Color of Money: Making a dent in student debt
WASHINGTON -- There are two words that can rock people with regret.
Just ask them about their "student loans." Then watch their faces. They will wince as they disclose how much education debt they're carrying.
Politicians have been promising to fix the growing loan crisis for years, but outstanding student debt has now mushroomed to $1.4 trillion. Meanwhile, a college degree has become out of reach for so many -- unless they're willing to go deep into debt.
But Steve Klinsky, founder and chief executive of the private equity firm New Mountain Capital, has invested his own money in a solution that will lots of people get through college with less debt.
Klinsky founded Modern States Education Alliance, a New York City-based nonprofit that wants to make college more affordable through its "Freshman Year for Free" program.
The philanthropic program is open to anyone -- high school students, military personnel or adult learners -- with no limit on age, location or income. All you need is an internet connection. It's called "Freshman Year for Free" because students have access to free online courses that prepare them to pass Advanced Placement (AP) exams and the College Level Examination Program (CLEP) tests, which are both offered through the College Board. Students who score well on the subject-area exams can earn enough college credit to knock out their freshman year, potentially saving as much as 25 percent on tuition.
And there's more: Textbooks and materials are free. And for the first 10,000 test takers, Modern States is giving out vouchers to pay the exam fees. The College Board charges $92 for each AP exam and $85 per CLEP test. You have to go through the coursework to get a voucher, but you aren't limited in how many you can get. You can register and take the self-paced courses at modernstates.org.
"We are trying to create an onramp for people who want an education," Klinsky said in an interview.
You'll find many more options for CLEP classes on the Modern States site, and that's a good thing. AP exams are offered only in May, but the lesser known CLEP tests can be taken year-round, making them more accessible to nontraditional students. Modern States teamed up with edX.org, a nonprofit founded by Harvard University and MIT that also offers an online platform of free classes.
After working 10 years as a correctional officer, Lester Felton, 32, wanted to change careers. He's now going to Rowan College in New Jersey to become a history teacher. With help from Modern States, he passed the CLEP exam for Western Civilization II and is now studying principles of management. He plans to take eight more courses.