Posts Tagged ‘financial aid’

Last Saturday, the U.S. House of Representatives passed a bill that would cut the Pell Grant, a post-secondary educational aid program sponsored by the U.S. Department of Education, by $815 – a more than 15 percent cut.

Sophomore Communication Major Nadia Williamson said she is worried about the bill since she relies on the Pell Grant for basic necessities.

“That’s the money I use to pay my rent, to buy my food,” Williamson said. “I work part time, but it’s only 20 hours a week at minimum wage, and it’s a little difficult to get by on that.”

Elaine Henrie, director of the student financial aid and scholarships office, said that in addition to cutting the grant, the House voted to do away with supplemental grants.

She said Emporia State receives about $199,000 a year in supplemental grants and matches 25 percent of the funds received in additional student aid. Henrie said that if the program disappears, that is an additional $253,000 lost.

While the House passed the bill, it has yet to pass through the Senate and, as Henrie said, “face a good fight.”

Even if the bill does not make it through all of Congress, a cut to Pell Grants could be inevitable, according to the Obama administration.

President Obama stated last week in his press conference for the 2012 Budget, “The take-up rate on the Pell Grant Program has skyrocketed.  If we continue at this pace, sooner or later what’s going to happen is we’re just going to have to chop off eligibility.”

The goal will be met by eliminating the year-round grants and the in-school subsidized interest for loans to graduate students, according to the President’s 2012 Budget.

Henrie explained the process of awarding the grant as entirely determined by FAFSA results, based on the income of students’ parents.

Henrie said ESU received a little over $6,000,900 in Pell Grants for this academic school year and if the 15 percent reduction were enforced, a little over a $1 million would be lost.

This year, 1,759 ESU students received Pell Grants. If the total amount awarded were to be evenly distributed to those who qualify, each student on average would receive $3,930, a loss of $750.

“It’s not very tough to keep the aid,” Henrie said. “You have to complete 75 percent of the hours with a 2.0 GPA – if you lost your aid, it’s probably because you stumbled.”

Williamson said she believes the Pell Grant cuts could force some students to change their decisions on college.

“Maybe they won’t go to a state university and they will have to go to a community college, which I think is unfortunate for our options to be limited,” Williamson said.

However, if the rate decrease is not passed in the Senate, the loss of the year-round Pell Grant will not affect Williamson at all and with no plans to attend grad school yet, she is not sure the unsubsidized loans would have an effect on her either.

Henrie said she views the interest rates on graduate school loans as a more practical means of making cuts.

“The graduate students got the help at the undergraduate level, so maybe it is time for them so assume a little bit more of that burden,” Henrie said.

A page on Facebook called ‘Save Student Aid’ is sponsored by the National Association of Student Financial Aid Administrators and aims to rally against cutting funds for education. It encourages students to be aware and vocal in the decision-making process of education budget cuts.

Brianne Simon

 

 

Student financial aid debt at Emporia State increased by 8 percent last year, according to Elaine Henrie, director of the Financial Aid Office. Nationally, students carried an average of $23,200 in debt in 2008, according to the Project on Student Debt, a nonprofit independent research organization. Historically, student debt has risen by 6 percent every year nationally.

The average debt was $19,085 for Stafford or direct loans for the May 2009 graduating class at ESU.

Henrie said students should keep track of loans and consider their choices.

“Stay in contact with the lender, find out what options you have, and don’t ignore it,” Henrie said.

The Project on Student Debt, which reported the National Postsecondary Student Aid Study numbers, said that ESU students have on average $17,680 in debt at graduation and showed that 70 percent of students at the university graduated with debt in 2008.

The study compared the states to find trends in student debt. High debt states are mostly situated in the Northeast and low debt states in the West. Out of the 49 states that participated in this study, Kansas was ranked 25.

Students, like sophomore chemistry major Jim Pickert, have concerns about their student debt. Pickert has been working on paying back his loans while still attending classes.

“I made a substantial payment a little while back…I don’t know, it depends on how things go,” Pickert said.

Senior art therapy major Jessemine Baker said she has accumulated $25,000 in debt after two years at ESU. Baker said she plans on becoming a school counselor and hopes that the government will pay off her loans. When she gets a job she said she plans on paying the interest.

“If we’re properly prepared we can do our jobs that we were educated to do and help us get out of debt. It sucks that we are in so much debt and it makes sense of why college kids are so broke,” Baker said.

Other students found ways to avoid private loans in addition to federal financial aid.

Bumming rides home, living off $20 for the rest of the week and creating a budget are some of the ideas offered by Laci Banowetz, freshman elementary education major

“I didn’t take any loans out this year, but will next year,” Banowetz said.

Freshman history major Brent Williams said it would be possible to live off less than normal.

“I will need to create a budget and I could live off $20 for the week,” Williams said.

Pell Grant recipients, who generally have family incomes under $50,000, are much more likely to borrow and to borrow more. Among graduating seniors who ever received a Pell Grant, a national average of 87 percent had student loans in 2008.

Nationally, those Pell Grant recipients had an average debt of $24,800. At ESU, 28 percent of graduates are those in debt and recipients of Pell Grants.

In addition to grants, ESU students receive an average of $1.8 million in scholarships.

High student debt in Kansas is typically found in the private schools but Wichita State University leads the average of public schools at $22,166 with 59 percent of graduates with debt.

Of the public four-year institutions in Kansas, Fort Hays State University has the lowest student debt. FHSU graduates have an average debt of $15,601 with 51 percent of FHSU graduates in debt.

Kansas State University and Kansas University are on the higher end of the state average. KU has an average of $20,902 debt for 46 percent of graduates. K-State is lower at $18,666 average debt for 57 percent of graduates.

Students are urged to seek any answers regarding their loans and financial aid with the Financial Aid office on campus. Contact at 620-341-5457 or stop by Plumb Hall 103.

More information on the NPSAS study can be found on www.projectonstudentdebt.org.

Liz Coffey

 

Emporia State students will now be able to deposit excess financial aid directly into any bank account starting next semester.

The question as to whether the program will be available before next semester has been resolved. Students will be able to update their banking information in the beginning of December.

“We’ve been able to refine our processes now,” said Mary Mingenback, ESU controller. “The more we learn about TouchNet and how things are going to work, we’re now able to get more information out to people.”

Instructions on how to update banking information will be sent to students along with their spring billing statement around Dec. 11. The deadline to update banking information will be Jan. 5, 2010.

If students do not update their banking information before their financial aid is available, they will be issued a check for excess financial aid.

“It’s really a timing issue depending on when their individual financial aid comes in,” said Pamela Norton, assistant controller. “If they fill out their deposit information moments before (financial aid is available) they will get a direct deposit. If it happens to be moments after, they will get a check.”

To ensure students have an adequate amount of time to fill out their banking information, no financial aid will be processed until Jan. 5, 2010.

However, checks will still not be available until the first day of classes, Mingenback said.

Information about individual’s bank accounts cannot be accessed by any of the ESU employees, Norton said.

“The reason for going to TouchNet is because it is more secure for students,” she said. “None of us will ever be able to see that payment information.”

Details about the program and changes that will be made are available on flyers at the info desk in the union, the registration office, the advising centers, financial aid and the residential halls.

“We have flyers in all of the main traffic sites,” Norton said.

BuzzIn announcements will also be sent out to student’s email accounts sometime today regarding the information.

One major change that not having a bank on campus has brought about is the limited use of the student hornet cards.

“You can still use your Lyon County account if you have one,” Norton said.

Students will no longer be allowed to use hornet cards as debit or ATM cards. If a student has a Lyon County State Bank account, Lyon County will issue a free debit card to those who are interested. Hornet cards will still work for on campus services.

“The hornet card will still be used in all university services, dining services, residential halls,” Norton said. “Lyon County will provide a free debit to those accounts that they already have.”

Students who pay their ESU bills with a credit card will no longer be able to use a Visa brand card.

Ashley Peaches/The Bulletin