Offshore schools may lose federal loans

[johndoe456732]

Offshore schools may lose federal loans. ....

[azskeptic]

Originally Posted by AUCDOCTOBE

This goes for anyone who is going to a big 3 school. Please realize that the house has currently passed a bill which takes away the "grandfather clause." The Grandfather clause essentially allows all schools before 1991 to receive financial aid.

If this bill passes, St. George, Ross, and AUC will lose federal stafford loans! So, please call and write your congressman!

I'm sitting in an emergency meeting by the school as we speak.

This is the title 4 funds. Keep everyone posted as to what you hear. Excellent that you are on it.

[MDXRS22]

I am about to write mine....
Thanks for the info!

[johndoe456732]

Thanks guys. We really need to get on this. I know that people like me cannot attend the other schools. The loan constraints of Teri and StudentloanXpress would present problems. So, I'm calling a certain senator and congressman real quick.

[StChrisCS]

I think it's appropriate; the grandfather clause should be removed. The US Gov. shouldn't be providing loans to US Citizens that attend foreign schools.

From what I have read, the rate of default for loans that were used to fund the education of US citizens outside of the US was dramatically higher than that of US citizens that were educated inside the US. There is no reason to further burden our government, the tax payers, or the Stafford loan program with this issue. There are plenty of private loans through private corporations available to US citizens that want to attend schools outside of the US.

[SARGOD]

Originally Posted by StChrisCS

I think it's appropriate; the grandfather clause should be removed. The US Gov. shouldn't be providing loans to US Citizens that attend foreign schools.

From what I have read, the rate of default for loans that were used to fund the education of US citizens outside of the US was dramatically higher than that of US citizens that were educated inside the US. There is no reason to further burden our government, the tax payers, or the Stafford loan program with this issue. There are plenty of private loans through private corporations available to US citizens that want to attend schools outside of the US.

Any U.S. citizen should be entitled to recieve the same funding regardless of where they attend school as long as the school is accredited...this is another prime example of the idiots in government trying to cut spending from a select group of people because they need to make up for their pork barrel spending....I will agree to the cuts when congress stops funding the building of rain forests, or aquariums in the Mid-west, or the 200,000. to Montana to research better methods of bovine sperm implantation....give me a freaking break will ya...or how about keeping military installations open irregardless the military saying they don't need it! Oh yeah, the government sure has it's priorities right! Or how about the billions of dollars we pour into Puerto Rico and don't get one bloody cent back in taxes! I'm glad to see you fighting on the side of people trying to better themselves, vice fighting for the so called political intelligencia...

[StChrisCS]

Originally Posted by SARGOD

Any U.S. citizen should be entitled to recieve the same funding regardless of where they attend school as long as the school is accredited...this is another prime example of the idiots in government trying to cut spending from a select group of people because they need to make up for their pork barrel spending....I will agree to the cuts when congress stops funding the building of rain forests, or aquariums in the Mid-west, or the 200,000. to Montana to research better methods of bovine sperm implantation....give me a freaking break will ya...or how about keeping military installations open irregardless the military saying they don't need it! Oh yeah, the government sure has it's priorities right! Or how about the billions of dollars we pour into Puerto Rico and don't get one bloody cent back in taxes! I'm glad to see you fighting on the side of people trying to better themselves, vice fighting for the so called political intelligencia...

Its simple economics and finance. You wouldn't continue to pull funds from an already overwrought public system that can barely keep itself funded and put it into something that just continued to hemorrhage money. It's a prudent move that will make the Stafford system more stable. It's good business.

1000's of students attend universities or schools that don't have federal funding and manage to do just fine, proving it can be done with private loans and without significant complication. If they can do it, so can you.

[options]

Originally Posted by StChrisCS

Its simple economics and finance. You wouldn't continue to pull funds from an already overwrought public system that can barely keep itself funded and put it into something that just continued to hemorrhage money. It's a prudent move that will make the Stafford system more stable. It's good business.

1000's of students attend universities or schools that don't have federal funding and manage to do just fine, proving it can be done with private loans and without significant complication. If they can do it, so can you.

Well, according the paperwork we got today. AUC's default rate for 2003 was 0% and for 2002 around 1%. I don't see any reason I why it would help business to drop us. These numbers are certainly lower the chiropractic and podiatric school default rates and they aren't being dropped.

[grace]

Originally Posted by SARGOD

Any U.S. citizen should be entitled to recieve the same funding regardless of where they attend school as long as the school is accredited...

You can't expect the U.S. government to fund any 'ole school, they need to cover their interests as well. If a school isn't very established and continues to have poor pass rates on board exams, why should the U.S. government give loans to their students because they may never end up paying them back.

However, AUC is established and has good pass rates. I don't understand why it would be beneficial to drop federal funding. It's not like they don't make a ton of money on interest.

[Miklos]

Originally Posted by StChrisCS

I think it's appropriate; the grandfather clause should be removed. The US Gov. shouldn't be providing loans to US Citizens that attend foreign schools.

From what I have read, the rate of default for loans that were used to fund the education of US citizens outside of the US was dramatically higher than that of US citizens that were educated inside the US. There is no reason to further burden our government, the tax payers, or the Stafford loan program with this issue. There are plenty of private loans through private corporations available to US citizens that want to attend schools outside of the US.

Cite your source.

The default rate for US citizens receiving federal loans abroad was lower than that of US citizens attending US schools.

http://www.gao.gov/htext/d03647.html (search Appendix II)

Originally Posted by DOE comments

As stated in your draft report, foreign schools offer unique
educational opportunities for Americans and help ensure that our
students have a wide range of options in pursuing postsecondary
education. It is noteworthy that only 26,591 U.S. students received
$255,940,029 in FFELP loans in fiscal year 2002 to attend postsecondary
education institutions located outside the U.S. It is also important to
note that the average cohort default rate for students that attended
these institutions was only 2.6 percent in FY 2000 --nearly half the
rate for students that attend institutions in the U.S