Student Loan News, Updates and Blog Posts

In the wake of the changes in the economy and the increase in students going to college, the face of college campuses has changed along with the times.  Student’s have more options and flexibility for classes such as hybrid classes and getting their degree online. There have been changes that range from different majors offered to increased tuition, to a change in administration at many colleges across the U.S. Outlined below are the 5 top changes that are being seen at colleges and universities throughout the states:

1. Demographics: There are more students over the age of 25 than ever before; recent surveys suggest 40% of the student population is over the age of 25. Also the female to male ratio is said to be 60-40.
2. Community College & Proud of It: gone are the days when you do whatever it takes to get into that prestigious school. People don’t want to burden themselves with debt anymore, especially in an uncertain economy. There is also less judgment on where a person has a degree from when searching for a job. It’s the degree that matters, not really where the degree is from. (no including if you went to an IVY league school..that tends to make a difference).
3. Internet in the Classroom: Many professors have moved away from note writing on the blackboard and turned to planned out PowerPoint presentations, online videos and displays, and even using an online plagiarism tool to scan student’s work for plagiarism (watch out kids!).
4. Online Classroom Influx: The number of students getting their degree in the comfort of their own home has increased dramatically over the past 5 years…so to has the legitimacy of these degrees. This change has allowed  many people to continue to work full time and still earn a degree.
5. Purchase a college: These days parents and adult students are looking at college as a personal purchase…something they buy. If they aren’t fully satisfied with any aspect of it (grades, professor, administrative issues), the consumer speaks up and fights to change it. If a school is disorganized and run poorly, a student will transfer out instead of pushing through it. Hey…your paying for it, so you might as well be satisfied. This also has forced colleges to do everything possible to make the consumer/student content.

What about you? Share your experiences by leaving a comment…or add  ones I didn’t write about. If you are a returning student I would love to hear your comparison of college now as opposed to 5 or 10 years ago.

Points code: CHANGE4ME

This actually happened to me during my principles of math class last summer. My computer froze up 15 minutes into a 90 minute timed exam.

There was a test each Monday (5 total) and you could take the exam anytime during the week leading up to that Monday if you wished. The first three tests went well. I had no computer issues and scored an 86% or better on each, but my luck ran out with number four.

I eventually had to shutdown and reboot the computer which lost me over 15 minutes of valuable test time. When I logged back into the test the clock was still running and I was still on question number 8. Not knowing how this was going to work I just plugged away and did my best the rest of the way. I ended up scoring a 72%. After which I emailed the professor to explain to him what had happened.

He verified on his end that there was about a 17 minute lapse time between my question 7 and 8 answers. He then gave me one of three options.

1. Keep the 72%
2. Take a backup exam which had 20 questions opposed to his normal 50 question exam.
3. Take the 5th test and if I scored an 89% or better, which was my average, than the 72% would become an 89%. If I score less than an 89% the 72% would stay.

I was kinda hoping he would let me start on question 8 with 75 minutes to go, but no such luck.

Anyway, the point I’m trying to make is that you have an online professor who is there to help you, and chances are you will not be the first person to encounter such an problem. As great as technology is, it is not without a virus or two to frustrate us from time to time. You may also want to check your course syllabus as many professors will list the proticol right there.

By the way, I went with option 3 and score a 95% on test number 5. That’s right, I rolled the dice and it paid off. Next stop Vegas.

Mary on Twitter asked:

Working on post about pros and cons of getting student loans. Your thoughts? Any links? Thanks!

Here’s a brief list.

Student loan pros
- Student loans allow you to afford colleges that you couldn’t pay cash out of pocket to attend
- Student loans, especially Stafford and PLUS federal loans, have fixed interest rates that, while not always the lowest, are predictable and easy to budget for
- The Stafford loan requires no creditworthiness, only eligibility based on the FAFSA, making it ideal for tough economic times
- PLUS loans and private student loans require creditworthiness but no demonstration of need, making them suitable for families that are too well off to qualify for need based aid but not well off enough to simply cut a check to the college
- Student loans, especially federal student loans, have a variety of flexible repayment options, including payments that scale with your income, along with deferment, forbearance, and consolidation

Student loan cons
- Student loans are largely non-dischargeable, even in bankruptcy, which means you’re stuck with them forever
- Student loans, especially federal student loans, can be collected via wage garnishment and a variety of other mechanisms that other loans can’t be, such as seizure of income tax refunds
- Student loans may not be the lowest cost of borrowing if you’re able to obtain good terms on other consumer loans like home equity loans
- Student loans can be far too easy to overborrow, especially for students who don’t have strong personal finance skills, graduating with massive amounts of debt in a few short years
- Student loans are convenient, which means that students may not pursue lower cost options for college such as aggressive scholarship searching or lower cost colleges

Ultimately, whether or not you borrow a student loan is a function of time. If you plan far ahead, if your parents plan far ahead, the chances are good you can attend college for very little money borrowed or no money borrowed. Students who have used our free college scholarship search eBook, Scholarship Search Secrets, have brought in tens of thousands of dollars each in scholarships, greatly reducing the cost of college. On the other hand, students who need funding as soon as possible find some success with our private student loans, at the cost of incurring debt that they’ll need to repay over the years ahead.

By Ben Miller and Stephen Burd

The Federal Reserve Board has proposed regulations that could significantly weaken a federal law that aims to protect students from being misled into taking out high cost private student loans. In a notice in the Federal Register on March 24, the agency said that it is considering including exemptions, or "safe harbors," to a provision Congress added to the Higher Education Act last year that prohibits lenders from using a college’s name, mascot, logo, or emblem to market private loans to students.

Under the Federal Reserve’s proposal, a lender would be able to continue engaging in these practices as long as it disclosed "in a clear and prominent way" that the college it is referring to "does not endorse the creditor’s loans, and that the creditor is not affiliated with the educational institution." The agency says that this "safe harbor approach" is needed because a lender "may at times have legitimate reasons for using the name of a covered educational institution" in its marketing materials.

The Federal Reserve also proposes widening this exemption even further for private student loan providers that appear on a college’s preferred lender list. In those cases, the agency says, it "would be misleading" for a lender to state that a school has not endorsed its loan products. Instead, it would simply require that the lender "clearly and conspicuously disclose that the loan is not being offered or made by the educational institution."

At Higher Ed Watch, we believe that these proposals would completely undermine both the letter of the law and its intent. But we don’t believe that the fault for offering these misguided proposals rests entirely with the Federal Reserve. Congress is also to blame for sending mixed signals to the agency about how this provision should be enacted.

The language that Congress included in the Higher Education Act reauthorization legislation it approved last year is absolutely unequivocal in prohibiting co-branding. It reads:

"A private educational lender may not use the name, emblem, mascot, or logo of the covered educational institution, or other words, pictures, or symbols readily identified with the covered educational institution, in the marketing of private education loans in any way that implies that the covered educational institution endorses the private education loans offered by the private educational lender."

However, in report language accompanying the final bill, the legislation’s authors appear to back away from the blanket prohibit. They suggest that lenders could comply with this provision simply "by including a clear prominent and conspicuous disclaimer that the use of the name, emblem, mascot, or logo" of a college "in no way implies endorsement by the covered educational institution of the lender’s private education loans."  In the Federal Register notice, the Federal Reserve specifically cites the report language to explain its justification for its proposals.

While we understand that the conferees muddied the waters with their explanation of the provision, we believe that the Federal Reserve should be obligated to abide by the letter of the law rather than by the explanatory statement in the conference report. We also believe that the proposal to exempt loan providers that are recommended by colleges to their students is a direct violation of law, which clearly prohibits colleges that have entered "a preferred lender arrangement with a lender" from allowing that loan provider to use its "name, emblem, mascot or logo" in the marketing materials it provides students. The conference report is silent on this provision.

A bright-line prohibition is absolutely needed because as we’ve seen over the last several years, the use of co-branding can lead to significant confusion among students who may believe that a loan from a private creditor is actually endorsed, if not disbursed, by their schools. This lack of clear understanding can influence borrowing decisions, leading students to take out loans they may not have otherwise considered. Given that private loans carry very high interest rates and are extremely difficult to discharge in bankruptcy, it is absolutely essential that borrowers are fully informed about the type of debt they are taking on.

If co-branding is still occurring, the types of disclosures that the Federal Reserve proposes would not bring sufficient clarity to students. In most other types of marketing, there is a clear understanding that the appearance of an individual or symbol on a product or as part of a commercial is an endorsement on their part. Students will generally make the same assumption when assessing private loan marketing materials. In other words, they may focus more on a symbol that appears to imply endorsement than on a disclosure that says it does not.

As a result of all the controversy surrounding co-branding, many lenders, including loan giant Sallie Mae, have stopped or at least scaled back their engagement in these types of activities. If the Federal Reserve’s proposals are enacted, we fear that loan providers will revert to form, leaving students as confused as ever. Surely that’s not what Congress intended when it approved legislation containing this vital provision.

Monday Rant!

Has anyone noticed that the classes you need to complete your major, once you hit your senior year, are nearly impossible to get into sometimes? With budget cuts (less classes) and increased student volume it can be maddening to get a seat.

To secure a bachelors degree you need to earn 120 credit hours with a certain number of those credits allocated to your major, but I know students who are going to fly right past 120 credits and still not have their degree. It’s really a product of poor class management.

What many do is leave classes under their major until their senior year. Then they end up scrambling to get a seat into those classes so they can graduate on time. Sometimes they are even relegated to a random night class, which is more expensive at most schools, just to get it done.

My advice to all of you is to not wait until your junior and senior years to take the classes which fall under your major. Pick them off as you go. It will make your life less stressful and may actually cost you less time and money in the long run.

Wave goodbye to the stresses of cramming for finals and writing term papers and say hello to the stress of finding a job. Although there are some positives to report, so lets focus on that.

Just last week Careerbuilder.com complied a Top 10 list of best cities for employment for ‘09 grads. And although it may not be your first choice to relocate it may wind up being a necessity in order to find employment.

Sometimes you need to think outside of your comfort zone (50 miles from your house) and expand your horizons. Consider new regions and cultures to make your mark. You’ll be better off for it.

Five most recent student loan help blog posts:

Subscribe to RSS headline updates from:
Powered by FeedBurner

Online education has undergone a metamorphoses in recent years, not unlike the ugly caterpillar that blossoms into a beautiful butterfly. The concerns once raised by skeptics centering around the validity and relevance of an online degree in the marketplace have since been quelled. Questions now tend to focused on payment options. I think you may be surprised to learn just how easy it is to finance your online education.

Many online schools participate in the Federal Student Aid grant and loan programs, just the same as any certified ground campus you may attend. That means for schools such as the University of Phoenix, Kaplan University, American Intercontinental University, Argosy University, Walden University, Keiser University, Capella University, Everest University, and Grand Canyon University, just to name a few, federal loans are at your disposal. They are all Title IV certified schools that offer federal aid to their students.

To qualify for federal aid you simply complete your FAFSA and list the school or schools (up to four) that you are interested in attending. The school(s) will then receive a copy of your student aid report from the Department of Education which they use to determine your federal aid eligibility. But for those who do not qualify for federal aid, or don’t qualify for enough, private loans are also available to you.

Private loans serve as a great supplement or alternative to federal loans. And with interest rates at historic lows there has literally never been a better time to borrow the funds needed to help cover the cost of tuition, books, and other direct educational needs.

It is also a good idea to sign-up for as many scholarships as possible. Here at the Student Loan Network we give away free scholarships every month ranging from $500 to $10,000 to eligible students. What students love most is that you don’t need to hold a certain GPA or submit an essay to qualify. If you attend a certified Title IV school located in the U.S. you are automatically qualified. Don’t miss out. To register (click here).

Follow your dreams and find the online degree program that’s right for you.

Five most recent student loan help blog posts:

Subscribe to RSS headline updates from:
Powered by FeedBurner

The third semester, better known as summer school, has seen an increase in student attendance in recent years. That’s really not surprising when you consider each graduating class has been bigger than the last. The U.S. population is now over 304 million, up from 273 million just a decade ago.

With enrollment on the upswing and the same amount of seats available in the classroom students have been turning toward summer school more and more to fill the gap when classes have been filled to capacity during the fall and spring semesters.

Of course because the academic period for most schools begins in the fall and ends the following summer many have exhausted their federal Stafford loan funds already. The loan periods determine the timing and amount of disbursements. In this case the fall and spring semesters would have disbursements, assuming the student was enrolled both semesters, which most are.

The next best option, after you’ve exhausted your federal loan funds, is a private student loan. Private student loans are popular these days because of the low interest rates that many enjoy. Banks use two main indexes to determine a borrowers interest rate, LIBOR and Prime. Regardless of the index used the interest rate is low across the board at this time to encourage consumers to borrow. That means you and I are the winners.

Additional note: Private student loans are in a students name and do require a credit worthy co-signer.

To enter for a chance to win a monthly scholarship ranging from $500 to $10,000 (click here).

After reading the Top 5 Reasons Online Classes Rock Collette asked a great question. In fact, I thought so much of it I decided to write this blog figuring some others may have similar concerns about the type of help available to you when taking an online class.

Collette’s Question: I would love to take an online course but was wondering:, can you still get help in these type of courses? In most of my classes I work with other students to help learn the material. Without an actual “classroom” is there another way to still get that type of help?

Answer: YES. There are a few notable ways to get the help you need when taking Online classes.

Professor’s: Online classes have an actual professor who is available to students. Some professor’s set a day during the week aside to answer student queries, like say each Monday night from 6-8pm. Other professors instruct students to post questions on the message board with a guaranteed response time of 24-48 hours. Procedures may vary, but a professor is always available. You’ll want to check your course syllabus for further details.

Forum’s: Online classes have forums and/or virtual classrooms where students can bounce thoughts, ideas, and questions off each other. This was a great place for me to go when I took an online class. I read some of the Q&A’s from my peers. I found that extremely helpful.

On Campus: One reader, Sarah, left a post saying she had a teacher tell her she could attend the class on campus if she wasn’t understanding the material.

As you can see help is definitely available to you should the video and audio lesson plans not be enough. Thanks again to Collette for asking that question.

Five most recent student loan help blog posts:

Subscribe to RSS headline updates from:
Powered by FeedBurner

For those students who’ve defaulted on their federal students loans the price can be steep. Below are some additional consequences which may arise if your loans fall into default.

Potential Defaulted Loan Consequences

Defaulted Student Loan Consequences (1 of 2)