| Congress Passes HEA Extension
Congress has approved a five-month extension of the Higher Education Act (HEA) .
The original House-passed bill, H.R. 3927, was a "clean" bill containing no amendments beyond a six-month extension of HEA. What the president signed into law is the Senate version, which differs from the House version in two respects:
- S.2258 extends HEA program authority for five months, expiring on March 31, 2008.
- It also contains amendments to correct a drafting error in the recently passed Reconciliation bill, H.R. 2669, The College Cost Reduction and Access Act of 2007, regarding Special Allowance Payments to for-profit and nonprofit lenders.
President Bush signed the legislation into law on Wednesday, October 31, the day after the current extension expired.
A Guidance Review — View a listing of the Dear Colleague Letters (DCLs), Electronic Announcements and Federal Registers for October 2007  .
NewSource Hits the Newsstands
EDFUND's newly redesigned financial aid training program, the EDFUND Institute, is rolling out this fall with new workshops and updates to traditional offerings all created to maximize your knowledge and minimize impact on your busy calendar.
In addition to this feature story in the November issue of NewSource, you'll read about what hinders Asian American students in their college aspirations, and learn about the newest way for students to attend college fairs without leaving their computers.
These stories and others can be found in November's NewSource .
College Costs and Student Aid Reports from the College Board
Two new reports from the College Board document the increase in costs at higher education institutions and the changing landscape of student aid, especially warning against the rise of private loans to help meet the escalating costs of tuition.
According to Trends in College Pricing 2007 from the College Board, the average cost of a college education rose faster than the rate of inflation this year. The increase was greatest at public four-year institutions.
Tuition & Fees, 200708
Type of Institution |
200708 |
Increase from 200607 |
Public Two-Year |
$2,361 |
4.2 percent |
Public Four-Year In State |
$6,185 |
6.6 percent |
Public Four-Year Out-of-State |
$16,640 |
5.5 percent |
Private Four-Year Nonprofit |
$23,712 |
6.3 percent |
For Profit |
$12,089 |
6.2 percent |
The increase in tuition and fees at public four-year colleges is part of an over three decade-long trend. From 197778 to 200708, the rate of growth at such institutions has been faster than at private institutions and continues to gather speed.
Another report, Trends in Student Aid 2007, offers extensive data on student aid. Federal loans continue to be the largest source of aid for both undergraduate and graduate students.
Student Aid by Type, 200607
Type of Aid |
Undergraduates |
Graduate Students |
Total |
$97.1 billion |
$33.4 billion |
Federal loans |
40 percent |
61 percent |
Institutional grants |
21 percent |
17 percent |
Pell Grants |
13 percent |
n/a |
State grants |
8 percent |
1 percent |
Private and employer grants |
7 percent |
9 percent |
Education tax credits/deductions |
5 percent |
2 percent |
Federal grants other than Pell |
4 percent |
9 percent |
Federal work-study |
1 percent |
<1 percent |
However, the report warned about the continued growth of private loans. The proportion of total student loan volume from private sources has doubled in the last six years and quadrupled in the last 10 years.
Growth of Private Loans
Year |
Proportion of Student Loan Volume |
199697 |
6 percent |
200001 |
12 percent |
200607 |
24 percent |
Trends in College Pricing 2007 - College Board
Trends in Student Aid 2007 - College Board
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