Federal Government Will Bail Out Student Lenders

The Federal Government announced plans yesterday that will rescue student loan companies from economic turmoil for at least the coming school year. The government's proposal is expected to avert what some had seen as a pending crisis in the availability of student loans for the 2008-2009 school year. Major lenders, including Sallie Mae, immediately promised to remain participants in the Federal student loan system after threatening in recent weeks to quit the system.

A major component of the plan would allow loan companies to sell the government packages of loans that they were issued at the end of the coming academic year. The government will also pay loan companies the amount owed by the borrower on the loan, along with a $75-per-loan fee and a 1 percent reimbursement fee. The government will also issue low interest loans to lenders, using their current student loan portfolios as collateral, so that lenders can write new loans for students.

The net effect of the proposal will be to keep liquidity in the student loan industry, which will insure that students seeking government-backed student loans will be able to find lenders willing to write them. Interest rates on Federally-subsidized student loans will not rise in the coming year. However, the proposal will not fix what many say are long-term inefficiencies in the student loan marketplace.

"We want students to be able to concentrate on their studies rather than worry about disruptions in the student loan market and whether they will be able to obtain federal loans to help pay for school. We hope families will be reassured that the U.S. Departments of Education and Treasury are acting to ensure loans remain accessible," said Department of Education Secretary Margaret Spellings in a press release . "At the same time, while offering these short-term solutions, we can also consider this a teachable moment that speaks to broader, long-term flaws in our complex and outdated financial system. This system has been crying out for reform for years, and especially in light of the ever-increasing cost higher education, students and families are counting on us to provide it."

Related Links:

Administration Unveils Plan to Protect Student Lenders, Washington Post

Education Agency’s Plan Shores Up Market For Loans To College Students, The New York Times

The Government Gets It Right, Inside Higher Education

Learn More About Financial Aid

Knowledge is power when it comes to making sure you get the best financial aid possible. Yet, sorting through the jargon and terminology surrounding the process of applying for financial aid can be confusing. One resource for learning more is an online financial aid presentation produced by GetCollegeFunding.org. The hour-long presentation walks viewers through college costs, the methodologies that colleges will use to determine need, and some strategies for planning ahead to maximize your financial aid. One note: Although GetCollegeFunding.org is a non-profit organization that partners with schools and churches, it does provide some services for a fee. Watching the online presentation, however, is free, requires no registration, and there is no obligation to buy further services.

Smith College Adopts Test-Optional Admissions Policy

Smith College had become the latest institution to adopt a test-optional admissions policy. Beginning with next year's applicants, students can choose not to submit test scores for admission. Smith joins over 700 colleges and universities which have already adopted test-optional admissions policies. A complete list of test-test optional colleges and universities can be found at Fair Test.

Parents: Good Advice For Steering Your Child Through College Admissions

It's often said that the best way to prepare for an experience is to talk to someone who's already been through it. If you're a parent wondering how you'll manage to guide your child through the college application process, two recent articles, both written by parents, can help you gain some perspective about what lies ahead.

Catherine Mallette, a reporter for the Ft. Worth Star-Telegram just finished sheparding her son through the college admissions process. She shares what she learned along the way and provides some excellent advice for the parents who will be following her.

In another article "College Admissions Crisis Not A Crisis After All, Sharon Johnson, the mother of a college freshman, shares the ups and downs her family shared as her son recieved his college application decisions. The painful rejections by all the Ivy League schools he applied to stung. But, now, Johnson sees the blessings that lay in the sting of rejection: "Now, one year later, we know for sure what we were too raw and bitter to see then: the schools that denied our son admission cleared the way for other schools where he was more likely to thrive. As it turned out, they were right."

Marching Lock Step Off The College Admissions Ledge

With all of the media hype and student anxiety surrounding college admissions these days, it's tempting for students to believe that the only way to get into a good college is to send out as many applications to as many colleges as possible, hoping one will "stick." I call this approach to college planning the "dartboard" method.

While I can understand the dartboard method's appeal, in reality, the secret to better admissions results doesn't lie in more applications, but a better college list. Building a solid college list is a lot like building a house. Before you even start building a house, you need a clear blueprint that takes into account the lay of the land. It's the same with college planning. Before you can begin building a good list, you need to do an honest self-assessment. What type of college environment do you need to be successful and happy? What are you bringing to the table as an applicant that might be attractive to a college? Which colleges are most likely to need and want what you have to offer most?

Just like building a house, a good college list should be built from the ground up, not the top down. A house needs a solid foundation and a sturdy structure before you put on the roof, and so does your college list. A lot of students who fall prey to the "dartboard" approach do so because they've jumped right into building the "roof" of their college list, loading it down with more and more schools in a certain group, rather than diversifying and putting a good solid foundation and sturdy structure in place first.

Ron Fletcher, an English teacher at Boston College High who writes a regular column on eduation for the Boston Globe, touched upon the importance of diversifying in his column this week. A mother wrote to ask for advice about helping her son apply to college next year. While noting that students in the class of 2009 may have it a bit harder than in previous years, Fletcher made an astute observation: "Too often students gravitate with little reflection toward the same old schools." He suggested that students consider "moving against the grain when putting together a list of potential colleges." That is very good advice.

The Greenest Colleges

Do you care about environmental issues? Want to attend a college that shares your concerns? If so, check out Carleton, Dartmouth, Harvard, Middlebury, the University of Vermont, and the University of Washington. All six colleges were recently cited as "College Sustainability Leaders" in the College Sustainability Report Card 2008. The Report Card is an annual effort of the Sustainable Endowments Institute, a Massachusetts non-profit organization focused on advancing environmental sustainability in campus operations and endowment practices.

This year's Report Card gave 1 in 3 of the 200 colleges and universities studied a grade of B- or higher on a combination of factors such as administration commitment to sustainability, transportation, green buildings, food service, and use of renewable energy. Sixty-eight percent of the schools studied were cited for improving their commitment to sustainability over the previous year. The Institute's website provides individual environmental report cards for the 200 colleges and universities studied.

By the way, if you're interested in studying environmental issues in college, the University of Washington just announced plans to create what it says will be the largest environmental college in the world. The new College of the Environment at the University of Washington will merge five of the University's existing environmentally-related programs under one roof, and have a $60 million budget.

Related article: America’s Greenest Colleges, Forbes

Great Websites For Future Science Majors

One of the most important parts of any college search is learning which questions to ask as you look at and compare colleges. What are the characteristics of a "good" program in your intended major? What types of courses will you need to reach your career goals? How can you be sure that your intended major or career is even right for you?

Prospective science majors have it lucky. The Internet provides a wealth of information about science education and careers in science-related fields. In fact, the amount of information can sometimes feel overwhelming. To help students get started, I've identified some of the best resources for potential science majors on the Internet. A few hours spent browsing these websites will put students interested in science on the right path towards asking the right questions as they search for colleges.

I've mentioned the Sloan Career Cornerstone website before, but it bears repeating. This site is probably the best site out there for students interested in science, technology and math. Here you'll find detailed descriptions of science-related careers, including excellent discussions on educational requirements. I particularly like the extensive list of links to other resources, such as professional and accreditation organizations, provided for each science and technology area. Smart college shoppers will follow those links to learn more about educational programs and careers in their area of interest.

Two other resources can also give potential science majors great insights into science careers. The Science Careers website from the Journal Science and the National Institutes of Health Office of Science Education website both offer wonderful information on careers related to science, including some you may not have thought of, such as science journalism, biostatiscian, and surgical technologist. Explore Healthcare Careers is another terrific site for those considering careers in health fields.

Prospective biology majors should check out the research and resources of the Howard Hughes Medical Institute, one of the leading organziations supporting biology and medical programs in higher education. Anyone looking at college biology programs should read the Institute's report on undergraduate biology education, Beyond Bio 101. The online report discusses the qualities that distinguish excellent undergraduate biology programs, and profiles some of the best undergraduate biology departments. Wondering about the differences between biology programs at liberal arts colleges and research universities? The Institute's report on science education at liberal arts colleges is also worth reading.

Want to major in neuroscience? The best resource for tracking down colleges that have undergraduate majors in neuroscience is the the Directory of Undergraduate Neuroscience Departments maintained by the Association of Neuroscience Departments and Programs.

Fascinated by chemistry? The American Chemical Association's career and education website is a wonderful resource for prospective chemistry majors. The ACA accredits undergraduate chemistry programs, and the site maintains a list of accredited programs. Even if a school you're considering isn't accredited by the ACA, reading through the standards for accreditation will give you plenty of questions to ask when comparing programs.

Prospective physics majors should check out the resources provided by the American Institute of Physics. Start with the website's very good article on careers for physics majors I'd also strongly recommend that future physics majors read the excellent article, "Does It Matter where I Go To College? which compares outcomes for physics majors from large and small departments. Finally, the AIP site also has a descriptive list of degree-granting undergraduate physics programs in the United States with links to each department's website. If you're looking for profiles of specific physics programs, the American Association of Physics Teachers National Task Force on Undergraduate Physics has compiled detailed profiles of the physics programs at about 15 colleges.

Are you interested in earth sciences? The Enviromental Education website is a great college search resource. You'll find a searchable database of colleges offering programs in earth sciences, from agriculture to zoology. If you're interested in geology, the American Geological Institute offers a website with information on careers and links to undergraduate programs. If weather is your thing, check out the American Meteorological Society's Career Center. Finally, for a list of colleges offering programs in atmospheric, oceanography, and related sciences, see this website.

Who's Reading Your College Applications?

Ever wonder who's in charge of making college admissions decisions? The Chronicle of Higher Education recently surveyed 461 senior undergraduate admissions officers at colleges across the country. The results of the survey provide some interesting insights into who may be reading your college applications.

Of the senior admissions officers responding, 89% were white and 61% were male. Seventy-five percent were 40 to 65 years old and 28% said they were graduates of the institution where they worked in admissions. They're not leading a life of leisure: nearly three-fourths reported that they worked 50 hours a week or more. Sixty percent said they worked over 60 hours a week.

While students may picture senior admissions officials doing little but reading applications and making admissions decisions, the survey found that other tasks take up a far larger percentage of time for top admissions officers. Seventy percent said they spent a "very high" or "high" percentage of their time communicating with other campus offices, including financial aid and development. Supervising and training admissions staff took up a similar amount of time for 67% of respondents. By contrast, 20% said they spent a "very high" or "high" amount of time communicating with prospective students.

By and large, senior admissions officers enjoy their jobs, with 80% reporting they were "mostly satisfied" or "extremely satisfied." The most common complaints admissions directors had were scarcity of resources, unrealistic expectations, dysfunctional offices and the difficulty in predicting admissions results. In a Chronicle article on the survey results, one officer wrote, "My success is determined by the decision-making prowess of 17-year-olds."

Asked to name the most common misconception the public has about admissions, 37% of those surveyed cited a lack of understanding about the admissions process, including how officials evaluate applicants, and the importance of various admissions criteria. "There is a misconception that the process is complicated and it's hard to get into universities," one admissions officer wrote on the survey. "That may be true for highly selective institutions, but for the vast majority of higher-education institutions across this country, the process is straightfforward and clearly stated." Respondents also listed confusion about the cost of college and how financial aid works as common public misconceptions.

While the job may have its frustrations, most senior level admissions officials are generally well-compensated. A third earned $60,000 to $90,000 a year, and 22% reported they earned over $130,000.

The survey also provides some clues as to the differences between types of institutions that might help prospective students better target their college lists. For example, if you're hoping for grants and merit scholarships, your best bet may be a religiously-affiliated institution. Asked about the discount rate (the proportion of grant aid relative to the total amount of gross tuition and fees) at their institutions, admissions directors at religious institutions reported an average discount rate of 37%, compared to 35% at private non-religious institutions and 19% at public institutions.

What do top admissions officers worry about most? Respondents cited concerns about how projected declines in the number of high-school graduates will complicate their efforts to maintain their enrollments. Forty-four percent of the admissions directors also cited that their institution had a "high" or "very high" need to increase the enrollment of ehtnically diverse students, and 45% said they had a "high" or "very high" need to recruit more high-ability students.

Top Colleges Take More Students Off Waitlist

There may be good news for hundreds of students hoping to get off of waitlists this year. According to an article in today's New York Times some of the country's most competitive colleges are turning to their waitlist earlier this year, and taking more students off the waitlist than in previous years. For instance, Harvard plans to take 150 to 175 students off of its waitlist this year, far more than in previous years. The University of Pennsylvania and Princeton also expect to take larger than usual numbers off their waitlists this year.

While this is good news for students stuck on waitlists, the news may also signify deeper changes in the admissions world. First, as the most selective schools turn to their waitlists, a trickle down effect may occur at other less selective colleges. If colleges find themselves having increasing difficulty predicting their final yield this year, there may also be an effect in how admissions plans are structured for next year. For instance, some colleges may boost incentives to lock in students earlier, such as offering better financial aid and merit scholarships. Others may look more closely at "demonstrated interest" in deciding who to admit. Some colleges may also increase the size of their waitlists for next year in hopes of stabilizing their yield.

The bottomline is that the admissions landscape is changing. Not only are today's students often sending out more applications, making it more difficult for colleges to predict yield, but institutions know that demographic changes coming down the pike in the next decade may make it harder to manage enrollments. For individual students, these trends probably won't make it dramatically easier to get into any particular college or university in the next year or two. However, they do underscore the importance of understanding the competitive pressures faced by colleges, and developing your college list accordingly.

Related Link: AdmissionsAdvice.com Community Forum Discussion on this topic