College Cost Reduction and Access Act Webinar

This month EDFUND successfully hosted 12 webinars discussing the College Cost Reduction and Access Act (CCRAA) with our school and lender partners. “Navigating the New College Cost Reduction and Access Act” was so successful that we have made a recording of the webinar available online. Find out how to view the video

Parents Expect to Pay for Their Children’s Education With Loan Debt

Most parents expect to pay for their children's college education with loans and to be in debt for a long time after their kids graduate.

This is the view of The State of College Savings - 2007 Survey of Parents by the College Savings Foundation, a non-profit dedicated to helping families save for their education savings goals. Responses from 447 parents across the USA and from different income groups showed that parents intend to rely on long-term debt rather than savings to fund their children's futures.

• 82 percent of respondents expect to be paying off college loans beyond five years after graduation
• 40 percent expect to be paying student loan debt for at least 10 years

Just over half of the respondents had started saving as early as possible — at or before a child's birth. However, these parents acknowledge that they are not saving enough.

• 27 percent have saved nothing at all
• 54 percent have saved less than $5,000
• 14 percent have saved between $5,000 and $10,000
• 9 percent have saved more than $50,000

Most of the parents surveyed expect to go it alone in paying for their children's college education. Less than a quarter expect grandparents to help.

• 68 percent expect no help from grandparents in funding their children's college education compared to 24 percent who expect grandparents to help

“These findings highlight a looming crisis for American parents and their children. It's dangerous for parents to begin seeing the financing of their children's college tuition as a second mortgage,” said Chuck Toth, College Savings Foundation secretary. “As we have recently seen in the mortgage market, reliance on long-term debt can be expensive and precarious. Investing early and often can enable parents and their children to leapfrog a lifetime of debt and establish a firm foundation for the family's legacy.”

The State of College Savings - 2007 Survey of Parents - College Savings Foundation

ED Issues Further National SMART Grant Guidance

Well after the start of the fall semester and past the add/drop period at most schools, the Department of Education has issued a General Dear Colleague Letter GEN-07-07. The guidance says that, “An otherwise eligible student can receive a National SMART Grant for a payment period only if the student is enrolled in at least one course that meets the specific requirements of the student's National SMART Grant-eligible major. It is not necessary that the course be offered by the academic department that confers the degree in the eligible major.”

The department goes on to state that, “A student who is taking general education courses or electives that satisfy general degree requirements for the student's National SMART Grant-eligible program, but who is not taking at least one course specific to and required for the National SMART Grant-eligible major, is not eligible for a National SMART Grant payment for that payment period.”

Institutions that have already packaged or disbursed National SMART Grants to students for the fall payment period must follow this guidance for the remainder of the 2007-2008 award year.

Dear Colleague Letter GEN-07-07 Enrollment Requirements for the National SMART Grant Program

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