Daily Kos collects college affordability horror stories

Last week we featured a blog entry from Daily Kos (you can read that entry here) that collected some college debt horror stories. That article was one part of a 14 part series that is now complete. There are some great stories in there detailing the, sometimes extreme, lengths that college students will go to in order to stay afloat. The entire series of articles has now been collected and you can read them all here.

Ryan Westart, IL

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Aaron M talks about college affordability and consumer awareness

I take pride in supporting groups like Got Tuition and the College Affordability Concerns Me campaign because they focus on the real issues of student debt. The companies offering loans to college students are largely at fault for the increasing trend of students in financial ruin and must continue to be vetted. These major financial institutions initially had the freedom to ask for a frighteningly high interest rate on their loans, which the students could not turn down as they relied on the funds to continue attending college. And of course there was the student loan kickback scandal.

These banks and private lenders are not the only folks to be involved with the lack of student financial assistance. We must continue urging the U.S. Congress to renew worthy legislation like the College Cost Reduction and Access Act and ensure that our representatives know the reality of student debt in society today. Such laws can limit interest rates and rate hikes as well as increase amounts of Pell grant funding. The College Opportunity and Affordability Act has now been passed, a bill that will offer cheaper textbooks and adjust the FAFSA form for easier use. Laws like this will only help the obvious need for legitimate financial aid opportunities available to students today.

Another underlying theme in the world of student debt is the general lack of financial knowledge among college students. Maybe one consumer education course in high school is simply not enough to properly inform young adults of the importance of their credit score, the need to be diversified, and the effects of overdrawing a bank account or submitting a late payment on a student loan or automobile lease.

So please continue to be aware of fraudulent financial aid proposals, unfairly high interest rates, congressional action on behalf of college students (and prospective college students) and check out sites that inform consumers about finances, like the NEA’s Financial Services and Investment programs for educators. Groups like Got Tuition must continue to fight for increased access to financial aid for all qualified students despite their ability to pay.

Aaron M.

Robbie Morgan, ND

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Massachusetts Educational Funding Authority no longer providing private loans

Due to the economic downturn we are experiencing, the Massachusetts Educational Financing Authority has had to exit the private loan market and cutting back its services. Over 40,000 students used this service to help find low-cost private loans and will now have to look elsewhere to pay for school. You can read about the impact this will have on students here.

New York Times article on the Higher Education Opportunity Act

The New York Times has a nice article outlining some of the changes that will go into effect due to yesterday's passage of the Higher Education Opportunity Act (HR 4137). Some of the most visible changes are:

• Pell grants are now available year round, not just during the academic year
• Colleges must disclose all relationships with student lenders
• Bans gifts and revenue-sharing schemes between colleges and student lenders
• Textbook "bundles" must now be available as separate parts as well, no more getting stuck with buying DVDs and workbooks that you don't need for classes
• The Fafsa will be overhauled and be available in a new, two page, Fafsa-EZ format

You can read the complete article here.

Higher Education Opportunity Act gets final approval

The Committee on Education and Labor released a statement yesterday affirming that the Higher Education Opportunity Act of 2008 (HR 4137) has received final approval. The statement also, briefly, outlines the effects of the act. You can read their statement here.

Update:
You can read Rep. George Miller's (chairman of the House Education and Labor committee) statement here.

U.S. Secretary of Education Margaret Spelling's statement can be read here.