| Education Update
September 2012 |
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Upcoming Events | |
October 8, 2012
FAME will be closed in observance of the Columbus Day Holiday
October 18, 2012
FAME Board of Directors Meeting Meeting
October 19, 2012
Higher Education Advisory Council Meeting
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| FAME's Cohort Default Rate Lowest Since 2005 | |
The Finance Authority of Maine (FAME) continues to post impressive Cohort Default Rates for Maine student loan borrowers. According to data released September 17, 2012 by the U.S. Department of Education, FAME's federal Fiscal Year 2010 official Cohort Default Rate was 4.9%, the lowest rate for the agency since 2005. It also is the agency's third-lowest rate since 1993. By comparison, FAME's Fiscal Year 2009 Cohort Default Rate was 6.1% of borrowers and in FY 2008 was 5.9%. Last year's national average for guaranty agencies was 7.0%.
Cohort Default Rates measure the percentage of all federal Stafford Loan borrowers entering repayment in a given federal fiscal year who default on their loans before the end of the following fiscal year. National rates will be released by the U.S. Department of Education on September 24, 2012.
"FAME's ability to maintain a low default rate benefits borrowers, schools and lenders," stated FAME Board Chair Susan Snowden. "FAME's remarkable default rate is the result of expanded college access, financial education and debt management services that support financial aid offices and educate borrowers."
"We continue to be proud of our low default rate, especially in these challenging economic times. But we are working hard to reduce student default rates further. FAME's emphasis on default prevention rather than on post-default collection is the right one for guarantors, schools, lenders and taxpayers," stated FAME CEO Beth Bordowitz.
FAME believes strongly that financial education is the cornerstone of debt management and default prevention. Each year the agency recognizes April as Financial Literacy Month by offering a variety of financial education and financial-aid related workshops to students across the state. FAME annually co-sponsors "Fostering Financial Literacy in Maine Schools," a financial literacy summit for Maine teachers, administrators, counselors and others. FAME also recently launched SALT, a first-of-its-kind collaboration with American Student Assistance that delivers financial education and debt management services free-of-charge to Maine students and alumni.
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| FAME Announces College Access Sub-Grant Recipients | |
The Finance Authority of Maine (FAME) recently notified twenty-two Maine schools and non-profit education organizations that they have been chosen to receive sub-grants totaling $889,277 through the Maine College Access Challenge Grant (MCACG) administered by FAME.
The grants were awarded on a competitive basis to eligible Maine schools and non-profit organizations. Successful proposals support the overall goal of increasing the number of Maine students who are prepared to enter and succeed in postsecondary education, with a focus on preparation, aspiration and success. All recipients and their project descriptions are listed online at FAME's Web site: www.famemaine.com.
Grant recipients include Ashland District High School, which will provide individualized Free Application for Federal Student Aid (FAFSA) completion assistance; PSAT, ASVAB, Accuplacer, and SAT test-taking for all seniors; job shadowing; and follow-up programming to ensure that graduates have enrolled and are attending post-secondary institutions. Another grant recipient is Waldo County Technical Center, which will offer weekly financial literacy lessons and workshop series through their current academic readiness program; "FAFSA feasts" to provide group support and knowledgeable guidance with financial aid completion; and a summer send-off session to provide support for seniors and their families. Wiscasset Adult and Community Education, another sub-grantee, will provide students with a Personal Higher Ed Navigator to assist with transcripts, prior learning assessment, career decision making, applications, FAFSA, admissions, orientation, peer networking, and ongoing support.
In August, FAME was notified by the U.S. Department of Education that Maine had been awarded a $1.5 million College Access Challenge Grant for Fiscal Year 2013. Available monies are to be used by states on efforts to increase college access and success among underserved student populations. FAME will provide a one-third required match, which equals $750,000 per year. For the 2012-2013 academic year, the funds will be divided between college access services and sub-grants to various partner organizations across the state.
"FAME is pleased to announce these sub-grants for the MCACG Program," stated Beth Bordowitz, Chief Executive Officer of FAME. "These much-needed funds will help FAME and its partners throughout Maine strengthen our college access and financial education efforts to help Maine students and families achieve their postsecondary education goals."
To accomplish its purposes, MCACG focuses on three key components: (1) college access and completion services and programs; (2) competitive grants to organizations providing college access and/or completion services or programs; and (3) scholarships for low-income students to enroll in early college courses.
The FAME college access and financial education team includes professionals who not only work with high schools, middle schools and elementary schools, but also coordinate with colleges, adult education centers, and college access programs to reach students and parents. The free services provided are available to all Maine citizens, regardless of income.
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| Legislative Update | |
CONFIRMATION SESSION
On September 6, 2012, the Maine Senate held a confirmation session to confirm a number of gubernatorial nominations. During that week and the week prior, various committees held confirmation hearings on seventy-two nominees of Governor LePage. This included the confirmation of two cabinet-level commissioners, Jeanne Paquette as Commissioner of the Department of Labor, and Colonel James Campbell as Adjutant General and Commissioner of Defense, Veterans and Emergency Management. Other confirmations included: Robert Martin as Director of the Maine Technology Institute; John Gallagher as the Director of the Maine State Housing Authority; and Christopher Pierce to the Finance Authority of Maine Board of Directors.
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| FAME Visits Androscoggin County Businesses and School | |
FAME's Board of Directors recently toured several Androscoggin County businesses prior to its monthly meeting, which was held at Bates College. The Board also met with the Androscoggin County Chamber of Commerce, area legislators, and community leaders to learn about area economic and higher education needs. The FAME Board and staff visited a variety of businesses, including: Tex Tech Industries, Inc. in North Monmouth; Ricker Hill Orchards in Turner; and the Bates Mill complex; Quoddy, Inc. and WahlcoMetroflex, Inc., all in Lewiston. The Board also held its monthly meeting at Lewiston's Bates College, in Lewiston, where it received informational briefings from President A. Clayton Spencer and Mr. Hussein Ahmed, a representative of the Somali community.
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| FAME's 2012 Showcase Maine | |
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Finance Authority of Maine
1-800-228-3734
The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status or sexual orientation. FAME is an equal opportunity employer, provider and lender. |
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