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Financial Aid

If you still watch TV with commercials, you may have seen an ad recently talking about using data to improve your business—the bakery that mined its sales data to discover that people buy more cake on rainy days, for example. Everybody’s talking about “big data” and “data science,” basically applying sophisticated analytic techniques to large datasets. And one of the things they’re doing is predictive modeling—using historical data to make predictions about the future.

Jack Gochenaur was hearing scary stories around campus. Some financial aid students didn't know whether they'd received loans or grants to pay for their education. Many had no idea what they'd need to earn to meet their monthly loan payments.

"I have students who reach their senior year and during exit counseling, it's the first time they know how much money they owe," said Gochenaur, Chief Financial Officer/Treasurer of Manchester College, a 1,300-student liberal arts college in North Manchester, Indiana.

Something, he realized, had to change.

A common objective for business schools across the country is development of leadership skills. For this reason, MBA programs utilize team-based assignments, incorporate leader development in the core curriculum, and include a plethora of leadership and service opportunities in co-curricular offerings.

Michigan means business when it comes to going after student loan defaulters. Michigan college students graduate with a slightly higher debt than the national average, and about one in 10 Michigan student loans winds up in default—on par with the national average. However, the U.S. Attorney’s Office in Detroit has been far more aggressive in pursuing defaulters than in other states.

As college acceptance letters began popping up in mailboxes across the country this year, incoming students were left once again with the daunting task of choosing the right school. While cost has always been a consideration, more students than ever before are now considering it as a key factor—not only in terms of which school to attend, but whether they go to college at all.

Unless you live in a cave, you’ve seen the alarming headlines highlighting “exploding” college costs and “crushing” student loan debt. Because the media is trying to grab readers’ attention, these articles often use the most startling cases of these serious problems without providing context needed to fully understand the complexity of these issues. A simple internet search reveals the prevalence of these types of articles. Here are just a few recent headlines:

In the midst of the debate in Congress over whether or not to double interest rates on Federal student loans in July comes another hot-button aid issue—states are running out of aid money altogether. At the end of March, the Illinois Student Assistance Commission (ISAC) announced it would need to suspend making Monetary Award Program (MAP) awards for FAFSAs filed on or after March 14.

As new high school graduates anxiously await acceptance letters from their favorite colleges, many will start to plan for this new chapter in their lives by seeking student loans and financial aid to pay for it. After running the gauntlet of qualifying for loans and assistance, many will forget all about it.

Publication Date: 
3/9/2012
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Inceptia published this white paper to help schools effectively understand their three-year cohort default rates.

The roughly 9 million students who rely on subsidized federal loans will see interest rates double from 3.4 percent to 6.8 percent on loans borrowed after July 1. It’s just the latest chapter in the nearly 50-year saga of the federal government trying to determine the appropriate rate for these loans.

The Obama administration has urged Congress to extend the 3.4 percent rate for one year, but an extension would cost an estimated $3.9 billion. Students and parents trying to plan and pay for college face confusion and uncertainty.

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