Written by / Compiled by KMI Media Group staff
MAE 2010 Volume: 5 Issue: 7 (September)
Higher-Education Donors Sign Gates-Buffett Pledge
Warren Buffett and Bill and Melinda Gates have persuaded 40 of America’s billionaires to commit to giving the majority of their wealth to charity, and many of them are well-known donors to higher education, according to The Chronicle of Philanthropy. Among those who joined the pledge are T. Boone Pickens (Oklahoma State); Pierre and Pam Omidyar (Tufts); Sanford and Joan Weill (Cornell); and Kenneth and Elaine Langone (New York University).
Colleges Struggle Financially
A total of 150 private nonprofit colleges failed the U.S. Department of Education’s “financial-responsibility test” based on their condition in the 2009 fiscal year, according to recent data. This is 23 more than the 127 that failed the test in the 2008 fiscal year, and an increase of about 70 percent over the number of degree-granting institutions that failed two years ago.
Among for-profit colleges, 37 failed the test for 2009, 11 fewer than for 2007. Nine of them had the lowest possible score. Colleges that fail the test are subject to additional federal scrutiny of student-aid funds and, in cases of the lowest scores, extra financial obligations.
More than a third of the nonprofit colleges that failed the test in 2009 are located in nine states in the Midwest, with 13 in Illinois, the analysis indicated. Another 13 are in Pennsylvania, 12 in New York and 11 in California.
Public colleges, because of their government support, typically aren’t subject to the assessment, which is designed to assure taxpayers that their money is not at risk. Colleges that score 1 to 1.4 on the test are considered to have failed but are “in the zone,” meaning they can continue to participate in federal financial-aid programs, but with restrictions on how student-aid funds are disbursed to them.
Colleges with scores below 1 are subject to extra requirements. They must post letters of credit equal to at least 10 percent of the federal student-aid funds they receive and face additional restrictions, or post letters of credit equal to at least 50 percent of the funds they receive and operate as if they had passed the test. Colleges that score 1 through 1.4 for three consecutive years become subject to the extra requirements.
Department officials said they rarely kicked colleges out of student-aid programs altogether, because the restrictions and letter of credit requirements are adequate protections for taxpayers’ money if a college falls into dire financial straits.
In 2009, more than half of the failing nonprofit colleges—80 of them— scored low enough to trigger the extra requirements, up from 71 in 2008 and 48 in 2007. Among forprofit colleges, the trend was reversed; 24 scored that low in 2009, down from 33 in 2008 and 39 in 2007.
VA Funding Bill Passes House
The U.S. House of Representatives passed the fiscal 2011 Military Construction and Veterans’ Affairs (VA) Appropriations bill (H.R. 5822), which provides $57 billion in discretionary funding for the VA and $64 billion for mandatory VA programs. The bill also provides $18.7 billion for military construction and family housing, and $1.3 billion in emergency appropriations for military construction projects in support of the war in Afghanistan. In addition, the legislation would render $50.6 billion in advance appropriations for VA medical accounts.
The breakdown of the appropriations for the VA is as follows:
- $37.1 billion to improve access to medical services for all veterans
- $5.2 billion for mental health services to help veterans suffering from conditions such as post-traumatic stress disorder, depression and traumatic brain injury
- $4.2 billion for assistance for homeless vets, including $218 million for the homeless grants and per diem program, $51 million for supportive services for low income veterans and families, and $151 million for the HUD-Veterans Affairs Supportive Housing Program
- $250 million for innovative practices to improve access to care for veterans in rural areas. More than 3.2 million (41 percent) of enrolled veterans live in rural or highly rural areas
- $5.3 billion to ensure the efficient operation of the department’s health care system
- $5.7 billion for medical facilities
- $590 million for medical and prosthetic research, including important research to address the needs of Operation Enduring Freedom and Operation Iraqi Freedom veterans.
VA Issues New Yellow Ribbon College Aid List
More than 1,100 private and public schools have signed agreements with the Veterans Affairs Department to reduce tuition for student veterans in the coming school year as part of the Post-9/11 GI Bill’s Yellow Ribbon program. Under this program, VA matches dollar-for-dollar any reduction in fees charged to GI Bill students if tuition and fees exceed the reimbursement rate in the state where the school is located. VA has posted a list of participating institutions on the following Website:
http://www.gibill.va.gov/gi_bill_info/ch33/yrp/yrp_ list_2010.htm