Education

Loan Program for Middle-Income Students Created

By Robert Rothman — April 24, 1987 2 min read
  • Save to favorites
  • Print

A group of banks and colleges here has created a student-loan program that will help middle- and upper-income students who are ineligible for subsidized federal aid meet college costs.

“Resources are badly needed,’' said Robert J. Casey, a tax lawyer who helped establish the program. “Often, all the available resources for tuition finance do not equal the cost of education.’'

Under the program, known as ConSern, students will be able to borrow up to $15,000 a year at relatively low interest rates, currently 9.5 percent, to pay for tuition; room and board; and other educational expenses, such as books, computers, and transportation, according to Mr. Casey.

Loans will be available for students in independent schools as well, he said. But a student may only borrow up to a total of $60,000.

By paying a “nominal’’ fee, colleges and universities, independent schools, businesses, and local governments can offer loans to their students or employees through the program, Mr. Casey said.

Such sponsoring organizations can tailor loans to their own needs, he added. For example, a participating nursing school offered subsidized loans to its students, he said, and then retired the loans as a benefit for working in a local hospital.

To participate, students enrolled in college at least half time must pay an application fee of $45 and a discount fee of 5.5 percent of the loan amount. Repayments begin 30 days after the student receives the loan and can last up to 12 years. Students may elect to pay only interest while they are enrolled in school.

To qualify for a loan, students must demonstrate that they are “credit worthy,’' or have a credit-worthy cosigner. The program defines a credit-worthy person as one whose fixed monthly payments, including the student loan, is less than 40 percent of his or her income.

But students from any income level are eligible for the program, unlike the federal Guaranteed Student Loan program, which requires students to undergo a “needs analysis.’'

Recipients of federal aid are also eligible for the program, which will make up the difference between the aid and college costs, according to Mr. Casey. “We are not in competition with any federal, state, or local program,’' he said.

The new national program is the outgrowth of a local program serving District of Columbia students, operated for three years by a consortium of colleges and universities here. It will be administered by University Support Services Inc., a newly created nonprofit corporation. Financial backing for the loans comes from Shearson-Lehman and the Continental Insurance Corporation.

Loans will be originated by the National Bank of Washington, and will be serviced by Wachovia Services Inc. of Winston-Salem, N.C.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Webinar
Stronger Together: Integrating Social and Emotional Supports in an Equity-Based MTSS
Decades of research have shown that when schools implement evidence-based social and emotional supports and programming, academic achievement increases. The impact of these supports – particularly for students of color, students from low-income communities, English
Content provided by Illuminate Education
Classroom Technology Webinar Building Better Blended Learning in K-12 Schools
The pandemic and the increasing use of technology in K-12 education it prompted has added renewed energy to the blended learning movement as most students are now learning in school buildings (and will likely continue
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being Webinar
A Whole Child Approach to Supporting Positive Student Behavior 
To improve student behavior, it’s important to look at the root causes. Social-emotional learning may play a preventative role.

A whole child approach can proactively support positive student behaviors.

Join this webinar to learn how.
Content provided by Panorama

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Briefly Stated: November 17, 2021
Here's a look at some recent Education Week articles you may have missed.
8 min read
Education Nearly a Million Kids Vaccinated in Week 1, White House Says
Experts say there are signs that it will be difficult to sustain the initial momentum.
4 min read
Leo Hahn, 11, gets the first shot of the Pfizer COVID-19 vaccine, Tuesday, Nov. 9, 2021, at the University of Washington Medical Center in Seattle. Last week, U.S. health officials gave the final signoff to Pfizer's kid-size COVID-19 shot, a milestone that opened a major expansion of the nation's vaccination campaign to children as young as 5. (AP Photo/Ted S. Warren)
Education Briefly Stated: October 27, 2021
Here's a look at some recent Education Week articles you may have missed.
8 min read
Education Briefly Stated: October 20, 2021
Here's a look at some recent Education Week articles you may have missed.
8 min read