May 22, 2008
Following talks of purchasing FFEL loans and using a lender of last resort program to ensure student access to federal college funds, the Department of Education officially agreed on a temporary bail-out plan. For the next year, the Department has agreed to purchase loans federally subsidized student lenders have trouble selling at a profitable rate.
The credit crunch, caused in part by rising default rates and a decrease in federal student aid offered to student lenders, has caused about 80 lenders to leave the student market, reported the Los Angeles Times. Even the most important name in the market, student lender giant Sallie Mae, has threatened to pull out of the FFEL business. Attempting to ease fears that students loans would be difficult to secure, the Department of Education has been working with Congress on a regular basis to establish a quick and effective alternative.
The most recent announcement lays out an number of methods for ameliorating family and lender fears—at least temporarily. In a letter sent to Chief Executive Officers of student loan companies, Margaret Spellings promised that by July 1, 2009, the Department would purchase FFEL loans originated for the 2008-2009 school year. “Many lenders today do not have access to funds at a cost that justifies originating new loans. Our plan is designed to provide viability in the marketplace for lenders who step up and make loans in this difficult environment,” she stated.
To further assure that all students will have access to loans, the Department has agreed to put into play the Lender of Last Resort Program (LLR) which will be used to lend money to students who have trouble securing finances from weary lenders. Schools that choose to opt for the Direct Loan Program, a lesser used school loan program wherein students borrow directly from the government rather than from federally subsidized lenders, will also receive aid through a $15 billion boost in available funds. “This program should ensure that the market works for students needing loans this school year,” said Secretary Paulson of the Treasury.
July 31, 2013
Hey there, Scholarships.com readers! I’m Mary, a junior English major/business minor student at Concordia University of Wisconsin.
I’ll admit, I didn’t give my college search as much time or thought as I should have. I chose to attend Concordia for two main reasons: I was offered a substantial academic scholarship (and rather a lot of financial aid) and was able to take a free trip to London, Normandy and Paris through the honors program during my freshman year. However, my time at Concordia has been well spent as I have been able to take a number of fascinating classes with some exceptional professors, make a few lifelong friends, travel and even get some decent sleep.
I love having a busy schedule so this year I plan to intern in Milwaukee and hopefully (fingers crossed!) head to New York City in the winter. I've indulged myself a little with my English major – reading and being impacted by what I read has always been one of the best parts of my life – and I am looking forward to a career that not only allows but requires me to do just that.
The opportunity to be a virtual intern with Scholarships.com is one I couldn’t pass up: Not only is this the sort of writing experience necessary for my resume, but it’s a bit out of my comfort zone. I hope to challenge myself to be a resource to you readers and help bring some insight into the ordeals of life as a college student.
I’ll sign off with the most important thing college has helped me realize (so far): Challenge yourself and you’ll be pleasantly surprised at what you can accomplish. Thanks for reading!
August 28, 2013
The crisis in Syria! The Bradley Manning sentencing! The fracking debate! Yet another random act of violence!
The media bombards us with information and news every second of every day – a sensory overload of grim stories and political biases. It's overwhelming but college can become a sort of bubble, a relaxing retreat from the cares of the outside world. You don’t see the news unless you turn on your own TV or radio or follow a news site or newspaper. With all the other fun things to do, who’s got time to be depressed and bored by other people’s problems?
It’s incredibly easy to feel that what you see on CNN doesn’t affect you – a college student in America – but it does. You may not live in a small village in the Middle East but actions cause ripples and what happens across the globe may, in any small way, touch your life. Some events will affect you directly. For example, President Obama recently signed a bill to restore lower interest rates on student loans: This directly affects you and me, who will now be paying a 3.4 percent interest rate on our loans as opposed to the previous 6.8 percent.
Current events are nearly always incendiary topics as well. You will encounter a diverse range of people in college with a diverse range of ideologies...and a shrug and a “Whatever, I don’t really care about that” won’t get you off the hook in discussions anymore. It’s important to know where you stand and even more important to do your research, so as not to form a hasty assumption. First off, it will help you not to look like a buffoon or needlessly offend others and secondly, being able to form and articulate a well-thought argument is an invaluable skill!
Lastly, being cognizant of “the outside world” is an important development in the whole messy process of becoming an adult. Forming opinions, arguments and worldviews – and having them challenged – is a necessary part of life...especially in an environment such as college, where it’s okay to make mistakes and learn from them. So don’t let college become a bubble and cut you off from the vital circulation of ideas and news. Get (and stay) informed!
Mary Steffenhagen is a junior at Concordia University of Wisconsin who is majoring in English with a minor in business. She hopes to break into the publishing field after graduation, writing and editing to promote the spread of reliable information and quality literature; she is driven to use her skills to make a positive impact wherever she is placed. Mary spends much of her time making and drinking coffee, biking and reading dusty old books. In an alternate universe, she would be a glassblower.
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