'I am frightened by how much I owe'

Although she is now 29, Ailsa Macfarlane still carries a hefty financial burden from her long-gone student days: debts of nearly pounds 30,000.

On top of undergraduate debts of around pounds 9,000, Ailsa, who lives in south London, ran up pounds 7,000 on a credit card, pounds 1,500 on an overdraft and took out a pounds 10,000 bank loan.

'I'm deeply in debt: as a student in London, the capital was very expensive to live in.'

But Ailsa, who earns pounds 25,000 a year as a business account manager, is trying to get a grip on her finances. Three months, ago, she consolidated her credit card debt, overdraft and bank loan into one larger pounds 19,500 loan with Lloyds TSB " repayable over eight years with an annual percentage rate (APR) of 7.5.

Ailsa pays back pounds 250 a month on her bank loan. Add to this the pounds 180 a month for her student loans, and she spends pounds 430 a month servicing her debt.

'I am frightened by how much money I owe to Lloyds TSB,' she says. 'Over eight years, I know I have to pay pounds 7,000 in interest alone " but this loan seems to be the only way I can manage my debts and still be able to afford to live and pay my bills each month.'

Her debt mountain has made it impossible for Ailsa to build up any savings or make any investments. She has no pension savings either, and her employer, a small firm, doesn't offer an occupational scheme.

Since moving to London as a student nine years ago, Ailsa has rented accommodation. For the past nine months, she has been living with her boyfriend, Alistair. They rent a flat, each paying pounds 475 a month plus bills.

'We've discussed buying together in the next couple of years, but I'm not sure how feasible this is,' says Ailsa.

She has no protection policies.

The cure:

Try to shorten the life of your loan

Ailsa's finances are ruled by her debt, says Philippa Gee of independent financial adviser (IFA) Torquil Clark. 'All [her] spare resources need to be ploughed into repaying this, especially as she has so many plans such as buying a house and starting a pension.'

Despite her position, Ailsa should try to find cash to fund a personal pension, says Ben Yearsley from IFA Hargreaves Lansdown. 'Even if it's only pounds 50 a month, the sooner she starts this, the sooner she can get tax relief and build a pension pot.'

DEBTS

Eight years is too long, and expensive, a repayment plan on the consolidation loan, says Ms Gee. She suggests that Ailsa think about repaying these debts more quickly.

To do this would involve trying to renegotiate her loan " shortening its life and paying higher premiums " either with Lloyds TSB or another lender.

But there are caveats, warns Simon Webster from IFA Facts & Figures.

Ailsa could make enquiries at other lenders and find a better APR " some internet deals offer rates as low as 5.6 " and cheaper monthly repayments, he explains. But before transferring the debt, she would need to check the size of the penalty at Lloyds TSB for repaying her loan ahead of schedule.

Mr Webster also warns her to watch out for offers of payment- protection insurance from the lender. This can add thousands of pounds to the cost of a new loan " as well as carrying exclusions that may leave Ailsa unprotected.

Since her pounds 9,000 student loans are not too expensive " with interest charged at 3.2 per cent - she doesn't need to worry much about these for now, he adds.

PROPERTY

Ailsa should forget about buying a home for the moment, says Mr Yearsley. 'As she has large debts and no savings, I think it would be a struggle.'

Ms Gee feels the same, although she suggests one option could be to go for a cheaper property outside London.

However, Mr Webster is more upbeat about the couple buying their own home " especially if family members can help with cash, a loan or a guarantee.

If they could afford pounds 1,000 a month " roughly what Ailsa and Alistair are paying in rent today " that would cover the interest on a loan of more than pounds 200,000, explains Mr Webster.

Several factors need to be considered first, though, he adds. 'Whether Ailsa would be allowed to borrow that much " and whether it would be a good idea " would depend on their joint credit rating, how stable she feels her relationship is, her boyfriend's earnings and her own attitude to risk.'

SAVINGS

Mr Webster says that while Ailsa needs to concentrate on getting rid of her debts, a small 'emergency fund' in a mini cash individual savings account (ISA) would be a 'wise move'.

He recommends she pay pounds 50 a month into a Halifax ISA paying 5 per cent.

RETIREMENT

Pension provision should be one of Ailsa's priorities, urges Mr Yearsley. 'As a rule of thumb, you should put half your age in as a percentage of your salary.'

He continues: 'At the present time I don't think she could afford this, as that would be almost pounds 300 a month. But she should look at putting something in " even if it is only pounds 50 or pounds 100 a month.'

The AOA can ease your transition from student to practicing O.D. Be sure to get your member rewards.

Graduation is Just arour|d tne corner for the class of 2005. No more lectures, tests or late nights in preclinic labs preparing for practical examinations. But it's also time to start taking control of your finances for this next stage of your life, which may include repaying student loans. How could you possibly have enough money left to join the American Optometric Association (AOA)? My answer is: You can't afford not to.

When you join the AOA, you're contributing to the advancement of optometry in a tangible way. The dollars you invest support optometric advocacy at the federal and state levels. Legislators willingly listen to - and act on the recommendations of - the practicing O.D.s who make up the majority of the AOA. Whether it's lobbying for expanded prescribing authority in a single state or promoting the optometrist as the primary eyecare provider to consumers, industry and the media, the AOA is your voice to the government and the public.

MEMBERSHIP PERKS

You may be thinking, "What can AOA membership do for me?"

When you join the AOA1 you'll have access to Optometrys Career Center, an online matching service with detailed information about practice opportunities. You'll also be eligible for the AOAAdvantage student debt consolidation program, which allows you, your spouse and employees to lock in fixed interest rates and take advantage of attractive borrower benefit programs.

As a member, you'll receive free registration to Optometry's Meeting, the joint AOA Congress and American Optometric Student Association (AOSA) Conference. While there, you'll have the opportunity to attend continuing education courses, visit the expansive exhibit hall and network with O.D.s from around the country.

MAKE YOUR MOVE

How do you join the AOA? As an AOSA member, you receive complimentary AOA membership until the end of the calendar year in which you're licensed, not to exceed 18 months after graduation. As soon as you're licensed, contact the AOA at (800) 365-2219, ext. 238, or MemberServices@aoa.org. Include your home and business addresses and indicate the state in which you're practicing. The AOA will notify your state association, which will send you a membership packet. As a recent graduate, you qualify for reduced dues, but submit your information quickly to change your status from new graduate member to licensed O.D.

SAFE INVESTMENT

Becoming an AOA member is like starting an investment plan. The most difficult part is getting started. However, once you begin, you'll realize the true value of an AOA membership. You're not only helping advance the profession - you're also gaining access to a wealth of resources that can help your career grow and prosper. Good luck in your career... and join the AOA today!

Worried about paying off your student loans? The help you need is right on campus.

Nobody lies to think about repaying student loans, especially when they're stressed about classes, clinics and National Board exams. Borrowing for optometry school is a necessity for most students, but settling debt doesn't have to be traumatic. Here's advice from five financial aid experts to help you manage school debt without creating financial hardship.

"We start preparing students for repayment during the admissions interview," says Tami A. Sato, director of financial aid at Southern California College of Optometry in Fullerton. "We spend about 20 minutes going over budgets and programs that can help pay for school-related and living expenses. The financial aid office helps students borrow enough money to pay for school, but we also provide the knowledge and tools they need repay their loans in full and on time."

Other schools have similar strategies. "In addition to discussing student loan debt during the admission process, we remind students about debt management as soon as they arrive on campus for orientation," says Carol Rubel, director of financial aid at New England College of Optometry in Boston.

First-year students at SUNY State College of Optometry in New York attend a mandatory entrance interview, says Vito J. Cavallaro, director of financial aid. "We tell students how much they should anticipate borrowing and provide general strategies for keeping debt low, such as finding a lender and living within a budget," he says. "But we don't stop there. This is just the beginning of a counseling process that continues beyond graduation."

Successful debt repayment often begins with choosing the right combination of financial aid programs. Most schools provide a list of loan options and recommended lenders on their Web sites. You may not be eligible for every type of student loan, so check with your school's financial aid office for details about:

* Federal Stafford Subsidized and Unsubsidized loans

* Direct Subsidized and Unsubsidized loans

* Institutional loans

* Federal Perkins Student loans

* Health and Human Services loans and scholarships

* Scholarships, grants and work-study programs

* Emergency loans.

Guiding students toward the most beneficial package of financial aid programs is a primary goal of most financial aid offices.

Charles Agee, assistant director of financial aid at Northeastern State University in Tahlequah, Okla., advises students to research repayment options when choosing a lender. "Some lenders have special or flexible payment plans, which is important if you're thinking of applying for residency after graduation," he says. "Money can be tight during your residency year, so you should consider working with a lender who can offer forbearance during this lean time."

The New England College of Optometry is a Federal Direct Stafford Loan school that allows borrowers to consolidate their debt while they're still in school. "Students benefit by locking in the current interest rate, which may increase by the time they graduate, without losing their 6-month grace period," says Ms. Rubel.

In addition to teaching students the benefit of consolidation, Ms. Rubel encourages them to use the National Student Loan data system to monitor their debt. "As good as your income may be, you probably won't have much extra money as a first-year O.D.," she says. "You'll still need to budget your spending after you start working if you want to repay your loans and reserve enough money to meet living expenses."

BUILD A BUDGET

One basic, if obvious, tenet always applies to debt: The more you borrow, the more you have to pay back. Nevertheless, students easily can lose track of debt when they're concentrating on their studies - an oversight many come to regret later.

"Most optometry students know it's important to keep debt low," says Ms. Sato. "At a recent conference, a panel of professional-school graduates said they wished their schools' financial aid offices had actively educated them about budgeting so they could have borrowed less."

Some optometry school expenses, such as tuition and books are non-negotiable, but other necessities, such as food, shelter and clothing, can cost more or less depending on the choices you make.

"I discourage students from automatically taking maximum loan amounts," Mr. Cavallaro says. "In fact, I often encourage them to underestimate their needs and apply for additional funds to meet unexpected shortfalls, such as unusually high cell phone bills or rising gas and utility costs. We can help them by extending emergency loans."

Mr. Cavallaro reminds students how much they're really spending when they use loan money to pay for food and rent. "I make them think about how much a $12 pizza will really cost after accruing 10 years' interest," says Mr. Cavallaro. "Students must be aware of how much each loan dollar they spend will cost them later."

Until SUNYs new dormitory is completed in 2007, students must find their own housing in the local community. "Someone who lives in Manhattan for 4 years will owe a lot more money than someone who commutes to school from a less expensive suburb. Students are free to live where they want, as long as they realize their decisions have a long-term impact on future finances."

SCHUYLER Hall punctuates his sentences, capitalizes the word "I" and eschews ubiquitous online slang, like "lol" (laugh out loud). But the theme of his blog is what really sets him apart from the hundreds of local teenagers who put their musings online for the world to see.

He writes about politics and education. Schwarzenegger and teacher tenure. Congressional bills and local school board decisions. A recent entry was titled "Hayward School Board Thinks Consolidation and Improvement, But I Think Not."

The 17-year-old Mt. Eden High School senior sports an impressive Afro, calls Illinois Sen. Barack Obama his "homeboy" and was described by his classmate Marianne De Leon as outgoing, funny and loud. "You can't go to school and not know who Schuyler is," she said.

On his site, called Perspectives of Schuyler (schuylerhall.blogspot.com), he describes himself as an "opinionated teen on the left here to represent for education and youth!" Each entry begins with a brief summary of a news account or study and a link to the full report, followed by his take on the issue.

Through his clearly written and sometimes satirical entries, Hall aims to break through the apathy he sees almost everywhere he goes - - among adults, as well as teens -- by making people care about the world around them.

"If I can get one person to think about some topic and take a position that they would have been apathetic to before, I've done my mission," he said.

Nhu Nhu Nguyen, 16, a friend of Hall's who didn't use to follow the news closely, said the blog captured her attention and made her think about, and question, the political landscape.

"It's not just nonsense," she said. "It's interesting how he dissects current events."

Although she is too young to vote, Nguyen said "Perspectives of Schuyler" got her so fired up about the November special election, which included a number of ballot initiatives involving education, that she persuaded her parents to go to the polls.

Hall started the site in August, inspired by a summer of listening to conservative talk radio while cooped up in a warehouse as a file clerk. The teenager, who was born and raised in Hayward, has been active in the California Association of Student Councils since eighth grade. For several years, he was part of a youth delegation that presented reports on youth issues to the state board of education.

"It's been building up," he said. "Now I've finally found an outlet to put it all into."

Every day (except when he has too much homework), Hall scans the Reuters news wire, Google News and The Daily Review and reads through headlines e-mailed to him from the Washington Post, the Boston Globe, The New York Times and the Los Angeles Times in search of issues that might be of interest or importance to people his age.

Hall doesn't know how many people are reading his blog. Nguyen said she knew of at least 20 who scan it regularly. Sarah Gonzales, president of the Hayward Board of Education, said last week that she hadn't heard of it and asked for the link. Hours later, she responded that she found it "really very interesting."

Hall's leanings tend to be liberal. Once, he said, another blogger called him a "communist" after he wrote, "Arnold Schwarzenegger doesn't like children," a satirical twist on the rapper Kanye West's infamous statement about President Bush and blacks in the wake of Hurricane Katrina. But, he said, he tries to keep his site balanced by including links to conservative reports.

One of these days, if he doesn't become a journalist, Hall just might find himself in the shoes of the politicians whose votes he posts on his blog.

"The ongoing joke is that I'm going to be the first black president," he said. "But I always say I'm going to be the second -- Barack Obama will be the first."

Most of the business innovation occurring today is in response to market pressure, according to Chris Peterson, a professor at Michigan State University. Co-ops, like their competitors, are being "forced" to innovate. In order to remain competitive, Peterson warns, co-ops should be implementing innovative ideas constantly. Florida's Nat-ural Growers is one cooperative that has clearly heeded this counsel.

Citrus co-op competes with beverage giants

About 1950, the chairman of Florida's Natural said: "It is most discouraging to do everything possible to maintain prices that will bring decent returns to our growers and then have these prices made meaningless by ruthless cuts of competitors." If anything, this situation is even more acute today.

Florida's Natural is pitted against the two biggest names in orange juice: Tropicana, owned by Pepsi, and Minute Maid, owned by Coca-Cola. As a result, the co-op faces continuous cut-throat competition while trying to maintain a high return for its members. According to Walter Lincer, vice president of sales and marketing at Florida's Natural, this is nothing new. As manufacturers of a retail product, Florida's Natural has always faced a challenging environment.

Florida's Natural has constantly revised and adapted its marketing strategy in an attempt to gain and keep customers. The acquisition of the Tropicana brand by Pepsi and Minute Maid by Coke was a "wake-up call" to the co-op. Suddenly, the relatively small co-op had to figure out how to compete with the deep pockets of the two giant soft-drink companies.

The mid-1990s brought increased retail consolidation and the co-op worked hard to maintain shrinking shelf space. Sales representation and suppliers have also dwindled in the past 20 years and the farmer's return on the retail food dollar has also declined sharply.

Florida's Natural decided to take advantage of its unique grower-owned status, a distinction that companies such as Pepsi and Coca-Cola can't claim. In 1987, it launched the co-op's first branded premium product: Fresh 'n' Natural orange juice.

The "grove to the glass" promise of Florida's Natural is what Lincer believes has made the company so successful that grocery stores want to carry its product. He also suggested that if co-ops work together, all would benefit from a stronger position in the market, a theme repeated by many of the conference presenters.

Most important innovation resources are internal

"Innovation happens because you intend it to," Chris Peterson said. "How are you going to innovate?"

Co-ops need to be prepared for innovation. Innovation can occur in products and services, processes and technology., competencies and markets. Echoing the same sentiments as Florida Natural's Lincer, Peterson reminded co-op representatives at the conference that "thereally important innovation resources are internal."

If no resources go into innovation, nothing will come out. He recommended that cooperatives seek advice on innovation from universities, research & development firms, government agencies, trade organizations and consultants.

Cooperative leadership can make or break the business. Mike Toelle and Jim Rainey know this firsthand. Toelle, board chairman of CHS Inc., outlined the co-op's board priorities: professionalism, oversight, vision, accountability and commitment to communication. Although the traditional director roles and responsibilities will always be there, he argued that board members need additional skills and knowledge to "stay the course" in today's business environment. "21st century leadership requires cultivating a visionary, innovative and entrepreneurial mindset," Toelle said.

According to Toelle, the CHS board is always "in the process of learning." Being a board member with CHS cultivates a desire to gain knowledge and skills both in business and professional development. The CHS board hears presentations from outside experts four or five times each year on topics such as energy, health care and grain markets, among others.

Other professional development opportunities for board members include international exchanges and trips to Washington, D.C. In addition to in-house training, board members are required to attend external development workshops and conferences three or four times annually.

Jim Rainey, who has served on a number of boards throughout his career, retired in 1991 as CEO for Farmland Industries. He said he had learned many lessons over the years on how co-op leadership can be improved, but perhaps the most challenging issue is achieving and maintaining an effective board-management relationship.

Evaluation of management essential

Rainey provided a list of what he considers 13 basic management disciplines, but he chose to focus on just three: accountability in management; strategic management and planning; and management of change.

He said evaluation of management is essential to maintaining integrity while also promoting constructive criticism and improvement in management techniques during a board's term. Audit committees are another way to evaluate management and provide feedback on improvements and changes.

According to John T. Weir, Consolidation Assistance Program senior vice president, this new service makes the already attractive Federal Consolidation Loan Program even more favorable for borrowers. "In addition to making the application process as easy as possible, our electronic signature service eliminates a lot of paperwork for everyone involved in the student loan consolidation process -- and it's a very secure means for handling these loans."

David Harmon, Great Lakes Higher Education Corp. chief marketing and sales officer agreed. "Today's Web-savvy customers expect advanced technology and a high level of customer service. Great Lakes is pleased to provide this service to Consolidation Assistance Program student and parent borrowers."

From the applicants' standpoint, loans may now be processed faster, which allows them to begin saving sooner by locking in one of the lowest current student loan consolidation interest rates, as low as 2.25%.

"We are continuously improving and making our application process more convenient for our customers," said Weir. "Now, with online e-signature they can apply for consolidation in a simple one step electronic process."

The electronic signature utilizes the Department of Education guidelines on electronic signature and the PIN authentication service offered by NCS Pearson's Student Authentication Network (STAN). For more information about Consolidation Assistance Program or to apply online for a Federal Consolidation Loan using the new e-signature service go to www.mycaploan.com. For information about Great Lakes Higher Education Corp. go to www.glhec.org.

Consolidation Assistance Program is an affiliate company of Education Lending Group Inc. (OTCBB:EDLG). Education Lending Group markets products, services and solutions to the Federal Guaranteed Student Loan Industry. The company is a full service provider of financial aid products to students, parents and schools. This includes, but is not limited to, student financial aid counseling, debt management, loan origination, loan servicing management and secondary market loan acquisition services.

Great Lakes Higher Education Corp.'s affiliated group of companies is one of the nation's largest integrated providers of student loan services. The affiliated group currently interacts with some 2,300 schools and 1,200 lenders in all 50 states, Puerto Rico and the U.S. Virgin Islands. The group's affiliated guarantor, Great Lakes Higher Education Guaranty Corp., is the designated guarantor for Minnesota, Ohio, Wisconsin, Puerto Rico and the U.S. Virgin Islands. The group holds guarantees on $15 billion in FFEL program loans and services student loans with an aggregate outstanding balance of more than $8.7 billion for approximately 1,100,000 borrowers. Great Lakes is headquartered in Madison, Wis., and has operating centers in Columbus, Ohio, and St. Paul, Minn., and customer service and development sites in Eau Claire and Boscobel, Wis., and Oakbrook, Ill. Great Lakes' mission is assurance of cost-effective enablement of educational access.

STAMFORD, Conn. -- The Student Loan Corporation (NYSE: STU) today reported net income of $101.8 million ($5.09 basic earnings per share) for the second quarter of 2006, an increase of $20.9 million (26%) compared to net income of $80.9 million ($4.05 basic earnings per share) for the same period of 2005. The increase in net income is primarily attributable to a gain on sale of $42.3 million (after tax) relating to the second quarter 2006 securitization of $2.2 billion in student loans, which was $13.0 million (after tax) higher than the second quarter 2005 securitization. In addition, other gains on loan sales were $8.1 million (after tax) higher than the second quarter 2005 while fee and other income increased $14.2 million (after tax) over the comparable 2005 period. These increases were partially offset by a $9.8 million (after tax) reduction in floor income compared to the same quarter of 2005.

During the twelve month period ending June 30, 2006, the Company's managed student loan portfolio grew by $2.6 billion (9%) to $32.1 billion. The managed portfolio includes $24.7 billion of Company owned loan assets, which decreased by $1.4 billion (5%) from June 30, 2005 as growth in loan disbursements and purchases only partially offset securitization activity. The 2006 second quarter disbursements were composed of FFELP Stafford and PLUS disbursements of $491 million, up $96 million (24%). The disbursements also included new CitiAssist Loan commitments of $162 million, up $22 million (16%) compared to the same period last year. Secondary market and other loan procurement activities contributed approximately $1,220 million of FFELP loans to the Company's student loan portfolio during the second quarter of 2006. Approximately 89% of this secondary market and other loan procurement volume was composed of FFELP Consolidation Loans.

The Company's total revenue of $206.7 million for the second quarter of 2006 was $43.3 million (27%) higher than the $163.3 million reported for the same period of 2005. This was mainly attributable to increased gains of $21.3 million (pretax) on securitized loans and to higher fee and other income, which increased by $23.2 million (pretax). The $23.2 million increase was primarily the result of $8.4 million in derivative revaluations, and lower impairment and valuation adjustments of $7.6 million over the comparable 2005 period. Net interest income of $109.9 million for the second quarter of 2006 was $14.4 million (12%) lower than for the same period of 2005. The net interest margin for the second quarter of 2006 was 1.70%, a decrease of 22 basis points from 1.92% for the same period of 2005. The decrease in net interest income and net interest margin was primarily attributable to a $16.0 million (pretax) decrease in floor income. Floor income is a non-GAAP financial measure that is described in more detail in the Company's 2005 Annual Report and Form 10-K.

The Company's total operating expense ratio (total operating expenses as a percentage of average managed student loans) for the second quarter of 2006 was 0.50%, six basis points lower than that of 2005. Total operating expenses of $40.4 million for the second quarter of 2006 were little changed from $40.3 million from the same period of 2005.

For the six months ended June 30, 2006 the Company earned $148.0 million ($7.40 basic earnings per share), an increase of $0.9 million (1%) from $147.0 million ($7.35 basic earnings per share) for the same period of 2005. The change is primarily attributable to an increase in gains on securitization and other loan sales, higher fee and other income partially offset by a reduction in year-over-year floor income.

The Company's provision for loan losses for the second quarter of 2006 was $5.3 million, $0.5 million higher than the provision for the same period of 2005. The increase is mainly the result of the Deficit Reduction Act, which imposes a 1% risk-sharing provision on claims filed after June 30, 2006 by servicers with the Exceptional Performer designation. The Exceptional Performer designation is granted by the Department of Education in recognition of an exceptional level of performance in servicing federally guaranteed student loans. See the Company's 2005 Annual Report and Form 10-K for further details.

Thank you for the opportunity to discuss the Department's recommendations on Base Realignment and Closure. And thank you for agreeing to serve our country and perform what is a formidable task.

Today, the Department is in need of change and adjustment. Our current arrangements, designed for the Cold War, must give way to the new demands of the war against extremism and other evolving challenges. We face an enemy that is dispersed throughout the world. It does not operate the same way as a traditional enemy--it has no territory to defend and no permanent bases to safeguard. Our enemy is constantly adapting and so must we.

Some have asked why we are proposing any base closings during a time of war. The answer is because these changes are essential to helping us win this war.

Consider the array of issues of concern to the Department of Defense--and indeed to the country:

* Relieving stress on the force;

* Improving the ability of the forces to cooperate jointly;

* Protecting forces stationed at vulnerable bases and locations across the country and the world; and

* Properly equipping the troops.

If one thinks about those priorities, it clearly makes sense to do all that one can to identify and remove whatever excess exists to be better able to address those pressing needs to help the warfighters. In fact, these changes are more necessary--not less--during a time of war. At the same time, by making these changes, the American taxpayer benefits.

This, in essence, is the logic--and the imperative--of BRAC.

A few comments about what has been undertaken over the past two and a half years:

* First, as required by law, the primary factor in each BRAC decision has been an assessment of an installation's underlying military value. Indeed, military judgments have played the key role from the outset, and properly so. In a time of war, whenever we can find ways to increase support for military needs--to help the warfighters--we can do no less.

* Second, the previous four BRAC rounds--1988, 1991, 1993 and 1995--over time have eliminated some 21% of excess U.S. military infrastructure, and re-allocated many billons of dollars to pressing military needs. This year's recommendations, if approved, should result in up to $5.5 billion in recurring annual savings--a net savings of up to $48.8 billion over 20 years. When combined with the proposed changes to U.S. global posture, the projected 20 year net savings increases to as much as $64.2 billion, or up to $6.7 billion per year;

* Third, for the first time, the BRAC deliberations took place with an emphasis on "jointness." The Department recognized that operating jointly reduces overhead costs, improves efficiency and facilitates cooperative training and research. Importantly, the proposed consolidations also free up personnel and resources to reduce stress on the force and enhance force protection.

Additionally, the Department also considered potential contingency and surge requirements and possible increases in active duty troop levels. These recommendations, if adopted by the Commission, the President and the Congress, would result in 33 major base closures and 29 major base realignments out of 318 major domestic military facilities. Put another way, BRAC would close a bit less than 10 percent of major U.S. facilities, and realign another 9 percent.

BRAC also will help further the President's goal of bringing Service members together under one umbrella. One way this would happen is through the consolidation of research, support and training functions of the different Services at what we call "Centers of Excellence." These centers improve the ability of the military branches to share information, adopt common standards and procedures and increase efficiency. These changes in turn boost the ability to provide critical services to the men and women in uniform.

And on that issue, let me say a few words about the proposal affecting Walter Reed and Bethesda. A number of you have visited these facilities over the years. Every time I go there to visit with the wounded and their families, I come away tremendously inspired and strengthened by their courage and their dedication. I also have met with the outstanding medical personnel who are devoted to providing the best possible care.

So we can be especially encouraged by what the Department proposed to do with Walter Reed--making it an even better medical facility than it is today. When the proposed consolidation is completed, Walter Reed will stand as a state-of-the art medical center bringing together the best possible medical talent and improving the treatment and other services provided to the troops and their families. These changes were proposed by the military medical professionals, and focused on such priorities as improving inpatient and outpatient services, casualty care research, potential surge capabilities, and care for retirees. The military should benefit tremendously from these changes.

According to NextStudent, a leading Phoenix-based education funding company, private consolidation loans are an excellent option for borrowers faced with repaying thousands in private student loan debt. Since federal funds rarely cover all college expenses, many students and their parents choose to take out private student loans . This money covers the gap between federal funding and the total college financial package.

When it comes time to consolidate many borrowers are familiar with the Federal Consolidation Loan Program. However, borrowers may not be aware that they can take advantage of private credit-based consolidation loans such as the Private Consolidation Loan just unveiled by NextStudent, with an interest rate as low as 6.33% APR for the first year.

For example, a typical loan of $40,000, where the borrower has chosen to make payments of principal and interest, with an interest rate of 6.705% APR, subject to change every calendar quarter, and with a loan term of 30 years, will have a payment of $258.25 (subject to change if the interest rate changes).

Many borrowers struggle to make huge payments shortly after graduation and find that once they consolidate -- significantly cutting their monthly payments and folding multiple student loans into one simple, manageable program -- they have a brighter financial future. Students and their parents may consolidate a minimum of $7,500 up to a maximum of $300,000.

Borrowers may qualify over the phone in just a few minutes with their personally assigned Education Finance Advisor and may review the status of their loan's progress online. Borrowers who have good credit, have not defaulted on their student loans, and are currently repaying or will shortly begin repayment may qualify.

In an industry where the standard repayment term is 12 years to 20 years, NextStudent borrowers have a generous 25 years to 30 years to repay depending on the amount of the loan. Students may take advantage of in-school deferment and may defer payments for up to 12 months following graduation. Another little-known benefit is that borrowers may opt to make interest-only payments for the first two years. Other features for which borrowers may qualify include: up to a 1.5 percent reduction in principal balance after 48 consecutive on-time payments; a .25 percent interest rate reduction if payments are made using auto-debit; and no or low fees. For most borrowers, these features ease their post-college financial burdens and allow students to plan for their financial future.

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For all of their professional careers, Drs. Pejman and Pedram Salimpour--following their father's example--could never resist helping a sick child.

So it wasn't totally startling that one of the San Fernando Valley's best known physician families decided to take the case of Tenet Healtheare Corp.'s ailing Alvarado Hospital, which the brothers purchased for $22.5 million on Jan. 1.

Never mind that the pediatrician brothers have never owned a hospital before, or that San Diego-based Alvarado is more than 140 miles from the medical practice their father established in the Valley when the family fled Iran in the early 1980s after the revolution there.

"If it closes it will affect thousands of people, so its success will not only be a business success for us but a personal one," said Pejman Salimpour, 45, a former clinical chief of pediatrics at Cedars-Sinai Medical Center, who juggles a patient load and a teaching role as a professor of clinical pediatrics at UCLA David Geffen School of Medicine.

The brothers won't find it easy to turn around the 306-bed Alvarado, which lost more than $3 million in 2005 and was the subject of a three-year federal probe into charges that some doctors were paid kickbacks for referring patients to the hospital. Two trials related to the case ended in hung juries, but Tenet was forced to sell the hospital as part of a government settlement.

Every other major hospital operator in town passed on making a serious bid when Tenet put it on the market last June. The Salimpour brothers made a few casual inquiries and believed it was a potential diamond in the rough.

They formed Plymouth Health and came forward with their offer, backed by group of private investors led by Los Angeles-based Omninet Capital LLC., whose co-founder Parviz Nazarian is Pejman Salimpour's father-in-law.

"I think Tenet knew that not only did we have the resources to keep the hospital open but also have the sophistication," said Pedram Salimpour. "As physicians who have lived in hospitals all our lives, we understand what doctors need in order to practice medicine."

Plymouth is the first health care industry investment for Omninet, which is better known for its early investment in the San Diego-based wireless communications giant Qualcomm Inc. But Ben Nazarian, Parviz Nazarian's son and another Omninet principal, said the Salimpours had more to offer than family ties when they approached his firm.

"They're both doctors and businessmen and we believe that gives them a unique perspective," Nazarian said. "We also have a special relationship with the San Diego area, and believe that with the right owners and management, Alvarado has the opportunity to become a premier hospital again."

Whether they can succeed in turning around the hospital is, for now, an open question. One complication is that the hospital serves a high percentage of Medicare and Medi-Cal patients, which means low reimbursements. Furthermore, the hospital has long suffered from below-average reimbursement rates from private payers, too.

Nathan Kaufman, managing director of San Diego-based health care consultant Kaufman Strategic Advisors, said that with Medicare proposing to slash its budget by $17.4 billion next year and consolidation in the health insurance industry increasing the bargaining leverage of insurers, this is not an easy time for a stand-alone hospital.

"How is the hospital industry going to make up the Medicare cuts? By getting more out of Blue Cross," Kaufman said. "And good luck with that if you're not a market leader like Cedars-Sinai."

For their part, the Salimpours note that Plymouth has hospital consultants advising them and they worked closely with Tenet after the deal was announced to bring an experienced hospital administer on board after the hospital's chief executive quit before the deal closed.

Significantly, the final sale price was well below the $36.5 million announced last October and less than half the reported $50 million that Tenet originally sought for the hospital. The money saved will help the Salimpours as they work with the post-Tenet management team to determine what capital improvements need to be made at the hospital, in addition to an estimated $70 million in earthquake retrofitting.

The brothers also believe that the relationships that they have built with HMOs through other businesses have helped in negotiating new reimbursement contracts.

Another advantage: While many Los Angeles hospitals have more licensed beds than they can afford to staff, San Diego has a bed shortage, Pejman Salimpour said. That works in Plymouth's favor during negotiations with third-party payers that can't afford to lose another network hospital in the region.

"No hospital can survive if it continues to lose money, so in order for this to work, we need fair, reasonable reimbursement rates," Pejman Salimpour said, noting that Plymouth won modest contract increases with all but two of the hospital's main third-party payers, where negotiations continue. "We have a ways to go, but this is a good start."