New NEA Poll on College Affordability

At no time in history has a college education been more necessary or expensive - students are resorting to loans in greater numbers and in greater amounts than ever before.

A new National Education Association poll released yesterday on college affordability found that 61% of current students and 77% of recent graduates used student loans to finance all or part of their college educations. The amount of student loans has also increased for our generation. 34% of recent college graduates totaled their student loan debt to $20,000 - $49,999. Only 6% of parents shouldered that same financial burden for their college years.

College costs are obviously a huge concern for young people, with a full three-quarter of current students naming it as a very important issue for them in the upcoming election. Students have been hit hard on a number of fronts by the faltering economy – tuition is rising, textbooks are more expensive, and even filling up the gas tank to get to class can be a challenge. The debt students accumulate in school can follow them around for years after they graduate, severely impacting the quality of their lives as they struggle to repay loans. But, not many elected officials are actually talking about the high cost of education and the impact it is having on our generation. Another 83% of survey respondents said Congress has done a poor or just fair job on the issue of college affordability.

A majority expressed support for increased federal involvement in finding a solution for rising college costs. According to the NEA poll, respondents favored a plan to offer all incoming college students an annual $4,000 tuition credit in exchange for 100 hours of public service per year over a proposal to expand the lender-of-last-resort capability of the federal student loan program and demand higher standards for private lenders by a 2 to 1 margin.

So where do the current presidential candidates stand? Check out Barack Obama’s position on education here. John McCain’s plan can be found here.

So, what do you think of the proposals currently on the table? What’s your idea for making college affordable for everyone? Let’s hear it!

Biggest victory for student aid in more than a decade

From Kat Barr, Rock the Vote's Director of Education:

If you’re dreading the tens of thousands of dollars in debt you’ll rack up as a side order to a college diploma, listen up: things just got a bit brighter.

Today, Congress passed the biggest reform to college student aid in more than a decade. The Senate voted 79-12 in favor; the House of Representatives voted 292 to 97. The White House is expected to sign it into law soon.

The bill contains a number of great things for young adults. A couple highlights below:

• The maximum Pell Grant – the program that helps five million students pay for college each year – was upped by $490 next year and will bump up by $1,090 over five years. Right now, the max you can get is $4,310; five years down the road, it’ll be $5,400.
• Instead of paying back student loans based on how much you owe (how it works now), this bill allows grads to pay back based on their income. Basically, if you’re an investment banker, you’ll pay at a rate that makes sense for your six-figure salary – but if you’re an elementary school teacher, you’ll pay back at a rate that doesn’t break your bank.
  

There’s more – lowered interest rates on federal loan repayment, for instance – and if you want to know more, check out http://www.studentdebtalert.org, http://projectonstudentdebt.org, or http://www.ticas.org.

Student Relief Package Sails Through the House

Breaking News! Well, sort of. The U.S. House of Representatives just passed the "College Cost Reduction Act of 2007," which will boost federal funding by $18 billion over the next five years while simultaneously reducing subsidies to lenders. The bill also increases investment in minority institutions, controls student repayment rates and creates loan-forgiveness programs. Under the act, the maximum value of Pell Grants, which are need-based federal scholarships, would increase by $500 over the next five years, and the interest rates on need-based government student loans would be halved to 3.4% from 6.8%. Representative George Miller (D-CA), the chair of the House Committee on Education and Labor, stated that the "bill is a remarkable step forward in our efforts to help every qualified student go to college."

The Senate is expected to vote on a similar bill later this month. However, the White House has stated they may veto the bill, for it only "benefits students once they leave school." In a Statement of Administration Policy, the White House's Office of Management and Budget recommended that Pell Grants be increased $1,340 (from $4,050 to $5,400) over the next five years to help students who are currently in college or are contemplating enrolling in it. Though the debate surrounding the near future of student loans and grants is bound to be exciting, hopefully both the legislative and the executive branches keep the best intentions of the bill's subjects--the youth of this country--in mind.

Can You Put a Price on Education?

According to the National Center for Public Policy and Higher Education, while more and more Americans are recognizing the value of a college education in today's workforce, an increasing number are fearful that prices may become prohibitively high, preventing qualified students from getting the education they deserve.

Their report, titled, "Squeeze Play: How Parents and the Public Look at Higher Education Today," found that half of Americans believe that a college education is "necessary for success in the workplace," a record high, and up from 31% in 2000. At the same time, 62% believe that many qualified students won't have the opportunity to go to college, up a whopping 17 points from 45% in 1998.

Respondents in the report's poll blamed the colleges themselves for wasteful spending and bloated programs that don't improve the quality of education. "'The public may voice satisfaction with the education that colleges and universities deliver, but there is evidence that this satisfaction with the system as a whole is beginning to erode.' says Patrick M. Callan, president of the National Center for Public Policy and Higher Education."

Invoking the American dream, Callan continued, "There is a growing concern that some colleges and universities may no longer reflect what the American public has valued most about higher education: a commitment to opportunity and quality for young people."