LOS ANGELES - Officials Monday kicked off the second year of the L.A. Free Cash for College Project, which helps high school students and their parents find financial aid for higher education.

Albert Rivas always dreamed of going to college, but he didn't think he'd ever be able afford it.

However, help from the Cal Grants Awards program allowed Rivas, 29, to graduate from the University of California, Davis with a degree in political science.

WASHINGTON -- Senate Democrats will try to seize the initiative on the college-cost issue today, proposing a $15 billion package of increases in federal financial aid and tax relief for students and threatening to penalize states that cut funds for public colleges and universities by more than 10 percent a year.

For eight years, students at Michigan State University borrowed tuition money directly from the federal government. But last spring, university officials shucked that arrangement and signed up with private lenders and a state agency that provided loans under a separate federal plan. They guaranteed a profit to the university--something the federal government could not do. Sounds sweet for Michigan State, but it's not so terrific for federal taxpayers, who will almost certainly wind up shelling out $23.5 million more each year as a result of the change.

Key members of Congress are pressing for an investigation of the student loan industry and promising reforms in the wake of disclosures that private lenders had used questionable tactics to win business--at great cost to taxpayers.

You're entering college. There will be classes to choose, roommates to meet, and also the small matter of that tuition bill that needs to be paid--anywhere from a few grand to five figures. A student loan will help. But with dozens of lenders out there, does it matter which loan you choose?

At Sallie Mae, the student loan giant, stock options haven't gone out of fashion: In 2001, Sallie Mae CEO Albert Lord made $33.6 million, mostly because he exercised options. Last year, the No. 2 executive at Sallie Mae, Thomas Fitzpatrick, took home $27.2 million in salary, stocks, and bonuses.

The Bush administration appointed executives and lobbyists from the student loan industry to prominent positions at the Department of Education, especially in subcabinet posts, where many important policies are made and implemented.

Bank of America and FleetBoston Financial announced yesterday that they would combine to create a consumer banking giant with branches from Maine to California.

Specialty insurer UICI is selling its troubled student loan subsidiary, where numerous collateral problems were revealed in July.

Tuition is no one's friend. So when tuition goes up -- particularly at publicly funded colleges -- students and parents get angry, and politicians seize on it as a hot issue

Saving for college has never been more important -- or more confusing.

The cost of tuition and fees at a public college or university jumped 14% this year, the biggest increase in 30 years, the College Board reported this week. The average cost of one year at a state school, including room and board, is now $10,636. The average cost of one year at a private college is $26,854.

Many adults remember their college days fondly, focusing on the good times. What lower-income students often recall, however, is the stress of financing their studies with a patchwork of work, loans and grants.

Mesa, Ariz (October 29) - The Arizona education community came together in Mesa today to celebrate higher education and to raise awareness of necessary resources available to help local students and families make college a reality.

Chela, a leading not for profit education finance company, hosted the event. Chela aids students in identifying, budgeting for, and achieving their education finance goals. The company illustrated its pledge of making higher education possible by awarding $15,000 in scholarship funding to local schools and programs including the Arizona State University Upward Bound program, Skyline High School and Mesa High School. Chela also announced a community partnership program, which awards grants to other non-profit organizations with a focus on education.

"At Chela, we put students first," said Carol Coffman, Chela President and CEO. "Our company focuses on putting education within reach of students and their families, making higher education a reality for all who aspire. We're here today along with the Arizona community to remind students and parents that higher education is possible."

Today's celebration took place at Chela's new Customer Center in Mesa, in conjunction with its grand opening. This Center allows Chela the full-service capabilities of providing end to end origination and servicing of FFELP and private loans, completing the company's mission of being a single source education finance provider. The streamlined loan process, enhanced customer service, and ability to provide the best possible education financing solutions are all part of Chela's solution to making higher education a reality for families.

College tuition costs have risen nearly 40% in Arizona, putting increased pressure ­ both competitively and financially ­ on local students and families. Today's "Putting Higher Education Within Reach" event demonstrated how higher education is possible with the help of community leaders, elected officials, businesses, students, teachers and the university community ­ all of whom are committed to finding solutions to make higher education attainable.

More than 80 students and guests at the celebration heard from State Representative Andy Biggs, Mesa City Councilwoman Janie Thom, Diane Stemper, former director of Financial Aid at Arizona State University and currently the President and CEO of ELM Resources who spoke about higher education and its importance to the success of our community.

Christina Wofford, CBS Morning News Anchor emceed the event, recognizing the network's commitment to education.