University Business - November/December 2011 - (Page 12)

BEHIND the NEws Student loan program revisions U Forgiven Debt Plan: Curb Your Enthusiasm Student loan debt haS been steadily rising for a number of years and has recently passed the $1 trillion mark, making it more than credit card debt. the issue has had attention all along, but there is more of a focus on it as recent graduates are having a hard time finding jobs that would enable them to repay those loans. at the end of october, President obama accelerated changes to the existing income-based repayment plans from going into effect in 2014 to next year. the plan would allow those with FFelP loans to consolidate those loans with their other direct federal loans, reducing their interest rate by as much as half a percent. It also reduces the maximum payment from 15 percent to 10 percent of a student’s discretionary income, with any remaining debt forgiven after 20 years rather than the current 25 years. While the announcement got a lot of attention in the press, some people have questioned how many people it will help. “the proposal’s emphasis is consistent with Sallie Mae’s current practices and mission,” says Martha holler, Sallie Mae both borrowers, who will have their debt in one account, and college student services officers who might be advising those students, since it will make things easier to explain. however, he points out it is more of a “housekeeping” matter, since “it’s not a traditional consolidation; it’s an account with one biller.” experts agree the consolidation option will only aid a fraction of student borrowers since only “split-serviced” loans are eligible. the president’s announcement was less interesting for the content than it was for presenting an opportunity to discuss the issue of student loan debt, says Mike Ryan, vice president of borrower services for american Student assistance, a nonprofit that provides information about student loans. While the announced changes are much more relevant to borrowers, Ryan points out it is an opportunity for campus leaders to evaluate the information provided to students and recent graduates through existing communication and outreach efforts. “the reality is, the understanding doesn’t come in until students have to start making payments,” Ryan says. —Ann McClure President Obama’s“Know Before You Owe” loan relief plan was announced at CU Denver. spokesperson. “While at first blush the proposal incentives appear to break new ground, in fact, they duplicate some features that our customers have enjoyed for nearly two decades.” “It’s not a huge game changer for people who are three or four years out of school,” says Patrick Kandianis, cofounder and chief revenue officer of Simple tuition, which helps students and their families determine how to afford college. he believes the consolidation piece will be helpful to Now Try This: A Mobile (Admissions) App A ProsPecTive sTudeNT ATTeNdiNg AN oPeN house or cAreer fAir, who has just finished the LsAT, or even who has some time on a train commute can apply to Atlanta’s John Marshall Law School on the spot—via smartphone or tablet. officials there say it’s the first law school in the country facilitating the application process through the use of portable devices. “it was a vision for the school to enable prospective law school students to be able to apply from multiple channels,” says Alan Boyer, associate dean of recruitment and marketing. Adding mobile devices to the paper and web options seemed like a logical step. “it’s about putting the process at their fingertips wherever they are at the time,” he adds. The five-minute iApply form, which mirrors what one would fill out via computer, is just the first step of the process. An applicant still must send transcripts, letters of recommendation, and a personal statement via mail. But, those applying using a mobile device, at least for now, get the $50 application fee waived. if early interest is any indication, prospective students like the option. from the announcement about it on october 3 through the end of that month, a busy recruitment time, Boyer reports, about 100 applications had been submitted via mobile device. on the back end, these applications look the same. once the applicant hits the submit button, a prepopulated application is sent directly to the admissions system and staff is notified that an application has come in. Law school officials first discussed the idea in late July, and design concepts were created in August for development and testing in september, Boyer shares. An outside design firm and a consultant were used. he advises that other institutions consider multiple ways for students to apply and hopes the new option for his institution grows in popularity. “we’re enthusiastic about the initial response.” The mobile application can be viewed at http://m.johnmarshall.edu. —Melissa Ezarik 12 | November/December 2011 Glenn asakawa universitybusiness.com http://m.johnmarshall.edu http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - November/December 2011

University Business - November/December 2011
Contents
Editor's Note
College Index
Ad Index
Behind the News
Financial Aid
Viewpoint
Education Gateways
Models of Efficiency
Business Intelligence Gets Smarter
Internet Technology
Independent Outlook
End Note

University Business - November/December 2011