90-10
With the loan increases in july 06, we are having a difficult time meeting our 90-10 obligations. What do you suggest we do to make sure to meet 90-10?
Rod,
I wish I had some words of wisdom. All of the clients I work with struggle with this issue. Most of the clients try to get a committment from the student or parent of cash. I worked diligently to have each student commit to their education through making some type of payment each month - most of my students made some type of cash payment.
Chyrl
At this point and time the best we can do is push whatever alt loans we have and try to commit people to make whatever cash payments they can.
Jose,
What type of response do you get from your students on the alternative loans? Do you get a better response to the alternative loans or cash installment notes with the institution?
I would imagine with the changes occurring in the lending community it could become difficult to find alternative lenders. Does your institution have plans to implement any new types of programs to offset 90/10?
Thanks, Chyrl
Rod, we try to encourage the student not to borrow the full amount, but just to borrow exactly what they need. We focus on the amount of money that will have to be repaid with interest, etc. Of course, if they want the full amount, we cannot stop them. We explain that some students have run of money in the past because they have borrowed the full amount of eligible funds each year.
Joyce,
In my experience - counseling students on their options is critical. It is important for students to be vested in their education and the best way to do that is for the student to contribute to the cost of their education (books, fees, etc.) However, some students may not have the ability to contribute and the counseling session with the student should determine their ability. An institution must be on the look out for new ways to infuse their campus with non-TIV means.
Sincerely, Chyrl
Rod,
We recently had to reduce the amounts of FSEOG given to eligible students in order to create more of a gap in funding.
A great idea is as mentioned in the question before, to push for employers tuition reimbursement.
Another way to do it is to have schools provide certain services, related to the course of teaching to customers. An example of these services are massage services provided by the school at low prices(if allowed). The earnings will then be counted towards the school 10 % cash.
Denise,
These are good ideas and each insitution should be on the look-out for other ways to boast the collection of source of funding outside of Title IV. If your state has state grant programs or other outside scholarships these would boast your students' non-TIV levels.
Best wishes as your continue to growth in financial aid processing and requirements.
Sincerely, Chyrl
90/10 is probably one of the biggest challanges out there. Fortunately here we have soem popular programs that require some type of cash paymetn for ther is not enough T4 to over. Plsu ahving several schools under the smae opeid number does help, especially when oen is all ash paying school.
