Is Financial Aid Welfare for the Rich, the Poor
and Educational Institutions?

Return on Taxpayer Investment has Been Poor
Bachelor's 6 Year Completion Rate is 60%     Certificate/AA Reasonable Period Rate is 29%
 

Aid For the Wealthy

Four year American Opportunity Tax Credit for qualified
higher education expenses apply to most taxpayers.

Eligible student include individuals and a spouse or dependent
claimed as an exemption on a tax return.

Maximum annual credit of $2,500/student for those with modified
adjusted gross individual income of $80,000 or less and $160,000
or less for married couples filing a joint return.

The credit is phased out for taxpayers with incomes above these levels.

Forty-percent is refundable so taxpayers not owing taxes can get up to $1,000 in cold cash or hot cash depending on you outlook.

Lifetime Learning Credit

$2,000 tax credit for qualified education expenses paid for all students enrolled in eligible educational institutions with no limit on the years so this is particularly helpful to graduate students, students who are only taking one course and those who are not pursuing a degree. Did this extend the traditional bachelor's degree from six years to seven, eight ...?

Some students are attending school for the money and quickly drop out and keep the grant money. Only the academically gifted and ambitious earn complete a degree. Others stay enrolled for something to do and spending money with little chance of failing because teachers have many reasons for not flunking them.

In  2010 USA Today reported that between 2004 and 2008 states apportioned $6.4 billion to institution for the education of students who had not returned for their sophomore year. In addition, state and federal grants of $1.4 and $1.5 billion dollars went to students who did not return for their sophomore year.

Federal Supplemental Education Opportunity Grant of $100 to $4,000
are administered by approved schools depending on need.

Work Study is hourly work administered by schools.

 

Aid For the Not So Wealthy

PELL Grants of up to $5,775/year for those with Financial Need

A few years ago, I stopped by Lake County CC in Leesburg Florida and learned the following.

1) Pell Grants for the needy were $5,500 per year.
2) Fulltime tuition was $92 per credit x 24 credits = $2,208/year.
3) Balance was $3,292 was available to student expenses.

After teaching and selling
Quick Notes Programmed Textbooks at both two and four year colleges I knew that about half the students bought new book. Their cost was about $1000. The rest of the PELL grant went for living expenses. Families support many students so the excess went for family expenses and spending money. By 2015, tuition was up $360 while PELL grants  were up $275. In addition, Lake County CC was Lake County State College.
I also asked if there were other grants. Answer, yes, our state also has mostly need grants.

Easy Acceptance Means Fewer Graduate

 

 

 
 

Obama Wants to End VA Exemption from 90/10 Rule.

The VA  announced that 17 for-profit colleges have failed the 90/10 rule, which states that for-profit colleges may not derive more than 90% of their revenues from federal student aid programs such as Pell Grants and direct loans (collectively called “Title IV” funding). Violators of the rule for two consecutive years will lose access to Title IV.  The Department of Veterans’ Affairs and the Department of Education found that including veterans’ benefits in the restriction would increase to 200 the failing for-profit colleges. The 90/10 rule applied to all colleges would provide a useful safeguard against schools relying on government programs  to finance academically and motivationally average students. Will lobbyists be able to stop this Obama proposal, which is now in President Trump's court.

 

 

CC Success Rate Not Good

 

 

 

U.S. Student Loan Explosion

Money Borrowed by the U.S. Government to Finance the Federal Direct Student Loan Program, FY 1998 (October 1997) through FY 2017 (May 2017)

On 30 March 2010, President Obama signed the Health Care and Education Reconciliation Act of 2010,
which resulted in the U.S. government taking over the student loan industry from the private sector.

President Barack Obama signed a law Tuesday that he said will end subsidies for banks that guarantee federal student loans, saving $68 billion over 11 years by making loans directly through the U.S. Department of Education. 

The overhaul of the student loan industry is part of the Health Care and Education Reconciliation Act of 2010, which was passed by Congress to reform the nation's health care system. 

According to the White House, starting July 1 all federal student loans will be direct loans administered through private companies that have performance-based contracts with the DOE. 

 

 

 

Graduation Rates and Employment for Familiar Colleges.

Achievement Rates
Those wanting to view additional schools or latest data should visit http://collegemeasures.org/

  Harvard
where sister  graduated
University of NH where
I lived
Saint Anselm local private school in NH Marietta College, Ohio earned BS S N H U
 private college taught there
Franklin Pierce University worked for 25 years
Goal Strategic Measure            
Completion and Progression Graduation Rate 97 78 74 63 59 49
First-year retention rate 97 86.0 88 75 73 63.0
Efficiency Cost/student (FTE) $84,000 14,900 25,500 23,800 13,731 19,000
Productivity Cost per degree $264,000 57,500 125,000 107,000 49,679 62,000
Cost of attrition* $4.0m 6.1m 1.7m 2.2m 3.5m 2.8m
Gainful Employment Student loan default rate 1.5% 2.1 1.4 4.3 5.1 4.7
Ratio of student loans payments to earnings per recent graduate** 2.9%
12/21/16
8.9%
12/21/16
11.2%12/21/16 No Data
12/21/16
No Data
12/21/16
No Data
12/21/16
* Amount spent by the college to educate first-year undergraduate students (first-time, full-time) who did not begin a second year.
** Median starting pay data presently available for 949 of the 1,576 colleges featured on this website. 

Epilogue  Those in favor of governments programs have no interest in cost effectiveness.

 

Smaller Schools Need Financial Aid to Attract Students

Editor's Note: While data shows that AA graduates earn about 50% more than HS graduates, recent data indicates that first-year top AA earners make about $40,000 and those at the bottom less-than $20,000 annually. Source Is College Economically Worthwhile?

 

 

 

"How to get your student loans forgiven"

by Peter Wylie on Aug 4, 2015, 10:35 AM

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There is more than $1.3 trillion in outstanding student loan debt weighing down personal balance sheets for recent (and not so recent) college graduates. Fortunately, there are many state and federal programs that help people manage this loan burden by getting part of their student loan debt forgiven

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is the largest forgiveness program. It is a federal government plan available to you if you have federal student loans and are Working for a qualifying institution anywhere in the US.

You qualify for PSLF if your employer is any level of government organization, any 501(c)3 non profit, or a private company that provides public services. The full list is provided by Studentaid.gov, and Gradible’s student loan evaluation tool can help you determine if your organization qualifies.

To participate in PSLF, you also need to have federal loans issued through the Direct Loan Program. Federal loans issued through the FFEL program (prior to 2010) or Perkins program loans, private loans, and Parent PLUS loans your parents took for you unfortunately do not qualify. If you have FFEL and Perkins government loans, you can consolidate these loans into the Direct Loan Program at no cost to gain eligibility, just be sure not to consolidate any Direct Loans you already have, because you would lose qualifying payments on those loans. The final step to PSLF is being enrolled and making payments on an Income-Driven repayment plan, because you can only receive the PSLF benefit after you have made 120 qualifying payments (ten years) on your student loan.

If you meet those 3 broad qualifications, you need to file a Certification of Employment to demonstrate that your employer is in fact qualifying. All qualifying payments you have made after July 1, 2007 count toward your 120 needed payments, so the first people eligible for PSLF can claim their benefits in August of 2017.

State Level Forgiveness

Many states offer programs that provide an annual amount of debt forgiveness for specific types of jobs that are in high demand and benefit the community. New York is even beginning to offer its “Get on Your Feet” plan, which covers the income-based federal student loan payment for state residents making less than $50,000.

Not all states offer student loan forgiveness, but those that do tend to focus on occupations in health services, education, social work, veterinary services, and legal work. Gradible offers a comprehensive list of state level student loan forgiveness plans in our student loan evaluation tool. To claim state level benefits, you need to fill out an application with your state’s higher education authority and follow any additional instructions they provide.

Perkins Loan Cancellations

Perkins Loans are loans made by colleges and universities to students with financial need. These loans are eligible for cancellation if you are employed in a public service field, such as education, active duty military, health services, and public safety, among others. If you think you might be eligible for Perkins Loan cancellation, check out the full list here.

Military Forgiveness

The National Guard, Army, the Air Force, and the Navy all offer student loan forgiveness options for those serving who have student loans. There are also additional programs for former servicemen and women who enter the health services field. As mentioned previously, if you served in the military in active duty, you are also eligible to have your Perkins Loans cancelled.

Income-Driven Repayment Forgiveness

Finally, you can get your remaining balance on your student loans forgiven after 20 to 25 years of on-time payments on an Income-Driven Repayment plan, such as “Income-Based Repayment” or “Pay As You Earn”. Any amount you have left after paying for those periods will be eliminated, but keep in mind that the balance forgiven will be treated as taxable income."

Thanks!
Walter Antoniotti, creator of the
Free Internet Libraries,
textbooksfree.org/,
author of the free Quick Notes Learning System books series, and President of 21st Century Learning Products which enhanced his extensive college admissions experience with an education concerning the college book business and home schooling.