Blog

04/2014

Unpredictable Interest Rates Make Federal Grants Even More Important

According to Congressional Budget Office estimates for the 2015-16 school year, the average undergraduate borrower will pay 5.72 percent to borrow from the federal government; for graduate borrowers the rate is forecasted at 7.27 percent, and for Parent Plus loans, 8.27 percent. All rates are higher than what students paid to take out loans this year.

What may be even more troubling than the rising interest rates is that the CBO has projected that the federal government will generate $127 billion in profits from loan payments over the next decade.

Gainful Rule Is Exactly What Students of Color Need

Originally posted on The Equity Line 

Enough with the argument that the proposed gainful employment regulation is a disservice to black, brown, and low-income students. What the National Black Chamber of Commerce has billed as unfairly targeting students of color is, in reality, an opportunity to better the institutions that serve them. The regulation would finally develop minimum standards for cost and quality for thousands of career education programs, many of which leave students hugely underprepared for work and in a deep hole of debt that is almost impossible to climb out of.

A majority of career education programs at for-profit colleges — 72 percent — produce graduates earning less on average than high school dropouts.

Senators Introduce Bill to Protect Pell Grants

 

35 years ago the maximum Pell Grant paid for 77 percent of the cost of tuition at an in-state, four-year college, today, that same Pell Grant pays for less than one-third of a student’s education. Furthermore, students who want to attend school year round to finish their degree in less time are not allowed to receive year-round Pell funding.  

With nearly nine million American students depending on Pell Grants to attend and complete college, this program must remain a priority in Washington.   

Luckily, there is some good news.