financial aid

Imagine if one notice from the federal government could cause you to question your major life decisions.

More than half a million people may have found themselves in that situation after a new legal filing by the Education Department.

Under a program known as Public Service Loan Forgiveness, some student loan borrowers were supposed to be able to have the balance of their student loans forgiven after ten years of both on-time payments and eligible work in the public sector. Meaning, a qualifying nonprofit, federal, local, state, or tribal government.

Recent college graduates who borrow are leaving school with an average of $34,000 in student loans. That's up from $20,000 just 10 years ago, according to a new analysis from the Federal Reserve Bank of New York.

National K-12 and higher ed news came fast and furious this week. Here are our highlights to help you keep on top.

The president's "skinny budget" has cuts for education

The biggest story of our week happened early Thursday morning when President Trump released his budget outline, historically known as a "skinny budget" because it has few details.

The U.S. Department of Education came in for a $9 billion, or 13.5 percent, cut.

The IRS Data Retrieval Tool is down.

If those words don't send a shiver up your spine, it means you're not a high school senior or college student rushing to fill out the Free Application for Federal Student Aid, or FAFSA.

The FAFSA is the form — famously complicated and difficult to finish — that stands between many low-income students and the federal, state and institutional aid they need to pay for college.

When the Obama administration announced last year that it would overhaul the Free Application for Federal Student Aid, or FAFSA, prospective college students (and their parents) cheered.

"Today, we're lending a hand to millions of high school students who want to go to college and who've worked hard," said Arne Duncan, who was at that time U.S. secretary of education. "We're announcing an easier, earlier FAFSA."

And it is both.

Look closely.

Buried deep in President Obama's 2016 budget (Page 41) is a proposal to cut up to 30 questions from the Free Application for Federal Student Aid, or FAFSA.

The Obama administration has already done a lot to make the FAFSA easier — if not shorter. Online technology now allows students to skip questions that don't apply to them.

Driven by higher tuition fees and tighter state funds, America's public colleges now get more money from their students than from all state sources. That's according to a report by the Government Accountability Office, which says tuition revenue reached 25 percent of the colleges' total in 2012.

The numbers are stark, with the GAO saying that from fiscal years 2003-2012, "state funding decreased by 12 percent overall while median tuition rose 55 percent across all public colleges."

Woodmen of the World’s Angela Hatton brings news of a new non-profit, direct-giving website called “Red Basket – Tiny Deeds. Tremendous Good” that connects people in need of financial assistance with those willing to help. She speaks with Kate Lochte about this new initiative, why Woodmen of the World started the program and how one can participate. Click here for more about Red Basket.

newgre.org

Officials with the agency overseeing Kentucky’s college financial aid expect to figure out how many students will be receiving benefits in the next week. The state doles out nearly $100 million in financial aid annually, but that money is on a first come first served basis.

More than 80,000 students in Kentucky who are eligible for state financial aid will not receive it. Officials say that number has both positive and negative meanings.

Murray State to Review U.S. Education Secretary Recommendation

Jul 24, 2012
www.en.wikipedia.com

U.S. Education Secretary Arne Duncan is urging colleges and universities to adopt an easy-to-understand financial aid form to help students.