According to a report from the Consumer Financial Protection Bureau, close to 26 million Americans, or one in ten adults, are “credit invisible,” meaning that they do not have any credit history with a nationwide consumer reporting agency. Moreover, 19 million Americans have unscored credit records, meaning that only 8% of the adult population has credit records that are considered unscorable.
The report found that 30% of those in low-income neighborhoods are credit invisible, compared with 4% in upper-income neighborhoods. In addition, 15% of African American and Hispanic consumers have no credit history compared to 9% of white consumers. 13% of African American consumers and 12% of Hispanic consumers have unscorable records compared to 7% of white consumers.
Credit histories show how consumers have repaid their debts. A lot of Americans utilize credit cards, student loans, mortgages or other types of bank loans. These are easy ways to develop a credit history and a score. When people have neither of these, the impact on their lives can be severe. It can restrict them from earning an education, buying a house or car, or from starting a business.
The solution to a better credit score is Paramount Capital Group. Paramount offers financing for a variety of vocational schools ranging from short-term certification programs to financing full degree programs and continuing education. Schools can use Paramount to tailor a finance program that brings in more students who will train in careers in the culinary arts, auto repair, HVAC, cosmetology and others.
By offering a financing option to your students, that gives them the opportunity at an education and to build their credit. Take the first step and join us today!
How Will the American Rescue Act Plan Affect Career Schools?
/in Consumer Finance, Higher Education, Legislation /by lpopovichThe American Rescue Plan Act was signed by President Biden on Wednesday, March 11. Part of the plan contains changes that could soon impact how private career schools are able to treat financial assistance for active military and veterans. Paramount Capital Group is here to step in and provide alternative solutions to student financing should these changes come to fruition. Continue reading to learn about how the recent bill affects you and what we can do to help.
The so-called “90-10 loophole” was a notable topic at the marathon Senate session over the weekend. The 90-10 rule requires that at least 10 percent of an institution’s revenue must come from non-federal sources.
The current rule excludes GI Bill and Pentagon tuition assistance programs from federal revenue, allowing colleges, technical, and career schools to offer programs to service members and veterans without limitation.
The original House bill was amended Saturday in order to give the Education Department, for-profit colleges, and veterans time to adjust to the new policy, and to allow for potential further bipartisan legislation.
The amendment, sponsored by Senators Tom Carper and Jerry Moran, would postpone the change to allow for a rulemaking process to begin Oct. 1 and delay financial penalties for noncompliance until 2024.
Wondering what to do about alternative tuition financing if the new legislation impacts your funding? Paramount Capital Group offers finance solutions to career and technical schools, including gap loan purchasing and servicing to help schools maintain 90-10 compliance.
Could President Trump’s Proposed Budget Cuts Affect Your Trade School?
/in Consumer Finance, Higher Education /by cmarsdenIn late May, President Trump released his first full budget proposal, titled “A New Foundation for American Greatness.” The plan includes significant cuts to government agencies to free up funds for increased defense spending. Trump’s 2018 budget calls for a 21% decrease in Labor Department funding, including a $1.3 billion cut to programs associated with the Workforce Innovation and Opportunity Act (WIOA).
WIOA, which was signed into law in July 2014, funds grants that help job seekers get the training, education, and support they need to secure employment. Thus, cuts to WIOA funding mean cuts to critical job-training programs—like those offered by trade schools. Without WIOA funding for vocational training, many trade schools could experience a drop in enrollment. In turn, industries that rely on the skilled labor force could experience a shortage of properly trained workers.
The good news? The President’s proposed budget isn’t set in stone. According to Senate Budget Committee Chairman Sen. Mike Enzi (R-Wyo.), “The President’s budget is a suggestion. We will take a close look at his budget, but Congress is mandated by the Constitution with key spending responsibilities and will ultimately decide what the nation’s fiscal priorities will be.” This means the WIOA could still be fully funded in 2018.
The bad news? The proposed budget cuts indicate that the current administration doesn’t fully understand the benefits of vocational training and apprenticeships. To turn this around and influence the President’s workforce development approach, trade schools need to step up and spread awareness of the viable career paths that exist beyond a traditional four-year college education.
Has Your Trade School Adopted Modern Learning Principles?
/in Higher Education /by mikehImportant shifts are happening in education today. With access to a world of knowledge online and opportunities to obtain degrees and certifications from countless schools and institutions, modern students are empowered to take ownership of their learning.
What does this mean for your trade school?
To be effective, schools need to shift their focus towards developing students as engaged learners. Educators must stray from irrelevant, dated systems of education and develop new ways to prepare students for the ever-evolving workforce.
According to Gallup, only a third of business owners say students are graduating with the necessary skills to succeed in their companies. How can you reverse this trend and differentiate your school as an innovative educator? Will Richardson and Bruce Dixon, both recognized as thought leaders in education and learning technology, recently published a whitepaper entitled, 10 Principles of Modern Schools. These 10 principles detail how education providers can adapt to today’s modern world and help students live up to their potential as learners:
To learn more about creating a culture of modern learning at your trade school, check out Modern Learner’s e-book below.
“10 Principles for Schools of Modern Learning”
Credit Invisible? Paramount Can Help
/in Consumer Finance /by cmarsdenAccording to a report from the Consumer Financial Protection Bureau, close to 26 million Americans, or one in ten adults, are “credit invisible,” meaning that they do not have any credit history with a nationwide consumer reporting agency. Moreover, 19 million Americans have unscored credit records, meaning that only 8% of the adult population has credit records that are considered unscorable.
The report found that 30% of those in low-income neighborhoods are credit invisible, compared with 4% in upper-income neighborhoods. In addition, 15% of African American and Hispanic consumers have no credit history compared to 9% of white consumers. 13% of African American consumers and 12% of Hispanic consumers have unscorable records compared to 7% of white consumers.
Credit histories show how consumers have repaid their debts. A lot of Americans utilize credit cards, student loans, mortgages or other types of bank loans. These are easy ways to develop a credit history and a score. When people have neither of these, the impact on their lives can be severe. It can restrict them from earning an education, buying a house or car, or from starting a business.
The solution to a better credit score is Paramount Capital Group. Paramount offers financing for a variety of vocational schools ranging from short-term certification programs to financing full degree programs and continuing education. Schools can use Paramount to tailor a finance program that brings in more students who will train in careers in the culinary arts, auto repair, HVAC, cosmetology and others.
By offering a financing option to your students, that gives them the opportunity at an education and to build their credit. Take the first step and join us today!