“Simplifying the FAFSA is another significant action in our quest to keep a college degree within the reach of every person who aspires to higher education,” Duncan said.

What’s Changing in FAFSA Land

In the Department of Education press release, several of the changes are laid out:

• Since this past May, students have been able to get instant estimates of Pell Grant and student loan availability–this used to take weeks
• This summer the online FAFSA system will have its skip-logic system updated, which should reduce most user navigation by fifty percent
• Started in January 2010, students will be able to instantly grab their tax info directly from the IRS–while applying

They’re also working on eliminating 26 questions from the form by taking out all of the financial information inquires that can’t be answered with IRS data. Perhaps this new and improved FAFSA will eliminate the need for explanatory pages and services that actually charge to fill it out for you.

More Good News for the College Students–and Their Parents
Several other bits of good news were announced as well:

• Pell Grants are getting a shot in the arm to the tine of $500 more a pop, raising them to $5,350, thanks to the Recovery Act, which also created the American Opportunity Tax Credit
• The Perkins Loan program is going to become available to 2,600 new schools–that’s 2.7 million more students who can take advantage of Perkins Loans
• Obama has proposed a new College Access and Completion Fund. This 5-year, $2.5 billion fund is aimed at economically disadvantaged students and will hopefully make a big impact on enrollment

All of these changes, expansions, and new funds are proof that Obama is working towards his goal of putting America back on top of the list for college graduates per capita. Nice work, Mr. President.

Dept. of Education: Speaking of Sallie Mae…
The U.S. Department of Education has just chosen Sallie Mae to help the Federal Student Aid Title IV Student Loan Management/Servicing program. Sallie Mae and three other companies will be servicing $550 billion in loans that are owned by the Dept. Education.

I’ll admit, I’m a little gun shy about moving loans around because of the recent economic situation. Call me skeptical, but is Sallie Mae really a sound choice? Moody’s Investor Services recently rated Sallie Mae’s debt non-investment grade. This rating implies substantial credit risk and generally maintains the negative outlook for the company. While it’s true that this rating is a slight improvement from Sallie Mae’s previous rating, do we really want the government teaming up with them?

At least their hearts are in the right place.

First, the good news: Arne Duncan, who is the Secretary of Education, has just announced an $18.5 million dollar plan to “enhance libraries in 57 low-income school districts across the United States” (from the press release).
This is great to hear. I don’t know about everyone else, but I’ve become a little concerned about the literacy of our up-and-comers. I was recently wandering through the halls of a local high school (on my way to meet a teacher friend of mine, not just recreationally), when I heard the students talking in a language I couldn’t readily identify. It was verbalized text message jargon. An example: “OMG, my BFF was all ‘WTF’ and was like LMAO! K, TTYL!” It was frightening, confusing, and a little depressing.

In all seriousness though, there are a great many schools out there that could use some extra funding pushed towards literacy programs. Secretary Duncan had this to say about the grants:

Encouraging students to improve their reading is a key to their success in school and in life. These grants help schools give students access to the most up-to-date books, technology, and highly trained library personnel to improve teaching and learning and to challenge students to achieve.

Now, Moving on to the Weird News…
Apparently, I missed the first go-round on this story, but I’ve caught up–and I’m disgusted. In Corpus Christi, TX, at a state school for the mentally and developmentally disabled, they’ve been fighting. The fights have been organized by staff members. The fights have been bet on by staff members. The fights have been going on for over thirty years. Now, it’s one thing to have a boxing club or a wrestling team; it’s an entirely other, sick thing to pit mentally and developmentally handicapped students against each other. Apparently, a similar school in Austin was also participating, and–get this–the winners from each school were brought in to fight each other. Congratulations, Texas, you’re home to some of the most depraved individuals in the country.

In Georgia, some one has been cheating on standardized tests: the principal. With help from the assistant prinicpal, answers were changed on fifth-grade standardized tests. They wanted to make sure that they met the federal achievement standards. Now, correct me if I’m wrong here, but aren’t principals, especially principals of elementary schools, supposed to be a moral compass for the youngsters they watch over? How on Earth are we to explain to these kids that they shouldn’t cheat after something like this? With an education system full of this kind of stuff, is it any wonder that we’ve been suffering the consequences of underhanded financial dealings? Thankfully, the principal resigned.

Point That Finger Where It Belongs
We’re recovering from nearly a decade of anti-intellectualism and apathy. The mistakes of an administration that boasted a regular-guy president you could go have a drink with, have left us all with a bad taste in our mouths, and the results of the last election were a case in point. Our new president boasts quite an education–not to mention a track record of using it–which actually helped get him elected, in spite of his age. Things are changing. The very mottoes of the new administration during the election–namely: Yes, we can. and A vote for change.–show that much, but our history of beating up the smart kids is still haunting us.

The Budget Cuts
The idea that those who cannot do, teach, is preposterous, backward, and even a fair bit responsible for the funding cuts in education. It’s easy to pick on the teachers and take money away from schools. It’s also a horrible idea.

I went to an overcrowded high school. It was build for 1800 and there were 2200 of us. We made do, but several of my friends and I walked door-to-door campaigning for the bond issue that was going to fund the building of a new high school. It amazed me how many negative reactions we got–and this wasn’t during a recession. Everything from remarks about teachers wasting money to schooling not being important, was thrown at us. People shouted from cars as we put up signs, and they generally didn’t have anything nice to say. It was not my first or last time dealing with the public’s ideas that education isn’t important and the schools are wasting money.

Now, we’re seeing 30,000 pink slips being disseminated throughout the California education system, a myriad schools cutting admission and classes, and students unable to even consider going to their dream schools because there’s simply not much money to go around.

The Bubble
The budget cuts are hitting universities pretty hard, leading to many questioning whether or not we’re in a kind of higher education bubble. The fact of the matter is not that a degree is being overvalued, but that large amounts of funding have been cut, forcing colleges to push the bill onto the students. We may have been floating in a bit of a bubble a few years ago, but now we’re sinking, and we must not take our education system–the basis for building our future through the betterment of our children–down with the ship.

Toy or Tool?
Listening to lectures between classes, researching statistics on the go, having breaking news sent right the palm of their hand–the potential, practical uses for one of these devices are numerous. The question is, will students use their new toys for good or ill? The few professors who came out against the new requirement (9 against versus 40 in favor) argue that students will be checking Facebook, not facts, during class.

Anyone who has ever walked into a large lecture hall filled with laptop-laden students, has seen that at least half of the screens aren’t covered in notes. Students chat online, play games, and otherwise escape the realities of the classroom while appearing to be rapt note takers. It’s just a fact of life. The idea that requiring students to carry an iPhone-like device will in any way change this reality is almost laughable. Some will be playing; some will be paying attention–let their grades sort it out.

Footing the Phone Bill
Another big criticism of the new requirement is the cost. Tough times equal tight budgets, and in addition to the high, up-front cost of these devices, service plans come with quite a price tag. Will the university be offering additional aid to cover this? No answer on that front yet, but probably not. College is a notorious drain on the ol’ budget, making this requirement bad news for parents and working students.

The Internet is Changing Everything
The fact of the matter is that in Internet is changing the way we do most everything. I’ve often wondered what will replace the collected-letter genre–will we buy books composed of collected tweets? Status updates? Text messages? Odds aren’t good. That’s a small price to pay, though, for the new levels of productivity we’ve acheieved thanks to instant communication and research.

When asked about the new requirement, Jeffrey Cole, director of the Center for the Digital Future at the University of Southern California, said, “It really shows how both journalism and education are changing in transformational ways. The biggest effect the Internet will have is not how we play or communicate, but how we learn.” I think he underrates the communicative advancements a touch, but–it’s true–the Internet is changing the way we do most everything. It’s quite possibly the most important invention since the printing press, and I, for one, am excited to see what the future holds.

Recent cutbacks in Kentucky and Connecticut are the source of this worry, which could be enough to change the career goals of many students. Programs that once promised grdauates careers in teaching and nursing that came with massive amounts of loan forgiveness are going to have to change their tune. This comes soon after President Obama’s commencement speech at Arizona State, in which he urged gradutates to go into public service. How can students deal with low salaries, tens of thousands of dollars in student loan debt, and no loan forgiveness on top of it?

The Federal Government  Says It’s Okay
Federal loan forgiveness programs are safe, according to the Department of Education. The money has secured for the life of the programs. Barring some cataclysmic economic crisis, these programs are pretty much untouchable through the forseeable future.

State Governments Don’t Agree
The trouble, it seems, is on the state level, where budget cuts are forcing ruthless prioritization. Stimulus moneys aren’t finding their way to to these programs quickly enough to offset cuts, and loan forgiveness has itself on the chopping block. The cutbacks have forced more than a few teachers to tighten their belts–or worse.

What Does this Mean?
While it may seem irresponsible to some to take out this kind of money to fund an education, we need to remember that this omney was all but promised to them during their education. Imagine working extremely hard to put yourself through school, only to get out and find that one of the zeroes has been sliced off the end of your prospective starting salary.

The fact of the matter here is that the positions eligible for loan forgiveness don’t pay enough to draw graduates–at least, not without loan forgivenss. Where will we find nurses and teachers willing toput in long hours for low pay? Chances are that without loan forgiveness programs, they will be few and far between. If we want people to continue choosing public sector careers, these programs need to be protected or slaries need to go up. As I see it, these are the only options we’ve got.

“Did you study business? Go start a company or why not help our struggling non-profits find better, more effective ways to serve folks in need. Did you study nursing? Understaffed clinics and hospitals across this country are desperate for your help. You study education? Teach in a high-needs school where the kids really need you.”
Helping Others, Helping Yourself
This call from the President makes one wonder if we’ve moved on from the go-be-a-giant-of-industry model. Our non-profits do need help, so do our schools, so do our clinics, but is it practical to ask recent graduates to devote their hard earned degrees to helping others?

Yes, it’s okay to ask, but it isn’t okay to demand. In rough times such as these, it’s true that banding together as a nation only helps us get back on our feet. Without entrepreneurs, without ambitious students going out and producing, though, we’ll just be in a more comfortable kind of economic downturn.

Heed this call, if your goal is help others directly. Don’t be fooled by those who call the entrepreneurial, capitalist spirit selfish or outdated. New businesses create new jobs and put money into the economy. If everyone stops building, producing, and creating, we run the risk of all being in need, which makes helping others impossible.

Education Inflation
A friend of mine moved to San Jose just in time to watch her job prospects dry up. She had just earned her master’s degree and had impressive academic qualifications, but her work experience left a bit to be desired. This is a common problem for recent graduates, and the recession made it all that much more difficult. Major lay-offs from major companies glutted the job market in San Jose. Thousands of highly qualified individuals were grabbing up every job that hit the market, leaving recent grads like my friend high and dry.

When unemployment spikes, companies have a lot more options for filling positions. The people applying for positions are more willing to take less pay, and they’re bringing with them extensive work histories. After an interview that she’d felt went rather well, this friend of mine talked with someone on the hiring committee. She found out that her competition for this entry-level position included candidates with decades of experience, some with doctorates. This sort of educational inflation is a product of a tough job market, and it’s hitting the internship opportunities just as hard.

Two Sides of the Coin
It’s usually best to go with the better qualified applicant when the choice is available, but when it comes to internships, isn’t remedying inexperience the point? An internship is quite a bit more desirable than a job serving food, no doubt about that. One has to wonder, though, how the undergrads going for the same internships are making out.

After my own graduation, I came to the realization that the program I went through really should have included a mandatory internship. Gaining relevant experience wasn’t easy, and there wasn’t the kind of competition there is today. While these post-grads are certainly doing well for themselves, we may be witnessing another shift in the job market. It’s been said time and again that the bachelor’s degree is the new high school diploma when it comes to getting work now versus fifty years ago. Only the coming years will tell whether or not the master’s degree has become the new bachelor’s degree, and over-qualified interns are not a good sign.

The private, student loan industry lent over $55 billion to 6.4 million students over the course of the 2007-08 school year. Numbers like those give one an idea of why government control would be so controversial.

The Best Intentions for Education
Obama’s plan also includes incentives for schools to reduce the cost of college for students and increase graduation rates. This, it’s hoped, will make it easier for low-income students to gain access to a post-secondary education, be it academic or vocational.

The main thrust is to make America number one in the world with regards to our proportion of college graduates. Currently, the US ranks seventh in the world for the 25 to 34 age group. Obama wants every American to go for a post-secondary education–quite a goal.

Financial Aid Is Key
These aren’t quite desperate times, thankfully, but when it comes to family budgets, people aren’t throwing money around carelessly. The biggest thing standing in the way of Obama’s goal for all Americans is the price tag on post-secondary education. The new plan is aimed at changing this.

To accomplish these goals, Obama wants to take the government complete out of the Federal Family Education Loan (FFEL) program and switch over to Direct Loans across the board. This, according to recent projections, would save around $94 billion over the following decade.

While critics agree that the current situation is unsustainable–with students amassing so much debt that they may as well have bought a house–the biggest criticism of the proposal is that, in this ecomonic climate, we should be keeping entitlements in check, reforming and rethinking them. This is bad news for private lenders, but we are, as a nation, a little distrusting of private lenders and banks of late. Many people feel that they’ve had their chance, and it’s time for change.

Spending Cuts Forcing the Hands of Administrators
With massive cuts come massive cutbacks, ranging from fewer classes offered to altogether stopping spring admissions. A grant that has remained untouched by a school’s budget crisis but funds something perceived as less necessary, like a radio station for example, is pretty tempting. After all, doesn’t it seem a touch more important to keep financial aid flowing?

Whatever the money is grabbed from or put towards, the fact remains that donations typically come with strings–agreed upon strings, contractual strings that will stand up in a court of law. Using the money for anything other than its originally intended purpose is a violation of trust and downright wrong.

Rainy Day Money
Many long-standing grants and other donations were created as a kind of rainy day money jar. No matter what the school is going through, it’ll still have a radio station or the money to fund a certain club. That was the original point, and moving the money around to cover costs can’t be seen as an option. Times are tough, but this kind of behavior simply won’t fly.