“The Obama administration is trying to strong-arm America’s colleges and universities into complying with a bill that hasn’t been signed into law yet,” writes Stephen Spruiell, a staff writer for the National Review Online. “The bill, which would replace current subsidized-student-loan programs with a government-run system, passed the House last month, but its fate in the Senate is far from clear. Sen. Tom Harkin, chairman of the Education Committee, plans to use the budget-reconciliation process to pass the contentious bill with a simple majority, but The Hill newspaper reports that it might not even have 51 votes. The bill is far from a fait accompli, making the administration’s pressure campaign all the more egregious.”

“The tough job market for college seniors and recent graduates has left millions of twentysomethings unemployed or underemployed and looking for work or some other way to occupy their time,” Inside Higher Ed reports. “Among the alternatives that appear to be growing in popularity this fall: State Department-sponsored Fulbright fellowships to study, conduct research or teach English in 140 countries. In all, more than 8,500 people submitted applications to the Institute for International Education – the group that oversees student Fulbrights — for 2010-11 awards ahead of last week’s deadline, a thousand more than applied a year ago. About 1500 student Fulbrights are awarded each year.”

“The share of 18- to 24-year-olds attending college in the United States hit an all-time high in October 2008, driven by a recession-era surge in enrollments at community colleges, according to a Pew Research Center analysis of newly released data from the U.S. Census Bureau,” Pew Research Center Publications reports. “Just under 11.5 million students, or 39.6% of all young adults ages 18 to 24, were enrolled in either a two- or four-year college in October 2008 (the most recent date for which comprehensive nationwide data are available). Both figures — the absolute number as well as the share — are at their highest level ever. Enrollments have been rising over many decades at both two- and four-year colleges, but the most recent annual spike has taken place entirely at two-year colleges.”

“Here are some moves families can make during the next few months to boost savings in the right accounts and ease the financial-aid process,” Wall Street Journal reports. “First, schedule a basic financial check-up. Tally your income, expenses and savings, and identify where you can cut back—delay vacations or home renovations, for example. (One thing that’s off-limits: retirement fund contributions.) Financial aid insiders recommend that parents do the math with their children, to keep everyone’s expectations in check. ‘It’s important for parents to have realistic discussions about what they can afford,’ says Justin Draeger of the National Association of Student Financial Aid Administrators. This way, kids won’t fixate on out-of-reach and out-of-budget schools.”

Yesterday, the House and Senate passed a continuing resolution (CR) to keep the government funded at current levels through December 18. This is the second continuing resolution passed by Congress for this fiscal year. The first CR is set to expire Saturday. Congress has approved only four of 12 spending bills for the 2010 fiscal year that began on Oct. 1. Congress is expected to pass an education spending bill that keeps most Title IV programs at level funding.

The Information Reporting Program Advisory Committee (IRPAC) of the Internal Revenue Service (IRS) has released their 2009 recommendations on a wide range of tax administration issues. IRPAC recommends that Form 1098-T, Tuition Statement, would be most effectively and securely delivered electronically, based on students’ negative consent. It also recommends that the IRS publish more written guidance to students on what amounts to include on Form 1040 from the Form 1098-T, and specify that this amount may not be the correct amount to report on Form 8863, Education Credits (Hope and Lifetime Learning Credits) or Form 8917, Tuition and Fees Deduction.

The General Accountability Office (GAO) has completed a study and report to Congress on student aid simplification that was mandated by the Higher Education Opportunity Act. The report, Highlights of a Study Group on Simplifying the Free Application for Federal Student Aid, was based on results of a process that GAO was engaged in from November 2008 to October 2009. During that time, the GAO convened an expert panel and conducted interviews with higher ed agencies and associations, including NASFAA, to examine options for simplifying student aid.

NASFAA joined other higher education associations, under the umbrella of the American Council of Education, in urging Congress to extend legislative authority for income tax deductions of particular benefit to students and schools that are set to expire at the end of this year. Both the above-the-line tax deduction for qualified tuition and related expenses and the Individual Retirement Account (IRA) Charitable Rollover support students and the colleges and universities that serve them.

There are two things I want you to do next time you speak with your credit card company. Ask them if they apply your payments to the lowest interest portion of your balance first and ask them if they raise your interest rate on outstanding balances.

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