Offshore schools may lose federal loans

[dcm8]

I am wondering something, when you compare the cost of going to a for-profit school ie: SMU without federal student loans it seems to be a lot cheaper than a for-profit school with the garuanteed loans ie Ross, SGU, AUC.

The big 3 seem to have a cost structure that uses the maximum student loans as there price floor. Then they add on additional cost that way out cost compairable models that don't have federally backed student loans, or even on more developed islands (Ross in Dominica) vs. (SMU in the Caymans). Its only natural assume that with out the student loans the pricing structure would re-adjust (the school would lower it tuition cost).

The students aren't really potential loosers here its the investors.

[AUCMD2006]

the federal loans do 2 things:

1) allow students with credit issues a possibility of going to school since at least most of the tuition is covered
2) keep these schools in line meeting guidelines and standards comparable to US schools. without this and the NY/Cali approvals there would be no incentive for our schools to keep high standards. just look at all the other schools, except for SMU, all 20+ other carib schools run the gambit from bad to worse.

i think the program should be expanded to allow schools to apply for it after they've met certain markers so that good schools like SMU can be rewarded for doing things properly and others be encoraged to do the right thing.

in the end having these schools get federal loans is good for everyone by keeping these schools somewhat "respectable" and rubbing off some rep on others

[sbturner]

SMU would love to have you dcm8; you are always welcome here. Happy holidays! rrod is very sharp; you might want to heed his words.

[jjb1980]

So, is it really over? I mean are we out of the woods then?

[neilc]

Originally Posted by dcm8

I am wondering something, when you compare the cost of going to a for-profit school ie: SMU without federal student loans it seems to be a lot cheaper than a for-profit school with the garuanteed loans ie Ross, SGU, AUC.

as it stands, these schools offer a bit more for the money. licensability in all 50 states is no small deal, and is worth the extra cash, easily. if and when SMU catches up (and i am pretty comfortable thinking they will), then i would not be surprised if tuition bumps a bit. however, without the federal loans, they will still have to be cheaper. i do agree with the thought that the bigger schools with fed funds kinda use that as a baseline, and have charges way beyond what is avail federally.

[squiggy]

Originally Posted by jjb1980

So, is it really over? I mean are we out of the woods then?

Not completely.

Congress has decided to postpone the final vote until next year. Lobbyists have time to alter this bill or change the minds of House members. I am sure the AAMC is at work right now. Next year is election year for many in the House. I really don't know what will happen.

At least the 'grandfather clause' remains............for now.

[options]

How can they wait until next year when the higher education act was only extended until dec. 31?

[teratos]

Originally Posted by options

How can they wait until next year when the higher education act was only extended until dec. 31?

They can do anything, it doesn't have to be logical. They are the government. G

[squiggy]

Originally Posted by options

How can they wait until next year when the higher education act was only extended until dec. 31?

This is a quote from the Chronicle of Higher Education:

"Congress has until March 31, when a second extension of the Higher Education Act expires, to pass the remainder of the reauthorization bill."

[options]

Originally Posted by squiggy

This is a quote from the Chronicle of Higher Education:

"Congress has until March 31, when a second extension of the Higher Education Act expires, to pass the remainder of the reauthorization bill."

Well at least we have loans for next semester. I wish they could have gotten this done before the end of the year, oh well.