tag:blogger.com,1999:blog-3038828360589919480.post2990539341650976995..comments2023-10-12T05:22:07.181-04:00Comments on The Prichard Blog!: Best in Class, troubled fundingSPWestonhttp://www.blogger.com/profile/08602329486466534720noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-3038828360589919480.post-13135110752467536862009-06-23T16:36:07.490-04:002009-06-23T16:36:07.490-04:00I received a loan through the Student Loan People ...I received a loan through the Student Loan People having been told I would not have to repay it. I went back to college to get my Rank I. I too was mislead. Not only am I repaying the loan but now have been audited by the IRS because some third party has paid part of the loan causing a debt cancellation that is viewed as income to me. The math is not adding up, $4000.00 is debt cancellation on a loan of $18,000.00, but I still owe over 14,000.00. Go figure!Jennifer T.noreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-31749205403913451702009-05-07T10:51:00.000-04:002009-05-07T10:51:00.000-04:00What a great discussion. Some commenters and blog...What a great discussion. Some commenters and bloggers are really on top of this. Too bad the Kentucky press is asleep.<br /><br />Breaking news: the federal Department of Education's Inspector General has just released a new audit of the department's office of Federal Student Aid. The "program review" cited by KHEAA as approval for its 9.5 funny-money claims turns out to have been an after-the-fact "political" review that was not approved by the department's policy office nor by its office of general counsel. Did KHEAA know that? Did KHEAA or its trade association ask for the review, knowing they were being issued extra-legally by lender-connected personnel in the federal Department of Education?<br /><br />This reeks of corruption. Federal Education Secretary Spellings reversed the reviews, but no heads rolled.<br /><br />The honorable thing for Governor Beshear to do is to work with new federal Secretary of Education Duncan to fulfill Kentucky's commitment to its thousands of teachers, nurses, and lawyers who participated in the loan forgiveness programs. Each party should offer a mea culpa, then do the right thing and live up to their respective obligations.Pub Ad Professornoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-39636158043408358322009-04-26T20:51:00.000-04:002009-04-26T20:51:00.000-04:00To Whom It May Concern:
Hello. My name is Michae...To Whom It May Concern:<br /><br />Hello. My name is Michael. I decided four years ago to go back to college to get my masters in special education because colleges across the state recruited for online classes for special education degrees, there was a need for special education teachers, and I was under the impression that my loan would be paid back 20% each year for five years that I taught until my loan was paid off. From that point forward, the percentage of reduction has decreased to pretty much nothing. It looks like we are going to have to pay our own loan back since we were mislead by someone, but I don’t think anyone is really going to take the blame for it. I got my Special Education Degree, completed my KTIP, all of my evaluations have been really good, and I have taught for four years in Madison County. I lack one month and the first day of teaching the next school year to get my tenured and not have to be worried about being pink slipped because of budget cuts. I have loved and enjoyed my four years of teaching, but before I left school this past Friday, my principal pulled me to the side and told me that she was giving me my verbal pink slip because some person who worked at our school as a Guidance Counselor that has been working for KDE is coming back to our district. So, our Guidance Counselor has a Special Education Degree and she will be put in my spot, which puts me out of a job. I guess this is because of budget cuts, but I’m not for sure. I didn’t have, nor do I have now any way to pay off my loan. I am asking for your support to help people like me who have been put in this bad situation to help us pay off our student loans. I appreciate your time.<br /><br />MichaelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-89348573496166510342009-04-26T13:19:00.000-04:002009-04-26T13:19:00.000-04:00Susan,
The document that implies KHEAA’s 9.5 clai...Susan,<br /><br />The document that implies KHEAA’s 9.5 claims were legal at one point is a 2005 program review which is referenced in the 2005 audited financials. Do a key word search for “program review”. <br /><br />I disagree that KHEAA believed the transfers would last. KHEAA and a few other lenders recycled loans so quickly because they knew the door was closing soon. Several national news outlets and two acts of Congress tried to address the “loophole” for years before Secretary Spellings actually stepped in. http://www.nytimes.com/2004/08/27/business/a-windfall-from-a-student-loan-program.html?pagewanted=1 <br />This 2004 NY Times article clearly explains the problem and a financial analyst even had this to say in the article. ''Everyone's rushing in before the door closes,'' said Matthew J. Snowling, an analyst with Friedman, Billings, Ramsey.” KHEAA has lobbyist in high places and they obviously knew about the risks of 9.5 monies running out. They should have told the state “NO”. <br /><br />Here is another Washington Post Column published in 2004 mentioning the problem and the Acts of Congress addressing it. http://www.anneapplebaum.com/2004/09/29/student-loan-swindle/<br /><br />Here is a NY Times article in 2004 discussing the first act of Congress trying to close the 9.5 “loophole”. http://www.nytimes.com/2004/10/01/national/01loan.html?_r=1<br /><br />Here is a PDF link explaining the Higher Education Reconciliation Act of 2005, the second effort Congress made to eliminate the problem. http://www.ogslp.org/news/archives/pdf/reconciliationupdate12-28-05.pdf<br /><br />KHEAA and Kentucky had to be extremely aware of the fact that the 9.5 payments were going to stop. Again, they should have left the money with KHEAA. Since they took the money, knowing that it would pose a serious risk to borrowers, they should admit it and begin to fix the problem.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-1133817224723720842009-04-25T14:39:00.000-04:002009-04-25T14:39:00.000-04:00Anon@10:55,
Here's a possible answer, reasoning f...Anon@10:55,<br /><br />Here's a possible answer, reasoning from the timeline. <br /><br />The process of asking for growing amounts in 9.5 special allowances runs from early 2003 to early 2007. <br /><br />The transfers came in the middle of that, between July 2004 and June 2006.<br /><br />If someone assumed the 9.5 money would keep growing more or less forever, a couple of one time transfers wouldn't have looked like a big threat. KHEAA could afford the transfers, Best in Class, and Best in Care, all at the same time, without reducing loans available to students.<br /><br />Today, it's clear that the transfers matter: if the $7.8 million and the $59 million had been left in a KHEAA bank account, that money would be available now to pay off the Best Loans. Then, I think folks assumed 9.5 would last, so the transfer money wouldn't be needed.<br /><br />So, we're up to four money problems rather than three: the transfers, the end of 9.5, the change in other federal fees, and the global fiscal crisis.SPWestonhttps://www.blogger.com/profile/08602329486466534720noreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-67137639070438053052009-04-25T10:55:00.000-04:002009-04-25T10:55:00.000-04:00I read the reports and saw the huge transfers of f...I read the reports and saw the huge transfers of funds from SLC to the Kentucky Treasury. My questions are: Who benefitted politically or financially from these transfers? Why didn't SLC or KHEAA shout from the rooftops about the potential risk that this was putting on the thousands of their borrowers who had been promised loan forgiveness? Why did SLC and KHEAA never mention these transfers to the teachers when we called and asked what happened to the funding for BIC? Does the documented tranfer of money to the KY treasury make our current governor's position that KY has no responsibility in this mess sound outlandish?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-73624882750435910072009-04-25T00:00:00.000-04:002009-04-25T00:00:00.000-04:00Anon@5:10
The financial statements are at http://...Anon@5:10<br /><br />The financial statements are at http://www.studentloanpeople.com/who_annual_reports.html. The 2008 audited statement, page 49, describes the "management assertions" KHEAA did not submit.<br /><br />Anon@11:45<br /><br />Can you share your source for saying "the Department actually said the claims were legal at one point"? I'll happy to update my post above with additional information.SPWestonhttps://www.blogger.com/profile/08602329486466534720noreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-35242511422829997872009-04-24T23:45:00.000-04:002009-04-24T23:45:00.000-04:00To address the last commenter: The KHEAA/KHESLC f...To address the last commenter: The KHEAA/KHESLC financial reports are located as PDF downloads on their website. View the 2005 and 2006 audited financial reports. Also, they did submit proper paperwork to the feds and the Department actually said the claims were legal at one point. Don't forget that the Department of Education was tied up with the scandal also.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-91775773607096532232009-04-24T17:10:00.000-04:002009-04-24T17:10:00.000-04:00I think that the 9.5 funny money is difficult to u...I think that the 9.5 funny money is difficult to understand but it sounds like that they knew that what they were doing wasn't right or they would have submitted the paperwork to the feds when they were asked. What year did Governor Fletcher raid the KHEAA/SLP funds to the tune of about 80 million and is the financial report available on line? I would love to read this for myself? What is the attorney general saying about the 80 million dollars and the broken promises?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-33861742655023944852009-04-23T15:47:00.000-04:002009-04-23T15:47:00.000-04:00What a fine analysis! Kentucky newspapers could t...What a fine analysis! Kentucky newspapers could take a lesson from this blogger, who has written more sense in two days than the Kentucky press has written in two years. <br /><br />What needs to be added, however, is not only that the loan forgiveness was largely built on the 9.5 funny-money, which KHEAA knew couldn't last, but Governor Fletcher raided KHEAA in a like amount to balance his own budgets. Anyone who reads the KHEAA financial reports will quickly discover this. <br /><br />Meanwhile, bravo to teachers, who have not bought into the spin that it is all Congress's fault. They have wisely resisted pressure from KHEAA to lobby Congress for more federal subsidies, even as KHEAA and Governor Beshear fail to fulfill Best in Class promises. Let KHEAA and the Governor fulfill their promises first, before having the audacity to pressure teachers to lobby for a few KHEAA jobs.Pub Ad Professornoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-31808400518494661092009-04-23T12:13:00.000-04:002009-04-23T12:13:00.000-04:00Thank you so much for keeping everyone informed ab...Thank you so much for keeping everyone informed about this horrible situation. Please continue to post any information you find regarding how the Best in Class program was "not going away" and was "a sure thing." I feel we have been scammed and taken advantage of in so many ways.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-46653074584241552972009-04-23T11:19:00.000-04:002009-04-23T11:19:00.000-04:00Thank you so much for doing your part in helping t...Thank you so much for doing your part in helping those with the power to actually do something about this aware of what is going on. There are many, many of us who are hoping and praying that something will be done to help us out.Thanks again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3038828360589919480.post-60565570587213868572009-04-22T21:46:00.000-04:002009-04-22T21:46:00.000-04:00Thank you for bringing light to this situation. I...Thank you for bringing light to this situation. I appreciate it.Poodlezillahttps://www.blogger.com/profile/02625492296428199446noreply@blogger.com