The Intern Suite

The Monetization of Academia and its Role in Corporate Diversity

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

by Courtney Boyd, Editorial Intern

“Imagine what a black or Hispanic Mark Zuckerberg could do for innovation.” That’s what Washington Post writer Vivek Wadhwa wants his readers to do. In his article “We need a black Mark Zuckerberg,” Wadhwa expresses concern towards the small number of Blacks and Hispanics in Silicon Valley’s tech population, which falls well below the national tech-population averages of 7.1 percent and 5.3 percent respectively. Managing editor of The Root Joel Dreyfuss notes that – contrary to what the article’s title may imply – Black people have been part of Silicon Valley’s history since the beginning, but in minute numbers. To see successful, African American tech startups “we are going to have to increase the numbers of blacks and Hispanics studying engineering and science,” Wadhwa writes. The question thereafter is, “How can we make that happen?”

 

Entrance Loan Counseling: You're Joking, Right?

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern
 
The most up-to-date report available regarding student loan debt says that the average student owes about $24,000 and will take up to 24 years to repay that debt. As the economy remains stagnant, I can almost guarantee that these figures will increase over the next few years. The rise in student loan debt simply reflects the rising cost of tuition that students and parent are struggling to pay.

The debt crisis at hand is out of control. Student loans currently account for more accumulated debt than credit card debt. This, my friends, is no joke. However, the efforts to help combat this, very much so seem like a joke. First time borrowers are required to complete entrance counseling to warn them about the seriousness of student loans.

This 20-30 minute interactive quiz is supposed to give information about things like the Master Promissory Note (MPN), borrower’s rights, forbearance and default. While this concept sounds great in theory, the results are not that great in reality. It is only required of first-time borrowers, usually freshman students. Recent high school graduates are consumed by reflecting on high school, enjoying the summer before college and imagining the fun that college will bring. These 20-30 minutes do not compare to the other events in their memory banks.

 
 Also, this quiz is seen as a means to an end. The financial aid process for any student can be extensive and painstaking. Entrance counseling is required for the loan but the Master Promissory Note is really the most important part of counseling, which is given upon completion. Personally, I just wanted everything to be over with for my financial aid so I breezed through the quiz because I knew my financial aid office really just cared about the MPN.

Furthermore, counseling or quiz aren’t appropriate terms for this. Borrowers are given too many opportunities to produce correct answers. If there are four answer choices, students are given at least two chances to choose the correct response after reading a brief overview of the concept.

Financial literacy is an important topic that students should be extensively taught because the results of students ignorant to it are evident in today’s multi-million dollar student loan debt. Until an overhaul comes to pass concerning this topic I’ll be forced to keep asking, “Loan entrance counseling, you’re joking right?”

Take Charge of Your Finances: Credit Clarified

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern

Credit is a word that is thrown around a lot in the life of a student-loan-seeking-undergrad. It isn't really explained, just referred to. Now, the basics to credit have been compiled in this post to clarify the meaning of and use for credit.

Credit can be defined as the confidence in ability of a borrower to repay loans. Credit history and scores can determine someone’s eligibility, the amount they can borrow and the interest rate on a loan.

Credit is often referred to as the new cash. It is widely accepted in retail and some business establishments require that customers have a credit card to be served.

Credit reports give much insight on a person. They list many facts about a person’s life which include basic information such as full names, social security numbers, current and past jobs, addresses, and frequently used aliases. More in-depth details are reported such as: loans, payment patterns, payment defaults, bankruptcies, arrests and convictions.

Credit reports can help groups or organizations make informed decisions about entering into any transaction with a consumer. For example, employers can access credit reports prior to hiring individuals with their consent.

It is important to have satisfactory credit history because it can affect many day-to-day situations. Bad credit can lead to higher fees and rates, being declined for new accounts, no credit increases, as well as being rejected for jobs, apartments, and insurance. Because of the many things recorded on a credit report, it gives a somewhat accurate picture of how financially stable someone is.

According to bankrate.com, there are five factors that are used to calculate a credit score. They are:

                •Payment history (35% -- always pay on time, even if it’s the minimum)

                •Outstanding debt (30% -- less is best)

                •Length of credit history (15% -- the longer you’ve had credit, the better)

                •Mix of credit (10% -- consumers with a managed variety are better risks)

                •New credit applications (10% -- compensates for mortgage or car loan shoppers)

“Good” credit is considered a score of 720 and above based on a scale of 300 to 850.

Historically, consumers were not allowed access to their credit reports. However, since 2005, all consumers are entitled to a free copy of their credit report annually from all three reporting agencies –Equifax, Experian, TransUnion –according to the Federal Trade Commission. Also, consumers can purchase their report at any time through many online tools.

Peer-to-Peer Lending

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern

As recent as 2008, an alternate way to fund the rising costs of tuition. Peer-to-peer lending, sometimes referred to as social lending, is aimed toward student loans. These sites allow students to borrow money from lenders that meet certain requirements. These programs eliminate the middle man and are designed to be more personal than a federal government  loan. Although students are encouraged to consider federal loans first, peer-to-peer lending offers relatively reasonable rates anywhere from 6% to 15% or higher.

There are three prominent organizations dominating this arena. They are: People Capital, GreenNote and TuitionU.

People Capital allows students to set up a profile that details the amount of money needed and which type of loan a student would like to take out. Potential borrowers then specify a maximum interest rate that they are willing to pay. In an auction style process, lenders negotiate what interest rate below the maximum they are willing to offer. Students select the loan at which rate they are willing to pay.

All loan choices require that a student pays on the interest monthly or a minimum of $50 while still in school. A credit check is required for People Capital loans. However factors such as a student’s major, GPA, standardized test scores and college are factored into the Human Capital Score which is basically an in-depth risk assessment. Lenders vary from banks, charitable organizations, individuals with a minimum $1 million net worth, or individuals with a salary of $200,000 or greater for the two previous years.

GreenNote and TuitionU are two very similar programs. Both require users to subscribe to a membership. They use social networking sites to aid members in educational fundraising efforts. The sites allowusers to access funds through their own contacts. Users are encouraged to begin with friends, family, friends of family, friends of friends and community leaders. The largest difference that exists between the two is that GreenNote requires that members set up a PayPal account so that funds can be directly accessed. Existing PayPal accounts can be used but if users do not have one, they will be prompted to create one during GreenNote registration.

 

Student Loan Mini-Glossary

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern

Student loans are the third wheel on a student’s date with college. Some students are fortunate enough to not encounter this problem but most are joined by loans on their entire undergraduate, and sometimes graduate, date. Because many students don’t want loans, they don’t take the time to understand the commitment that they are making. This is understandable because the jargon can be quite confusing –understandable, not acceptable. To help remedy this, I have compiled a list of common (and confusing) terms used surrounding the process of taking out student loans.

 

Forbearance

Aside from lending a student money, a forbearance shows the kind side of the lender. It is basically an extended period of non-payment given to the student after graduation. It gives the student time to secure a job so that they can begin to pay back their loan. It’s usually about 6 months long. But, the interest still adds up during this time.

Garnishment

Garnishment is the meaner side of lenders but it comes with good reason. After graduation, if a student goes into default a lender will begin to take their money back. They do this by taking from sources of income to the student such as taking money from paychecks and keeping an entire tax refund check without a student’s permission.

Interest

Interest is the fee paid for borrowing the money. This is how the lender makes a profit.

Discharge/Forgiveness

Discharge or forgiveness relieves a student of having to pay back their loan. It is mostly granted because of situations out of the student’s control.

Default

A loan goes into default when the student has missed many scheduled payment dates. How long it takes for a loan to go into default depends on where the money was borrowed from. Once it is in default, the entire loan is due immediately and more aggressive ways of recovering the money begins. This is when collection agencies usually come into the picture.

Co-signer

The best way to understand what you’re asking of someone when you ask them to be a co-signer is to call them a co-borrower. They are helping a student to borrow money because the student has bad, little, or no credit. If you fail to pay your loan, a co-signer is held responsible so it is important to be mindful of this when it’s time to repay the loan. They helped you out with school so help them out by not messing up their credit. A co-signer is usually a family member with established credit.

PLUS Loan

The Parent Loan for Undergraduate Students is a loan program that allows parents to borrow money to fund a dependent student’s education. A credit check is required for the parents. If a parent doesn’t qualify for a PLUS loan, students can possibly qualify for more unsubsidized loan money.

Consolidate

When a student consolidates a loan, they combine more than one loan. This makes paying the loan back a lot simpler because it is one regular payment instead of multiple payments.

Subsidized Loan

A subsidized loan is a need-based loan that the government pays the interest on while the student is in school, during the six month grace period and during deferment.

Unsubsidized Loan

An unsubsidized loan gains interest while the student is in school and the government does not pay for this interest. It is not based on need.

Promissory Note

This is the contract to the loan. It should outline the terms of the loan and repayment. It has to be signed by the student before money can be sent to the school and applied to the student’s account. It should be kept until the loan is repaid in full for records.

Bankruptcy

This is known as a credit re-do but is far from it. When a person becomes bankrupt, they are declared legally unable to pay back their debt (insolvent) and their property could be split up and distributed among lenders. Bankruptcy remains on your credit report for at least 10 years and most times, student loans are not forgiven. 

Delinquent

A student becomes delinquent after one missed loan payment. The next stop after this is default.

Fixed rate

A fixed rate refers to interest rates on loans that do not change for the life of the loan.

Variable rate

A variable rate refers to the interest a loan can collect. This variable has the same meaning as the variable we learned about in our middle school science classes – it can change. The rate of interest could change monthly, quarterly or annually which can change how much money you will ultimately have to repay. Unfortunately, rates usually don’t decrease.

 

In order to avoid the ugly side of loans, it is best to always make regular payments and always stay in contact with lenders.

What's Your Education Worth? Weigh in Here!

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Courtney Boyd, Editorial Intern

In this month's article "The Monetization of Academia," writer Jacqueline Holness introduces to prospective (and current) college students the idea of entering human capital contracts to fund their education. With human capital contracts, companies and investor groups sponsor a student's education in exchange for a percentage of his/her income for a fixed period of time after graduation. Would you sign away a percentage of your post-graduation income for a degree?  

 

Online Surveys & Market Research

Student Loans: A Change Has Come

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern

In March 2010, the United States saw the passage of two major pieces of legislature that will benefit many Americans. In one of his weekly addresses, President Obama discusses the benefits and changes that were made involving healthcare and student loans regulation.

 

  

How Corporate-Sponsored Academia can Really Pay

This post is a part of our Monetization of Academia informative web series, and is available online only. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Courtney Boyd, Editorial Intern
 
For decades, drug companies, car companies and other manufacturers have lent financial support to universities. Usually, the money is used to fund research which, more often than not, finds favorable results for the providing company. Recently, however, companies have sidestepped the middle men-research laboratories-and handed the figurative check directly to researchers, or university students.

In March, The Wall Street Journal reported that big-name businesses Levi Straus & Co., Mattel Inc. and Sprint Nextel Corp. “are sponsoring college classes and graduate-level research to get help with their online marketing from the young and hyperconnected.”

Sprint, in particular, stands out with its sponsorship of a social media class at Boston’s Emerson College. In exchange for free social networking, online marketing and search engine optimization, Sprint supplied 10 smartphones with unlimited wireless access to the class. Good deal, right?

However, students are not only given an escape from the run-of-the-mill, you-lecture-and-I-listen-style academic course, they are able to gain real work experience in the endeavor. They develop a real, working knowledge of how certain theoretic principles yield tangible results. By building a social media campaign and incorporating nearly every platform available, they added valuable skills to their résumés.

As corporate sponsorships expand to include academia (as well as athletics), students are in the front running for reaping benefits.

Eat (and Drink) to Beat the Heat

By Courtney Boyd, Editorial Intern

This summer has been one of the hottest in history, and many Atlantans seek shelter from the sweltering heat index. The recent deaths of two Georgia high school football players have taught us this: not only are extreme temperatures uncomfortable, they are unsafe, too. Because going out is a necessity for most, avoiding the heat altogether is impossible. But, a few healthy eating practices can turn a potentially fatal temperature into a more favorable forecast. Try these tips to beat the heat!

1. Kick the caffeine and alcohol. A cup of coffee is okay, but consuming large amounts of caffeine can lead to dehydration. Caffeine is found in a number of foods and drinks, including teas and chocolate. Be mindful of how much you intake each day, especially when you're exposed to heat for long time periods, to avoid a caffeine overdose. Likewise, alcohol intake should be monitored to prevent dehydration. Alcohol is a diuretic and blocks the release of ADH, a hormone needed for water reabsorption.

2. Fill up with fresh fruits and veggies. While frozen treats are a fun way to cool down, they are best enjoyed in moderation. (Your body’s physiological response to a freezing cold belly is to crank up the heat, which can actually make your body temperature rise. Source here.) Instead, try potassium-rich foods like bananas, oranges, tomatoes and squash and watermelon to replenish electrolytes and rehydrate your body.

3. Drink lots of water. Water is the best source of hydration for our internal organs, hair and skin. As a general rule, divide your weight in half and drink that number in ounces of water to stay healthy and remain hydrated. Because I weigh 110 lbs., I should drink at least 55 ounces of water each day. Due to sweating and other functions that deplete supply, I drink an additional glass to balance output. When exercising in heat, be sure to replenish often - about every 15 minutes - to avoid dehydration.

Now that you've read my tips for healthy eating and drinking in the heat, look out for our annual health and wellness issue in October!

Good Debt vs. Bad Debt

This post is a part of our Monetization of Academia informative web series, and is available online only. In this article, intern Jhanay Davis shares her side of the debt debate, explaining the difference between what financial counselors call "good" debt and "bad" debt. To read the full article "The Monetization of Academia" as it appears in this month's issue, visit Atlanta Tribune online for sales and subscription information.

By Jhanay Davis, Editorial Intern

When I think of debt, even the word scares me. It sounds too close to dead, which translates into the death of a credit score that I don’t yet have. I’m not afraid to admit it; I was afraid of getting loans!  Then I was afraid that if I didn’t get a loan, I would be an adult without credit and that seemed like something I probably would want to have. I was at a crossroad. Fortunately, I figured out soon enough that a loan wouldn’t be so bad. It would help me to make an investment in my education while simultaneously building my credit. This sounded like a pretty good deal to me.

  It sounded like a pretty good deal because it was. Although I am purposely putting myself into debt, I have acquired what is known as good debt. Good debt was explained to me as debt that will eventually make me money. My student loan is the determining factor between my high school diploma and my bachelor’s degree. I have been told by countless teachers that college graduates make more money than high school graduates. Therefore, I can expect to have a salary that will allow me to repay my debts after college and live comfortably.

Like all things, this good debt could potentially turn into bad debt very quickly. I have been told that when applying for loans, it is wise to limit the total of monies borrowed by what your projected first year’s salary will be. Basically, if I can't expect to make $30,000 right out of college, my student loan debt should not exceed $30,000.

Many students make the mistake of over-borrowing in college to live lavishly. I’ve seen countless people take out loans to pay for off campus apartments, new cars or a new wardrobe. This is the catalyst for good debt becoming bad debt. As stated before, good debt is debt that can make you money. An apartment, new car and new clothes cannot make you any money. These things should not be funded with loan money – EVER! College is a temporary setting and it is important to know that things only get better after college if you are smart during your collegiate experience. That lavish lifestyle can come after your education is out the way but it will be temporary also if you can’t repay your debt. Uncle Sam and Sallie Mae give borrowers six months but after that, they will be present with their hands out. 

Good debt does exist and can be beneficial to borrowers. It is important to be wise about your finances so that mistakes don’t cost so much in the long run.