The Senate Appropriations Subcommittee on Labor, Health and Human Services passed a budget plan for the Education Department on Tuesday that maintains Pell Grants but cuts government subsidies on student loan interest, Inside Higher Ed reported. The 2012 budget plan allocates $68.4 billion to the Education Department and upholds funding levels for many higher education programs such as federal work-study programs and keeps the maximum Pell Grant at $5,550. In order to preserve the full Pell Grant amount, the panel voted to end government subsidies on the interest that accumulates on undergraduate loans during the six-month grace period students have after college before they must begin repayment. Students will still be allowed a grace period under the new plan, but will now be responsible for the interest accrued during those months, saving the government just under $6 billion over 10 years, according to Inside Higher Ed.
After flashing a mother and her daughter two years ago, University of New Hampshire German professor Edward Larkin will not be allowed to return to his teaching position, the Union Leader reported Tuesday. The incident took place in July 2009, when Larkin exposed his genitals to the two females in a parking lot. Larkin later pleaded guilty to misdemeanor indecent exposure. UNH attempted to fire him for his actions, but an arbitrator determined that university officials could not do so and advised UNH to impose an unpaid suspension for the fall semester, the Union Leader reported. Larkin is expected to return to UNH in January 2012, but he will not teach or be involved with students for three years. During the spring semester, his activities will instead include independent academic work, web-based German courses and other administrative tasks, according to the Union Leader.
Moody's Investors Services will likely downgrade fewer college credit ratings in 2011 than it has in the last two years, even though many colleges still face financial problems in the wake of the economic recession, The Chronicle of Higher Education reported. This year, 17 colleges have had their credit ratings downgraded by Moody's. Of the institutions downgraded, 13 were private universities, including DePauw University and Drexel University. New Jersey's Brookdale Community College received the only downgrade for community colleges, according to The Chronicle. Five universities have fared better than they did in previous ratings, including Harvey Mudd College and Webster University, both private institutions. Factors Moody's uses to determine credit ratings include market position, debt loads and a balance sheet performance that tests investments and assets, according to The Chronicle.
