Most college financial aid officers oppose the Obama administration's plan for expanding but significantly altering the Perkins Loan Program, according to a survey released Wednesday by the National Association of Student Financial Aid Administrators. The administration's proposal, unveiled as part of the president's budget blueprint for 2010, would turn the program from one that provides about $1.5 billion in loan funds to students at hundreds of institutions to a broader one that provides about $6 billion to students at many more colleges. But several aspects of the proposal -- including ending the practice of the government paying interest on the loans while borrowers in college, and requiring significant matching funds from colleges -- earned opposition from the aid officers surveyed. Nearly four in five said they preferred the current version of the program over the proposed one.
Thursday, August 20, 2009
Monday, June 29, 2009
Perkins Loan Update from COHEAO - Take action now!
Congress continues to work on proposals to change the Perkins Loan Program dramatically. As we have noted in the past, the Congress is responsible for changing the law on how Perkins operates. Congressional staff in both the House and Senate are working on proposals, and this remains a priority of Secretary of Education Duncan and of President Obama. The House Education and Labor Committee is likely to consider legislation changing Perkins during July. COHEAO has submitted testimony with our proposals for modifying the Perkins Loan Program to the Committee. That testimony and a set of talking points are at www.coheao.org. Some updated and modified proposals are being prepared now and will be submitted soon to the House and Senate.
As Congress begins to write reconciliation legislation, the COHEAO Board of Directors has been working to develop a set of priorities for the Perkins Loan program. The Board has decided on major priorities for the program: 1) retaining as much of the in-school interest benefit as possible; 2) continuing school control over both the distribution of loan funds and in working directly with student borrowers in servicing the loans; 3) making sure existing Perkins institutions are able to continue lending at current levels and that their rights to their institutional funds are preserved.
One of the most student-friendly features of the Perkins Loan Program is the in-school interest subsidy. COHEAO would like to continue to explore the possibility of maintaining as much as possible of the in-school subsidy, even including allowing institutions to provide the funding for such a subsidy through some form of an institutional match.
In the expanded Perkins Loan Program as proposed by President Obama, servicing arrangements would be based on factors such as cost, experience, and customer service. COHEAO believes that schools that wish to service their Perkins portfolio in the same manner as the current Program should be allowed to do so. This will maintain the competitive servicing model and functionalities that exist at the campus level for the existing and expanded Perkins Loan Program. The benefits derived from the interpersonal relationships between the servicers, institutions, and the borrower are a unique attribute of the Perkins Loan Program resulting in minimal cost and great potential benefit to the Federal Government.
COHEAO urges you to call or write your Members of Congress and let them know your views. It is especially important for those of you who have members of the House of Representatives Education and Labor Committee in your state to contact them right away. That Committee is in the process of writing legislation now. To see how to write your member of Congress and for some sample letters, go to www.coheao.org.
As Congress begins to write reconciliation legislation, the COHEAO Board of Directors has been working to develop a set of priorities for the Perkins Loan program. The Board has decided on major priorities for the program: 1) retaining as much of the in-school interest benefit as possible; 2) continuing school control over both the distribution of loan funds and in working directly with student borrowers in servicing the loans; 3) making sure existing Perkins institutions are able to continue lending at current levels and that their rights to their institutional funds are preserved.
One of the most student-friendly features of the Perkins Loan Program is the in-school interest subsidy. COHEAO would like to continue to explore the possibility of maintaining as much as possible of the in-school subsidy, even including allowing institutions to provide the funding for such a subsidy through some form of an institutional match.
In the expanded Perkins Loan Program as proposed by President Obama, servicing arrangements would be based on factors such as cost, experience, and customer service. COHEAO believes that schools that wish to service their Perkins portfolio in the same manner as the current Program should be allowed to do so. This will maintain the competitive servicing model and functionalities that exist at the campus level for the existing and expanded Perkins Loan Program. The benefits derived from the interpersonal relationships between the servicers, institutions, and the borrower are a unique attribute of the Perkins Loan Program resulting in minimal cost and great potential benefit to the Federal Government.
COHEAO urges you to call or write your Members of Congress and let them know your views. It is especially important for those of you who have members of the House of Representatives Education and Labor Committee in your state to contact them right away. That Committee is in the process of writing legislation now. To see how to write your member of Congress and for some sample letters, go to www.coheao.org.
Monday, June 8, 2009
ECSI Conference - Day 1!
Today we kicked off our 2009 User's Conference in Pittsburgh.
Below are some highlights:
Below are some highlights:
Friday, May 8, 2009
The ECSI User's Conference is Just One Month Away!
This year's Conference is rapidly approaching! We would like to remind everyone that the 2009 ECSI User's Conference is scheduled for June 8-10 at the Sheraton Station Square Hotel in Pittsburgh, PA.
Accommodations - Act Now - Rooms filling fast!
ECSI has guest rooms reserved for the conference at a discounted rate. When making your reservations, please mention the ECSI User Conference to receive this discounted rate. Please note, these rooms are only available for a limited time, and are filling up fast. If you plan to attend, please make your reservations as soon as possible!
Conference Registration
We are currently offering on-line conference registration. We recommend that you register as soon as possible to reserve your place. After you have completed the on-line registration form, you may send in your payment to ECSI, or you may pay directly on-line via ACH or Credit Card.
To register on-line, view detailed conference information, view the itinerary, and more, please visit our website at www.ecsi.net and click on the 2009 Conference Logo.
We look forward to seeing you all at this year's conference!
Thanks!
Jeff Vandergrift
Wednesday, April 22, 2009
Shireman named Deputy Under Secretary of Education
Unfortunately this isn't good news for any of us, as we continue to fight to save the Perkins Loan Program. Shireman is a very "pro direct loan" guy who believes all loan programs should be consolidated into direct loans. I met last week with Senator Specter and Casey's staffs, they are both interested in doing what is right. We DO have a chance in this fight! Stay tuned!
John Lynch
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April 20, 2009
Shireman Is Named Deputy Under Secretary of Education
Washington — It’s official. Robert M. Shireman will stay on at the Education Department as deputy under secretary.
John Lynch
......................................................................................................................................................
April 20, 2009
Shireman Is Named Deputy Under Secretary of Education
Washington — It’s official. Robert M. Shireman will stay on at the Education Department as deputy under secretary.
Mr. Shireman, president of the California-based Institute for College Access and Success, has been acting as a consultant to the department for several months. He has long been considered a favorite for a top higher-education post in the Obama administration, but initially he said he didn’t want to return to Washington.
It is unclear how the deputy-under-secretary post relates to the position of assistant secretary for postsecondary education. The department did not respond to calls seeking clarification by the end of the day. The assistant secretary is in charge of administering most of the department’s programs for colleges and students, and advises the secretary on policy.
As a consultant to the department, Mr. Shireman has served as Secretary Arne Duncan’s chief higher-education adviser and spokesman, helping shape President Obama’s positions on Pell Grants, student loans, and student-aid simplification.
Earlier in his career, Mr. Shireman served as an aide to Sen. Paul Simon, a Democrat of Illinois, and as a senior education-policy adviser in the Clinton administration. He was also a member of the Federal Advisory Committee on Student Financial Assistance, an independent panel that advises Congress.
In other appointment news from the Education Department, Massie Ritsch, the communications director for the Center for Responsive Politics, has been named to oversee outreach to education associations, foundations, and think-tanks.
—Kelly Field
Thursday, April 16, 2009
President Obama's Plan to Modernize and Expand Perkins Loan Program
Below is an outline of President Obama's budget plan as it relates to Perkins Loans.
....................................................................................................................
Cited from COHEAO.
President Obama released an outline of his budget that includes mention of the Perkins Loan Program.
Under the proposal, loans would be originated and fully serviced by the Department of Education. According to the Department, they believe they “can collect loans more efficiently and effectively than many colleges.”
The new version of Perkins would continue to make loans to students at a 5 percent interest rate. Schools would have discretion with regard to student eligibility. Interest on these loans would accrue while students are in school. Other terms and conditions and loan maximums would be the same as the current unsubsidized Stafford Loan program.
The plan also includes a call to increase the amount of available Perkins funds from $1 billion to $6 billion, and expand the program to cover all 4,400 institutions of higher education, as opposed to the 1,800 that currently use the program. According to the Department, this will expand the scope of Perkins by making it available to nearly 2.7 million students, as opposed to the 500,000 who currently receive Perkins Loans.
In discussing the budget proposal with reporters and members of the higher education community, Administration officials have described the proposal as “reinventing Perkins,” and state the new program is a key element of the Administration’s plans to emphasize college “completion,” as opposed to “access.” The targeting of the program to the neediest students will also be loosened, but this program would be used as an incentive for schools to promote college affordability. The “hope and plan” of the Department is to use a formula to incent schools to provide need-based aid to students (i.e. schools would receive additional loan funds based on their success in “making college affordable” or promoting college success ).
Department officials said they plan to “work out the details” with Congress on the formula for funding this new iteration of the Perkins program. While they did not provide many specifics, the Department officials did say have they have concerns with the current formula due to proportional increases in the amount of available Perkins funds and an institution’s cost of attendance. According to the Department, “that’s the wrong incentive.”
As the Department has described this proposal as part of the Department’s emphasis on college completion, it could also mean some additional major changes to program’s terms and conditions. It must be emphasized that any changes to the law must be made by Congress, subject to approval by the President. We expect the Administration and Congress will work closely together, but it will be up to Congress to actually change the Higher Education Act.
Full details of President Obama’s Fiscal 2010 Budget are expected to be released sometime later this month.
....................................................................................................................
Cited from COHEAO.
President Obama released an outline of his budget that includes mention of the Perkins Loan Program.
Under the proposal, loans would be originated and fully serviced by the Department of Education. According to the Department, they believe they “can collect loans more efficiently and effectively than many colleges.”
The new version of Perkins would continue to make loans to students at a 5 percent interest rate. Schools would have discretion with regard to student eligibility. Interest on these loans would accrue while students are in school. Other terms and conditions and loan maximums would be the same as the current unsubsidized Stafford Loan program.
The plan also includes a call to increase the amount of available Perkins funds from $1 billion to $6 billion, and expand the program to cover all 4,400 institutions of higher education, as opposed to the 1,800 that currently use the program. According to the Department, this will expand the scope of Perkins by making it available to nearly 2.7 million students, as opposed to the 500,000 who currently receive Perkins Loans.
In discussing the budget proposal with reporters and members of the higher education community, Administration officials have described the proposal as “reinventing Perkins,” and state the new program is a key element of the Administration’s plans to emphasize college “completion,” as opposed to “access.” The targeting of the program to the neediest students will also be loosened, but this program would be used as an incentive for schools to promote college affordability. The “hope and plan” of the Department is to use a formula to incent schools to provide need-based aid to students (i.e. schools would receive additional loan funds based on their success in “making college affordable” or promoting college success ).
Department officials said they plan to “work out the details” with Congress on the formula for funding this new iteration of the Perkins program. While they did not provide many specifics, the Department officials did say have they have concerns with the current formula due to proportional increases in the amount of available Perkins funds and an institution’s cost of attendance. According to the Department, “that’s the wrong incentive.”
As the Department has described this proposal as part of the Department’s emphasis on college completion, it could also mean some additional major changes to program’s terms and conditions. It must be emphasized that any changes to the law must be made by Congress, subject to approval by the President. We expect the Administration and Congress will work closely together, but it will be up to Congress to actually change the Higher Education Act.
Full details of President Obama’s Fiscal 2010 Budget are expected to be released sometime later this month.
Wednesday, April 1, 2009
Welcome to the ECSI Blog!
Welcome to the ECSI Blog! In our continued efforts to stay connected with and increase communication with our clients and partners, we have created this blog as a way to do just that. Here we will share nuggets of information and keep you informed on things that are happening here at ECSI, as well as in the industry.
We hope you enjoy it. Feel free to comment as you wish, and be sure to subscribe to the blog to be notified of the latest updates.
We look forward to connecting with you!
We hope you enjoy it. Feel free to comment as you wish, and be sure to subscribe to the blog to be notified of the latest updates.
We look forward to connecting with you!
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