Does anyone have a link to information about NCU discontinuing Title IV or any other information surrounding that? Now that the 50-percent rule is gone, do you think NCU will offer Title IV again?
I took a quick look at the NCU discussion forums. There doesn't appear to be any new discussions about NCU going Title IV again. Not surprised as the first attempt was a disaster. NCU withdrew from Title IV, they were not forced out. They claimed that the restrictions were too much and it would affect the program. Seems to me they should have known this before starting the Title IV process. Many students were affected and some needed to withdraw after Title IV was cancelled. Very poor planning on NCU's part. NCU is raising doctoral tuition to $495/credit come April.
Well, their website makes no mention of Title IV. But here's what they do say: www.ncu.edu/financing_your_education.asp .
I spoke with Dr. Hecht about this a few months ago. NCU was never subject to the 50% rule because they were part of the demonstration program. To summarize my recollections, Title IV requirements took away much of the flexibility that NCU students value, only a small percentage of students took advantage of Title IV funding, and the program was costly to administer.
That sounds about right. I knew that NCU was not subject to the 50 percent rule because it was in the DOE Demonstration Program, but since it withdrew from the program in 2003 (I think), I just wondered. Their rationale makes a lot of sense. Wasn't there some kind of mishandling of loan money or overpayment or something? I remember some "scandal" involved Title IV and NCU, but I can't place the specifics. In any case, I love NCU.
Naw No scandal that I recall and I nearly enrolled. But I need the aid to do the program. For them... it was a sound business decision at the time. However, I wish they still had it. I like the school and the director.
I doubt that “a small percentage of students took advantage of Title IV funding.” A key part of Title IV is the PLUS loan which is available to just about everyone regardless of income. One can usually get a PLUS loan in minutes over the telephone. The rates are also considerably lower than on private unsecured loans. Without Title IV, students need to rely on loans from private lenders, which in my experience are only available to individuals with higher than average credit scores.
Is that true even of Sallie Mae loans (needing above-average credit)? I'd be surprised, as even little old me once got a Sallie Mae loan, and my credit was (and still is) in the, um, cesspool.
If your credit is indeed as bad as you say, you must have gotten a Title IV loan. PLUS loans are guaranteed by Uncle Sam, so the rates are way below market. SLM private loans are basically consumer loans packaged for the education market. PLUS loans are one of the few middle class government hand outs.
Then it was a PRIVATE Sallie Mae loan. Sallie Mae does a big business in private loans with non-Title IV institutions like NCU and dare I say KW (one of their largest clients).
Title IV loans are government guaranteed, hence they carry a lower rate and are (much) easier to get approved for. Most Sallie Maes are made under Title IV. When I say "private", I mean non-Title IV, which are essentially consumer loans packaged for the education market.