Roundup: News You Need to Know, Fri., Nov. 10th

Admissions at Public Universities Becoming More and More Competitive

"Attending the local public university is no longer a birthright," according to the Wall Street Journal, which describes how increasing applicant numbers have allowed state universities to heighten entrance requirements. Not only are more students applying to college, but the rising cost of private universities has led more students to look for a public alternative. Some analysts worry that higher public university GPA and test score requirements favor wealthier students, and that state universities are becoming increasingly inaccessible to students from low-income families.

New Foundation in Denver to Send Students to College Tuition-Free

A millionaire oilman has given a "substantial amount" of money to start a foundation in Denver that sends low-income students from Denver high schools to Colorado colleges tuition-free. In its pilot year, the Denver Scholarship Foundation could send approximately 700 students from three high schools to college. The foundation hopes to have a $200 million endowment within 5 years, which will be able to provide tuition for 6,500 Denver high school graduates at a time. The average scholarship will be around $3,000, and will vary according to family income and state and federal financial aid awards.

Analysis of MOHELA Plan Overlooks Federal Law Violation

An analysis by an independent firm found that Missouri Governor Matt Blunts plan to sell the Missouri Higher Education Loan Authority (MOHELA) is financially viable. The report says that the $350 million sale of MOHELAs assets will not negatively affect MOHELAs credit ratings or its ability to administer its current loan programs. If MOHELA is given the authority to originate student loans, the analysis also finds that the agency could improve both borrower benefits and its bottom line. However, this latest financial analysis failed to consider that a part of the MOHELA deal violates federal lawnamely, the Higher Education Acts anti-inducement clause. The MOHELA plan requires the University of Missouri at Columbia to make a "good faith effort" to direct their student loan business to MOHELA. The Higher Education Acts anti-inducement clause prohibits MOHELA from offering such incentives.