News You Need to Know: Daily Roundup, Mon., Oct. 23rd
Blog Post
Oct. 22, 2006
Washington Times Op-Ed Harshly Critical of Student Loan Giant Sallie Mae
An op-ed published today in the conservative Washington Times is harshly critical of the high profits and government subsidies provided student loan giant, Sallie Mae. Leslie Carbone, an adjunct scholar at the Lexington Institute, writes an op-ed filled with numbers on profits, subsidy levels, and campaign contributions that she claims combine to hurt taxpayers and students alike.
The "Tuition Alms Race"
Colleges are becoming more involved in a competitive "tuition alms race" that is undermining higher education access for low-income students, according to an article in the Pittsburgh Post-Gazette. In recent years, more and more resources have been directed towards merit-based aid as colleges compete to attract top students and boost their national rankings. The merit aid trend has turned into a race that has detracted funding from need-based aid. A review by the Post-Gazette of 62 area colleges revealed that all but five offered some type of merit-based financial aid.
Governor of Rhode Island Outlines Plan to Increase Need-Based State Scholarships
The Governor of Rhode Island, Donald L. Carcieri, has announced a plan to increase state scholarships for low-income students by about $20 million. Carcieris increase in funding would double the current amount of grants given by the state. $10 million would go to the Governors Academic Merit Incentive, which provides scholarships equal to annual tuition and fees at the University of Rhode Island to low-income students that perform well in high school and on state tests. Those scholarships can be used to attend any public or private college in Rhode Island. The other $10 million would be distributed based on financial need and could be used at any college in the country. Funds would come from unidentified "budget savings." The plan will be considered by Rhode Island lawmakers during the next General Assembly session.