Higher Ed Initiative

At the age of forty-three, Martine Leveque decided it was time to start over. For several years, she had worked in the movie business, writing subtitles in Italian and French for English-language films, but her employer moved overseas. She then tried her hand at sales, but each time the economy dipped sales tumbled, along with her income, and as a single mother with a teenage son, she wanted a job that offered more security. She decided to pursue a career in nursing, a high-demand field where she… more

I recommend early focus on education finance matters. The administration needs to meet and improve upon campaign promises requiring substantial resources. There are pressing student loan issues and pent-up demands for No Child Left Behind (NCLB) funding. Because the stimulus and budget are being developed now, you have a window of opportunity to address all three areas.

In a few weeks, the Florida Gators and Oklahoma Sooners will face off on college football's biggest stage in the Bowl Championship Series' National Championship game. Unfortunately, many of the college seniors playing in this game will not be walking across the graduation stage next May. Instead, their schools will revel in the short-term glory of gridiron success, while the players will have to face the long-term consequences of joining the workforce without a college degree. 

A not-so-funny thing happened on the way to the housing bubble. We created a college tuition bubble as well. As with housing, a toxic combination of easy credit and unsophisticated and unrealistically optimistic consumers has driven college prices sky-high.

Those prices aren't coming down anytime soon - and as the credit crisis continues, that means there's a risk that students who max out on federal loans and need extra private aid won't be able to borrow enough to afford expensive colleges.

For months, the Wall Street credit crisis has made many families nervous that the widespread availability of student loans will dry up. But no matter how many banks fail, there is no danger that families will be deprived access to federal student loans. None.

More than 100 banks have stopped issuing student loans, but about 2,000 continue to originate federal student loans. The government maintains two "fail-safe" systems. To date, not a single student has been unable to get a federal Stafford Loan. Every family, regardless… more