With multi-billion dollar corporations going under, some of the effects are hitting close to home, but most financial aid for students should remain safe.
While the government may soon be handing out $700 billion to help stabilize financial markets , student loan opportunities won’t be affected by the spending, Minnesota Department of Higher Education spokeswoman Barb Schlaefer said.
Nothing has changed in terms of loans and grants because of what’s happened on Wall Street, she said.
There is more pressure on the federal government, however, to cut costs to pay for the War in Iraq and the potential bailout, University Office of Student Finance Director Kris Wright said.
“It’s going to make it more difficult to make education a high priority,” she said. “On the other hand, I can’t imagine a Democratic congress not wanting to fund increases to the Pell that President Bush agreed to.”
According to statistics, 63 percent of University students received some form of grant or scholarship in 2007, Wright said. The same statistics showed the total University loan volume was over $3.7 million.
Source
Wednesday, October 29, 2008
Wednesday, October 22, 2008
Getting a student loan is becoming more challenging
Rising tuition fees, coupled with the weak economy, makes it tough for anyone to afford college.
According to the College Board, the average annual bill to live and attend school full time at a four year private institution was more than $32,000 last year. That is $13,000 more than it was just ten years ago.
Nationally, 8.9 million students filed for aid during the first half of 2008. That is a 16.3 percent increase from last year.
The chaos in the financial markets has driven many lenders out of the student loan business altogether, leaving students looking for help wherever they can get it.
College life comes at a cost. Student, Koedy Brant told Action News, "I don't have enough money to pay for my college. I got thousands of dollars in scholarships and Cal grants and federal aid, but it was still not even close to being enough."
That is why many college students apply for loans. But these days getting a loan is getting tougher.
Source
According to the College Board, the average annual bill to live and attend school full time at a four year private institution was more than $32,000 last year. That is $13,000 more than it was just ten years ago.
Nationally, 8.9 million students filed for aid during the first half of 2008. That is a 16.3 percent increase from last year.
The chaos in the financial markets has driven many lenders out of the student loan business altogether, leaving students looking for help wherever they can get it.
College life comes at a cost. Student, Koedy Brant told Action News, "I don't have enough money to pay for my college. I got thousands of dollars in scholarships and Cal grants and federal aid, but it was still not even close to being enough."
That is why many college students apply for loans. But these days getting a loan is getting tougher.
Source
Wednesday, October 15, 2008
State panel gets $100 million for loans to college students
In the midst of turmoil in the credit markets, the Illinois Student Assistance Commission has come up with $100 million to lend to college students.
"At a time when other states are getting out of the student loan business, Illinois is making $100 million available through the Illinois Department of Education," ISAC Chairman Don McNeil said at a news conference Friday at the Scott Credit Union.
"Student loans are falling to pieces," said Andy Davis, executive director of the commission.
He said he and his colleagues were looking for loans to pump into the state's student loan program but were unable to find the cash at a time when the blue-chip financial companies were in dire straits.
"They turned us down," he said.
Davis said he decided to contact a statewide credit union association to persuade them to supply the cash. He also enlisted the help of Secretary Dean Martinez of the Illinois Department of Financial and Professional Regulation. Within six weeks, state government approved a plan, whereby the credit unions act as "wholesalers" of the loans, and the federal government will back them.
"The credit unions will have the protection of federally guaranteed loans, which are safer and more affordable," said Lynda Andre, an ISAC board member and assistant superintendent of the Edwardsville School District. The loans will be called "Stafford Loans," as have previous federally backed student loans.
The lack of liquidity in the credit markets because of the sub-prime mortgage collapse, steadily increasing tuition costs and changes in federal policy that cut lender profits resulted in a "perfect storm" for student borrowers, a state spokesman said.
State student loan agencies in Massachusetts, Pennsylvania, Michigan and elsewhere have announced they have no money to lend this year.
"Credit unions stood up tall for students when commercial lenders ignored them," said Patrick Smith, director of strategic services for the Illinois Credit Union League. He said credit unions did not participate in the high-risk mortgage market that helped bring on the financial crisis across the country.
Source
"At a time when other states are getting out of the student loan business, Illinois is making $100 million available through the Illinois Department of Education," ISAC Chairman Don McNeil said at a news conference Friday at the Scott Credit Union.
"Student loans are falling to pieces," said Andy Davis, executive director of the commission.
He said he and his colleagues were looking for loans to pump into the state's student loan program but were unable to find the cash at a time when the blue-chip financial companies were in dire straits.
"They turned us down," he said.
Davis said he decided to contact a statewide credit union association to persuade them to supply the cash. He also enlisted the help of Secretary Dean Martinez of the Illinois Department of Financial and Professional Regulation. Within six weeks, state government approved a plan, whereby the credit unions act as "wholesalers" of the loans, and the federal government will back them.
"The credit unions will have the protection of federally guaranteed loans, which are safer and more affordable," said Lynda Andre, an ISAC board member and assistant superintendent of the Edwardsville School District. The loans will be called "Stafford Loans," as have previous federally backed student loans.
The lack of liquidity in the credit markets because of the sub-prime mortgage collapse, steadily increasing tuition costs and changes in federal policy that cut lender profits resulted in a "perfect storm" for student borrowers, a state spokesman said.
State student loan agencies in Massachusetts, Pennsylvania, Michigan and elsewhere have announced they have no money to lend this year.
"Credit unions stood up tall for students when commercial lenders ignored them," said Patrick Smith, director of strategic services for the Illinois Credit Union League. He said credit unions did not participate in the high-risk mortgage market that helped bring on the financial crisis across the country.
Source
Wednesday, October 8, 2008
State approves $100 million deal for college student loans
The state commission in charge of student loans approved a $100 million deal Friday to keep offering loans to students in Illinois.
The Illinois Student Assistance Commission met in Edwardsville and approved a unique arrangement with eight credit unions, including metro-east-based Scott Credit Union. The deal was brokered fairly quickly, with only six weeks from the beginning of talks to Friday's news conference.
Andy Davis, executive director of the commission, said he approached 12 major banks and at least half a dozen foreign banks to invest in student loans, but major lenders nationwide have bailed on student loans to shore up their financial walls during the subprime mortgage crisis. Some states, including Minnesota, Massachusetts and Pennsylvania, simply shut down student loan programs, though Massachusetts recently announced it would resume student loans after a mass bond sale.
The credit unions are a unique solution in the United States, Davis said.
"College will be more affordable for thousands of Illinois students thanks to today's vote," said Donald McNeil, commission chairman. "This deal ensures that our college students will be protected from the credit crisis that paralyzed student lending in other states."
Student loans administered by states are guaranteed at 97 percent by the federal government. Illinois agreed to cover the remaining 3 percent for the credit unions, which has been approved by the Illinois Department of Professional and Financial Regulation.
Locally, 78 percent of students at Southern Illinois University and more than 90 percent of students at McKendree University rely on some form of financial aid.
Lynda Andre, assistant superintendent of Edwardsville District 7 and a commission member, said the deal will "protect Illinois students as consumers."
"By enabling students to borrow federally guaranteed loans instead of private loans, students get loans which are safer, more affordable and less-complicated," she said.
The $100 million investment will provide loans for as many as 20,000 college students per year.
Source
The Illinois Student Assistance Commission met in Edwardsville and approved a unique arrangement with eight credit unions, including metro-east-based Scott Credit Union. The deal was brokered fairly quickly, with only six weeks from the beginning of talks to Friday's news conference.
Andy Davis, executive director of the commission, said he approached 12 major banks and at least half a dozen foreign banks to invest in student loans, but major lenders nationwide have bailed on student loans to shore up their financial walls during the subprime mortgage crisis. Some states, including Minnesota, Massachusetts and Pennsylvania, simply shut down student loan programs, though Massachusetts recently announced it would resume student loans after a mass bond sale.
The credit unions are a unique solution in the United States, Davis said.
"College will be more affordable for thousands of Illinois students thanks to today's vote," said Donald McNeil, commission chairman. "This deal ensures that our college students will be protected from the credit crisis that paralyzed student lending in other states."
Student loans administered by states are guaranteed at 97 percent by the federal government. Illinois agreed to cover the remaining 3 percent for the credit unions, which has been approved by the Illinois Department of Professional and Financial Regulation.
Locally, 78 percent of students at Southern Illinois University and more than 90 percent of students at McKendree University rely on some form of financial aid.
Lynda Andre, assistant superintendent of Edwardsville District 7 and a commission member, said the deal will "protect Illinois students as consumers."
"By enabling students to borrow federally guaranteed loans instead of private loans, students get loans which are safer, more affordable and less-complicated," she said.
The $100 million investment will provide loans for as many as 20,000 college students per year.
Source
Wednesday, October 1, 2008
Child and family issues dominate election trail
Families and children dominated the campaign trail. The Liberals and NDP tackled child care issues at campaign stops in Ontario while the Conservatives promised changes to tobacco marketing in an effort to protect kids.
Liberal Leader Stephane Dion kicked off the day campaigning in London, Ont., where he promised to make post-secondary education more accessible with a grant that would be delivered to students four times a year.
Dion, speaking at the University of Western Ontario, said the quarterly education grant would replace complicated and "often irrelevant" tax credits for students.
He said the Liberals would also create a 20-year education endowment fund worth $25 billion.
If elected, over the next four years, the Liberal plan would allow the government to provide 200,000 needs-based bursaries of up to $3,500 annually.
For certain minority groups, the plan would provide 100,000 access grants of up to $4000 per year, by the fourth year of the plan.
Dion said every student, regardless of parental income, would be eligible for a $5,000 student loan.
The plan also would support the indirect costs of university-based research by more than 60 per cent to $500 million a year.
Source
Liberal Leader Stephane Dion kicked off the day campaigning in London, Ont., where he promised to make post-secondary education more accessible with a grant that would be delivered to students four times a year.
Dion, speaking at the University of Western Ontario, said the quarterly education grant would replace complicated and "often irrelevant" tax credits for students.
He said the Liberals would also create a 20-year education endowment fund worth $25 billion.
If elected, over the next four years, the Liberal plan would allow the government to provide 200,000 needs-based bursaries of up to $3,500 annually.
For certain minority groups, the plan would provide 100,000 access grants of up to $4000 per year, by the fourth year of the plan.
Dion said every student, regardless of parental income, would be eligible for a $5,000 student loan.
The plan also would support the indirect costs of university-based research by more than 60 per cent to $500 million a year.
Source
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