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Talk is Cheap. College Isn't.

New Policy to Eliminate Pell Grants, Federal Loans, Tuition Tax Credits

Feb 23, 2016

by Susan Dutca

Talk is cheap when it comes to politicians' promises, but one thing that remains expensive is a college education. From vetoing a scholarships bill that would free up $721 million for community colleges and scholarships for low-income students, to killing the Senate Bill 180 which would require the New Mexico Lottery to provide $41 million to a college scholarships fund there has been no resolution to the budget stalemate since July 1, 2015. New America Higher Education has one resolution: out with the old, in with the new. That means removing federal loans, federal tuition vouchers, Pell grants, and tuition tax credits.

In their policy paper, "Starting from Scratch: A New Federal and State Partnership in Higher Education," New America Higher Education expressed their vision to reconstruct and repair the "broken system of financing higher education." The team plans to scrap the archaic system and replace it with a "federal-state financial partnership" where the government would dole money to states, which would go to colleges and universities - taking into account important factors such as enrolled low-income students. Students would only have to pay their Expected Family Contribution (EFC) and the state would be held accountable for student outcomes such graduation rates and securing employment. In addition to lowering tuition, the cost of living expenses such as room and board, transportation, and childcare costs would be lowered.

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States would have to maintain their current funding as provided in their individual budgets, match federal funding by 25 percent, and be responsible for performance and costs. There would be a bonus to states that contribute more than expected and also, a bonus for colleges who enroll more than 25 percent of low-income students. What's the catch? The plan would cost roughly $38 billion annually, and states would have to contribute an additional $17.9 billion. The existing system has left about 7 million borrowers in default with their student loans and the report claims that "going to college has left them in a much worse position than if they had never enrolled."

The partisanship disaster continues as colleges and universities haven't received "operating money from the state since July 1," according to Celeste Bott of the Chicago Tribune. The MAP grant provides up to $5,000 in financial aid to students who demonstrate need, according to the Illinois Student Assistance Commission. Some claim the scholarships bill would snag money from social service providers who provide care for the state's "most vulnerable residents," or that states simply do not have the money to spend. Governor Rauner agrees that the school funding formula needs to be changed.

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Do you support New America's Higher Education proposal? Leave your thoughtful comments below. Don't wait another day - take advantage of the available scholarships and learn more about grants and financial aid today.

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (27)

by Susan Dutca

Two for-profit trade schools are being accused of lying to students in order to secure millions in federal funding. After receiving a combined $107 million in federal funding in the 2014-2015 academic year, two for-profit trade schools are temporarily banned from receiving any more funding from the Department of Education after reportedly falsifying documents and student statistics in what is being called an "outright lie to both students and the federal government."

Marinello Schools of Beauty has 56 campuses in California and Nevada, 23 of which will no longer receive federal aid after reportedly requesting aid for students who had "invalid high school diplomas" and making students pay higher monthly out-of-pocket costs to cover tuition - such as $2,500 to $2,750 for books and supplies- even when they qualified for more aid, according to Jillian Berman. Marinello is a for-profit institution that received more than $87 million in Pell grants and federal loans in the 2014-2015 academic year. The chain was already on a "heightened cash monitoring” list, which is usually due to issues involving debt, accreditation or turning in financial information late. Marinello spokesman Joe Hixson plans to appeal the decision since the Department only now "disclosed to us its unfounded allegations." He maintains the intuition's innocence and warns that "[Marinello] will defend itself vigorously, without the federal funds our students deserve, our operations are at risk." This cut would affect 4,3000 students and potentially remove 800 employees from their jobs, according to Hixson.

On the other hand, Under Secretary Ted Mitchell claims that such "questionable business practices" simply "violate [the school's] trust through deceptive marketing practices and defraud taxpayers by giving out student aid inappropriately." Similarly, Computer Systems Institute (CSI) has been accused of "submitting false job placement rates" to students by the Department of Education and the Accrediting Council for Independent College and Schools. CSI had stated 42 of its students who graduated were working for a company called Home Health Consultants - the Department's investigative follow-up found no students worked for HHC or in a related healthcare field. CSI received roughly $20 million in federal funding in the 2014-2015 academic year. For-profit schools have been criticized for enrolling students through "troubling tactics" in order to profit from federal funds, leaving students ill-prepared for the jobs they were promised. While for-profit schools are known for admitting nontraditional students, many students end up borrowing large sums of money that cannot be repaid - but the school gets paid regardless.

Corinthian Colleges, known to be one of the largest for-profit schools in the US, went bankrupt after allegations of falsifying "job placement and graduation rates to lure students," according to Berman. Although the schools have two weeks to dispute the claims, Berman notes the Department of Education must “determine what qualifies as a successful borrower defense claim."

Credit attributed to Jillian Berman who covers student debt and financial issues faced by today's youth, with pieces featured in MarketWatch, The Huffington Post, Bloomberg, and Xconomy.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Comments (6)

by Scholarships.com Staff

Under the Obama administration, the motto “work hard, play harder” is continually being redefined to “work hard, pay harder”. According to The Wall Street Journal, a new plan is being finalized that will allow millions of low-income Americans to slash their monthly student-debt bills, in turn raising taxpayer costs for the government’s mushrooming student-loan portfolio. This week the Education Department proposed to expand eligibility for the Pay As You Earn program, which sets borrowers’ monthly payments as a small share of their income.

Education Department officials report that six million more Americans will become eligible this autumn for PAYE. The program caps monthly loan payments at 10 percent of discretionary income, defined as the amount above 150 percent of the poverty level. Well-paid graduates and those working minimum-wage jobs will be paying equivalent proportions of their income towards their student debt. While low-income borrowers who have incurred an unusually large federal debt reap the benefits of the revised program, a majority of college graduates and taxpayers will continue to suffer.

With a current outstanding student debt of $1.2 trillion, the White House continues to give people an economic incentive not to repay a loan. Because these loans are issued regardless of the borrower’s ability to repay, opponents of PAYE say the loans fund basic living expenses with tens of thousands of borrowers consuming aid even when they’re not enrolled for courses. Universities have also taken advantage of the flawed program, offering to pay student’s monthly bills under PAYE while simultaneously raising tuitions. The loans are turning into six-figure grants, debts the taxpayers incur.

Is the Obama Administration setting a double standard, promoting income equality, yet essentially paying young people not to pursue higher incomes? Is PAYE a program that allows those enrolled to take advantage of the system, while punishing those who work hard for their money?

Working after high school IS NOT getting you a financial jump on your college peers. You are instead creating self-inflicted wounds to your livelihood when you could be one of the six million new applicants prospering from Obama Hoods thievery. It makes absolutely no sense not to apply for financial aid with curriculums that allow you to maintain a job, programs that ease (or even lift) the burden of financial debt, and give you the opportunity to earn a degree to fulfill your childhood dreams! No individuals of any race, age, gender, or income class have an excuse to not get their degree, seeing expert assistance is as quick as completing your Scholarship.com profile.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Comments (10)

by Suada Kolovic

Here at Scholarships.com, we make a point to advocate the importance of funding your college education the right way (for free!) and while financing your higher education solely with scholarships is an amazing feat, there is another factor to consider: colleges with no tuition to be begin with. Yup, they totally exist – check out the 11 colleges below where you can earn a degree for free:

We should also mention that elite universities with healthy endowments also tout financial aid programs that pay 100 percent of tuition, room and board and fees for students from families with certain incomes – $75,000 or less at MIT, $65,000 or less at Harvard and Yale, and $60,000 or less at Columbia, Cornell, Stanford, Duke, Brown and Texas A&M. For a more detailed look at any of the schools listed or hundreds of other universities, check out our College Search. And let us know where you’re heading this fall in the comments section!

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

Comments (28)

by Suada Kolovic

Understanding how to negotiate your salary is a skill that you’ll hone over your career. Normally, many new employees want to negotiate for higher salaries...but for some, that's not always the case: Incoming University of Texas at Austin President Gregory Fenves turned down a $1 million salary because he thought it was too much. Say what?

According to the Austin American-Statesman, Fenves said (in emails obtained by the newspaper) that a $1 million salary was "too high for a public university" and that it might prompt "widespread negative attention from student and faculty given the difficult budgetary constraints of the past five years." Instead, he requested a salary of $750,000 and requested that an annual bonus be capped at 10 percent of his base salary. "It's very, very unusual, especially with what's going on today with presidential salaries. They keep going up and up and up," said James Finkelstein, a public policy professor at George Mason University who studies executive compensation in higher education. (For more on this story, check out Inside Higher Ed.)

What do you think of Fenves' decision to request a lower salary? Should more college presidents follow in his footsteps? Share your thoughts in the comments section.

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (7)

by Suada Kolovic

When choosing a major, most would agree that it's important to consider gaining lucrative employment following graduation. In a perfect world, the best college major would simply be the one that interests you most, period. But if you have a particular knack for math or science and aren't necessarily sure where those skills would translate best, consider the kinds of careers that could offer a generous return on your investment.

According to a new report from Georgetown University’s Center on Education and the Workforce, going to college pays off but by how much depends greatly on the area of study. For example, students who complete undergraduate degrees in petroleum engineering earn a median $4.8 million throughout their careers (or $136,000 a year) – more than triple the $1.4 million in median earnings (or $39,000 a year) for someone who majored in early childhood education, the report says. "The surprises are in the details," said Anthony Carnevale, director of the Center on Education and the Workforce. Just choosing a major in a STEM field doesn't secure a hefty paycheck, either: Carnevale's team found that biology majors have median annual wages of $56,000 over their careers from age 25 to 59, or about one-third less than physicists. There are also wide ranges in salaries for specific majors. The top 25 percent of earners who majored in finance can expect annual earnings of more than $100,000, while the bottom quartile may bring in just about $50,000 a year. (For more on this report, head over to the Wall Street Journal.)

Do you agree with the sentiment that majors that aren't in high demand should be avoided or should students be encouraged to pursue their passion regardless of potentially high unemployment rates? Let us know your thoughts in the comments section.

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

Comments (53)

by Suada Kolovic

Standardized testing is as much – if not more – a part of the college process as tweeting your acceptance, Snapchatting your new roomies and buying a shower caddy...or at least it used to be: According to reports, there is a growing trend toward test-optional admissions. What does that mean? If a student decided to apply to a test-optional institution, they can choose whether or not to submit ACT/SAT scores as part of their application. Thinking about signing up? Don’t shred your test prep materials into confetti just yet; here are some things to consider, courtesy of Time Magazine:

  • Your academic record: When admissions counselors evaluates a test-optional application, they pay particular attention to grades and the difficulty of the completed curriculum. Students who excel in AP, dual-enrollment, honors and IB courses – and who have the high marks to prove it – may find that test-optional admissions is particularly well suited to them.
  • Your exam history: If your exam results do not reflect your marks on most other academic tasks, test-optional admissions may be right for you.
  • Your prospective schools: Consider the colleges and universities to which you plan on applying. How many of these schools offer test-optional admissions? If even one school requires a standardized exam, it may be worth submitting your scores to every prospective college on your list.
  • Your financial aid prospects: Some academic institutions and outside organizations require ACT/SAT results as part of their decision-making process. Before you commit yourself to test-optional admissions, research the criteria for any grants or scholarships that appeal to you. If test-optional admissions will limit any needed financial aid, it may be best to follow a more traditional admissions path.

Do you think the test-optional admissions practice is the way of the future? What do you think is a better barometer of qualified applicants: test scores or essays? Share your thoughts in the comments section. And don't forget to try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search where you'll get matched with scholarships, grants and other financial aid opportunities that are unique to you!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (2)

by Suada Kolovic

Last year, we reported that Starbucks and Arizona State University had brewed up a program that would allow its employees to earn online college degrees at a steeply discounted rate. The initiative caused enough of a buzz that Starbucks is now expanding these efforts to provide the path to a full four-year online college degree.

Since its launch last year, nearly 2,000 Starbucks employees have seized the opportunity for a free college education. It’s important to note that degrees are available only through ASU's 49 online programs, which range from English to electrical engineering to information technology; students must also complete 21 credits before the company will reimburse tuition but students will not have to repay or stay with Starbucks after graduation. "The unfortunate reality is that too many Americans can no longer afford a college degree, particularly disadvantaged young people, and others are saddled with burdensome education debt," says Howard Schultz, founder and CEO of Starbucks. Schultz was the first college graduate in his family and now has a net worth of $2.6 billion. "By giving our partners [employees] access to four years of full tuition coverage, we will provide them a critical tool for lifelong opportunity. We’re stronger as a nation when everyone is afforded a pathway to success." (For more on this story, head over to Forbes.)

What do you think of this partnership between Starbucks and ASU? Would you consider working for the coffee giant if it meant you could earn your college degree for free? Share your thoughts in the comment section and for more info on how to fund your college education, head over to Scholarships.com and create a free college scholarship profile!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (6)

by Suada Kolovic

Applying to some of the top schools in the country is unquestionably unnerving but after months of stress, sleepiness nights and chronic stomach pains, it all seems worth it when you read those magical words, "Congratulations! You've been accepted." Most would celebrate such an occasion with screams of triumph, followed by an immediate Facebook update or witty tweet sharing their enthusiasm...but what would the proper celebration be when you've been accepted to not one but all eight Ivy League schools? Ask Harold Ekeh.

Ekeh has hit the admissions jackpot, receiving acceptance letters from Brown, Columbia, Cornell, Dartmouth, Harvard, Princeton, the University of Pennsylvania and Yale. This outcome, however, wasn’t just luck, for Ekeh is quite the accomplished and well-rounded student: The Elmont Memorial High School senior founded a college mentoring program, was names a 2015 Intel Science Talent Search semifinalist, directs a youth choir at his church, plays the drums, is part of Key Club and Model UN and was elected to the homecoming court. And although he’s yet to make a definitive decision as to where he will enroll this fall, there seems to be a frontrunner. "I am leaning toward Yale. I competed at Yale for Model UN, and I like the passion people at Yale had,” he said. Ekeh will spend the coming weeks visiting all the schools before making his final decision. (For more on his story, head over to New York Post.)

Share your thoughts on Harold Ekeh's story in the comments section and be sure to let us know where you're headed this fall. And for information on the Ivies or countless other universities, use our College Search tool today! And don't forget to try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search where you'll get matched with scholarships, grants and other financial aid opportunities that are unique to you!

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

Comments (28)

by Suada Kolovic

Despite the hefty sticker price associated with all elite institutions, estimated costs are actually quite affordable. In fact, Ivy Leaguers graduate with less debt than their peers who attended less prestigious schools. But how? It turns out that healthy endowment funds play a huge role in aiding low-income, middle-income and even upper-income students with tuition (and sometimes also room and board) costs. Check out 10 schools where some students pay little to nothing to attend:

  • Princeton University

    Tuition for 2015-16: $43,450
    Policy: Families making less than $54,000 a year don't pay tuition, room or board, and families making less than $120,000 a year don't pay tuition.
  • Brown University

    Tuition for 2015-16: $48,272
    Policy: Families making less than $60,000 don't pay tuition, room or board.
  • Cornell University

    Tuition for 2015-16: $48,880
    Policy: Families making less than $60,000 don't pay tuition, room or board.
  • Columbia University

    Tuition for 2014-15: $51,108
    Policy: Families making less than $60,000 don't pay tuition, room or board.
  • Duke University

    Tuition for 2015-16: $47,650
    Policy: Families making less than $60,000 don't pay tuition, room or board.
  • Harvard University

    Tuition for 2015-16: $45,278
    Policy: Families making less than $65,000 a year don't pay tuition, room or board.
  • Yale University

    Tuition for 2015-16: $47,600
    Policy: Families making less than $65,000 a year don't pay tuition, room or board.
  • Stanford University

    Tuition for 2015-16: $45,729
    Policy: Families making less than $65,000 a year don't pay tuition, room or board, and families making between $65,000 and $125,000 a year don't pay tuition.
  • MIT University

    Tuition for 2015-16: $46,704 (includes mandatory fees)
    Policy: Families making less than $75,000 a year don't pay tuition.
  • Dartmouth College

    Tuition for 2015-16: $48,120
    Policy: Families making less than $100,000 don't pay tuition.
  • With acceptance rates hovering at less than 10 percent at many of these schools, gaining access to the funding above is fiercely competitive. Do you think it's fair for students who don’t meet the Ivies' steep admissions standards to be saddled with crippling debt or should the ones that do be rewarded with an affordable, brand-name education? Let us know what you think in the comments section. And don’t forget that even affordable college tuition can still be expensive! Try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search, where you'll get matched with scholarships, grants and other financial aid opportunities that are unique to you!

    And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Comments (34)

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