News and Announcements
Beware the "Prosper" Act!
The Prosper Act will cost you if passed. It is designed to return proprietary schools to their former status which allowed them to operate in unethical ways resulting in graduates without jobs and with huge student loan bills. And speaking of loans, there is proposed legislation to get rid of student loan subsidies. Stay tuned!
Program Changes in 2018:
Note that some student loan servicers previously eliminated from student loan programs in previous administrations have been reinstated. They are listed in an announcement on this page. Let the borrower beware!
Rising Costs in 2018-19:
The student loan rate for 2017-18 was 4.49% for undergraduates and 7% for their parents. Those rates rose for the 2018-19 school year as interest rates increased. The student loan interest rate is based on treasury bill rates as of July 1st. The 2018-19 rates are 5.05% for undergraduate student borrowers and 7.6% for parent PLUS loan borrowers.
In May, 2017 four student loan servicers previously barred from student loan collections were reinstated:
- Navient-owned Pioneer Credit Recovery
- Enterprise Recovery System,
- National Recoveries, and
- Coast Professional
When your student loan goes into repayment, if you see that one of these companies will be in charge of your account, you may want to do some research on your options. Contact them, ask questions and get answers in writing.
My Kid Got in...How Do I Pay?
In the summer and fall, parents worry about whether their kids will get into a good college. In the winter and spring, they have the mixed emotions of My Kid Got In! and How Do I Afford This? The good news is that there is a different strategy for each type of financial condition. Don't tell your kid he cannot go until you have explored how college financing works. Work with a professional first to make sure you understand your options and how college financing processes work before you talk to your kid about which colleges on his list of acceptances your family can afford.
2020 Admissions Rush
Most parents think their rising high school junior has plenty of time to get ready for the 2020 college application process. The bad news is that they have only have 4-8 weeks to get it all done after Labor Day. Some college early application deadlines are October 1 and 15! If there is a rising high school senior at your house, it's time to get busy!
Who Got into College in 2018?
Admission officials continue to receive record numbers of applications from highly qualified students. An increase in the number of highly qualified students applying to in-state colleges has created an admissions challenge at both moderate and highly selective four-year public colleges. As a result of growing opportunities for students to achieve and distinguish themselves and parent concerns about economics, the students who are admitted to highly and moderately selective colleges have higher grades and standardized test scores than in prior years. Students who do not fit that profile who are also admitted are those who have distinguished themselves in other ways and who have amazing essays. Students who thought they could claim moderately selective colleges as "safety" schools have been shocked and disappointed by being wait-listed in some cases. This is the era of "packaging" what you have got going for you as you apply to college...and choosing colleges wisely.
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