroad for Michigan State University in East Lansing, Mich. “An awful lot of students, particularly in public schools, end up making the choice of study abroad toward the end (of their academic career). And when they wait that long, they often miss the opportunity to really compete for big scholarships.”
With all the talk these days about the exorbitant cost of a college degree, some may wonder if a degree is actually worth it. Ivy league schools boast the highest tuition but also offer the most lucrative networks, which begs the question is it about where you go or the cost value of your education. TAP correspondent weighed in on the topic via her fellow New Yorkers.
(New York Times) — Gov. Andrew M. Cuomo said Monday that he would support allowing the flagship campuses of the State University of New York to charge higher tuition than the rest of the system, a stance that could pit him against fellow Democrats who worry that lower-income students could be priced out of the top schools. The governor said he would support a State University proposal to set a five-year schedule of tuition increases at all SUNY undergraduate campuses, and would allow the four research campuses — at Albany, Binghamton, Buffalo and Stony Brook — to propose their own, higher undergraduate tuition increases, subject to legislative approval. “There is no cookie cutter,” Mr. Cuomo said at a news conference. “Some may decide that they need to increase tuition; some may decide they don’t. We’re trying to flip the model.” Under the new model, he said, “we’re not going to tell you what to do.”
(AJC) — Tuition increases have become a spring ritual for Georgia’s colleges and this year they’re as dreaded as pollen. Heightened attention from students, parents and lawmakers can be traced to the recent overhaul of the HOPE scholarship. For 18 years, the award covered all tuition for students with 3.0 GPAs, but the scholarships for fall will be reduced for all but the very brightest. That’s left some students and parents, who will be paying the difference, more worried than usual about tuition hikes. For their part, lawmakers are bristling over their lack of control over tuition. They will conduct hearings this year on a proposed constitutional amendment to limit the Board of Regents’ power to set tuition. Tuition, they say, should increase little or none this fall, when HOPE will cover 90 percent of tuition for about 90 percent of qualifying students. But that’s unlikely. The chancellor and the regents, who are scheduled to vote on fall tuition later this month, have warned of possible double-digit increases at some campuses. That won’t happen until the Legislature approves the university system’s 2012 allocation, which is forecast to drop from about $1.95 billion to $1.74 billion. State budget cuts will have a greater effect on tuition than changes to HOPE, Regents Chairman Willis Potts said. Less than a third of the system’s nearly 311,000 students get HOPE scholarships, but the system lost about $1 billion in state funding in the last decade.
(The Loop 21) — With student debt nearing $1 trillion and Americans owing more on student loans than on credit cards, you know it’s bad when the national media finally pays attention. And that’s exactly what happened this week when CNBC premiered a special called “Price of Admission: America’s College Debt Crisis.” The report was compelling and well done except for one glaring omission: It didn’t feature any students or families who were African American or of any other non-white ethnicity. If CNBC goes as far as to say college debt is a national crisis – and indeed it is – then that fact should have been made obvious in its reporting about its effect on students and families from all ethnicities and backgrounds.
(The Network Journal) – As many Americans scrounge for holiday deals, they might consider plunking those dollars saved into a college-savings fund for their children or grandchildren. But what’s the best place to park money that needs to grow at a rate to keep up with rapidly rising tuition costs? It might be a 529 plan, where tax-free earnings can give you an edge. But the plans aren’t all created equal. A 529 college-savings plan allows you to invest money for a family member that you later withdraw income-tax-free to pay for the relative’s education costs at almost any accredited college, community college or vocational school. It’s funded with after-tax money but grows tax-free to cover qualified items including tuition, room and board and textbooks.
(AJC) — Georgia students and their families can expect to spend more of their own money on college now that lawmakers and Gov.-elect Nathan Deal have put dramatic changes to the HOPE scholarship on the table. Suggestions include decreasing the scholarship’s amount, raising the minimum grade-point average from a 3.0 to a 3.2 and eliminating remedial classes from what’s covered, said Rep. Len Walker, R-Loganville, chairman of the House Higher Education Committee. Deal said last week that the intent is to “salvage the program.” Walker expects to have formal recommendations by Jan. 1.