University to switch to direct lending

first_imgPresident Barack Obama’s plan to reform student financial aid remains in limbo, but USC is planning to switch to direct lending — a move that would likely be required if the legislation is passed — regardless of what happens in Washington, D.C.Under the current system, borrowers may choose either a bank-funded Federal Family Education Loan or a U.S. Treasury-funded Federal Direct Loan, depending on which program their school uses.The Student Financial Aid and Fiscal Responsibility Act that passed the House of Representatives in September included provisions to eliminate FFEL and switch entirely to direct lending; the Senate version of the bill is expected to contain this requirement too.The bill has stalled since moving to the Senate, but Katharine Harrington, USC’s dean of Admission and Financial Aid, said USC will switch to the direct lending program for next year.“Due to the volatility of current credit markets, cuts in government subsidies and the uncertain future of pending legislation that may force a change in the nation’s student loan delivery system, the university is switching its participation from the Federal Family Education Loan Program to the Federal Direct Loan Program for the 2010-11 academic year,” Harrington wrote in an e-mail.Harrington said the direct-lending program should simplify the loan process for students. Loans will come from the U.S. Treasury, which she said is a more stable funding source than many of the private banks and loan companies that have been hit hard by the economy.The school has been working to prepare for this move for several months, Harrington said, and the system will be in place in time for the 2010-2011 school year.“Although the change has created additional work, we are well positioned to complete it in the coming weeks,” Harrington wrote. “Both the university and our student borrowers will benefit from this move to the Federal Direct Loan Program.”USC Credit Union Vice President Michael Kim said USCCU has loaned up to $130 million annually with only $30 million in assets but will revamp its loan program this summer because of financial uncertainty — officials are hoping to circumvent this exact problem with direct lending.“We don’t want to offer something we can’t guarantee long term,” he said.During the last three years, according to USA Today, about 550 colleges eliminated the FFEL program while the number of schools using direct lending doubled.Though USC will switch to the direct-lending program one way or another, officials are still waiting to see action on SAFRA, which contains a number of other changes to financial-aid policies.Beyond the switch to direct lending, SAFRA would change the maximum Pell Grant to one percent above the inflation rate, quadruple the Perkins Loan program, increase subsidies for historically black and minority-serving universities, provide loan forgiveness to military members active during school, and simplify the Free Application for Student Aid.SAFRA would save more than $80 billion during the next decade, according to the Congressional Budget Office. The U.S. Department of Education can borrow money from the U.S. Treasury at about two percent interest — cheaper than private institutions.By charging interest rates of up to 6.8 percent as set by Congress, the DOE reaps profits that would be used to increase Pell Grant awards to $5,550 in 2010 and to $6,900 by 2019.Over the past few months, SAFRA has taken a back seat in the Senate as the health care bill stole the spotlight.Senate Democrats are hoping to pass their version of the financial-aid bill using a special vote known as budget reconciliation, which requires approval by 51 votes instead of 60. As reconciliation can only be used once per session, and Democrats want to save it for health care reform legislation, the student-aid bill will have to wait.Recently, however, government officials have begun to talk about the possibility of merging part of the health care bill with SAFRA, a move that would expedite the passage of what many consider to be a critical bill.“We think making more aid available to students is important because it is essential in today’s economy to have more students go to college and graduate,” DOE spokesperson Jane Glickman said.One obstacle SAFRA faces is opposition from lenders. Under SAFRA, the four lenders with government contracts — Sallie Mae, Great Lakes, Nelnet and PHEAA — would still handle support, billing, disclosures and payments once a student receives a loan.According to Sallie Mae Vice President for Public Affairs Conwey Casillas, lenders support Obama’s plan but are advocating for two changes to the bill.First, lenders want borrowers to be able to choose which lender services a loan, rather than having the lender chosen by the DOE. Under the current FFEL program, borrowers choose their own lender.Another amendment proposed by lenders would penalize servicers 3 percent on loans defaulted by their borrowers. They say such a provision, which is also in FFEL, would align the interest of servicers with that of students and taxpayers.“These enhancements allow for competition and choice, superior default prevention services and bipartisan support,” Casillas said.The Senate has yet to adopt the lenders’ amendments because of the lenders’ insistence on receiving payments totaling nearly $13 billion over 10 years from the government for originating loans.Mark Kantrowitz, a financial aid expert and publisher of, said he expects the Senate to pass the bill in time for the changes to go into effect July 1, the last date colleges may adopt direct lending for the 2010-2011 academic year.But co-director of USC’s Center for Urban Education Alicia Dowd said she fears the bill may fail as the health care bill has thus far.“Obama’s plan to recycle money back into the system is a step in the right direction,” she said. “But my fear is the financial lobby will derail this bill. Students and families have to become aware and speak out against subsidies going to the banks and not the students.”last_img read more

Leaked! Black Stars World Cup budget

first_imgThe Black Stars Brazil 2014  budget has been chanced upon  by our sources  and it reveals the details of the budget for the mundial which begins in June.Participation fee $1.7mQualification bonus preliminary stages $1.8mQualification bonus 1/16 stage $837,000Quarter finals $1mSemi finals $1.2m Third-place $1.4mFinals $1.6mDETAILS…Boarding and lodging of other officials: $750/Day for 35 days = $131,000Laundry $30,000 Per diem/Allowance for 33 (Players and technical team) $115,00022 other officials $150/Day for 35 days $115,000Medicals $50,000Protocol $150,000Foodstuff $10,000 Complimentary ticket for players and technical handlers @1/16 Stage = $18,000Accountable Impress for 4 scouts for travels, accommodation/meals – $30,000 each = $120,000Honoraria for 4: Media Officer, Protocol Officer, Extra Doctor, Extra Physiotherapist $12,632 each*4= $50,528Honoraria for team: two National Security Officers, two caterers and drummer @ $5,263 each = $26,315Honoraria for 4 scouts and 1 therapist @ $10,526 each = $ 52,630 Honoraria for two backroom staff $12,632Bonuses -$15,789 per player at preliminary stageHead coach $31,578Bonus for 7 management team members (Prelims) = A bonus of a player for three matches ( 7 X $15,782 X THREE) = $331,000Bonus for 7 management members at 1/16 Stage (7 X $21,000) = $147,000 Bonus for 7 management members @ quarter final stage $184,000Bonus for 7 management members @ semi finals stage $221,000Bonus for 7 management members @ finals $257,000Bonus for 23 players 2 assistant coaches, 1 physio, 1 psychologist $15,000/each @ preliminary stagePlayer bonus @ 1/16 stage- $484,000 for 23 ($21,000/player) Player bonus @ quarter final stage – $26,000/player (X 23) = $598,000Bonus for head coach @ quarter final stage $52,000Bonus for match analyst, welfare, masseur, kits manager $18,000 each @ 1/16 stage – $72,000NB: According to the spokesperson, GFA does not know the details of the approved budget so can’t speak on the figures.Just hoping probably after the World Cup, the ‘state secret’ as termed by the GFA Spokesman will tell us otherwise when the account is being rendered.last_img read more

English Premier League Standings

first_imgEnglish Premier League StandingsSTANDINGSPOS LP CLUB P W D L GF GA GD PTS1 (1) Leicester City 23 13 8 2 42 26 16 472 (2) Manchester City 23 13 5 5 45 23 22 443 (3) Arsenal 23 13 5 5 37 22 15 444 (4) Tottenham Hotspur 23 11 9 3 41 19 22 425 (5) Manchester United 23 10 7 6 28 21 7 376 (6) West Ham United 23 9 9 5 36 28 8 367 (7) Liverpool 23 9 7 7 30 32 -2 348 (8) Southampton 23 9 6 8 32 24 8 339 (9) Stoke City 23 9 6 8 24 25 -1 3310 (10) Watford 23 9 5 9 27 26 1 3211 (11) Crystal Palace 23 9 4 10 24 27 -3 3112 (12) Everton 23 6 11 6 40 34 6 2913 (14) Chelsea 23 7 7 9 32 34 -2 2814 (13) West Bromwich Albion 23 7 7 9 22 30 -8 2815 (17) Swansea City 23 6 7 10 22 31 -9 2516 (15) Bournemouth 23 6 7 10 27 38 -11 2517 (16) Norwich City 23 6 5 12 28 43 -15 2318 (18) Newcastle United 23 5 6 12 25 41 -16 2119 (19) Sunderland 23 5 4 14 28 46 -18 1920 (20) Aston Villa 23 2 7 14 18 38 -20 13last_img read more

Lambert hails Villa’s hunger after big-spending QPR fall short

first_imgAston Villa boss Paul Lambert suggested that his team’s battling draw at QPR said much about the respective clubs’ transfer policies.Lambert has looked to nurture young talent at Villa, while Rangers are bottom of the table and without a league win this season despite their big spending.“Money doesn’t guarantee success,” said Lambert.“If you can build team spirit and have lads with hunger and enthusiasm it’s great to work with. You’ve always got to have that hunger.”More reaction to follow later.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 Follow West London Sport on TwitterFind us on Facebooklast_img read more

South Africa is top for affordable financial services

first_img26 August 2015South Africa ranks second for its excellent access to and usage of affordable financial services, according to a report released yesterday.The 2015 Brookings Financial and Digital Inclusion Project (FDIP) Report and Scorecard, which evaluated 21 countries, examined broad dimensions relevant to financial inclusion such as country commitment, mobile capacity, regulatory environment and adoption of traditional and digital financial services.As of 2014, about 75% of South African adults had bank accounts and 5% used non-bank financial products. ATM and debit cards were more common, with 34% of the banked population owning a South African Social Security MasterCard.“Unlike in many other countries in our study, women in South Africa are generally not disproportionately excluded from formal financial services,” the report said. “The 2014 Global Findex found that about 69% of men and 69% of women had accounts with a formal financial institution or mobile money provider.”South Africa earned 80% and was ranked number 12 for country commitment, number one for mobile capacity, number 17 for regulatory environment and number three for adoption. It also received the highest score for formal account penetration, including among rural, low-income and female groups.Strong mobile capacitySouth Africa’s mobile capacity was strong, the report showed, with the percentage of unique subscribers comprising about 70% of the population and about 96% 3G mobile network coverage by population.“South Africa also has a number of mobile money deployments offering P2P domestic transfers, bill payment, and international remittances,” it said. “This has allowed it to reach more people and engage them in financial services.”Initiatives to digitise government transfers, along with the country’s quite extensive banking infrastructure, supported financial inclusion. “Efforts to diversify the digital financial services market and encourage digital transactions could propel further advancements in financial inclusion.”According to estimates from a recent Imperial College and Citi report, “a 10% increase in the digital money readiness and commensurate increase in adoption for the countries included in the index, can help up to an estimated 220 million individuals enter the formal financial sector. This translates to an additional $1- trillion (R13.15-trillion) moving from the informal economy to the formal economy”.Financial inclusionThe report said financial inclusion had become a crucial aspect of economic development.“Developing economies need consumers who can pay bills or send remittances in an affordable and convenient manner. Digital services are an increasingly important component of the nexus between development and financial inclusion.“Having greater access to financial services promotes entrepreneurship, lifts people out of poverty, and gives them greater hope for a brighter economic future. This is especially the case in regard to women and marginalised groups.”Source: News24Wirelast_img read more