If you are the parent of a student with a federal loan for college, sometimes called in shorthand a “Stafford Loan,” then you are probably also aware that such a loan may come from one of two federal programs.  These are the Federal Family Education Loan Program (FFELP), operated on behalf of the government by private sector companies, and the Federal Direct Student Loan Program (FDSL), operated by the U.S. Department of Education. 

 The FDSL was created during the early years of the Clinton Administration to provide competition to the FFELP program.  Fifteen years later, schools have voted with the feet and approximately three in four schools continue to use FFELP.  The U.S. House of Representatives, however, voted earlier this year to eliminate FFELP, thereby intending to federalize the student loan program and force schools to go with the FDSL.  The intention was to have this all go into effect by the start of the 2010-2011 school year, which technically means July 1, 2010.

Now months have passed, however, and the U.S. Senate has still not acted on this legislation and, as a result, uncertainty abounds for schools which rely on FFELP to process their student loans.  It seems to me that the reasonable thing to do at this point, only seven months out, is for the Congress to delay any action that would change the program for July 1, 2010 and focus any plan for change on July 1, 2011.

The U.S. Department of Education seems to feel otherwise, however, and has been advising schools to “get ready” to go with FDSL this coming July, even though the U.S. Senate has not only yet to act, but has shown absolutely no indication that it ever intends to act to make this change of the law.

For the next several weeks at least, it is clear that the U.S. Senate will be focused on the national health care debate.  Do you agree that any change this drastic in the way that Stafford loans are  processed should be better thought through?  What type of student loan does your child have – FFELP or FDSL?  Are you pleased, so far, with the way in which the paperwork for the loan has been handled by the school and the loan provider?  Please tell your college parent peers what you think at Hoverings: A Blog for Current and Future College Parents, to be found on the home page of www.collegeparents.org.

When media attention focused on the recent protests at University of California campuses, it naturally bore in on the dramatic moments of students clashing with police and waving signs with messages of outrage directed at the system’s Board of Regents.  There is a time and a place for student protest, and it can play a role in shining a spotlight on the high – and rising – cost of college. 

 Parents can play a role in protesting too, but you have to admit that we would look awfully silly trying to storm our children’s campuses.  But we can write letters, make phone calls, and vote.  That’s right, we vote and in much larger numbers than students.  State legislators, members of Congress, governors and even Presidents of the United States recognize that, and they also know how important our students’ educations are in our lives.  Pay close attention to politicians and not just what they say, but what they do, to support higher education.  And then let them know what you think, in the place that matters most – the ballot box. 

Please share your views with other parents.  Add your comment to Hoverings: A Blog for Current and Future College Parents at www.collegeparents.org

Lieteracy is a huge problem in the U.S. and I don’t just mean the ability to read.  For college students in particular, I am referring to financial literacy.  The proliferation of credit cards and the ever-present temptation of using college loans for personal wants may lead students down a dangerous path.  Parents can be important teachers of financial literacy.  What successful strategies have you used to teach financial literacy to your kids?  Please share your own best practices with your parent peers here and/or on Hoverings: A Blog for Current and Future Parents at www.collegeparents.org

Major news organizations are reporting the 32% increase in college costs approved by regents for the university system in California as a “fee” increase, when it is really a “tuition” increase.  At colleges and universities across the country, “tuition” is the word used to describe what one generally pays for the privilege of taking classes, while “fees” are the add-on charges for the health center, student activities and other non-academic items.  For some reason, in California, the regents tag what is generally understood as “tuition” with the more innocuous  name of “fees.”  This is worth noting because the 32% increase in whatever you call it, when translated to dollars, is pegged to an existing average of $7788 for the cost of classes, which will mean an average rise in out-of-pocket costs of $2614 for a new grand total of $10,302.   To add insult to injury, the increase is  effective next semester.  So it’s not just some small fee amount being increased 32%, it is the core cost of attending a school in the UC system.  No wonder students are so upset and parents should be too.  What do you think?  What should be done to stem rising college costs?  Please share your views in Hoverings: A Blog for Current and Future Parents on www.collegeparents.org.

It’s becoming clearer every passing year that a dangerous fault line is developing in America, dividing those who complete college and those who don’t.  The stakes are high. Those on the achieving side of the fault line are likely to gain higher-paying and more stable jobs, live in more affluent and educated communities and give birth to children who, in the next generation, will be far more likely to complete college themselves.  Those on the other side of the fault line, indviduals who fail to achieve a college degree, have the economic odds stacked against them.  If you are reading this item, you are either hoping to keep your child on the college completion path you took yourself, or perhaps encouraging your child to surpass your own, more modest, educational attainment.  No matter where you are coming from, you want your child to get to someplace better.  Congratulations on your support of your son or daughter.  Please share with your peers what motivates you to be an effective current or future college parent.  Your own story may inspire others to make a critical leap across the college completion fault line.