Tag Archives: higher education

Federal Credit Card Law Phased-In

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The last parts of the 2009 federal legislation that overhauled the credit card history will be phased in this year.

Over the last year, as a result of the legislation, credit card companies are banned from raising interest rates on existing balances and prohibiting issuers from raising rates when customers miss payments on an unrelated account.

This year other portions of the bill, specifically relevant to college students will be phased-in. These include banning credit card issuers from providing credit cards to people under age 21 unless another adult co-signs for it or the student can show an independent source of income.

In addition, credit card companies are prohibited from offering free incentives in exchange for signing up for a card on campus or at institution events. Colleges are also required to make public any partnerships they have with card issuers.

Finally, credit card issuers must submit any contracts they have with collegiate groups to the Federal Reserve. The Federal Reserve will compile a report with this information, detailing the nature of these relationships.

Comments Requested on Financial Literacy Competencies

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The Financial Literacy and Education Commission is requesting comments on a proposed set of financial education core competencies.

As a part of the Fair and Accurate Credit Transactions Act of 2003, the Commission is required to review the national strategy to promote basic financial literacy and education. As a part of this review the Commission determined that there is a need to develop core competencies for consumers and financial education providers.

The development of core competencies is a fundamental step in establishing a clear understanding about what individuals should know and the basic concepts program providers should cover. In addition the competencies should establish a baseline of knowledge.

The intention of the competencies is to define what consumers should know and be able to do to successfully understand and make informed decisions about their personal finances. To this end, the Commission has identified five core concept areas: (1) earning, (2) spending, (3) saving, (4) borrowing, and (5) protecting against risk as well as specific core competencies for each area.

The deadline for comments regarding whether the list of Core Competencies is complete and whether there are portions that should be deleted, revised, or expanded is September 12.  The request for comments is one of several steps in the validation phase of the development of the competencies.

Obama Delivers Major Higher Education Speech

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Last week President Obama delivered a major speech on higher education at the University of Texas on Austin.

The speech restates the President’s commitment to increasing the attainment of postsecondary education credentials by more Americans and highlights the steps the Administration has taken to move in this direction.

As stated by the President, “I want you to know we have been slipping…In a single generation, we’ve fallen from 1st place to 12th place in college graduation rates for young adults….  Now, that’s unacceptable, but it’s not irreversible.  We can retake the lead.  If we’re serious about making sure America’s workers — and America itself — succeeds in the 21st century, the single most important step we can take is make sure that every one of our young people has the best education that the world has to offer.” 

“Now,” he continued, “when I talk about education, people say, well, you know what, right now we’re going through this tough time….  So, Mr. President, you should only focus on jobs, on economic issues.  And what I’ve tried to explain to people…is that education is an economic issue.  Education is the economic issue of our time.  It is an economic issue when the unemployment rate for folks who’ve never gone to college is almost double what it is for folks who have gone to college.  It is an economic issue when almost eight in 10 new jobs will require workforce training or higher education by the end of this decade.  And it is an economic issue when we know, beyond shadow of a doubt, that countries that out-educate us today will out-compete us tomorrow.”

To support the comments expressed by the President in Austin the Obama Administration has launched a comprehensive plan to address college affordability, access and success, to help regain the nation’s standing as a world leader in higher education by the end of the next decade.

Among the steps in the Admininstration’s plan are investing in college access and completion, strengthening and stabilizing the Pell Grant, strengthening minority serving institutions, and simplifying the federal applicatin for financial aid.

Evergreen Receives Energy Grant

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The Evergreen State college was one of 29 public schools and colleges that received an energy grant this week.

The grants from the Washington Department of Commerce will assist schools and colleges with paying for lighting and heating upgrades, new electrical and hot water systems, and air conditioning improvements.

Evergreen received $415,742 to provide a heat recovery system, control system renovation, and lighting.

Governor Announces Next Steps in the Budget Process

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During a press conference this afternoon, Governor Gregoire announced the steps she will take to address a potential shortfall in the current state budget and direct agencies to prepare for an additional shortfall in 2011-13.

Despite the receipt of federal funds for Medicaid and teachers, agency and department savings, and reductions in state spending, dollars for the state budget remain difficult.

Over the last two months revenue collections have declined by $125 million below forecasted levels. Though the state has a $72 million ending fund balance for the 2009-11 biennium, after taking into consideration revenue declines, the potential for additional budget shortfalls that would eliminate the remaining dollars in the ending fund balance remain possible if future revenue reports continue to show a decline.

Beyond the current biennium, the state is also estimated to face a $3 billion deficit over the next two year budget (2011-13).

Given this context, the Governor announced three actions she will direct state agencies to undertake to prepare for the upcoming two-year budget and potential revenue shortfalls in the short-term.

  • Prepare reductions of 4-7% for the possibility of across-the-board cuts starting October 1 if the September forecast or revenue receipts are lower than expected.
  • Prepare budget reductins for a supplemental budget for the last six months of the current biennium equal to $500 million statewide to be passed in January.
  • Draft 2011-13 budgets to prepare for the expected $3 billion shortfall which will require a 10% reduction in the expected general fund budget.

Senate Committee Moves Veterans’ Education Legislation

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Yesterday the U.S. Senate Veterans’ Affairs Committee approved S. 3447 to expand benefits in the Post-9/11 GI Bill.

The bill would increase the number of people who could receive benefits and expand the list of programs/training for which veterans could use the aid.

In addition, the bill changes how allowances for textbooks and housing are calculated and provides in-state tuition/fees at public colleges or up to $20,000 adjusted annually and based on the national average cost.

In the U.S. House similar legislation is scheduled to be considered on September 16.

U.S. Senate Committee Passes Education Spending Bill

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Yesterday the full U.S. Senate Appropriations Committee approved a $169.6 billion appropriations bill for FY11 funding for the Department of Labor, Health and Human Services, and Education.

The bill as passed by the Senate Committee maintains a level discretionary funding base for the Federal Pell Grant program of $4,860. This amount combined with a mandatory add-on from the Healthcare and Education Reconciliation Act provides a maximum award of $5,550 in the 2011-12 year.

The bill passed out of Committee, however, did not include the $5.7 billion to fill an estimated Pell Grant shortfall in the 2011-12 year.  Senate Democrats on the committee stated that addressing the shortfall will have to wait until the bill is either considered by the full Senate or during conference committee with the House.

In addition, the bill maintains level funding for the majority of other student aid programs. This includes Federal Supplemental Educational Opportunity Grants, Federal Work-Study, and Leveraging Educational Assistance Partnerships.

Finally, funding for TRIO would increase by $15 million and Perkins cancellations would receive no funding.

The bill now goes to the full Senate for consideration.

Governor Announces Higher Education Task Force

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Today, Governor Gregoire announced the formation of a Higher Education Task Force. Evergreen’s President, Les Purce, will serve as a representative for the four-year Council of Presidents.

The goal of the Task  Force is to create a sustainable funding model and develop strategies that increase accountability to ensure taxpayers get the best value for the state’s and student’s investment at our four-year universities.

Gregoire asked the task force to focus on three tasks:

  • Develop a realistic and viable long-range funding strategy that provides Washington’s students with affordable higher education opportunities.
  • Recommend ways to improve accountability and performance in our public four-year higher education institutions to ensure we get the very highest value for the state’s and student’s investment.
  • Consider whether the higher education system’s current governance model should be modified to improve system-wide performance and accountability.

The task force will be chaired by Brad Smith, general counsel and senior vice president of Legal and Corporate Affairs at Microsoft. 

Members of the governor’s Higher Education Funding Task Force are:

 Brad Smith, Chair, Senior VP and General Counsel, Microsoft Corporation
Judith Runstad, Foster Pepper LLC
Charlie Earl, Director, State Board for Community and Technical Colleges
Jesus Hernandez, Chair, Higher Education Coordinating Board
Thomas L. “Les” Purce, President, Evergreen State College
Pat Shanahan, Vice President & General Manager, Airplane Programs, Boeing Company
David Tang, Managing Partner, K&L Gates LLP
Paula Reynolds, CEO, Preferwest LLC
Dean Allen, CEO, McKinstry Company
Bill Ayer, Chair and CEO, Alaska Air
Michael Kluse, Senior VP, Battelle
Maud Daudon, President & CEO, Seattle Northwest Securities
Chris Rivera, President, Washington Biotechnology and Biomedical Association
Ray Stephanson, Mayor of Everett
Paul Rosier, Executive Director, Washington Association of School Administrators
Alex McGregor, President & CEO, The McGregor Company

The Higher Education Funding Task Force will meet several times this summer and make recommendations to Gregoire in the fall, with proposals to eventually be incorporated into her 2011 legislative agenda.

U.S. Drops Lead in Young College Graduates

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The United States has fallen from 1st place to 12th place in the share of adults ages 25-34 with postsecondary degrees.

According to a recent report released by The College Board, Canada is now the global leader in higher education among young adults, with 55.8 percent of that population holding an associate degree or beyond as of 2007, the year of the latest international ranking.

Though the United States’ ranking improves when older adults are added to the equation among all nations – he U.S. ranks 6th – the report focuses on younger college students because there is great concern that this will be the first generation in the modern era that will be less well-educated than their parents.

In response the College Board’s Commission on Access, Admissions, and Success in Higher Education and the National Confernce of State Legislatures has  produced a pratical 10-part  action agenda to increase the number of Americans who attain a postsecondary degree and empower  legislators to be an even more positive and active force.

The 10-part action agenda calls for policymakers to undertake the following recommendations which are considered investments that might raise college completion rates.

  • Provide a program of voluntary preschool education, universally available to children from low-income families
  • Improve middle and high school college and career counseling
  • Implement the best research-based dropout prevention programs
  • Align the K-12 education system with international standards and college admission expectations
  • Improve teacher quality and focus on recruitment and retention
  • Clarify and simplify the admission process
  • Provide more need-based grant aid while simplifying and making financial aid processes more transparent
  • Keep college affordable
  • Dramatically increase college completion rates
  • Provide postsecondary opportunities as an essential element of adult education programs.

NGA Provides Further Details on Common Set of Measures for Higher Education

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Earlier this week the new chair of the National Governor’s Association announced plans to create a common set of measures to monitor progress and compare states for higher education.

The report released along with the announcement is expected to be followed by a technical guide to states in the coming weeks.

In addition, the initiative will also incorporate the following actions in the coming months.

  • Develop a series of best practices and a list of policy actions governors can choose to use;
  • Hold a national summit;
  • Provide grants to states to design policies and programs to reach these goals; and
  • Hold a learning institute for governors’ senior advisors.