<p>Do not expect positive news from the business office …</p>
<p>Inflation Index for Higher Education Will Jump in 2006 </p>
<p>Cost inflation for colleges and universities, as measured by the Higher Education Price Index (HEPI), will increase by 5 percent in fiscal year 2006, a new study from the Commonfund Institute finds.</p>
<p>According to the Wilton, Connecticut-based institute, the largest HEPI increase since 2002 exceeds the average annual increase of 3.8 percent from 2002 to 2005. By comparison, the Consumer Price Index showed an average rise of 2.3 percent over the same period. Over the past ten years, annual HEPI increases have averaged 3.6 percent, compared with 2.5 percent for the CPI.</p>
<p>Colleges and universities have experienced steep increases this year in the price of utilities, which rose 27.1 percent over 2005 nearly triple the average annual increase of the preceding four years. In addition, prices for materials and supplies have risen 8.2 percent, compared with a 4.8 percent increase in 2005.</p>
<p>“HEPI shows that the strong rise in the costs for higher education in 2006 resulted largely from the spike in energy costs,” said Commonfund president and CEO Verne Sedlacek. “HEPI is an extremely important measure of inflation for colleges and universities for their current operations, for budget hearings, and as a guideline for trends in other areas of expense, such as faculty expenses.”</p>
<p>As of July 2006 interest rates are jumping again - anticipate rates on student loans to change to:</p>
<p>For new loans after July 1st or anticipated fixed interest rates:
Stafford Student Loan 6.8% (up from 5.3%)
Parent PLUS Loan 8.5% ( up from 6.1%)</p>
<p>If you have an exsiting PLUS or Stafford loan with a variable rate expected rates as of July will be:
Stafford rate will be 6.8%
PLUS Loan rate will be 7.94%</p>
<p>If you have exisiting education loans you REALLY need to look into doing a consolidation loan BEFORE July 1st to lock down lowest possible interest rates on your loans -</p>
<p>Don’t misunderstand - this isn’t saying the tuition for the schools will be fixed - it only means the interest rates on federal education loans will be fixed for any new loans taken out as of July 1st, 2006 — fixed tuituion would be GREAT however I think that is highly unlikely in our lifetime!!</p>
<p>I have two in college and what I find very discouraging is all the new rules about who I can use for a lender. If i decide to get education loans there is a “single lender” rule that basically says if all your loans are with a single lender you HAVE to use that lender to consolidate your education loans regardless if there is some other lender out there that can offer you benefits that can save you thousands of dollars on your loans. </p>
<p>If you have to get student loans - you might want to use at least two different lenders so you don’t get locked in to one lender. As a consumer you are legally entitled to pick any lender you want regardless of what the college says - so know your rights and be a smart consumer .</p>
<p>no I mean my college is giving us incoming freshman fixed tuition…and since the cost of education is expected to rise exceptionally, then im thanking god that my tuition is on lock for the next four years</p>
<p>im not looking forward to the 60-70k in loans though</p>