Roundup: Week of March 12th - March 16th
Blog Post
March 15, 2007
President of Sarah Lawrence Criticizes U.S. News Rankings for "False" Data
In an op-ed in the Washington Post, Michele Tolela Myers, the President of Sarah Lawrence College, claimed that U.S. News & World Report threatened to "make up" data about Sarah Lawrence for its annual college rankings. Sarah Lawrence no longer collects any SAT scores from its students, and U.S. Newss ranking process requires the input of an average SAT score. Myers recounted a meeting with Robert Morse, the head of the U.S. News college rankings division, at which he explained to Myers that the magazine was going to calculate Sarah Lawrences ranking by assuming "an arbitrary average SAT score of one standard deviation (roughly 200 points) below the average score of [Sarah Lawrences] peer group." In addition, Inside Higher Ed reported that a group of 10 liberal arts college presidents are preparing a letter objecting to the ranking methodology. They are going to propose different ways to challenge the rankings, such as opting out of a "reputational" survey that accounts for 25 percent of the ranking formula.
Sale of Illinoiss State Student Loan Agency Advances as Planned
The sale of a majority of the Illinois Student Assistance Commissions (ISAC) $3.4 billion loan portfolio is moving forward, following the initial auction in January of $629 million in loans to Sallie Mae and Nelnet at a 6% profit. Revenue from the sale will be directed towards increased need-based grants at a time when Illinois students are struggling with college costs. Legislators are questioning selling ISACs assets at a time when the state agency is profitable and could potentially bring in increased revenue as college enrollment grows. There has been controversy surrounding Governor Rod Blagojevichs selection of a longtime contributor, Andrew Davis, to oversee the loan sale.
ED Not Backing Down in Rule-making Session on Preferred Lenders
The Department of Education introduced new "proposed regulatory language" at its third rule-making session on preferred lenders and lender "inducements" on Monday. Department officials have been signaling that they are going to implement stricter policies governing the relationships between lenders and financial aid offices, despite strong opposition from lenders and college officials. Thus far, the Department is committed to expanding the number of lenders on preferred lender lists and requiring colleges to disclose "inducements" received from lenders.
MOHELA Sale Hits Major Roadblocks with Democrats in State Legislature
Governor Matt Blunts plan to sell $350 million in assets from the Missouri Higher Education Loan Authority (MOHELA) for college building projects has hit several obstacles in the state legislature. First, Democratic senators held a 15 hour filibuster to block a vote on the bill that includes the MOHELA plan. Then, Democratic and Republican negotiators failed to reach a compromise on a new version of the plan that would address the Democrats concerns. Specifically, Democratic legislators are concerned that selling off MOHELAs assets will compromise the ability of the agency to issue low-interest loans and operate loan forgiveness programs. In addition, Democrats want any proceeds from the sale to be directed to need-based financial aid instead of construction projects. They have proposed alternative funding for the construction projects through state bonds.
More Extravagant PHEAA Expensesfor Board Members Wives
After the Pennsylvania Higher Education Assistance Agency (PHEAA) was required under court order to release its expense records last week, more and more excessive spending is being uncovered. PHEAA spent more than $862,000 of public money for board retreats held between 2000 and 2005. The Pittsburgh Tribune-Review published a breakdown of retreat expenses, including the following charges by wives of board members to the agencys tab:
- $583 for a culinary lesson
- $188.80 for a European facial and "escape pedicure"
- $115.54 pedicure and manicure bill
And thats not even mentioning all of the extravagant activities charged to taxpayers by the actual board members, such as $665 for cigars, $836.55 for fly fishing, and $327.25 for Hummer off-road driving.