Q:        What do college-bound students need to know about student loans before school resumes this fall?

A:        Many young adults use the summer months to earn money to help pay for their college expenses in the year ahead.  Even with summer just having started, the first day of fall classes aren't too far behind.  However, most college-bound students will need to finance college tuition through school loans.  Last year, U.S. student loan debt exceeded $1 trillion.  The vast majority of student borrowing is from the federal Stafford Loan program.  Starting in July 2006, the interest rate on all Stafford Loans was set at 6.8 percent as a result of advocacy by student groups who determined that a fixed rate at 6.8 percent was a better deal for students given the history of the previous variable interest rates.  Approximately 40 percent of federal Stafford loans are awarded based on need with the taxpayers paying the interest on the loan while students are in school.  About 7.7 million undergraduate students are expected to apply for this subset of subsidized Stafford loans for the 2013-2014 academic year.  Special interest rates on these loans were set temporarily at 3.4 percent for the past two years.  On July 1, the original 6.8 interest rate is scheduled to be reinstated for all new Stafford loans.  Existing subsidized Stafford loans will not be affected by changes scheduled for July 1.  If the interest rate resets to 6.8 percent, the average student loan borrower would owe about $727 more in interest over 10 years, or $6.06 a month.

Q:        Are changes to the student loan system being considered in Washington?

A:        Various proposals reflect efforts to keep college affordable for students and their families.  Earning an advanced degree is one way to scale the economic ladder of mobility in the United States.  Although policymakers share a common goal to keep higher education attainable for the next generation, it is more difficult to reach a consensus on how to pay for that goal.  The President has proposed a long term solution linking interest rates for new Stafford loans to market interest rates so that students can take advantage of lower interest rates during more difficult economic times.  The House of Representatives passed legislation to revert to a variable rate system in which interest rates on student loans change from year to year based on the market rate.  Senate Democrats have proposed to continue the special 3.4 percent rate for another two years by raising taxes permanently.  Senate Republicans put forward a proposal closely aligned with the President's plan to link student loans to market-based interest rates.  And like fixed home mortgage loans, the rate would be locked in for the life of the loan.  However, while the President's plan maintains different rates for different loans, our plan would allow all students borrowing federal student loans to take advantage of the same low rate.  Let me repeat.  It would help all students take advantage of historically low interest rates, including loans available to parents and graduate students.  With the current Treasury note at 1.75 percent, students taking out a new loan this fall would pay 4.75 percent for the life of that loan.  Since 60 percent of federal student loans have remained at 6.8 percent since 2006, and most students who qualify for the subsidized 3.4 percent loans also have to take out loans at the higher rate, our proposal would result in greater savings for more students compared to the Senate Democrats' proposed extension of the special rate just for subsidized loans.  While it is uncertain which proposal will gain final approval, I will continue championing policies that address the exploding growth of college tuition and fees.  That includes my work to bring more transparency to college revenue and expenses.

Q:        Why is it so complicated to figure out a student's tuition tab?

A: A big part of the problem calls for a fairly simple solution:  Boil down the financial aid mumbo-jumbo into plain English.  Replacing the bewildering information that families receive from each college in which their students receive financial aid award letters with one boilerplate, easy-to-understand letter would be a welcome blessing to families across the country.  Under the current system, many families find it nearly impossible to make an informed decision.  Various definitions are used for grant aid (which does not need to be repaid) with student loans (which do need to be repaid).  That's why I'm working to separate the wheat from the chaff.  The bipartisan legislation I've cosponsored with Senator Al Franken of Minnesota would drive out the cobwebs tangling up financial aid literacy.  Called "Understanding the True Cost of College Act," our bill would create standard terms and definitions for college aid so students and families can make direct comparisons.  This would empower students to better understand their debt burden and avoid taking on more than they can afford.  Even better, this would help students shop around for the best value in the higher education marketplace.  As a result, more colleges would be inspired to rein in double-digit tuition hikes as they compete to keep up enrollment.

MILWAUKEE, WI (06/20/2013)(readMedia)-- Milwaukee School of Engineering (MSOE) is pleased to announce Meghan Essary, from Davenport, has been awarded a Presidential Scholarship for four years of full tuition. She attended Davenport Central High School and plans to major in industrial engineering at MSOE.To qualify for MSOE's most prestigious scholarship, students needed a minimum 3.80 cumulative GPA and 28 or higher composite score on the ACT (1240 SAT) and be accepted for enrollment by February 1. In addition, the students attended and competed at a scholarship event.

MSOE is an independent, non-profit university with about 2,500 students celebrating its 110th anniversary. MSOE offers 20 bachelor's degrees and nine master's degrees in engineering, business, mathematics and nursing. The university has a national academic reputation; longstanding ties to business and industry; dedicated professors with real-world experience; a 94% placement rate; and the highest average starting and mid-career salaries of any Wisconsin university according to PayScale Inc. MSOE graduates are well-rounded, technologically experienced and highly productive professionals and leaders.

DEKALB, IL (06/20/2013)(readMedia)-- Please review our Spring 2013 Dean's List to identify all students living in your service area; we appreciate your assistance in acknowledging their accomplishments. For additional information, please contact Brad Hoey by phone, 815-753-6667 or e-mail, bhoey@niu.edu.

The following local students were named to Spring 2013 Dean's List at Northern Illinois University:

Wesley Brinkman of Lyndon, IL

Haley Inboden of Sterling, IL

Ashley Vegter of Morrison, IL

Angela Versluis of Silvis, IL

Shawn King of Sterling, IL

Ellen Collison of Clinton, IA

Megan Wilson of Milan, IL

Joshua Screnock of Morrison, IL

Keaston Bonnell of Prophetstown, IL

Gabriela Cason of Morrison, IL

Irlen Carranza of Rock Island, IL

Krista Ramirez of Sterling, IL

Aaron Berogan of Sterling, IL

Abbie Habben of Sterling, IL

Aaron McKeown of Moline, IL

Jessica Davis of Rock Falls, IL

Nathan Asbury of Sterling, IL

Nevin Walker of Rock Falls, IL

Paige Deyo of Lyndon, IL

Ian Andrews of East Moline, IL

Cierria McPerryman of Sterling, IL

Karin Carlson of East Moline, IL

Ashley McMahon of East Moline, IL

Katherine Anglese of Albany, IL

Kara Ford of Fulton, IL

Trevan Burn of Morrison, IL

Dustin Flesch of Port Byron, IL

James Green of Rock Island, IL

Rachel Harris of Fulton, IL

Monte Sunday of Sterling, IL

The list is compiled by NIU's academic colleges according to varying criteria. Students enrolled in the colleges of Business, Education, Liberal Arts and Sciences, Visual and Performing Arts, and Health and Human Sciences must meet a minimum semester grade point average of 3.75 on a 4.0 scale. Students enrolled in the College of Engineering and Engineering Technology must meet a minimum semester grade point average of 3.5 on a 4.0 scale.

Located in one of the most dynamic regions of the country, Northern Illinois University (NIU) is a comprehensive teaching and research institution with a diverse and international student body of nearly 23,000.

UPLAND, IN (06/20/2013)(readMedia)-- The following local residents were named to the Spring 2013 Dean's list at Taylor University. Full-time students are named to the Dean's List when they have earned a GPA of 3.60 or higher for the term and at least 12 hours carry credit point values.

Angela Stuedemann, a resident of DeWitt, IA.

Brett Vacek, a resident of East Moline, IL.

About Taylor University: Founded in 1846, Taylor University is an interdenominational liberal arts university of evangelical faith located in Upland, Ind. The 2013 U.S. News and World Report survey America's Best Colleges ranked Taylor the number one Baccalaureate College in the Midwest. It marked Taylor's sixth straight number one ranking and followed 10 straight years of being ranked in the region's top three.

Taylor University is a member of the Council for Christian Colleges and Universities (CCCU).