Higher Ed Watch: Publications, Events and More

Michael Dannenberg in APM's Marketplace | Student Loans Are Getting Whacked

Communications — Thu, 17 Apr 2008 11:50:00 -0400

New America in the News:

APM's Marketplace | Student Loans Are Getting Whacked

Bank of America and a unit of Citigroup have joined a growing list of lenders cutting back on student loan programs. At the same time, the House passed an emergency bill that would enable lenders to have more cash to keep making loans. John Dimsdale reports.

TESS VIGELAND: OK, here's another side-effect of the credit crunch: Student loans are getting whacked. Today Bank of America and a unit of Citigroup joined a growing list of lenders cutting back on student loan programs. Also today the House passed an emergency bill to give the Education Department more authority to buy up student loans. That way, presumably, lenders would have more cash to keep making them. John Dimsdale reports from Washington.

JOHN DIMSDALE: Today the Bank of America joined the dozens of lenders who've recently withdrawn from the federally-guaranteed student loan business. Yesterday, the nation's largest student lender, Sallie Mae, announced a $133 million loss in the first quarter of this year. That compares to more than $100 million in profits last year. But the editor of HigherEdWatch.Org, Michael Dannenberg, isn't worried yet.

MICHAEL DANNENBERG (Director of the Education Policy Program at the New America Foundation): There are a couple thousand student loan providers -- federal student loan providers. There are two fail-safe systems in place. There's definitely a crisis for some individual lenders, but that's different from actual students. Theoretically, something very bad could happen down the road, but we're not there yet. . .

Steve Burd in U.S. News | Look Twice at Loan Advice

Communications — Tue, 15 Apr 2008 07:13:00 -0400

New America in the News:

Look Twice at Loan Advice (U.S. News & World Report)

. . . Stephen Burd, a senior research fellow at the New America Foundation, says many colleges are affordable without the help of private loans at all. Plus, Burd adds, federal loans also are due only after graduation, and the subsidized ones don't accrue interest while students are still in school, as most private loans do—a fact not mentioned in the ads. . .

Steve Burd in CQ Weekly | "In Student Loan Market, A Direct Approach"

Communications — Sun, 06 Apr 2008 13:51:00 -0400

New America in the News:

In Student Loan Market, A Direct Approach (CQ Weekly)

. . . But private lenders who need help face a dilemma. "Lenders are sort of putting themselves in this weird spot, where on the one hand they're raising huge alarms on the viability of their program, and on the other hand are trying to make sure they don't scare schools into the direct loan program," said Steven Burd, a senior research fellow at the New America Foundation. more

Academic March Madness

Ron Tang — Sat, 05 Apr 2008 06:36:00 -0400

If you've watched any of the televised men's college basketball tournament this year, you've been bombarded by NCAA commercials that declare: "There are 380,000 NCAA student athletes... and just about every one of them will go pro in something other than sports."

It's an uplifting tagline, but there's a catch. In order to "go pro in something other than sports," that athlete needs a college degree. And far too many male athletes in top-tier Division I basketball programs never graduate.

The teams that played in the Sweet 16 this year have some of the worst academic records in the country, particularly the… more

Taming the Tuition Beast

Ron Tang — Thu, 03 Apr 2008 12:47:00 -0400

It's not news that the cost of a college degree has risen significantly over the last couple of decades.

Since 1990, tuition and fees have risen by nearly 225 percent at four-year public colleges and by 154 percent at private four-year colleges. The real story is that tuition growth rates often fluctuate wildly from year to year -- which makes it hard for families to plan ahead and budget enough to cover the costs.

Last year, students at Villanova faced an unexpected tuition and fee increase that was double the previous year's.

Students entering Penn State in 2002 had no way of knowing… more

Lindsey Luebchow in Cleveland Plain Dealer | DC Group Ranks NCAA Teams by Players' Graduation Rates

Communications — Sat, 29 Mar 2008 00:28:00 -0400

New America in the News:

Cleveland Plain Dealer | Washington Group Ranks NCAA Teams by Players' Graduation Rates

Forget wins and losses. Disregard the strength of schedule. Pay no attention to margins of victory.

Call it March madness, but what if the teams in this year's NCAA men's basketball tournament were ranked by diplomas rather than dunks?

That's a rite the Washington, D.C.-based New America Foundation celebrates each spring. Earlier this week, the nonprofit public policy institute released its own tournament bracket that has to do more with mastering Joyce than making jump shots.

The foundation, an advocate for greater equity in school funding and college financial aid, uses the big-time tournament to underscore a big-time problem: A majority of players leave college with neither a professional career nor a four-year degree. In all, 55 percent of Division I players do not graduate. About 1 percent of them make it to the NBA.

"Amid the flashy, commercialized spectacle that is March Madness, few think about the players who aren't going to be able to go pro in anything, basketball or otherwise," said policy analyst Lindsey Luebchow, who created the bracket. . .

To view the New America Foundation's Academic Sweet 16 bracket, go to Higher Ed Watch.Org.

Lindsey Luebchow on WTOP Radio in DC | Top B-Ball Shools Have Poor Grad Rates

Communications — Thu, 27 Mar 2008 06:11:00 -0400

New America in the News:

WTOP Radio in DC | Top B-Ball Shools Have Poor Grad Rates

New America Foundation Education Policy Analyst Lindsey Luebchow discussed the Annual Academic Sweet Sixteen bracket results with WTOP Radio in DC. Also, Luebchow's comments on the NCAA teams' academic ranking appeared on CBS Radio's nationally broadcast morning show (3/27/08). Following these hits, the Los Angeles Times published Luebchow's op-ed "Academic March Madness."

Lindsey Luebchow writes for New America's Ed Money Watch and Higher Ed Watch blogs.

Michael Dannenberg in Inside Higher Ed | 'Hedging Bets on Student Loan Availability'

Communications — Thu, 13 Mar 2008 13:02:00 -0400

New America in the News:

Hedging Bets on Student Loan Availability (Inside Higher Ed)

. . . “I think he’s doing the right thing in seeking to calm fears of parents or financial aid officers scared by newspaper headlines, and by demonstrating that Congress is ready to act should there be widespread problems for students themselves, as opposed to some lenders,” said Michael Dannenberg, director of the Education Policy Program at the New America Foundation. Dannenberg said that Kennedy’s plan should be viewed not as opening the door to students’ borrowing more but as allowing them to shift their borrowing to less-costly federal loans rather than more expensive private ones. . .

New America Foundation in Inside Higher Ed | 'A Student Loan Credit Crunch — But for Whom?'

Communications — Wed, 12 Mar 2008 08:34:00 -0400

New America in the News:

A Student Loan Credit Crunch — But for Whom? (Inside Higher Ed)

. . . “Students with poor credit ratings, particularly those at trade schools whose graduates have poor repayment track records, might be unable to find a willing private student loan provider,” the New America Foundation’s Education Policy Program wrote on its blog this month. “All students, however, who apply for a private student loan with a creditworthy co-signer should be able to obtain a loan and obtain it at a lower interest rate than they otherwise would receive. Private student loan borrowers who don’t have a creditworthy co-signer and who are pursuing academic programs at schools with dubious job placement and loan repayment track records should consider lower cost education options.”

The idea suggested in the New America post — that the credit crunch isn’t a major problem because it is affecting mostly students at for-profit colleges, and should actually prod students who take out costly private loans at for-profit schools to enroll instead in community colleges or other lower-cost institutions — has been a subtext of some of the discussion surrounding the credit crunch, and reveal just how differently the crisis is perceived in various quarters. . . .

Michael Dannenberg in University Wire news | "Student Loan Field Takes Defense"

Communications — Wed, 05 Mar 2008 15:55:00 -0500

New America in the News:

Student Loan Field Takes Defense (University Wire)

. . . Michael Dannenberg, director of the education policy program for the New America Foundation, a nonpartisan think tank investigating the student loan crunch, said the media had merged private student loans and federal student loans' susceptibility to the housing crisis, noting federal loan recipients won't be affected. He scolded the press for creating a sense of fear. "The bigger danger is that the fear, if not panic, could depress college access for students who think they can't get a loan," Dannenberg said. . .

Stephen Burd of New America Foundation's Higher Ed Watch.Org Blog Receives National Education Reporting Award for Investigating

Communications — Wed, 27 Feb 2008 17:11:00 -0500

Higher Ed Watch.Org's staff writer and a lead investigator on the 2007 student loan scandals, Stephen Burd, is the winner of a 2007 National Award for Education Reporting, the Education Writers Association announced on Monday. Burd is a Senior Research Fellow with New America Foundation's Education Policy Program and a former Senior Writer at The Chronicle of Higher Education. Burd's two award winning articles from April 2007 appear here on the Higher… more

Michael Dannenberg in Minneapolis Star Tribune | 'Students Pinched by Credit Markets'

Communications — Thu, 21 Feb 2008 17:09:00 -0500

New America in the News:

Students Pinched by Credit Markets (Minneapolis Star Tribune)

..."There is zero danger that federal Stafford loans will not be available in the foreseeable future. Zero danger," said Michael Dannenberg, director of education policy at the New America Foundation in Washington.

Only about 10 percent of all college loans come from private lenders, he said. Many of those students could turn to federally backed loans if other sources of cash dry up, in Dannenberg's view.

Michael Dannenberg in New York Times | 'As Lending Tightens, Education Could Suffer'

Communications — Tue, 19 Feb 2008 14:12:00 -0500

New America in the News:

As Lending Tightens, Education Could Suffer (New York Times)

...Not everyone believes that retrenchment in commercial education would be bad. “High-risk borrowers with low academic achievement who are pursuing post-secondary training should not go to expensive, low-quality proprietary schools,” said Michael Dannenberg, director for education policy at the New America Foundation in Washington. “They would be better off going to community colleges, which are lower cost and open enrollment, for the most part.”

New America Foundation in Chronicle of Higher Education | 'President Bush: A Friend of Higher Education After All?'

Communications — Fri, 15 Feb 2008 17:00:00 -0500

New America in the News:
President Bush: A Friend of Higher Education After All? (The Chronicle of Higher Education, subcription only)

... Mr. Bush has, however, given researchers, and their colleagues throughout higher education, something else of value: money. The president has been "highly successful" in winning increases for higher education from Congress, according to an analysis published last month by the New America Foundation, a Washington-based research and advocacy group that is often critical of the Bush administration.

"Congress adopted nearly all of the significant higher-education funding and policy proposals included in the president's budget requests from 2002 through 2008," including increases in Pell Grants and loan-forgiveness programs, the foundation noted. more

Michael Dannenberg in Cox News | 'House Democrats to Vote on Cutting Student Loans'

Communications — Thu, 14 Feb 2008 14:17:00 -0500

New America in the News:

House Democrats to Vote on Cutting Student Loans (Cox News Service)

...Michael Dannenberg, director of the Education Policy Program at the New America Foundation, said the federal government has wasted "billions of dollars" each year on excess lender subsidies. "Financial aid should be helping students, not banks," he said.

We've Moved

Education Policy — Thu, 14 Feb 2008 12:45:00 -0500

For our readers who haven't noticed, Higher Ed Watch has moved to a new site. We'll still be keeping our regular schedule of three posts a week but in a new format that should be easier to read. You can reach the new site by clicking here, or, alternatively, you can visit http://www.newamerica.net/blog/higher_ed_watch or http://www.higheredwatch.org

For RSS readers, please update your bookmarks to http://www.newamerica.net/blog/higher_ed_watch/feed

Thanks, and we hope you enjoy the new Higher Ed Watch site.

Stephen Burd in Pittsburg Post-Gazette | 'Market Doubts Hit Private Student Loans'

Communications — Tue, 12 Feb 2008 18:29:00 -0500

New America in the News:
Market Doubts Hit Private Student Loans (Pittsburg Post-Gazette)

...Sallie Mae and others are experiencing a growing default rate. The sub-prime mortgage crunch has spilled over into the student loan area, too, with investors less willing to buy loans of different kinds, said Stephen Burd, senior research fellow at New America Foundation, a nonprofit think tank.

"It's just a question of securitization right now," Mr. Burd said. ...

Unanswered Questions on Bush's Higher Education Budget

Education Policy — Tue, 05 Feb 2008 19:03:00 -0500

Hold on to your seats. Yesterday was Budget Day in the nation's capital (oh-boy!), and Higher Ed Watch has some friendly questions for the Bush administration about its Fiscal Year 2009 spending plans:

Student Loans

(1) In the President's Fiscal Year 2009 budget, the Federal Family Education Loan (FFEL) program and the Direct Loan program show similar per loan costs for 2008 and 2009, with the FFEL program showing a slight cost advantage for the first time. However, page 364 of the Budget Appendix notes that costs are higher for the Direct Loan program, because it holds nearly 100 percent… more

Steve Burd in St. Louis Post-Dispatch | 'Loans Feeling Credit Crunch'

Communications — Sun, 03 Feb 2008 16:59:00 -0500

New America in the News:

Student loans feeling credit crunch, too (St. Louis Post-Dispatch)

Those students, though, paid interest rates of up to 20 percent to finance their educational dreams. Stephen Burd, senior research fellow at the New America Foundation who blogs about higher education, says the lending practices got out of hand. "We actually think that this is a positive development that subprime lending in for-profit education is being curtailed, because we don't think students should have been stuck with these high-interest, high-cost loans in the first place."

Student Loans in the Coming Bush Budget: Don't Get Spun

Education Policy — Fri, 01 Feb 2008 09:15:00 -0500

Lobbyists who represent Sallie Mae, Nelnet, and the rest of the student loan industry are anxiously awaiting the arrival of President Bush's Fiscal Year 2009 Budget on Monday morning. Last year, Congress cut taxpayer subsidies to banks that make government-guaranteed student loans and put those savings into lower-cost loans and bigger Pell Grants for students. Industry lobbyists will pore over the budget the moment it comes out Monday to find numbers that make their case that it is now cheaper to subsidize their retail loans rather than continue the wholesale approach known as direct lending. more