It is a daunting task to analyze, interpret, and implement federal financial aid regulations these days. Hopefully the information I provide will help you understand and locate the financial aid you need to earn your online degree.
Well, the floodgates are opening even wider. Since my last post, the Omaha-based NelNet lending corporation has terminated 300 jobs, or about 10% of their existing workforce. This is in addition to the 400 jobs cut back in September of 2007. NelNet cites Congress' cut in federal subsidies as a major reason for the terminations. The NelNet representative at my institution assured us that his job was still secure, but that may not be the case at other colleges, as the cuts affect all offices across the nation. In addition, NelNet will no longer offer loan consolidations. You're okay if you have already consolidated through NelNet, but if you consolidate again, you'll need to choose a new lender.
Within two days, Sallie Mae, another major student loan lender, has announced yet more cutbacks to the student loan program:
- SalllieMae will no longer offer student loans to colleges with low graduation rates. However, I have yet to see their definition of "low graduation rate". It's no secret in the educational world that minority and low-income students have an impact on low graduation rates. No doubt finances plays a large role in students not completing college, but other factors such as pre-college preparation and academic advising, which are beyond the scope of this blog, also have a tremendous impact. Regardless, good students in good schools will be affected by SallieMae's actions.
- I did some research for online colleges and found a website at http://oedb.org/rankings/graduation-rate which lists the graduation rates of online college. These figures are not all-inclusive because some online college graduation rates are not reported. Please check out this website, as your school may be affect by SallieMae's decision.
- SallieMae has also quit making private loans to students who have a credit score below sub-prime. From what I could detect, subprime is a credit score of 650 or lower. However, I do not know what SallieMae is using for their cut-off. This day and age, more and more students are entering college with credit card and other debt. Unfortunately, I've seen a sizeable increase in students (and parents) trying to finance their education with an uncreditworthy financial status. My advice--work on your credit score. Not only may it impact your lending opportunities for college, it will also impact any future loans such as a mortgage.
For the sake of students and financial aid offices, I hope my future posts won't involve more bad news about student loans!
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About ter
I have been a financial aid advisor for nearly 25 years now! Time really does fly. Like other e-learners, I acquired my Bachelor of Arts degree and my Master of Science degree while working full time and raising a family. My coursework consisted of classroom instruction, online and independent study courses, and weekend classes.
I began in financial aid as a secretary, and have worked my way to senior level financial aid advisor at a public four year college in the Midwest. When I began in 1984, we did not have computers, so I have seen the evolution of technology and its impact on education and financial aid.
My husband and I have four children in our household. My daughter and stepson are both in college. My son and stepdaughter are high school freshman.
I look forward to being a part of eLearners.com and given the chance to educate students, especially “non-traditional” students, on the ins-and-outs of financial aid. It is a daunting task to analyze, interpret, and implement federal financial aid regulations these days. Hopefully the information I provide will help.