Tech Directions - March 2008 - (Page 6)

Student Loan Defaults and Career Colleges Career colleges are once again under fire because of student loan default rates, this time from new provisions in the Higher Education Act that changes how the federal government calculates the rate at which students default on their loans. The change would more directly affect career colleges than other types of institutions. Lobbying to modify the impact of the change, mounted by the Career College Association, has been helped by a new report from Indiana University that questions the use of the loan default rate as an indicator of institutional quality. Surveying the literature and narrowing the study to the most statistically reliable sources, the university researchers conclude that there is no evidence that the type of institution attended is a good predictor of the loan repayment rates of students. The causes of loan defaults are deeply rooted in a number of factors including family income, race, high school counseling, academic success, age, and overall debt, among them. Ever since the federal government student aid policies shifted from grants to loans at the beginning of the Reagan Administration, loan default rates have been an issue in every reauthorization of the Higher Education Act. It is obvious that loan default rates among certain groups of students would be higher than among others, and those with greater economic and other limitations probably enroll at higher levels in career-oriented institutions, but the researchers say the default rate is not a good way to judge the quality of the institution. “The alternative,” the report notes, “is to stop admitting or providing loans to students who are at greater risk of defaulting. This of course would ignore the tens of thousands of students who, despite economic, social, and historical barriers, repay their loans and go on to contribute to the public good and improve their own lives— and it would undercut the very purpose of the student loan program.” The researchers also note that research on student loan behaviors using large national data sets and rigorous statistical methods has not been conducted for more than a decade. Affirming CTE There doesn’t seem to be any organized campaign to improve the status of CTE, but educators and policy makers are finding reasons to reconsider its assets, from local to national levels. A report from the Des Moines Register, for example, estimates that the demand for trained workers in Iowa, already growing faster than the supply, will create a shortage of 150,000 workers within five years. High school career course enrollment is up, and community colleges are stretching to keep up with demands. In addition to dual enrollment programs between high schools and community colleges, employers are stepping up their involvement as partners and providers of apprenticeships. 6 techdirections ◆ MARCH 2008 http://www.sunequipco.com http://www.7corners.com http://www.7corners.com http://www.sunequipco.com

Table of Contents Feed for the Digital Edition of Tech Directions - March 2008

Tech Directions - March 2008 Technically Speaking Contents Direct from Washington The News Report Technology’s Past Technology Today Mastering Computers HDTV—Understanding the New, Dealing with the Old Technical Studies Lead to Dream Career Fill and Fund Your CAD Classroom with These Exciting Strategies STEM Progress in Katrina’s Wake School Web Site of the Month Spring Spotlight More than Fun

Tech Directions - March 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.