Nov. 03, 2006 issue 09 Loquitur

Page 1

Friday, Nov. 3, 2006

C a b r i n i

C o l l e g e

The Loquitur Y o u S p e a k, W e L i s t e n

www.theLoquitur.com

Radnor, Pa.

WHAT’S INSIDE

Interest rates soar on student loans MEGHAN HURLEY WRITING COACH

MLH722@CABRINI.EDU

Perspectives Caffeine Page 6

Features Posters Page 9

Vol XLVIII, Issue 9

This past July, the Federal Reserve raised interest rates on the Stafford Federal Student Loans from 5.3 percent to 7.14 percent on previous loans and to 6.8 percent on new loans, according to the St. Louis Business Journal. At Cabrini, 94 percent of the full-time undergraduate students who filled out a Free Application for Federal Student Aids for financial aid received a Stafford Loan, according to Mike Colahan, director of financial aid. “Where it’s going to impact students is on the repayment side,” Colahan said. “It doesn’t affect the amount of money that they get to pay for the college, and it doesn’t impact any of the rules that govern the rules of the Stafford Loan program.” The new rate of 6.8 percent on new, first-time loans is a fixed rate. Previous loans will carry a rate of 6.54 percent during the in-school and six m o n t h g r a c e period and then will have a 7.14 percent rate for repay-

ment, according to Accessgroup.org, a nonprofit loan specialist. “What happens with the Stafford loans, even though the students aren’t paying anything right now, they are accruing interest,” Dr. Mary Harris, assistant professor of business administration, said. The Stafford Loan offers a sixmonth grace period before students need to start repayment. But after that period, payments have to be made every month. Students Michael Pio, a junior English and secondary education major, and Josh DeCoste, a sophomore history major, both knew about the hike in interest rates. DeCoste learned about the raise through an e-mail. “I was not happy about it all. I am already in so much debt and now I will just have to pay more when I get out of school. It’s a pain,“ DeCoste said. Colahan advises students to start making p a y ments

MCT

is a small amount.

w h i l e they are still in college and during the grace period, even if it

CHARLIE GRUGAN/GRAPHIC DESIGNER

“The best advice that I have is…you can make payments on the loan while you are in school there are no penalties for paying down early,” Colahan said. The more money a student pays before hand, “the less interest overall you are going to have to shell out for.” Harris said, “My best advice would be to consolidate, to try not to defer paying back, if you

possibly can, because again, it’s accumulating interest and to pay on time because it significantly affects your credit and your future potential borrowing.” Pio, who knew about the hike in rates because all his loans are in his name, is

LOAN, page 3

Grant to strengthen educational programs NIKKI SABELLA

A&E EDITOR NS722@CABRINI.EDU

A&E On Demand Page 12

Sports Tennis Page 15

Plans to broaden undergraduate studies are set into place as Cabrini receives a $1.87 million grant from the federal government. Out of 217 applicants, Cabrini became one out of 34 higher education institutions nationwide to obtain the grant. The United States Department of Education’s Title III Strengthening Institutions grant’s purpose is to supply eligible institutions with abilities to improve academics, strengthen contribution to nationwide higher education programs, increase institutional management and sustain fiscal stability. For the first time ever, Cabrini won the grant by proposing five goals it expects to

accomplish with the grant funds. Included in these goals were to connect and create a “seamless living-learning environment,” better the needs and expectations of millennial students, add to academic support services, develop better advising and career development and boost need-based student scholarships by having $400,000 toward an endowment. “We’re putting programs and people in place,” Dr. Charlie McCormick, the dean of academic affairs, said. To show that Cabrini will be successful in distributing the funds, McCormick said, Cabrini must meet measures. These measures are coming up with higher retention rates and showing an increase in student involvement with co-curricular activities. After accomplishing those goals, another set of meas-

GRANT, page 3

DAN SQUIRE/PHOTO EDITOR

Cabrini receives a $1.87 million grant from the federal government to improve academics, strengthen contribution to nationwide higher education programs, increase institutional management and sustain fiscal stability.


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