What’s the latest in the world of higher education?

$10,000 Tax Credit for Higher Education- In President Obama’s first State of the Union address he talked about his agenda in making higher education more affordable.  To make higher education a reality for many, a $10,000 higher-education tax credit for families may be part of their payment plan.  For those with existing student loans, debt forgiveness may be a possibility for people who have been repaying their college loans for at least 20 years.

Biggest Worry for College Freshman?- Approximately 2/3 of freshmen said they were either somewhat or very worried about their ability to finance their college educations. About 55% said they had “some” concerns about money and 11% indicated they had “major” concerns about paying for college.   

The survey was conducted by the Higher Education Research Institute at the University of California at Los Angeles.  The survey is called “The American Freshman: National Norms Fall 2009”.  This report has been in existence for 44 years and provides institutions with information about the demographic profile, perceptions, and mind-set of their incoming freshmen classes.  For more information on the survey, go to http://www.heri.ucla.edu/

Why Do Students Drop Out?- Seventy-one percent of those surveyed who had quit college said that work was a factor in the decision, and more than half said it was a major factor. About 35 percent of those who dropped out said they had tried to balance work and study, and found it too stressful.

A report was produced by Public Agenda, a nonpartisan nonprofit research group, with support from the Bill & Melinda Gates Foundation.  More information can be found at the following link- http://www.publicagenda.org/theirwholelivesaheadofthem

Part Time Students account for close to 40 percent of undergraduates in the country—and those who have to work generally do not do as well as their full time counterparts.

College News and Views

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  If you would like to see additional topics or a greater emphasis on certain areas, just let us know.

University of California students protest 32 percent tuition increase 

Imagine a 32% increase in tuition costs!  The California Board of Regents instituted a 32% increase due to the budget crisis in the state. 

Protesting students and others say the increased tuition will hurt working and middle-class students who benefit from state-funded education. But officials argue that a fee increase and deep cuts in school spending are necessary because of a persistent budget crisis that has forced reductions across California’s state government. 

Hundreds of Thousands Claimed $532M in Excess College Tax Credits 

The Hope tax credit is designed to help middle class families pay for college — but not this much. A Treasury Department Audit found that several hundred thousand taxpayers sought credit in 2006 and 2007 for more than half a billion dollars more than they were supposed to by claiming the tax credit for a third or even a fourth year; it is limited by statute to two years. The agency’s inspector general for tax administration found that the IRS system is not set up to flag taxpayers who seek the credit for more than two years, and that agency officials lack the ability to disallow claims for Hope credits because of “math errors.” The audit recommends that the IRS be given that authority. The Hope credit was significantly expanded for 2009 and 2010 as part of the federal economic stimulus package. 

Managing the College Admissions Process

With the downturn in the US economy, what are colleges doing to manage the number of students enrolled and financial aid awarded.  Take a look at the results of the NACAC (National Association for College Admission Counseling) survey.   

Admissions Strategies for 2009 and planned for 2010

WES iGPA (International Grade Point Average) Calculator- for Students

Do you need to convert your GPA to the 4.0 scale used in the US?  Knowing your GPA is the simplest way to learn how you compare to others when you apply to study in the United States. Colleges and universities want to evaluate your grades based on the 4.0 GPA scale.  Go to: http://www.wes.org/students/igpacalc.asp to use the calculator.

College News and Views

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  Here are some of the latest items of interest:  

 The Start of Tuition Discounting and the Current State

How did this discounting get started?  Some believe the high tuition, high aid model creates a Chivas Regal effect. So named for a high-priced Scotch whiskey, the Chivas effect suggests that people weighing the merits of two similar institutions will tend to think the more expensive one is superior. There’s also a compelling case to be made that students and their families are apt to attend high-discount institutions because they’re flattered by the offer of aid and perceive the large discount as a good deal.

Between the early 1990s and 2007, average tuition discounts for first-time freshmen grew from 27 percent to 39 percent, according to the National Association of College and University Business Officers. While there’s no survey data available for 2009, many college presidents say they offered even larger discounts this year — convinced that it was necessary to double down at a time when affordability was such a concern for families.

Report from the AASCU Urges Colleges to Emphasize Math, Science, and International Studies

A new report by the American Association of State Colleges and Universities.titled “Leadership for Challenging Times,” is the result of a yearlong study by the association’s Presidential Leadership and Global Competitiveness commission, which consisted of 13 college presidents. It highlights some of the challenges that American higher education faces, including declining student interest in math and science, weaknesses in elementary and secondary math and science education, and the increasing cost of college.

The report also said that americans ages 25 to 34 are less educated, on average, than their parents’ generation, and are less likely than their predecessors to earn degrees in science, technology, and mathematics.

New CLEP (College Level Examination Program) classes

A few months ago, CLEP launched two new exams: College Composition and College Composition Modular. At the same time, three CLEP exams will be retired:

• English Composition with Essay will be replaced by College Composition
• English Composition will be replaced by College Composition Modular.
• Freshman College Composition will be replaced by College Composition Modular.

Both of the new examinations will assess writing skills taught in most first-year college composition courses.

College Composition includes multiple-choice items and two mandatory essays scored by CLEP. College English faculty from throughout the country score the essays via an online scoring system.

College Composition Modular includes a multiple-choice section that may be supplemented either with an essay section provided by CLEP and scored by the college, or an essay section provided and scored by the college. This exam is intended for colleges that want a valid, reliable multiple-choice assessment and greater local control over the direct writing assessment.

College News and Views

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  Here are some of the latest items of interest:  

Senator Edward Kennedy’s Impact on Students and Higher Education

During his term (1962 to 2009) in the US Senate, Senator Edward M. Kennedy authored more than 2,500 bills.  Several hundred of these bills have become public law.  Here are some of the ways in which Senator Kennedy has impacted higher education:

Student Support Services program - Senator Kennedy supported the creation of the Student Support Services program (Higher Education Act of 1968).  The program provided tutoring and mentoring to low income, first generation students in order to keep them in school and improve graduation rates.  These programs are known today as the TRIO program.  TRIO participants include: Oprah Winfrey; Actress Angela Bassett; NBA Basketball Player, A.C. Green; correspondent for ABC News “Prime Time Live”, John Quinones; the first Hispanic astronaut, Franklin Chang Diaz; the first African-American astronaut, Bernard Harris; and many more.

Basic Educational Opportunity Grant – Senator Kennedy worked with Senator Clairborne Pell in the early 1970’s to support the creation of this grant which came to be known as the Pell Grant.

Direct Lending Program – Over 12 million students have benefited from low cost loans due to Senator Kennedy’s work with the Budget Reconciliation Act of 1993.

School to Work Opportunities Act – This created a partnership between employers, educators, and others in order to prepare students for careers in high skill high wage jobs. 

College Cost Reduction Act – In 1997 this bill authorized a $23 billion increase in student aid.

Higher Education Opportunity Act of 2008 – For the first time in a decade the Higher Education Act was reauthorized.  College has become more accessible and affordable by simplifying the application process for financial aid and expanding aid for the neediest students.

Establishing AmeriCorps – Senator Kennedy was the author on a bill that created AmeriCorps and Learn and Save America.  After graduating, over 17 million people have participated in Learn and Save America and over a half million in AmeriCorps.

SAT Class of 2009 is a Record Breaker

Laurence Bunin, senior vice president of the SAT program, said that “The SAT Class of 2009 is a record-breaker” noting that it was the largest and most diverse group to take the test.

This year the average scores were as follows:

• 501 on the critical-reading section
• 515 on the mathematics section
• 493 on the writing section

The average mathematics score is the same as it was in 2008, while the reading and writing scores each dropped one point. Each section is scored on a scale from 200 to 800.

Finding the Right College Roommate

Matching roommates is a tough task for most colleges who sometimes find themselves scrambling after the roommate assignments come out. This can be an extremely busy time of year when students may not be happy with their selection for a roommate.  Finding the right match takes a lot of work.  Here are some options colleges have to make this matching process easier:   

RoommateClick, the web’s leading roommate-finding site, launched in 2006. RoommateClick provides a service that lets students take a proactive approach in selecting a roommate, a task that has historically fallen to campus housing.  Students who find they have mutual interests can request to room with each other through this site.

In the next year RoommateClick looks to face competition in the higher-education market from RoomBug, a Facebook application.  RoomBug allows a Facebook user to specify lifestyle preferences–bedtime, neatness, academic vs. social focus, etc. — and those he or she is looking for in a roommate. The application provides a list of compatible matches with whom the user can then network via Facebook.

With college just starting up or about to start shortly, the news and views are heating up.  Here are some items of interest in the spotlight. 

Beloit College Mindset List Class of 2013

Every year Beloit College, a private liberal arts college located in Beloit, Wisconsin, comes out with a list of what the current freshman class has experienced throughout their lives or what may not have been a part of their lives.   

Here are the first ten in the list and also #28 which refers to Bobby Cox-Atlanta Braves manager (we couldn’t skip this once since we’re based in Atlanta).  For the complete listing, go to http://www.beloit.edu/mindset/2013.php

1. Dan Rostenkowski, Jack Kevorkian, and Mike Tyson have always been felons.

2. The Green Giant has always been Shrek, not the big guy picking vegetables.

3. They have never used a card catalog to find a book.

4. Margaret Thatcher has always been a former prime minister.

5. Salsa has always outsold ketchup.

6. Earvin “Magic” Johnson has always been HIV-positive.

7. Tattoos have always been very chic and highly visible.

8. They have been preparing for the arrival of HDTV all their lives.

9. Rap music has always been mainstream.

10. Chocolate chip cookie dough ice cream has always been a flavor choice.

28. Bobby Cox has always managed the Atlanta Braves.

Trends in Student Loan Industry 

• Credit underwriting standards have been raised as credit performance within the student loan industry has been strained due to the current recessionary environment.
• Loan default rates have materially increased.
• Immediate repayment option is being emphasized.
• Obama administration proposal to have federal Direct Loan Program replace FFELP in 2010.

How will this impact those that are applying for or receiving student loans

•  You will need to get a co-signer if credit is marginal or worse.
• Private loans are getting more difficult to get.
• The amount of unmet need is likely to rise.
• The majority of disbursements will be going directly to the school.

Banks Increase Margins on Private Student Loans

Many large banks have recently increased their margins on the funding of both new and existing Private Student Loans.  Some of these increases have been without warning..

If you currently have existing Student Loans with a financial institution that has increased your rate, you may want to consider your options to refinance that loan.

US News and World Report-Solving the College Crisis

This edition has something for everyone who plans to go to college or may currently be in college.  It’s divided into four sections:

• 1. How To Fix Higher Education
• 2. The Changing Face of College
• 3. Paying For College
• 4. The Rankings

Resources-US News and World Report, Chase Bank, Chronicle of Higher Education, Inside Higher Education