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Community College Enrollment Increases Pay

Photo courtesy of Southwestern Illinois College/Linda Burgess
A recent Fed study on community colleges notes that minority women in the St. Louis region, armed with an associate degree, increase their earning power by 43 percent.


Community college enrollment, earning power increases in U.S., Fed study says

By Kerry L. Smith

   Nearly half of all undergraduate students in the U.S. - 11.5 million individuals - are enrolled in community colleges, according to a study recently released by the Federal Reserve Bank of St. Louis.
   Natalia Kolesnikova, a Fed economist and the study's author, says this impressive statistic emphasizes the importance of community colleges and the needs they're meeting. Her study, Community Colleges: A Route of Upward Economic Mobility, details the advantages and disadvantages of attending community colleges as well as characteristics of the students enrolled.
   Among the positive conclusions Kolesnikova's study reaches is that during a recession, enrollments in community colleges increase even more - as job losses and burn-out of those still employed drive individuals back to the classroom to relearn and often shift gears professionally.
   "In a time of economic downturn, people tend to invest in education at all levels because jobs are not as readily available," Kolesnikova said. "And now, more than ever, community [continue]

Build America Bonds spur billions in public works projects in just three months

By Alan J. Ortbals  

   Governmental bodies of all types are moving quickly to take advantage of the Build America Bond program that was created under the America Recovery and Reinvestment Act of 2009. According to chicagobusiness.com, more than $8 billion in BABs have been issued since the act was signed in mid-February.
   BABs are taxable bonds which carry with them a 35 percent federal tax credit or subsidy. The issuer must be a governmental body authorized to issue bonds and the project must qualify for tax-exempt financing. Unlike tax-exempt bonds, however, 501(c)(3) agencies do not qualify. 
   According to Mary Kane, first vice president of Stifel, Nicolaus & Co. Inc., there has been a lot of interest [continue]
Bonds spur billions in publc work projects
       Photo courtesy of The Associated Press
SIU took advantage of a new financing program, Build America Bonds, to finance the construction of a new football stadium.

New law means more protections but higher rates for all credit cardholders, bankers say

 By Kerry L. Smith      

   Although the days of surprise increases in credit card interest rates are now gone, the Illinois Bankers Association says new consumer protections will ultimately mean higher rates for everyone.
   After its passage by overwhelming margins in both the House and Senate, President Barack Obama signed the Credit Cardholders' Bill of Rights Act of 2009 into law May 22.
   Although U.S. Rep. Carolyn B. Maloney (D-New York) introduced the comprehensive reform legislation in early 2008 as H.R. 5244, it never reached the floor of the Senate last year. This year, however - amidst a rising swell of foreclosures, personal bankruptcies and other financial calamities, the reintroduced package - H.R. 627 - sailed through by a margin of 357-70 in the House on April 30 and 90-5 in the Senate on May 19.
   Illinois Bankers Association president and chief executive officer Linda Koch says that although the new law contains many necessary provisions to protect cardholders, it forces credit card issuers to treat all cardholders the same - whether they're paying on time or not. By blurring the distinction between good payers and spotty ones, she says, it increases card companies' overall risk. To balance that increased risk, the companies will likely raise rates for all.  [continue]