college affordability

Making Sense of the Rising Cost of College

Alex Carter — Thu, 29 May 2008 09:45:39 -0700

As college students celebrate graduation this May, their joy is combined with the harsh reality they face post-graduation--many of these students will graduate with unmanageable levels of loan debt that they can not afford basic necessities. Conservatives will tell you they are dedicated to expanding educational opportunities and in the same breath let the banking and student loan industry know, “I have all of you in my two trusted hands.”

The basics are clear:

- When Bush took office in January 2001, the cost of tuition at a public four year institution was $3,501. The cost of tuition in 2006-07 was $5,685 —an increase of 39%; even at the same time median household income has decreased 2% .
- The social safety nets are failing under Bush’s watch: over 400,000 qualified high school graduates can not attend college each year because of its burdensome cost, the Pell Grant only covers 33% of a student’s annual college costs (in 1975, the Pell Grant covered 84%) , and he stripped over $12 billion from the federal student loan program to fund his tax cuts for the wealthy.

The connections are clear as well; President Bush and conservatives did everything to fatten the pockets of the bank and loan industry while ignoring the plight of qualified high school graduates obtaining a college education. Conservatives did nothing to help promote college affordability and accessibility for years. Pell Grants remained at the same level, affordability was not addressed, and state-tuition levels continued to skyrocket. Bush’s yearly budgets contained massive cuts in higher education funding and favorable policies to the $85 billion private student loan industry.

However, Bush and conservatives made sure the bank and loan industry was taken care of. The private student loan industry’s cozy relationship with Republicans and their “Raid on Student Aid” was of no coincidence. During the tenure of former Chairman of the Committee on Education and Workforce Rep. Job Boehner (R-OH) told the Consumer Bankers Association,

“Relax. Stay calm…at the end of the day, I believe you’ll be at least satisfied, or even perhaps happy….
Know that I have all of you in my two trusted hands.”

It just so happened, the student loan industry contributed over $290,000 to Boehner’s PAC and the private student loan goliath Sallie Mae was the number one contributor to his campaign in the 2003-04 election cycle.

We must continue to connect the dots; Bush and conservatives in Congress do not care about college accessibility and affordability; however, they place the banking and loan industry in their “two trusted hands.”

For more about the college aid issue, click here (www.ourfuture.org/makingsense2008)

Textbook costs getting hard to cover

Alex Carter — Wed, 16 Apr 2008 08:42:28 -0700

A growing chunk of college costs is the price of textbooks, on which the typical undergraduate spends $900 a year. So a group of college professors is calling for low-priced and free texts online. Congress is getting involved, too.

Fewer Options Open to Pay for Costs of College

Alex Carter — Mon, 14 Apr 2008 09:16:48 -0700

Parents will have to navigate unfamiliar and difficult terrain when it comes time to pay for college this year, with student loan companies in turmoil and banks tightening their standards and raising rates on other types of borrowing.

House panel OKs higher limits for student loans

Alex Carter — Fri, 11 Apr 2008 07:58:21 -0700

Students may increase their borrowing for college by $2,000 a year and private lenders could sell the debt to the government for a profit under legislation approved by a House panel yesterday. The measure, passed by the House Education and Labor Committee on a voice vote, is intended to ensure that turmoil in the credit markets doesn't prevent students from financing their educations, sponsors said.

Student Loan Upheaval Prompts Congress Action

Alex Carter — Wed, 09 Apr 2008 07:40:47 -0700

The $85 billion student loan business is in turmoil and with millions of U.S. students locking in funding for the coming school year, Congress is scrambling to make sure enough money is available.

Student Loan Guarantor Faces Bankruptcy

Alex Carter — Tue, 08 Apr 2008 10:05:26 -0700

The Education Resources Institute Inc, which calls itself the largest not-for-profit guarantor of U.S. private education loans, has filed for Chapter 11 bankruptcy protection, saying rising defaults and credit market problems have damaged liquidity.

Student Debt: Out of Control

Alex Carter — Fri, 14 Mar 2008 09:49:54 -0700

Debt levels for graduating seniors with student loans more than doubled over the past decade – from $9,250 to $19,200.

Pell Grants: Declining in Helping the Cost of College

Alex Carter — Fri, 14 Mar 2008 09:47:44 -0700

20 years ago, Pell Grants covered half the cost of attending public college. Today, it’s only one-third.

Bars not books

Eric Lotke — Wed, 12 Mar 2008 12:24:54 -0700

In the past 20 years, total state spending on prisons increased five times as fast as state spending on higher education (127% v. 21%).

Sallie Mae Sued for Racial Bias

OurFuture.org Staff — Fri, 18 Jan 2008 02:20:05 -0800

Two student loan borrowers have filed a lawsuit against Sallie Mae, accusing the lender of charging higher interest rates and fees to minority students. Sallie Mae has acknowledged that that it takes colleges’ default rates into account when setting interest rates. Institutions that serve large numbers of minority students often have higher default rates than other colleges do.