University Business - September 2007 - (Page 14)

BEHIND the NEWS Eliminating Student Loans for Low-Income Families Amherst joins other colleges and universities in striving for economic diversity. THIS SUMMER AMHERST COLLEGE MASS. BECAME the latest higher ed institution to eliminate student loans to lowincome students. The new program substitutes scholarships for loans, ensuring that these students from families with annual incomes of $40,000 or less will graduate debt free. In making this commitment, Amherst joins Princeton and Davidson College Amherst President (N.C.), two private IHEs that already have “no loan” policies. Anthony Marx The latter’s new policy took effect just this August and is being helped with a $15 million financial commitment from The Duke Endowment. (Davidson is one of four nonprofit institutions that have historically been assisted by the philanthropy.) Other public institutions have already made pledges to assist lower-income students. The University of North Carolina has the Carolina Covenant, which was expanded in 2004 to include families from 150 percent of the federal poverty level to 200 percent. Specifically, this promises a debt-free education to students from a family of four with an annual income of about $37,000, or a single parent with a child who makes about $24,000. The University of Virginia’s program, “Access UVa,” instituted in 2004, is supported by a $16 million annual commitment that replaces need-based financial aid with grants for low-income students, whom UVa defines as those whose family income is equivalent to 150 percent of the federal poverty line or less. Such programs help higher ed institutions—especially selective private ones—achieve more diversity among their student bodies. They also give low-income students a better chance at attending graduate school or taking internships, officials note. The UVa Office of Student Financial Services adds that low-income students are more likely to default on student loans and have less family assistance to pay them back. Nationally, college students borrow $53.8 billion per year to cover college costs, according to The College Board. The average debt for a student graduating from a fouryear private institution in 2003-2004 was $19,500. No loan programs require significant investment. Davidson reports that it will cost the college $3.5 million annually over the next four years to replace loans with grants. The cost for Amherst will be $3 million per year, says Stacey Schmeidel, director of public affairs. Such pledges are easier for well-endowed institutions to make, adds Samantha Veeder, senior consultant for Scannell & Kurz, an enrollment management firm based in Pittsford, N.Y. Amherst’s endowment income—at $1.3 billion by June 2006—will help. So, too, will donors, who will be asked for support. —Jean Marie Angelo SOUND BITE C O U R S E C A TA L O G U An international education: Students enrolled in USC’s Marshall School of Business met with dancers at Mokolodi Game Reserve on the outskirts of Gaborone, Botswana. The Business of Service Learning BUSINESS SCHOOL STUDENTS CAN BE a little focused on the bottom line, but not so at the University of Southern California’s Marshall School of Business. Students frequently work with local nonprofits and small businesses, and a study abroad experience also is required. In June those factors were combined when five MBA students and one undergrad traveled for two weeks to Botswana, Africa, to develop a sustainable business plan for establishing two private boarding schools. The students met with the president of Botswana, the president of the country’s only university, the minister of education, and the local Anglican bishop. The idea came from Think Tank Thuto, a nonprofit focusing on education in southern Africa, that was founded by a Marshall graduate. The final plan will be presented in the fall. “We want students to understand [business] is not about making money and sailing off on your yacht,” says David Bloom, associate dean and chief communications officer. —Ann McClure ‘Y ou never accomplish everything you want to accomplish. —University of California President Robert C. Dynes, announcing that he will resign this December. ‘ 14 | September 2007 universitybusiness.com http://universitybusiness.com

Table of Contents for the Digital Edition of University Business - September 2007

University Business - September 2007
Contents
College Index
Company Index
Advisory Board
Editor's Note
People Watach
Sense of Place
Viewpoint
Human Resources
Money Matters
Financial Aid
Community Colleges
Una Fuerza to Reckon With
The Right Stuff
Making an Impact
Going VoIP
Training Your Staff to Protect SIS Data
Summer Conference Report
Business Technology
What's New
Calendar of Events
End Note

University Business - September 2007