Career College Central                                                               PoliticsMARCH 2013                   ...
We have you covered.                                                                                                      ...
Subscribe at www.CareerCollegeCentral.com   | 1
Contents                                                                                                                  ...
38	   A       Model for Success                                                  www.CareerCollegeCentral.com      By Erik...
MARCH 2013 | 4
LETTER                                                                             from theDear readers,                  ...
john assuntoWhosREPRESENTINGYOUR BEST                                                       Quality search                ...
Now more than ever, if you find yourself exploring      Take the time to ask those important questionsopportunities in the...
Greetings from Hollywood Beach!  10th Annual Best Practices and  Great Ideas Conference 2013  April 17-18, 2013  Marriott ...
The New CampusVue Portal.                                                                                                 ...
kevin kuzma         Politics         Students         FIRST            Semantics at the heart of latest attack on for-prof...
The                                title sounds noble:      the    no meaningful education, misusing taxpayer dollars, and...
tasha cerny                                         Senator Tom Harkin, D-Iowa                                            ...
U.S.                                 Senators    Tom      Harkin,                                 D-Iowa, Chairman of the ...
Specifically, the Students First Act:                                                                                     ...
Pearson. We’re on a mission – Yours. From pre-enrollment to placement, and everything in between, Pearson is proud to work...
dr. susan schulzBuildinga BetterExternship                   How great externships can result in                     100 p...
E             xternships provide many benefits to career     there. If not, there are many companies and community        ...
Successful externships canresult in high job statistics,enhanced relationshipswith and testimonies fromemployers, and a gr...
Evaluation for results and benefitsWhen you begin the process, reach out to your               Routine check-in strategies...
brdjen creweInflatedDreams?Bypassing education for bigger dreamsis quickly becoming one version of theAmerican dream      ...
all the years I’ve been tutoring, I’ve never heard one teenager say   process of making a dream a reality. And once you’re...
Once upon a time, the American dream was to be able to provide       1  ark Zuckerberg was intelligent and educated enough...
It was a search           that an swered a question             t hat inspired an inquiry            tha t launched a futu...
dr. pete savoCash orClass?Rekindle theentrepreneurialspirit within theyoung at heartBy Dr. Pietro (Pete) Savo             ...
Carl J. Schramm, a professor at Syracuse University and co-author           •  ith a young fearless mind, everything is po...
jenni valentino     Paying    Dues         Obama, Congress attempt to get                ahead of the nation’s struggles w...
A survey led by Wonderlic of Imagine America Foundation                                                                   ...
Payment                                                               “We’re at the early stages of a transformation – 10 ...
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?
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Deciphering the differences between traditional universities and for-profits..what they can learn from each other..Please see page 62!

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The Great Divide: The differences are great, but can traditional universities and for-profit colleges learn from each other?

  1. 1. Career College Central PoliticsMARCH 2013 Students 15500 W. 113th St., Suite 200 • Lenexa, KS 66219 FIRST Semantics at the heart of latest attack on for-profits Inflated Cash or Dreams? Class? Are the aspirations of today’s Fueling the entrepreneurial students reachable through spirit in today’s college education? students The Definitive Voice of the Career College Sector of Higher Education www.CareerCollegeCentral.com
  2. 2. We have you covered. We’ve been doing “organic” since last century HigH-converting student leads come naturally when you have a partner that cares—with the experience to get results. We’re experts at: • Search—organic & strategic paid • Fresh, real-time lead delivery • Exclusivity—we’ll never re-sell your leads + We own, operate and maintain every web site we use, so you’ll always know where your leads are coming fromYour Partner in Education SolutionsExperience how Ambassador can develop the perfect course materials management solution for your school. Leverage ourleading-edge technologies and customized integrations to fulfill academic and financial goals, enhance student satisfactionand increase efficiencies. We have complete solutions for textbooks, eTextbooks, scrubs, kits, supplies and logo apparel, andyou will receive unparalleled service 100% of the time. When it comes to course materials management, we have you covered. Learn how Ambassador’s education solutions can work for you. Go to www.ambassadorbookstores.comCOLLEGE BOOKSTORES email info@ambassadorbookstores.com or call (800) 431-8913 search marketing specialists 1.866.766.2589 info@beelineweb.com
  3. 3. Subscribe at www.CareerCollegeCentral.com | 1
  4. 4. Contents News Career College Central 26 Paying Dues By Jenni Valentino The ever-increasing student loan debt in America continues Politics to take a backseat to current events and economic debates like the fiscal cliff. However, with the start of President Barack Obama’s second term, changes to regulate and simplify costs MARCH 2013 and financial aid for higher education may be looming in the Students near future. FIRST 66 ATA College By Jane Mahoney In order to combat low retention rates and encourage student success, ATA College has created a successful mentorship Semantics at the heart of latest attack on for-profits program and an administrative retention specialist position to 15500 W. 113th St., Suite 200 • Lenexa, KS 66219 keep at-risk students engaged and on the path to graduation. INFLATED CASH OR DREAMS? CLASS? ARE THE ASPIRATIONS OF TODAY’S FUELING THE ENTREPRENEURIAL STUDENTS REACHABLE THROUGH SPIRIT IN TODAY’S COLLEGE Contributed Articles EDUCATION? STUDENTS The Definitive Voice of the Career College Sector of Higher Education www.CareerCollegeCentral.com 20 I nflated Dreams? On the Cover 10 By Brjden Crewe With the famed successes of multibillionaire college dropouts Politics First like Mark Zuckerberg, young people are growing up with an By Kevin Kuzma increasingly unrealistic American dream. Contributing writer In his last term before retirement, Senator Tom Harkin, Brjden Crewe defends the importance of a higher education as D-Iowa, has launched another damaging attack on the a means to achieving one’s ballpark dreams. career college sector – the most threatening offensive since the Department of Education’s gainful employment rule. Editor Kevin Kuzma explains why his legislation to 24 C ash or Class? By Dr. Pietro (Pete) Savo crack down on bad actors” throughout all of education The Thiel Foundation is giving $100K to students willing to forgo is not about students at all, but rather about the aims of a college education and become entrepreneurs before higher legislators. education impedes their creative ideas. Dr. Pietro (Pete) Savo, Chief Financial Officer of a Service Disabled Veteran Owned Small Business, discusses the legitimacy of this idea and ways to combat such notions in the classroom. 60 he Great Divide T By Robyn Shulman, M.Ed. It isn’t difficult to see the drastic differences between a career college and a traditional university, and chances are that everyone prefers one over the other. Robyn Shulman,Subscribe! Managing Editor of ED News Daily, explores what makes these higher ed institutions different and the room for improvementCareer College Central grants you access to: this could mean for both.• Insightful operations tactics from sector experts• Student stories 6 W hos Representing Your Best Interests?• Sector research and analysis By John AssuntoOnly $59 for an annual subscription Having trouble finding a quality search firm? John Assunto,and $39 for additional subscriptions. President and CEO of the Hudson Group, has some advice onContact Us Today! Call 913.254.6016 how to find the firm that puts your interests ahead of its own.or email bridgetd@careercollegecentral.comMARCH 2013 | 2
  5. 5. 38 A Model for Success www.CareerCollegeCentral.com By Erik Slagle The Queens campus of Lincoln Technical Institute has teamed up with the Greater New York Auto Dealers Publisher/Editor Association, placing students and potential employers in the Kevin Kuzma same building. Erik Slagle of Lincoln Education Services kevink@careercollegecentral.com discusses the model for success such a match has created. Graphic Designer16 B uilding a Better Externship Rick Kitchell By Dr. Susan F. Schulz Externships open career opportunities for students and solidify career school relationships with local businesses Columnists and employers. They also benefit enrollment and retention Amir Moghadam rates. Dr. Susan F. Schulz of Susan F. Schulz Associates Vincent Scaramuzzo Inc. outlines successful externship strategies utilized by several career institutions. Staff Writers Tahsa Cerny54 H istory ... On Repeat Jane Mahoney By John Lee Jenni Valentino Despite a changing education sector, for-profit colleges have been facing the same criticisms challenges for more Copy Editors Erin Cockman than 100 years. John Lee, Founder and President of JBL Piper Hale Associates Inc., discusses the reasons for these challenges Nate McGinnis and ways to change this repetitive history. Megan Schulte Subscriptions Manager In Every Issue/Columns Advertising Sales Bridget Duffy Hays bridgetd@careercollegecentral.com5 Letter from the editor 913.254.601630 IMAGINE AMERICA FOUNDATION Career College Central, March/April 201343 the link Application to mail at periodicals postage rates is pending at Olathe, Kan. Career College Central is published50 Book Review bimonthly, six times a year, in January, March, May, July, September and November. Annual subscription fee is $59. Office of known publication: PlattForm Advertising, 1550064 LINK UP ON LINKEDIN W. 113th Street, Suite 200, Lenexa, KS 66219. Periodicals Postage Paid at Olathe, Kan., and at additional mailing52 SCARAMUZZO offices. POSTMASTER: Send address changes to PlattForm Advertising, 15500 W. 113th Street, Suite 200, Lenexa, KS 6621970 MOGHADAM For more information about subscriptions or advertising72 MAKING HEADLINES (website and/or magazine), please contact: Bridget Duffy Hays, Director of New Business Development76 Why I chose 15500 W. 113th Street, Suite 200, Lenexa, KS 66219 TEL: 913.254.6016 FAX: 913.764.4043 www.CareerCollegeCentral.com Subscribe at www.CareerCollegeCentral.com | 3
  6. 6. MARCH 2013 | 4
  7. 7. LETTER from theDear readers, editor Legislators should not judge the paths these students choose or paintBefore I can commence with writing my letter this month, I first haveto give praise to our printer who was gracious enough to stop the the colleges they attend as bad actors if the legislators don’t agreepresses on this edition of the magazine though we were deep into the with or understand the students’ choices. The path should not be asfinal stages of publication. Our original cover story for March was important as the outcome.much different than what you see here, but that was before our sectoronce again became the focus of potentially unfair and overbearing Career colleges help students land jobs and take that important firstlegislation in Washington. step toward a brighter future. Those of us who care to set foot inside these schools know this. Our legislators do not. I would like to askThis month, Senator Tom Harkin, D-Iowa, launched a new front in them to leave education to those who know and care something abouthis battle against career education. In the guise of legislation that it. We’ve been putting students first for decades. There is a differenceprotects students from preying colleges, Harkin is seeking to provide between a cleverly titled act … and a mantra.the Department of Education more power to take measures againstthe “bad actors.” Our new cover story takes an insightful look at theact and explains why this latest effort could be more damaging to thesector than the original gainful employment rule.Our elected officials in the Senate are running with an idea that issound in principle and have positioned it as a positive for all of highereducation. And yet, the Students First Act is really about puttingundue pressure on all career colleges. Our sector has its naysayers inWashington, but we all know that entities that operate on a for-profitbasis have negative stigmas attached to them. That makes them allsomewhat suspicious to many in government.Harkin’s act makes it clear: The day career colleges are finallyappreciated by the masses and lauded by the general public and evenby career politicians for the value they bring in delivering skilled laborto the U.S. workforce – the flexibility they offer older adults withoutthe time or money for traditional education – is not likely to comein 2013. That day won’t arrive until we all agree that what shouldmatter more than the profit status of an institution is whether or notthat school leads students to a path to achieve their dreams.Everyone has a different dream and a different idea of how to getthere, as writers Breden Crewe and Dr. Pete Savo explore in this issue.Their articles shine a light on student aspirations. Are today’s students’hopes inflated? Is a college education a requirement for achievingtheir dreams? These are relevant questions that help us come to abetter understanding of the role education should or should not play inthe lives of our next generation of Americans. Subscribe at www.CareerCollegeCentral.com | 5
  8. 8. john assuntoWhosREPRESENTINGYOUR BEST Quality search firms represent yourINTERESTS? interests, not theirs By John Assunto, Hudson Group“I can get you an interview … ”It always amazes me when either my staff or I speakto executives in our industry and they inform usthat they received an email from a recruiter statingthat their client wants to set up an interview withthem – even though the executives never spokewith that recruiter or gave them their resumes. Thelevel of misrepresentation from those situationspuzzles me every time I hear it. Yes, we recognizethe industry has had some corrections, and we’veseen the activity increase in our offices. But, at theend of the day, if it sounds too good to be true, itprobably is.MARCH 2013 | 6
  9. 9. Now more than ever, if you find yourself exploring Take the time to ask those important questionsopportunities in the education space, you should and ask what the follow-up procedure would betake the time to administer your own litmus test. after your resume has been submitted. Ask theAsk questions to ensure that you are dealing with search consultant for any assistance they may bea quality search firm that has your best interests at able to provide to best prepare you for a potentialheart. Here are some simple questions you can pose interview. Also, ask the search consultant if theyto test credibility. are open to informing you of other positions in the industry that they are aware of that fit your • efore I forward my resume, do I have your B background. commitment that you will not submit it to anyone unless I have the opportunity to learn Now more than ever, if you find about the position/company? yourself exploring opportunities • ill my resume be forwarded to HR/internal W in the education space, recruiting, or will it be submitted to a hiring you should take the time to manager? administer your own litmus test. • oes your client have a defined interview D A quality firm with a high level of integrity often process? has strong long-term professional relationships with executives and will assist you in your search, • Will I be contacted directly by your client? even if the firm might not immediately obtain a fee. A good firm will recognize that helping • hat is your background in education outside of W an executive in the present is an opportunity to recruiting? Is your firm managed by executives build a trusting relationship into the future. Don’t who are experienced in both executive search underestimate the value of a partnership between and education? you and a search consultant who is willing to look out for your interests – when others are only looking out for their own bottom lines. There are firms that will be willing to help. Ask the right questions, and you’ll find the recruiters who will go above and beyond; hold onto your relationships with firms like this. Those firms will go the extra mile when you need to hire. John Assunto is the President and CEO of the Hudson Group. He started the education division at the firm and has provided consulting to the top executives in proprietary education. He has been ranked in the top 1 percent of all recruiters worldwide by Management Recruiters International. His career includes work with both international schools and domestic colleges, universities, career schools and education service corporations. He can be contacted at 860.652.8660, ext. 103, or johna@hudsongrp.com. Subscribe at www.CareerCollegeCentral.com | 7
  10. 10. Greetings from Hollywood Beach! 10th Annual Best Practices and Great Ideas Conference 2013 April 17-18, 2013 Marriott Hollywood Beach 2501 N. Ocean Drive Hollywood, FL 33019 Register now TpiBestPractices.com Questions? Email Donna Varela dvarela@citycollege.edu Make a Hotel Reservation Follow Us Hosted by: Stay at the Marriott Hollywood Beach twitter.com/tpiConference hotel and get a special discount. Go to facebook.com/tpiConference TpiBestPractices.com for details.MARCH 2013 | 8
  11. 11. The New CampusVue Portal. CampusVue® Ecosystem CampusVue® Student CampusVue® Portal CampusVue® Forms Builder Talisma® CRM Talisma® Fundraising CampusVue® Finance CampusVue® HR Payroll CampusVue® Performance AnalyticsMore flexible, more brandable, more collaborative.Discover how you can transform your institution’s Website into a true Web collaboration platform. With the new CampusVue® Portal,students, faculty, and staff connect to your institution on the fly, publish and share documents, and easily customize their onlineexperience. What’s more, you can tailor online student applications to their programs and interests with drag-and-drop ease. See thenew CampusVue Portal in action.Visit the CampusVue Demo Center at www.campusmanagement.com/democenter or call 1.866.397.2537.© 2012 Campus Management Corp. All rights reserved. Campus Management Corp, CampusVue and Talisma are registered trademarks ofCampus Management. These marks may be registered in the U.S. and other countries. All other trademarks and registered trademarks arethe properties of their respective owners. Subscribe at www.CareerCollegeCentral.com | 9
  12. 12. kevin kuzma Politics Students FIRST Semantics at the heart of latest attack on for-profits By Kevin Kuzma, EditorMARCH 2013 | 10
  13. 13. The title sounds noble: the no meaningful education, misusing taxpayer dollars, and Students First Act. sticking students with the bill.” The paragraph concludes with this statement: “A rising number of students at these In those four words, you institutions are being forced to drop out and default on theirwill find something you can stand behind – a cause we federal student loans.”can all champion: protecting students from colleges anduniversities preying on the unsuspecting through flashy The bad actors label is cause for concern for all careermarketing pieces and aggressive phone calling. (Actually, colleges. And the last statement referring to “thesemake it two things we can stand behind: protecting institutions” perhaps should cause even greater anxiety.students … and our dislike of intrusive marketers.) Why? Because Senator Harkin considers all for-profit schools bad actors. By his vague definition, all careerLast week, U.S. Senators Tom Harkin, D-Iowa, colleges are overly aggressive in their marketing efforts,Chairman of the Senate Health, Education, Labor and are not graduating students at high enough rates and arePensions (HELP) Committee, and Frank R. Lautenberg, essentially flawed institutions because of what he sees asD-N.J., introduced the Students First Act to remedy the their motives.Department of Education’s oversight of higher educationinstitutions that are taking advantage of students and The Students First Act is nothing more than Senator Harkintaxpayers. upping the ante against for-profit colleges by granting the Department of Education an expansion of power.But pay no mind to the language they are using, specificallythe broad claim that the act targets institutions of higher While we all agree students should come first – no mattereducation. Harkin, in his final term before retirement, what sector of higher education we might work in – weis dedicating a large portion of his time to for-profit need to fight against this act. We need to take action beforebashing. The Students First Act is easily the biggest threat the Department of Education uses its power to unfairlyto all career schools since the advent of the Department of target career colleges – career colleges where studentsEducation’s gainful employment rule in 2010. are getting a quality education, a reality that occurs at the overwhelming majority of for-profit schools.The bill enhances the program review process, creatingtriggers that require the Department of Education to Something else we can all agree on: Lawmakers and theirconduct program reviews of institutions most at risk of proposed solutions are not the answer for the betterment ofviolating federal law. It also strengthens existing sanctions higher education. Their threats create dissension, put theagainst colleges that knowingly and willfully violate various sectors of higher education at odds and carelesslyrequirements of federal student aid programs and holds cause trouble for institutions that have done nothing wrong.executives of those institutions personally accountable. Students should definitely come first, but with thisFollow along with me, if you will, and read between the legislation, politics do.lines of the language used in the HELP Committee’s pressrelease announcing the proposed legislation.The language claims the act will help the Department ofEducation act against schools taking advantage of low- Kevin Kuzma is Editor of Career College Central.and middle-income students who rely upon federal student His feature writing, essays and short stories haveaid to help make college affordable. “Bad actors” are appeared in The Kansas City Star, Urban Times, Review, Ink Magazine and Present Magazine. He canspecifically made targets and are defined as institutions be contacted at kevink@careercollegecentral.com.that “are aggressively marketing to vulnerable studentsin potentially illegal ways while often providing little or Subscribe at www.CareerCollegeCentral.com | 11
  14. 14. tasha cerny Senator Tom Harkin, D-Iowa www.harkin.senate.gov Behind the Students FIRST ACT Everything you need to know about the legislation proposed by Senators Harkin and Lautenberg By Tasha Cerny, Staff WriterMARCH 2013 | 12
  15. 15. U.S. Senators Tom Harkin, D-Iowa, Chairman of the Senator Frank R. Lautenberg, D-N.J. Senate Health, Education, www.lautenberg.senate.gov Labor and Pensions (HELP)Committee, and Frank R. Lautenberg, D-N.J., introduceda new piece of legislation on March 1, titled the StudentsFirst Act, a proposal designed to reinforce and strengthenthe Department of Education’s supervision of institutionsof higher education and better hold accountable thoseinstitutions profiting illegally from students and taxpayers.Along with Senator Harkin and Senator Lautenberg, SenatorsRichard Durbin, D-Ill., and John D. Rockefeller IV, D-W.V.,are supporting the bill as co-sponsors.The bill was proposed as a way to target and prevent theactions of colleges and universities that take advantage ofstudents who receive federal student aid in order to reducetheir own costs and receive a higher profit. Senator Harkinand Senator Lautenberg were noted in a letter sent toEducation Secretary Arne Duncan in December as havingput a large emphasis of this fraud on manipulation of studentloan default rates: “The for-profit sector consistently has thehighest default rates among colleges and universities … For-profit colleges enroll only 13 percent of students, yet accountfor almost half (47 percent) of all defaulted borrowers.”*In a quote published in a Senate newsroom press release,Senator Harkin said, “Plain and simple, students and taxpayersexpect federal dollars to be spent at colleges and universitiesthat provide a quality education. Unfortunately, there aretoo many institutions that put other priorities over students’academic success. This important legislation will help focusthe Department of Education’s efforts to effectively detectand stop the patterns of waste, fraud and abuse that leavestudents with mountains of debt and without degrees.”The Students First Act adds to the program review process,making investigations into fraudulent cases more thoroughand increasing the encompassing criteria that would requirethe Department of Education to conduct program reviews.The legislation also increases the current sanctions in placefor those institutions in violation, or at risk of violation, ofthe requirements for federal student aid programs and holdsexecutives of these institutions personally accountable.The legislation seems to focus specifically on the for-profit sector of higher education, though the bill is wordedto encompass all higher education institutions. In theletter from Senator Lautenberg and Senator Harkin sent toSecretary Duncan, Senator Lautenberg states that, “For-profitschools should not be able to use administrative smoke andmirrors to circumvent regulations that protect students andtaxpayers, and the Department should take action to preventthese tactics.”* Subscribe at www.CareerCollegeCentral.com | 13
  16. 16. Specifically, the Students First Act: Senator Tom Harkin, D-Iowa • einforces overview of violating institutions by R www.harkin.senate.gov requiring department reviews of institution programs engaged in risky behavior, such as serial forbearance, default rate manipulation, exceeding the 20 percent revenue spending limit on recruitment marketing, and receiving more than 85 percent of revenue from federal student aid sources • ncourages the Department of Education to include E proactive program reviews for institutions according to criteria related to default rate, total federal student aid revenue, spikes in enrollment, complaints, suspicious graduation rates, financial health and/or profit margins • equires institutions found in violation of these R stipulations to notify prospective students when and why the institution is under review • urther develops existing procedures by requiring F that all reviews assess abuse of the aforementioned violations, as well as assess the institution’s financial and administrative capabilities and program integrity • pecifies that all program review personnel be S appropriately trained and that violating institutions share program review results with federal and state entities, including accrediting agencies and associations • ncreases the mandatory penalties for violating I institutions by revoking eligibility for federal student aid and requires that the Department of Education specify mandated sanctions for other violations • nforces financial penalties for colleges and E universities that lose their eligibility and raises the fines for breaching Title IV regulations • ses funds from these penalties to provide financial U * he letter to Secretary of Education Arne Duncan can T relief to students in attendance at violator schools be found here: http://www.lautenberg.senate.gov/assets/ default-manipulation.pdf • ncreases recordkeeping for data collection and I complaint tracking and improves the current central Sources: database on institutional accreditation, eligibility and http://www.help.senate.gov/newsroom/press/ certification release/?id=0cc7ef6b-40ce-49d8-b9be- 35b12b2fdb46groups=Chair http://www.lautenberg.senate.gov/assets/StudentFirst.pdf http://lautenberg.senate.gov/newsroom/record. cfm?id=338110MARCH 2013 | 14
  17. 17. Pearson. We’re on a mission – Yours. From pre-enrollment to placement, and everything in between, Pearson is proud to work with private sector and career colleges PEARSON APSCU’S to provide services, solutions, and strategies to THE LINK meet the unqiue goals of your institution. We are proud to sponsor APSCU’s THE LINK, a publication dedicated Partner with Pearson to maximize today’s to support your mission to improve opportunties for growth and innovation: • Business services to improve your lives and advance careers through institution’s effectiveness education. • Strategies tailored to meet your growth goals • Customized solutions for improved results and outcomes.Learn more about how Pearson can help you create solutions specific to the needs of your institution students. Visit us at www.pearsonlearningsolutions.com/private-sector/. Subscribe at www.CareerCollegeCentral.com | 15
  18. 18. dr. susan schulzBuildinga BetterExternship How great externships can result in 100 percent placement rates By Dr. Susan F. Schulz, Susan F. Schulz Associates Inc.
  19. 19. E xternships provide many benefits to career there. If not, there are many companies and community schools, students, employers and the resources to locate potential externship hosts. These include community. When structured effectively, chambers of commerce and professional organizations students have the opportunity to gain related to your training, associations, unions and tradevaluable experience to add to their resumes, and publications.employers can benefit from an extended interviewwith a potential new hire. Externships can be crafted A benefit of reaching out to the community is the increasedfor just about any program – even those with no contact with decision-makers. They can learn the benefitsclinical or internship/externship requirements. Planned of your institution as a source for training and staffing. Ineffectively, externships can help career schools achieve addition, as you meet contacts in your community, youhigh placement rates and enhance brand and image. learn about new jobs and meet people who can tell you about these openings plus any new training needs.Externships are great tools to address gainfulemployment and other regulatory issues. One of the A current trend is to offer externship opportunities for allbest ways to counter bad press and accusations is with training programs, whether externships are required or not.facts. Successful externships can result in high job Since career colleges typically serve individuals with littlestatistics, enhanced relationships with and testimonies or no relevant work experience, this means it is a challengefrom employers, and a greater understanding by for them to develop effective resumes. When externshipsthe community of the value of the for-profit sector. are properly structured and required for all training,Externships can impact all areas of the career school graduates gain work skills. In addition, they learn businessand result in increased enrollment, retention, placement and work ethics as well as soft skills, such as criticaland public relations opportunities. thinking, communications and teamwork, which rarely get taught in class. They have an increased opportunity to landThe following provides an outline of successful a great first job and jump-start job retention and promotion.externship strategies employed at several career schools This helps you to meet your placement commitment as aand colleges. career training provider. In addition, you have an increased ability to stay in touch with your graduates when you have to report placement success and possibly salary. InStart the process addition, when prospective students consider whether to enroll in your school or a competitor’s, the school with theTo be successful, new initiatives often start with externships might win out!an advisory board, either formal or informal.Stakeholders discuss parameters such as budget,staff, where externships are to be held and for Formalize the externship programwhich programs, and how to craft an externshipunique to their institution. Additionally, regulatory Externships must be run in a highly organized way torequirements also need to be considered at this time. achieve results. If you are starting out, this is the opportunityDepending on your programs, externship experiences to set them up right. If you already offer externships, this ismay have regulatory guidelines dictating required the time to formalize them. First, determine if the trainingclock hours, skills and learning objectives. you offer requires externships specified by your regulatory agencies. If yes, what are the specifics in terms of clockInitial steps include identifying current and prospective hours, skills requirements, evaluation and time frames?externship sites. You may already have relationships These requirements will become the underpinnings ofwith companies that allow your students to extern your externship program. Subscribe at www.CareerCollegeCentral.com | 17
  20. 20. Successful externships canresult in high job statistics,enhanced relationshipswith and testimonies fromemployers, and a greaterunderstanding by thecommunity of the value ofthe for-profit sector.MARCH 2013 | 18
  21. 21. Evaluation for results and benefitsWhen you begin the process, reach out to your Routine check-in strategies must be built into anycommunity to locate externship sites. Once you have initiative. Surveys, questionnaires and other forms offound some matches, the next step is to formalize feedback yield valuable information from studentsthese relationships. This requires signed agreements. and externship supervisors. You need data to measureTypically, externship sites have their own agreements success and determine what changes are required. Mostprepared by their legal departments showing liability, important, you have another way to stay connected toresponsibilities and more. Your institution’s externship the community and workplace decision-makers. Youagreement will outline what you expect: the number of have tools to continue to reach out to individuals andhours your students will be at the site, the role of the companies that can benefit from your institution as aon-site supervisor, the specific work to be performed, source for training and employees.how often the student will get feedback and formalevaluations, and more. Great externship programs can result in 100 percent placement, plus many more benefits. Your placementFor your students to be successful and ultimately offered department may have a lot less work because of the work-full-time positions, they must be prepared. Preparation ready training your graduates receive. Many careersincludes keeping the students focus on placement require skills not always offered in the classroom, suchand helping them to act as if they were taking part in as the use of new equipment or procedures, especiallyan extended job interview. It means training them to in middle- and high-skills jobs. This means thatbelieve they have the skills to successfully complete companies may have to spend weeks training new hiresthe externship. Most important, they need the mindset to meet their specific way of doing business. Much theto assert themselves as valuable players so they can way apprenticeships used to, externships can head offpossibly be offered salaried positions! that problem and afford you the added benefit of being able to promote your graduates as being trained to meetYour externship advisory board can help determine how employers’ specific needs.to train students to be successful externs. Requirementsto consider include: completion of specific courses and Schools with outstanding externship programs attractrequired grades, demonstration of skills, employment an increased number of qualified enrollments. Therereadiness, self-confidence, ability to work with others, are more referral students from happy graduates asand more. Students typically benefit from having an well as an increased number of community contacts.externship mentor as their go-to person for immediate Retention increases because students are motivatedanswers to questions and dilemmas. to get to the externship stage of their training. You have the opportunity to reach out to the communityWhen formalizing your externship program, to build job listings as well as additional externshipdocuments outlining regulatory agency requirements, sites. Most important, you enhance the image ofskills requirements, institution on-site and workplace the for-profit sector and reach out to an increasedcoordinator responsibilities, and methods for tracking number of individuals whose lives you can helpresults can be helpful in making sure your externship change with training.program stays on track. Dr. Susan F. Schulz has been working in the adult education and career school sector for nearly 20 years. She is President of Susan F. Schulz Associates Inc. and owner of Schools for Sale International Inc. She can be contacted at susan@susanfschulz.com or 561.483.9554. Subscribe at www.CareerCollegeCentral.com | 19
  22. 22. brdjen creweInflatedDreams?Bypassing education for bigger dreamsis quickly becoming one version of theAmerican dream By Brjden Crewe, Contributing WriterIt’s simple math, really. A theorem, if you will. them to somehow morph into the billionaire superstars that they The more education you receive, the more look up to on television. And no matter how rare or isolated the you increase your chances of becoming success stories of their role models seem to be, these students neveranything you want professionally, thus controlling your seriously take into account the probabilities of failure. Every one offinancial future. OK, so it’s not exactly the most technical of them believes they are one in a million.mathematical equations, but it’s true. One of my professors once told me that “dreams are only for theToday, we witness the rise of businesspeople who have dropped unconscious.” He reminded me of this statement later when Iout of school and wear Levi’s jeans to multimillion-dollar board told him that I would be volunteering as a mentor/tutor for at-riskmeetings, a trend that lends the illusion of accessibility to our children in the public school system four years after I first took hisown dreams of success; success suddenly seems attainable and class. Because he wouldn’t expound on what exactly he meant byattractive without the necessity of a college degree. But no matter that statement as it pertained to my new venture, I was left to makehow many Mark Zuckerbergs or Jay-Zs defy conventional logic my own assumptions. Though he commended me on my efforts,as seemingly overnight millionaire entrepreneurs, the path I believe he was trying to tell me that I was dreaming if I thoughtto professional success has been and always will be through that I could change the world by going down this path, and I shouldeducation. wake up and do something more financially fulfilling and useful. I took those thoughts with me throughout my time volunteering, butA firsthand look at being blind something about what he was saying still felt weird.As a tutor and junior high mentor for the Las Vegas Clark Countyschool district, I’ve encountered the naivety of unfocused and As I performed my duties, the more students I listened to and gaveunprepared optimism that comes with the dreams of assorted advice to, the more I learned that their hopes and dreams weresuccess sans education and planning. Many of the middle school enormous, but their thirst for education didn’t match their ambition.students I interact with believe that a willingness to achieve their Every child wants to be a famous professional and/or make lots ofdreams is enough to influence the forces of destiny, allowing money doing something that they believe they were born to do. InMARCH 2013 | 20
  23. 23. all the years I’ve been tutoring, I’ve never heard one teenager say process of making a dream a reality. And once you’re awake,that he or she would like to grow up and be a middle manager or it’s your goals that make your dreams come to life. I later texteda day laborer. Their professional ambitions are always of great my professor what I believed he was saying. He simply textedimportance and stature. Even to this day, on many occasions, me back:I try to help them realize the importance of school and thebenefits it will have on whatever they’d like to accomplish Work ethic + education =professionally, but only a few take in what I’m saying. financial independence I was told that millionaires are made during a recession.After a while, I began working with children from all Savvy, intelligent and motivated businesspeople driven enoughenvironments – not just at-risk children in public schools. to provide an in-demand product or service could make heavyWorking with independent charity organizations, I’ve been able waves in their bank accounts during the economic climate today.to meet and listen to children of all ethnicities and backgrounds, But even though the Internet, television and the invention of theand I’ve discovered that blindly ambitious optimism is consistent Snuggie feed the perception that young businesspeople can easilyamong children of vastly different economic and educational make millions of dollars, the path to riches isnt as quick as it maybackgrounds. They all believe they are going to be who they seem. Todays entrepreneurs want it fast, want it now and, in mostwant to be because of sheer independent will, and because life instances, want the success without expending the effort needed toowes them a fulfillment of their date with destiny. And the more be a successful businessperson in the long run.I experienced it among the children I was meeting, the more Ibegan to understand what my professor was saying. For every Mark Zuckerberg,No one should ever take away a child’s dream (or an adult’s for there are millions of otherthat matter). Dreams give us a reason to live and provide us withthe hope that one day life will finally reward and high school and collegerepay us for all of the torturous time we’ve dropouts who tried tospent fruitlessly longing for the fulfillmentof our aspirations. Dreams matter. But create their ownwhat I now understand about my megacorporationsprofessor’s comment is that wakingup is an essential part of the but failed and were left without a college degree to fall back on. Subscribe at www.CareerCollegeCentral.com | 21
  24. 24. Once upon a time, the American dream was to be able to provide 1 ark Zuckerberg was intelligent and educated enough to Ma better life for your family. Education for your children, a actually get into Harvardhome of your own and three meals a day all came courtesy ofa simple, financially stable job that dad (or mom) was proud 2 or every Mark Zuckerberg, there are millions of other high Fto perform five or six days a week, eight to 12 hours a day. school and college dropouts who tried to create their ownSure, many people had the Ralph Kramden get-rich-quick megacorporations but failed and were left without a collegedreams of financial independence, but keeping your day job and degree to fall back on. Many of the trials and difficulties thatmaking sure that your initial dream stayed in focus was first and characterize the path of a Mark Zuckerberg at times go unseenforemost. Today, thanks to the high-speed and lavish lifestyle and unnoticed, but his success at such a young age coupledimages of the stockbrokers in the 1980s and 1990s, hip-hop with his lack of a college degree inspires the kind of dreamand music moguls, and the T-shirt-wearing millionaire Internet that many promising (and oftentimes lazy) entrepreneurs hopeentrepreneurs of the past 10 years, the glamorized accessibility to replicate with their own businesses and creations. They areof how we define and view what we can achieve has shifted. pursuing the new American dream“Why can’t I be the next Sean Parker? I wear T-shirts, too!” What dreams may becomeThe new American dream is to own your own company and On the eve of whats sure to be marked as the 12-year anniversaryprovide others with jobs – a luxury once afforded only to those of our war efforts in the Middle East, were faced with aeducated and privileged enough to have such a company handed struggling economy, diminished middle class and one of theto them. We no longer aspire to simply get by financially or worst unemployment rates in 80 years. We have seen countriesto support our families while we spend two-thirds of our days such as India, Japan and Finland continue their strides towardworking for a company that doesn’t appreciate us. Todays implementing innovative learning programs and placing a highinstant entrepreneur thinks big and dreams even bigger. But priority on education while the United States continues to see itsdoes this ambition have a foundation of strong educational roots international rankings sink lower each year while it places higherand solid experience, or has the success of new, more relatable priorities on voting issues and government spending. As we searchmillionaire businesspeople today made it look a little too easy? for the answer to how we can climb out of an economic cesspool, the answer to bringing back the integrity of America as a superpowerI often hear many young entrepreneurs note that Mark known throughout the world may be right under our illiterate noses:Zuckerberg, Co-Founder and CEO/President of Facebook, E-D-U-C-A-T-I-O-N. And guess what. I wrote that without the aiddropped out of Harvard and successfully created a multibillion of spell-checker because of my own.dollar corporation when they speak in defense of the superfluityof a college degree in order to succeed in business today. Here The moral of the story is that todays instant entrepreneurs needare two things worth noting: not give up on their dreams or chase those dreams without a plan. Education, stability and patience are essential in gaining financial success in your professional life. You may not be the next Diddy or Myspace founder, but whos to say that you wont be even bigger? The only sure way to ensure a bright future for yourself is to pursue higher education no matter what your journey. Following a dream can mean a number of things, but expecting success without the aid of education may be enough to wake you up to the cold, hard reality of what it truly means to survive without education. Brjden Crewe has been in radio for more than eight years and is a writer for a number of well-respected publications nationwide, including MTV.com, BET. com, SonicMusicMonkey.com and a number of local publications. He currently writes for Las Vegas Sun, Review-Journal, Las Vegas Weekly, The Daily Scene, VegasDeluxe.com, Las Vegas Magazine, Vegas Magazine, and Vegas Rated Seven Magazine.MARCH 2013 | 22
  25. 25. It was a search that an swered a question t hat inspired an inquiry tha t launched a future Step UpPlattForm partners with educational institutionsto deliver data-driven strategies that increaseenrollments. If you’re ready to work with amarketing partner that’s passionate abouteducation, step up to PlattForm. 913.254.6000 PlattFormAd.com Subscribe at www.CareerCollegeCentral.com | 23
  26. 26. dr. pete savoCash orClass?Rekindle theentrepreneurialspirit within theyoung at heartBy Dr. Pietro (Pete) Savo The entrepreneurial gene goes dormant or is lost forever becauseService Disabled Veteran Owned open creative minds are soon focused on grades and earning anSmall Business education. The priority of entrepreneurial creativity is lost, too. This is particularly troubling because humanity has risen to the top ofP the food chain thanks to the risk that comes from creative thinking. eter Thiel from the Thiel Foundation recently gave a This writer feels it was creative thought and the entrepreneurial new class of students $100,000 to forgo college. His spirit that drove us out of caves to cross large landmasses to monetary prizes were to encourage students to drop create a better life. It is no different from developing successful out of college and become entrepreneurs on their own, businesses today. The spirit to take flight, take risk and accomplishbefore college ruined their entrepreneurial spirit. Thiel holds the finishes second to caution and the fear of failure. What’s lost isperception that higher education impedes, rather than enhances, the the understanding that inventiveness and creativity are importantdevelopment of creative ideas. Does this statement have merit? To stimulators for ensuring the learning process.find the answer, we first need to understand the issue. Entrepreneurship is a natural ability. We all have theOnce young minds get to college at the undergraduate level, entrepreneurship gene, although some people exercise it andthese students become trained to follow a standard principle of some dont. Imagine if an even greater percentage of peoplebook learning. The lecture hall echoes rhetoric being force-fed found a way to thrive using entrepreneurial thinking? There areto students by professors who oftentimes have been in academia some very successful technology entrepreneurs, for example Billall their careers and not directly contributing to developing Gates, Michael Dell and Mark Zuckerberg, who never graduatedsuccessful practices in business. Many college and university from college. J.R. Simplot, who died at the age of 99 with a netstudents are refined out of being imaginative. Simply stated, worth of $3.6 billion, created one of the largest privately heldstudents forget what it is like to encourage their imagination to food and agribusiness companies in the nation – all without evervoyage beyond book learning. attending college.MARCH 2013 | 24
  27. 27. Carl J. Schramm, a professor at Syracuse University and co-author • ith a young fearless mind, everything is possible; an experienced Wof Better Capitalism, indicates that the rate of starting new firms entrepreneurial mentor is perhaps what you needhas fallen off. Beginning in 2009, the average annual number ofentrepreneurial-driven new start-up businesses has fallen from • on’t wait for college. Imagine if we could incorporate an Da steady state of roughly 700,000 to 500,000. This research also innovative attitude into a middle school or high school settingclaims that the decline eliminated the growth potential for 200,000to 1,000,000 new jobs that simply were not created. Perhaps the perception that higher education impedes rather than enhances the development of creative ideas is not entirely true.Our nation’s defenders of job growth are the entrepreneurs building Obstructions of entrepreneurial ideas are more a result of not beingsmall businesses. According to the Census Bureau, in 2009 alone prepared for the demands of every changing evolutionary obstaclemore than 552,000 companies with at least one employee were that humanity must endure.launched. Small firms accounted for 65 percent of the 15 million netnew jobs created between 1993 and 2009, which equals a substantial9.8 million positions (Ramachandran, 2012). Our goal must be toThe results of the past are impressive, but we may have to reinventthe wheel a few times to find the secret for the future. Todays world bring back generationsis far different from yesterdays world, and the new traditional of creativeness as aeducation is a different beast born out of necessity. In October2011, the U.S. Bureau of Labor Statistics reported that 68.3 percent proactive approach toof 2011 high school graduates were currently enrolled in colleges entrepreneurial thinking.or universities.The effort is made to differentiate between education based on Entrepreneurship is born out of need, as much as creativity is a naturalassumption, consumption of knowledge, and social experiences byproduct of being at the top of the food chain. As the planet becomesexisting between educators and students. Our goal must be to more crowded, entrepreneurship becomes more critical to humanity’sbring back generations of creativeness as a proactive approach survivability. Survivability resulting in prosperity will becometo entrepreneurial thinking. Entrepreneurial thinking becomes dependent not so much on obtaining a college or university degree,a consequence of shared learning between educator and student but more on inspiring as many serial entrepreneurs as possible. Make(Ageyev, 2012). It is safe to say the solutions for empowering Bill Gates, Michael Dell, Mark Zuckerberg and J.R. Simplot the norm,entrepreneurial thinking rest in higher education. Since problems not the exception to the rule.become less of a problem by collaborative, common-sensesolutions, here are some academic solutions to bring about Sources: Ageyev, V. (2012). Psychological foundations of creative education. Creativeentrepreneurial thinking for those who did not win the Thiel Education, 3(1), 1+Foundation $100,000 prizes. Ramachandran, D. (2012). The Government Doesn’t Create Jobs: Entrepreneurs Do. Secret Entourage, 2 • Recruit entrepreneurs to develop and create a class around their own successful entrepreneurial experiences. Then offer courses Schramm, C., Litan, R., (2012). Better Capitalism, Yale University Press and experiences to prepare interested students to be successful entrepreneurs. In this way, a student will be better equipped Shane, S., (2010). The College Dropout Turned Billionaire Entrepreneur, Bloomberg BusinessWeek to engage in taking the risk and experiencing the real world, including its challenges and disappointments Dr. Pete Savo is the Chief Financial Officer of a Service • Find out what motivates the individual, because one size does not Disabled Veteran Owned Small Business (SDVOSB), a fit all. Motivation becomes the central emotional drive that has higher education service business that provides qualified student candidates to military-friendly colleges and the power to advance people. Such activities are fun, motivating universities nationwide. Savo, a respected lecturer and and thought-provoking to take part in, and they encourage the published author, was employed 18 years with Sikorsky students natural crazy gene to float to the surface Aircraft and six years as a direct business operations and lean manufacturing consultant for the U.S. Air Force Small Business Manufacturing Technical Assistance Production Program • Incorporate a variety of innovative entrepreneurial strategies (MTAPP), Air Force Outreach Program Office and the Department of Defense (DOD) supply chain missions. He can be reached at psavo@education- to prepare students to be successful in whichever career they resource-information.org or 603.321.6224. choose Subscribe at www.CareerCollegeCentral.com | 25
  28. 28. jenni valentino Paying Dues Obama, Congress attempt to get ahead of the nation’s struggles with financial aid By Jenni Valentino, Staff WriterT hough the time between President Barack have combined to form the perfect storm of student loan debt. Even Obama’s re-election and second-term those who did everything “right” – attended public universities, inauguration was dominated by raucous debate graduated in four years and leaned on their solid support systems over gun control and panic over the fiscal cliff, – are struggling with debt loads that outweigh their incomes.millions of students around the country still wait to hearwhat will come of their quieter, looming struggle with Beth D. graduated from the University of Maine in 2010 withstudent loans. a B.A. in History. She owes $110,000 in student loans and is currently working retail part time after being laid off from herSkyrocketing tuition costs, a confusing and disjointed full-time job.financial aid system, and a slow-going economic recoveryMARCH 2013 | 26
  29. 29. A survey led by Wonderlic of Imagine America Foundation scholarship and award applicants in 2012, found that 82 percent of respondents had to take out student loans for school. The alarming news, 55 percent of those students“A big part of my negative experience and tremendous sense did not understand all aspects of the student loan process.of guilt is that my parents said theyd handle everything. I wasbrought up to never talk about money, so I stuck my head in What specifically did students notthe sand,” she said. “I was also taught it didnt matter what understand?you studied in college. I thought that as long as I got a degree, • 9 percent did not understand the difference between 6I’d be able to get a job that paid well enough to cover my federal loans and private loansloans. When I graduated right in the middle of the recession, • 5 percent did not understand the repayment options 4I was able to find a job, but it wasnt enough for me to live on • 9 percent did not understand the interest accrued on 3my own, let alone pay my loans off by myself. My parents loansare left helping me pay them off at the expense of their own • 4 percent did not understand their monthly payment 1retirement. amount“While no one could have seen the economy being this bad One approach to solving this financial illiteracy problem,in 2005 when I was picking a college, I take responsibility that shows promise, is a short online resource developedfor the fact that I should have made more of an effort to and provided by the Imagine America Foundation calledbe informed about what I was signing and what it meant,” Financial Planning Made Simple (FPMS). After watchingshe said. “But how do you make a 17-year-old see beyond an 18-minute video on the basics of budgeting, borrowingthe dreams colleges are selling to the possibility of a future and the repayment process, 49 percent of respondents saideconomic collapse?” they decided to borrow less money for school.The student loan problem is important – even defining – to How much less?individual students, of course. But according to some policy • 37 percent borrowed $2,500 or lessanalysts, it is also an area in which Obama and the 112th • 33 percent borrowed $2,501 to $5,000 lessCongress can make great strides toward overall economic • 10 percent borrowed $5,001 to $7,500 lessimprovement. • 6 percent borrowed $7,501 to $10,000 less • 14 percent borrowed more than $10,000 lessThroughout his tenure, Obama has been a proponent ofhigher education accessibility and affordability. He supportsPell Grants, direct student loans, transparency and efforts The results suggest the magnitude of the potentialto launch the United States back to the upper echelon of savings based on just one year of borrowing. Reducingcollege-educated citizenries. He put American colleges and student debt by using the effective training and planninguniversities “on notice” in his State of the Union address in tools such as the one provided by the Imagine America2012. However, throughout his first term, this support seemed Foundation could result in major savings to students andto be relegated to ideas and dreams. What American students the federal government. According to an analysis done byneed now from the President and his Congress is actionable JBL Associates, if half of the 10.4 million Stafford Loanstrategy. borrowers reduced the amount borrowed by a third, as was estimated in this study, students would borrow $27.8 billion less in Stafford Loans annually. It is reasonable to assume that the smaller loan amounts would translate into lower default rates in the future. Having more borrowers use the Financial Planning Made Simple tool could reduce dependence on loans by helping students be realistic about their immediate financial needs and anticipate the long-term repayment burden. Having each new borrower spend 20 minutes learning about student loans and developing a personal budget before taking out a loan could help eliminate unnecessary debt and reduce the longer-term risk of defaults. Subscribe at www.CareerCollegeCentral.com | 27
  30. 30. Payment “We’re at the early stages of a transformation – 10 years from now, higher education won’t look the same,” said RichardPlans Vedder, an Ohio University economics professor who directs the Center for College Affordability and Productivity, in a December 2012 Businessweek article. “There are millions of people feeling the pain of student debt. When that number gets big enough, it starts to permeate the public consciousness.” In 2012, American student loan debt passed $1 trillion, raising theMore students’ struggles question: Why is that number not big enough already? The answer likely lies in the power of the university. For decades, the $500with student debt billion-a-year higher education industry has been permitted to increase tuition prices at rates far outpacing inflation and averageRenata S., a 2010 graduate of Rutgers University, still owes income levels. Through its $100 million-a-year lobbying efforts,$15,000 for her B.A. in Biology. Her position in regulatory it has been able to rail against a decade’s worth of cost-controlaffairs at a large biopharmaceutical company does not pay measures enacted by the Bush and Obama administrations. Andenough to cover her loans. “Paying off my student loans it has consistently confused students with the complexity of thewould be impossible without my parents,” she said. “My student loan process.husband and I don’t currently bring in enough to pay forour household bills and to also pay down the student loans. “Too often, students receive financial aid award letters that areFortunately, my parents have graciously offered to pay my laden with jargon, use inconsistent terms and calculations, andmonthly student loan payment until they are retired, which make it unnecessarily difficult to compare different financialis about five years away. At that point, I’ll have to take aid awards side by side,” said Richard Cordray, Director of thethem over. I hope our finances will be in order by then.” Consumer Financial Protection Bureau.Lauren P. graduated with a Master’s degree andcoursework for her Ph.D. from Tyler School of Art atTemple University. She is currently an adjunct art historyinstructor at a four-year university and a communitycollege. She owes $86,000 in government loans and “ ut how do you make a B$10,000 in GATE loans. “I do not make anywhere nearenough money to make the traditional payment on my 17-year-old see beyondgovernment loan, but at least they are working with me the dreams colleges arebased on my income. My private loans do not work withme at all. The interest rate is alarming. I cannot defer selling to the possibilitynor can I arrange smaller payments or a longer payment of a future economicschedule. I wish my parents would have explained it to mebetter, or I wish the student loan company would have laid collapse?”out the terms more clearly. The payments are crippling, – Beth D.especially in the summer when I work less.” University of Maine graduateMARCH 2013 | 28

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