Should I consolidate my college loans or not?

1. Still in school, yes! Rates are low, but they're scheduled to go up. Your college loan payments will then remain as manageable as possible when you leave school. If you have graduated, or will be graduating this May or June, yes! Graduates can lock in historical low rates, and reduce their monthly payments more than half. You can lock in a rate even while still in school, and even if you have been out of school for a couple of years can get a good deal, too.

2. The newest twist in the consolidation puzzle is the "in school consolidation", affecting students who are currently enrolled and will be enrolled past the July 1 consolidation. You can consolidate your existing college loans now to secure the low rates for at least part of their student loan portfolio.

3. Consolidating could save thousands of dollars in interest payments on college loans. There are impending student loan rate changes and new interpretation of regulations by the Department of Education, also, Congress is considering ending the fixed-rate program. Experts are urging students to consolidate to relieve themselves of a higher debt load.

4. Many students and families are looking for a simple, clear answer about whether to consolidate college loans or not. The simple answer is to take some of the bite out of the debt by loan consolidation. You could live like a miser and save as much money as possible or consolidate your federal student loans now.

5. For students still in school, you have an opportunity to choose consolidation. Consolidating would put a college loan borrower into repayment status, but the student can defer payments until after graduation by making a deferment request. Consolidating today can have payments put off until graduation.

6. The federal loan program allows consolidation, which is when a borrower pools his student debts together so that only one monthly payment is necessary, rather than several. It's not just the convenience of one payment that is making consolidation so compelling. The most significant aspect of the program is that it allows a person to permanently lock in a lower interest rate on loans. These loans are backed by, or granted directly by, the federal government.

7. Rates for federal Stafford loans, the most prevalent type of student loan, as well as some other types of federal student loans are set annually based on the rate of 91-day U.S. Treasury bills at the end of May. The exact rate won't be known until the end of the month, but experts say it will be about 2 percentage points higher. (Private loans and federal loans cannot be consolidated together.)

8. For the first time, the U.S. Department of Education will allow students still in school to consolidate federally backed loans. Federal PLUS loans can also be consolidated. PLUS loans are used to help pay the cost higher education.

9. Students, regardless of enrollment, should absolutely consolidate their college loans, arranged through the student's lender. There are no fees, no credit checks, and interest rates are expected to move higher. Those are good reasons to consolidate.

10. Act quickly to put lock on current federal-aid interest rates. Graduates should act now to insulate themselves from a drastic rate change. Apply early. Do not wait until the last minute to file paperwork. Those who have already graduated or left school should not wait to investigate consolidation. In the first six months after graduation, you are in a grace period. Within that six-month window, you can lock in a low rate on Stafford loans and spread the repayment over as long as 30 years.

If you're going to consolidate, now is the best time to do it.

About the Author

Georgio Heberto is dedicated to offering news, articles, and instruction on financing college education. You have a definite choice in how you finance your education and beyond. Visit http://www.atopeducation.com for more information.

Courtesy of Article-Wiz Article Directory

Posted by Shawn Augustson, CollegeRecruiter.com on February 27, 2007 at 9:11 PM | Leave a Comment (0)

Scholarships are one of the best types of financial aid because they provide free money—you don’t have to pay them back. The trick is finding the ones that match your qualifications, getting yourself organized, and putting in the time needed to complete the applications and essays that many programs require.

To get you started on the scholarship hunt, we’ve put together this list of 40 diverse awards. Take a look and see which ones you qualify for.

But don’t end your search here. Look into all the online sources that are available, and use a scholarship search engine such as the one at www.careersandcolleges.com. Also, ask your guidance office, community groups, and parents if they know of other funding programs. And if you’re interested in a specific career, contact national associations that represent that occupation—these groups often have educational awards. Colleges themselves offer scholarships and grants as well.

Admiral Grace Murray Hopper Scholarship
DETAILS: Women with a minimum 3.5 GPA studying in an accredited engineering program can apply for this scholarship offered by the Society of Women Engineers.
$$$: $1,000
CONTACT/WEB: www.swe.org

All-ink.com Scholarship
DETAILS: Students applying are required to write both a 50- to 200-word essay on the person who has had the greatest impact on their life and a 50- to 200-word essay on what they hope to achieve in their personal and professional life after college.
$$$: Up to $10,000 in awards
CONTACT/WEB: www.all-ink.com/scholarship.aspx

Allogan Slagle Memorial Scholarship
DETAILS: The Association on American Indian Affairs offers funding to American Indian and Native Alaskan students who are members of tribes seeking federal recognition. The award is based on academic merit and financial need. The association offers many other scholarships for American Indians.
$$$: $1,500
CONTACT/WEB: www.indian-affairs.org
Billy D. Young Scholarship
DETAILS: Sponsored by the National Safety Council, this program recognizes students who are pursuing a degree in either safety or industrial hygiene and plan to go into the safety and/or health fields after graduation.
$$$: $1,000
CONTACT/WEB: www.nsc.org/news/BillyDYoung.htm

Careers and Colleges Scholarship
DETAILS: You’re already on your way to entering this competition! Just request info about any of the colleges in this magazine or on the website and you’ve applied!
$$$: $10,000
CONTACT/WEB: www.careersandcolleges.com

Coca-Cola Two-Year College Scholarship
DETAILS: Every two-year, degree-granting institution in the United States can nominate two students each year, so if you’re heading off to a community college or two-year program, work with your financial aid office to submit your application. A minimum of a 2.5 GPA and 100 hours of community service are required.
$$$: 400 awards of $1,000 each year
CONTACT/WEB: www.coca-colascholars.org

College-Computers.net Scholarship
DETAILS: Your thoughts on what will happen with technology over the next 50 years could help you win this cash for your college education.
$$$: Two for $1,000 each
CONTACT/WEB: www.college-computers.net/scholarship/

Davidson Fellows
DETAILS: For students who have a passion for what they do and a desire to make a difference, submit an original piece of work that shows your potential to make a positive contribution to society.
$$$: $10,000 to $50,000 and a trip to the award ceremony
CONTACT/WEB: www.ditd.org

DECA Scholarships
DETAILS: DECA partners with many companies to offer scholarships, including Kmart, Sears, American Express, and others. If you’re a member of DECA, see your advisor for an application.
$$$: Many $1,000 awards
CONTACT/WEB: www.deca.org/scholarships/

Donna Reed Performing Arts Scholarship
DETAILS: If you’ve got talent in acting, musical theater, voice, dance, or an instrument, submit an audio or videotape of your performance to apply.
$$$: $500 to $4,000
CONTACT/WEB: www.donnareed.org

Eddie Robinson Foundation Scholarship
DETAILS: If you’re an athlete who excels in the classroom and are considered a leader among your peers, this may be for you. Awards are given to college-bound seniors who are committed to staying chemically free.
$$$: $5,000
CONTACT/WEB: www.eddierobinson.com

Excellence in 3-D Animation Award
DETAILS: Available to students who create the best animated characters, props, sets, and movie scenes. You must download the latest ANIMOIDS Program and use it to create a unique animated character, prop, set, or movie scene.
$$$: $1,000
CONTACT/WEB: www.troystudios.com/award.jsp

The First Freedom Student Competition
DETAILS: A national essay contest that offers 9th to 12th grade students an opportunity to express their views on religious freedom, its history, its current importance, and its relevance in their lives.
$$$: $3,000, $1,500, and $750
CONTACT/WEB: www.firstfreedom.org

Hadden Scholarship
DETAILS: The Youth Foundation offers this assistance to financially needy high school seniors with a 3.5 GPA or higher.
$$$: $2,500 to $4,000
CONTACT/WEB: http://fdncenter.org/grantmaker/youthfdn/index.html

LULAC National Scholarship
DETAILS: The League of United Latin American Citizens awards more than 1,000 scholarships annually to Latino students. Apply through the LULAC council in your community.
$$$: $200 to $2,000
CONTACT/WEB: www.LSNEC.org

McDonald’s USA National Employee Scholarship
DETAILS: One outstanding employee from each state wins. Candidates must show commitment to school, work, and community service.
$$$: $1,000; one McScholar of the Year wins $5,000.
CONTACT/WEB: www.mcdonalds.com/usa/good/community/scholarship.html

Mensa Scholarships
DETAILS: Got brains? Mensa offers several awards to the super smart. You must submit an essay on your life’s goals and live near an American Mensa group.
$$$: Up to $1,000
CONTACT/WEB: www.merf.us.mensa.org/scholarships

Miss America Scholarship
DETAILS: After entering a local Miss America competition and advancing to state and national competitions, women have the opportunity to earn one of 51 awards. Although a long shot for many, if you’re a female high school graduate with good moral character, the program is worth considering.
$$$: $3,000 to $40,000
CONTACT/WEB: www.missamerica.org

Most Valuable Student Competition
DETAILS: The Elks are awarding more than $2.2 million in scholarships over the next few years. Be sure to get your share. Visit your local Elk’s lodge for an application.
$$$: $60,000 for first place, $40,000 for second place, $20,000 for third place, and $4,000 for fourth place
CONTACT/WEB: www.elks.org

MOTOFWRD College Competition
DETAILS: This new competition sponsored by Motorola challenges students to submit their most innovative ideas about the future of “seamless mobility”—uninterrupted access to information, communication, and entertainment.
$$$: First prize: $10,000 cash plus an eight-week apprenticeship opportunity with Motorola’s Chief Tech Office and a car equipped with wireless communication technology. Three runners-up will receive $2,500 scholarships and a Motorola product package.
CONTACT/WEB: www.motorola.com/motofwrd

Off to College Scholarship Sweepstakes
DETAILS: Win money for you as well as the college you attend. Any U.S. high school senior who is heading to college in the Fall of ’06 qualifies.
$$$: $1,000 scholarship plus a $250 SunTrust Gift Card. The school of attendance also receives $1,000 for its general scholarship fund.
CONTACT/WEB: www.suntrust.com

Optimist International Essay Contest
DETAILS: A 400- to 500-word essay on the topic “I’m Unique Because...” is required, so think positively and start writing!
$$$: First place is $5,000; second place is $3,000; third place is $2,000.
CONTACT/WEB: www.optimist.org
Private Colleges & Universities Community Service Scholarship for Multicultural Students
DETAILS: For this scholarship, multicultural students submit an application and essay demonstrating community service involvement. Students must attend a private college that participates in the program.
$$$: $2,000
CONTACT/WEB: www.privatecolleges.com

QuestBridge College Match Scholarship
DETAILS: QuestBridge matches bright, low-income students with significant scholarship aid. Students must demonstrate academic achievement and financial need.
$$$: Comprehensive tuition for up to four years
CONTACT/WEB: www.questbridge.org

Sallie Mae’s Unmet Need Scholarship
DETAILS: Full-time students whose financial aid packages fall short by $1,000 or more qualify.
$$$: $1,000 to $3,800
CONTACT/WEB: www.thesalliemaefund.org

Sam Walton Community Scholarship
DETAILS: Wal-Mart and SAM’S CLUB are giving back. Every store can award two scholarships to local high school seniors each year.
$$$: $1,000 to all local winners, who are then entered into the state competition for an additional $4,000. State winners have the chance to win the national prize of an additional $20,000!
CONTACT/WEB: www.walmart.com

SAMMY Awards
DETAILS: The Scholar Athlete Milk Mustache of the Year Awards go to student-athletes who have above-average academic scores and a passion for community service. Because it’s part of the American Dairy Farmers and Milk Processors’ “Got Milk?” campaign, entrants need to love milk!
$$$: 25 scholarships for $7,500
CONTACT/WEB: www.whymilk.com

Signet Classic Scholarship Essay Contest
DETAILS: Students enter by writing an essay on one of five topics posed for this year’s competition book, Nectar in a Sieve by Kamala Markandaya.
$$$: Five scholarships for $1,000
CONTACT/WEB: www.penguinputnam. com/static/html/services-academic/essayhome.html

Sony Pictures Scholarship
DETAILS: Interested in a profession as a moving image archivist? This award provides assistance to a student of merit who intends to pursue that career.
$$$: $4,000
CONTACT/WEB: www.amianet.org/scholarship

SPAACSE George R. Faenza Scholarship
DETAILS: The Society of Performers, Artists, Athletes, and Celebrities for Space Exploration is looking for space fans. High school seniors need to write an essay on “Why Does the United States Need a Space Program?”
$$$: $1,000
CONTACT/WEB: www.stars4space.org

Target Scholarship
DETAILS: This funding is for students who are active community-service volunteers.
$$$: One $25,000 award, more than 600 awards of $1,000
CONTACT/WEB: www.target/scholarshipamerica.com

Undergraduate Scholarship from the National Restaurant Association
DETAILS: This scholarship, offered by the National Restaurant Associa-tion, is available to high school seniors with a minimum 2.75 GPA who have taken at least one food service-related course. So if you’re looking to be the next Emeril Lagasse or Nigella and plan on majoring in a hospitality-related program, apply now and get cooking!
$$$: $2,000
CONTACT/WEB: www.nraef.org

University Writing Scholarship
DETAILS: All high school students
are invited to submit an essay on a topic related to current events. For the December 1 contest, topics in-clude oil prices and natural disaster protection.
$$$: Up to $10,000, averaging $1,000 per individual
CONTACT/WEB: www.elpublishers.com

U.S. Bank Internet Scholarship Program
DETAILS: U.S. citizens enrolled at a two- or four-year institution for Fall 2006 can apply to this online program.
$$$: Up to 30 scholarships worth $1,000
CONTACT/WEB: www.usbank.com/cgi_w/cfm/studentloans/marketing.cfm

Vegetarian Scholarship Award
DETAILS: High school seniors who promote vegetarianism and will be attending a U.S. college qualify.
$$$: $5,000
CONTACT/WEB: www.vrg.org

Veterans’ Tribute Scholarship
DETAILS: This scholarship is available to children and grandchildren, ages 15 through 18, of all U.S. military veterans, active duty, Reserves, and National Guard.
$$$: First place is $10,000; second place is $5,000; and third place is $3,000.
CONTACT/WEB: www.vfw.org/index.cfm?fa=cmty.leveld&did=1589

The Walt Disney Company Foundation Scholarship
DETAILS: Participation in Junior Achievement and a major in either business administration or fine arts is required.
$$$: Full tuition, renewable
CONTACT/WEB: www.ja.org/programs/programs_schol_dis.shtml

Writers of the Future Contest
DETAILS: Stretch your imagination and submit an original work of science fiction or fantasy.
$$$: $500 to $4,000
CONTACT/WEB: www.writersofthe future.com

You Can Make A Difference Scholarship
DETAILS: High school students who have a desire to make an impact with technology are eligible. You must submit a proposal for a software project that will benefit a charitable organization.
$$$: 10 winners of $2,500 plus an additional $1,500 to implement the proposed project
CONTACT/WEB: www.thespoke.net/ycmd

Young Epidemiology Scholars (YES) Competition
DETAILS: The (YES) Competition for original student research is designed to inspire talented students to investigate the many behavioral, biological, environmental, and social factors that affect health as well as to identify ways to improve the health of the public. Awards go to high school juniors and seniors who conduct outstanding research projects that apply epidemiological methods of analysis to a health-related issue.
$$$: Up to 60 awards of $1,000; 48 awards of $2,000; six will receive scholarship awards of $15,000 each; two will receive scholarship awards of $20,000 each; two will receive scholarship awards of $35,000 each; the top two national winners will receive scholarship awards of $50,000 each.
CONTACT/WEB: www.collegeboard.com/yes/fs/atc.html

Data Source: Wintergreen Orchard House Research: Meghan Dalesandro and Erika Schieck
Source: careersandcolleges.com

Posted by Shawn Augustson, CollegeRecruiter.com on February 21, 2007 at 10:16 AM | Leave a Comment (0)

Sure you'll have to pay them back with interest, but loans can be a great financial tool?if you handle them the right way.

Waiting tables and working summers for a surveying firm gave David Hilmer a nest egg to help pay for college at the University of Wisconsin, Madison. But although the money he saved was a good start, it was far from what we needed.

“After about a year and a half, I was scrambling—how was I going to cover my dorm expenses and tuition?’’ he re-calls. Now working as the director of business development at Little Tornadoes, an Internet consulting firm in New York City, Hilmer says that without numerous student loans (a federal Perkins, Stafford, and a university loan) he might not have been able to graduate.

More than ever, students are now relying on loans to help pay for college. Two-thirds of undergraduate students are in debt when they graduate from college, according to the National Postsecondary Student Aid Study conducted by the National Center for Education Statistics and the U.S. Department of Education.

To make smart decisions about borrowing, you need to plan ahead and understand what your options will be when it comes time for repayment. Here are some simple guidelines that apply to the major federal loan programs—the Perkins, the Stafford, the PLUS—as well as independent bank loans.

Set a Limit.
Keep in mind that every dollar you borrow must be repaid—with interest—which can really add up over a long repayment term.

“It’s easy to think now that a $200-a-month payment won’t be a big deal,” says Hilmer, “but those payments can take a big chunk out of your monthly income. Most high school students don’t realize how many bills they’re going to have when they live on their own.”

To get some idea of how much is too much, you need to estimate how much you’ll be able to pay back once you graduate. That involves examining your future salary and expenses.

The best way to do this is to use a budg- eting calculator available on the website of a major lender, such as Bank of America (www.bankofamerica.com/studentbanking) or Chela Financial (www.loans4students.org). Calculators let you estimate monthly expenses—rent, utilities, food, clothes, car payments, insurance, etc. Then you compare those expenses to your estimated salary. Some calculators provide salary information. By subtracting your estimated expenses from your estimated salary, you can predict how much you can afford in monthly loan payments. (You can find Bureau of Labor Statistics salary averages at www.bls.gov/oco/home.htm.)

“Lenders offer incentives and interest rate reduction plans, so it pays to shop around.” says Shawn Lindstrom, president of eStudentLoan.com. Check out www. careersandcolleges.com and use the free loan search to help find the loan program that might be right for you.

Avoid Default at All Costs.
If you do wind up borrowing much more than you can afford, you run the risk of defaulting, which means failing to pay back your loan accord-ing to agreed-upon terms. These terms are specified in a promissory note, a legal document that binds you to make regular payments.

Default usually results after you miss payments for 180 days. Many defaulted loans are sent to collection agencies that may charge costly late fees and take money from your wages. Worst of all, a defaulted student loan can haunt you later, because it will be recorded as part of your credit history for a minimum of seven years.

“If you default on a student loan, you will not be eligible for federal aid if you decide to return to school until the loan is paid in full,” says Lori Bloomberg, assistant vice president for the U.S. Bank Student Banking Division.

And if other lenders see you have a defaulted loan, they may deny you a mortgage, car loan, credit card, or personal loan—or charge a significantly higher interest rate. There’s also a financial incentive for paying back your loans on time: many lenders will give a 1% discount or more to students who make consecutive regular payments.

Students are usually provided with charts to help track repayments. But if you can’t make a monthly installment, you will need to contact your lender or servicer (the company that owns your loan) to discuss the problem. “Letting the servicer know that you’re having difficulty is really important,” says Allison Hall, director of marketing for Academic Finance Corporation and EFSI. “Lenders have many ways to help a student repay.”

Understanding Loan Language
It’s important to understand the terms used in describing loans and loan repayments.

Grace period - A period of time—usually lasting six months after you leave college—when many student loans don’t require repayment. After the grace period, a deferment or forbearance can also temporarily suspend repayment.

Deferment Periods when a borrower who meets certain criteria may temporarily stop loan payments. Depending on your type of loan, the federal government may pay the interest on it during your deferment period. New borrowers may be eligible for a deferment if: they are still enrolled in school half-time or full-time, unemployed, studying in an approved graduate fellowship or rehabilitation program for the disabled, or experiencing economic hardship.

Forbearance The temporary suspension of repayment in cases of hardship. Anyone with student loans may claim forbearance for six months at a time up to a total of three years, but interest still accrues.

Loan consolidation Combining several loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Con-solidation can lower the monthly payments and extend the repayment period to a maximum of 30 years, but you’ll have to pay more interest.

“Even if you have one loan, you can use consolidation to lock in a low fixed rate,” says Lindstrom. Plus, as Doug Dolton, chief operating officer at Chela Financial says, “Making one loan payment a month can really simplify your life.”

All in all, loans can be a viable option for paying for college—as long as you borrow within your means and keep up with repayment.

By Don Rauf
Source: careersandcolleges.com

Posted by Shawn Augustson, CollegeRecruiter.com on February 13, 2007 at 7:23 AM | Leave a Comment (0)

Okay, so you’ve decided on a career in health care. Give yourself a pat on the back. But while your hand is back there, be sure to give yourself a little push, too. Why? Because no one is going to knock on your door and say, “I think you’re destined to become the best (fill in the blank: physical therapist, nurse, radiology technician . . . ) known to mankind, so here is a bundle of money to pay for your education.” The truth is, although there are financial aid opportunities available for students in health fields, you have to do some digging to find them.

Here are 10 steps to improve your chances of financing your education in the field of health care:

1 Get moving, Buster! Experts say that one of the main mistakes students make is waiting too long to start their financial aid search. Begin in your junior year (or sooner). If you are already in your senior year, start your financial aid quest now and complete all of the necessary forms as soon as possible. Once you begin the paperwork, stay focused, because procrastination may mean missed deadlines for federal, state, institutional, or community grants, scholarships, or loans. “Each college has its own timeline, so it is prudent for students to be aware of and meet the deadline for an individual institution,” says Lydia MacMillan, director of financial aid at Regis University in Denver, Colorado.

2 In good counsel Even if you’re not buddy-buddy with your high school guidance counselor, make an appointment with him or her for advice about financing your healthcare studies. “High school guidance offices maintain a list of local groups that offer scholarships for various fields, such as nursing, so we recommend that students always check with their guidance counselors,” says Linda Handy, director of financial aid at The University of Indianapolis. Guidance counselors also have the computer software, books, and other resources that are vital to your search. Consider your high school guidance counselor your central source for financial aid information.

But before you do anything else, learn how the financial aid system works. A good source is the revised, 29th edition of Don’t Miss Out: The Ambitious Student’s Guide to Financial Aid, $12, by Anna & Robert Leider (Octameron Associates, P.O. Box 2748, Alexandria, Virginia 22301). To order a copy, call (703) 836-5480 or go to the website at www.octameron.com. Knowing how the financial aid system operates can help you organize your time and effort.

3 From the horse’s mouth Nicholas Flocco, director of financial aid at University of the Sciences in Philadelphia, says that although contacting a college’s financial aid office by phone to discuss your financial need is fine, it is also a good idea to meet with a staff member. “It doesn’t hurt to make an appointment with a college financial aid officer, especially if you have reviewed your financial aid package and think you deserve more money,” says Flocco. The middle of September, a relatively quiet period for most financial aid personnel, is the best time. Ask about eligibility criteria and deadlines for aid granted directly from the college—and particularly about department-specific awards or similar types of aid for students who plan to major in the health sciences. If there are such awards, make sure you understand the eligibility requirements; you might even want to request a brief meeting with the head of the department to discuss whether you might qualify.

4 In the grand tradition When conducting your financial aid search, begin by investigating traditional federal or state funds. “Students should always complete the FAFSA (Free Application for Federal Student Aid) because that is the cornerstone of the financial aid process,” says MacMillan. Call (800) 4-FED-AID for basic information about federal student aid programs, and ask college financial aid officers for details about state programs. An increasing number of states offer attractive financial incentives, particularly to students who attend a college located within their home state.

5 Surf’s up, Dude! The Internet is a powerful tool in your search for funds. To introduce you to the basics of financial aid assistance and help you demystify the process, go to www.ed.gov and click on “Financial Aid,” a comprehensive collection of information for students and their families. Other good choices are www.collegexpress.com, one of the Web’s largest scholarship searches, and www.theoldschool.org, a financial aid resource center. Handy recommends three additional search sites: www.fastweb.com; www.wiredscholar.com; and www.collegeboard.com (click “For Students” and then click “Pay for College”).

6 Professionally speaking Virtually every healthcare profession has a professional association, and many of them offer scholarships or awards that can supplement your financial aid package, so contact the national association—or the local chapter of the association—of the specific healthcare field in which you’re interested. For example, if you want to become a dental hygienist, you can find the address and phone number of the national association of hygienists (and other national associations) in Directory of Healthcare Associations or The Encyclopedia of Associations, which are usually located in the reference section of your local public library. (You’ll also find contact information for many professional associations in the “A Glimpse at the Profession” articles in this magazine.)

7 Nooks and crannies If you want to uncover financial aid opportunities, explore all avenues, including websites such as www.estudentloan.com.

A word of warning from the financial aid experts: College is expensive enough, so don’t shell out large amounts of money for scholarship search firms when you can find the information on your own. “There are so many free and low-cost scholarship searches that you don’t need to pay for them,” says Flocco. “You also don’t need to pay a consultant to help you fill out a financial aid form—a college’s financial aid officer can tell you what you need to do, when you need to do it and how to do it.” However, if you want to purchase a reference guide for under $25, there are listings of current grants and scholarships in books such as How to Go to College Almost for Free updated by Benjamin R. Kaplan (HarperResource).

8 Make a pledge Some hospitals and healthcare agencies offer service commitment scholarships, which means that they will pay for all or part of your education if you promise to work for them (at full pay and benefits) for a certain period of time after graduation. Service commitment scholarships are not as prevalent as they once were, however, so you may have to search around to find one.

9 Bits and pieces To cover the cost of your healthcare education, expect to construct a financial aid “quilt” to pay for your tuition—that is, look for multiple sources of aid. “Your approach has to be broad,” Handy says. “Start with a federal grant or loan, then maybe add a state award based on need, and if you are academically or athletically talented, try for university aid or bring in an outside scholarship.”

Here are some examples of how to find alternative sources to fund your college expenses:
• Ask your parents to contact their company’s human resources department regarding available scholarships or grants for children of employees. Much of the financial aid money that you may have read goes “unspent” or “unclaimed” is in these employer-funded scholarships.
• Check to see if you have any connections to organizations that fund scholarships. For example, Flocco says, if your parents served in the Marine Corps, ask if the Marine Corps offers grants, or if your grandfather belongs to the American Legion, investigate whether they sponsor a scholarship for family members.
• Find out if your high school health or science clubs offer grants to students interested in the health fields.
• Consider alternative sources, such as on-campus work-study programs, to provide you with money while you’re in college.

10 Don’t give up! Be persistent. Although this may sound corny, the experts say it’s true. “Although many students find the bulk of the financial assistance they need through the guidance of the institution they plan to attend, it’s wise to always look for other sources as well. It’s to your benefit to chart your own course. This is about your education and your life,” says MacMillan.

The variety of programs (and career possibilities) in the health professions is great, and changes in the way health care is administered will mean opportunities to work in more varied settings than ever before. Elsewhere in this magazine, you’ll get a glimpse of the range of career possibilities available to you.

So if you see your future in the health professions, give serious consideration to the colleges and universities profiled in this magazine—and start doing your homework now!

Diane Bones is a freelance writer who lives in Philadelphia—and she seems to know where the money is hiding.

Source: careersandcolleges.com

Posted by Shawn Augustson, CollegeRecruiter.com on February 11, 2007 at 4:24 PM | Leave a Comment (0)

Well, your part just got bigger. Before visions of college degrees start dancing in your head, some serious financial planning has to take place. There are forms to fill out, strategies to be devised, and eventually a tuition check to be written. But there’s also help along the way—if you know where to look. Here are three steps to take that will help you pay for the college education of your dreams.

First: apply for financial aid
Apply for financial aid, even if you don’t think you qualify. Some kinds of aid are available regardless of need.

To apply for financial aid from the federal government (and to qualify for some low-interest loans), you need to submit the Federal Application for Student Aid (FAFSA). Send it in as soon as possible after January 1 of the year you’ll be attending college.

The FAFSA is available in paper and electronic formats. You can get the paper version from your high school, the financial aid office at any college, or by calling 1-800-4-FED-AID (the phone number for the Federal Student Aid Information Center). To complete the FAFSA online, log on to www.fafsa.ed.gov. Some colleges also require you to complete their own aid forms. Your parents will need to have accurate income and tax information in front of them when they fill out the forms. And it is important to remember that deadlines count!

Second: tap existing savings and current income
Families should expect to pay at least half the total cost of a college education through a combination of savings, current income, and loans. You and your parents will need to take a close look at your family’s monthly budget, determine how much you can afford to pay from current income, and stretch that amount to the limit. The trick is to pay as much as possible during college and as little as possible after graduation. In other words, maximize your payments and minimize your debt.

Minimizing your debt (the amount you borrow) means saving on interest fees that will accrue during the life of the loans—fees that can really add up. To help you save on fees, many colleges offer tuition payment plans that allow you to divide your college bill into 10 or 12 monthly installments without having to pay interest. Payment plans are often administered by private companies such as Academic Management Services (www.tuitionpay.com).

Since interest rates, terms of repayment, and other elements of loans from private companies vary, students and parents should always compare offers. Good information about loan variables and lots of other information about paying for college is available at www.wiredscholar.com.

Third: borrow, if necessary
After combining financial aid, current income, and savings, your family may still come up short and need to borrow. Federal loans such as the Unsubsidized Stafford Loan (the student is the borrower) and the PLUS Loan (the parent is the borrower) are widely used and available to families at all income levels (you’ll need to have filled out the FAFSA). Interest rates are relatively low (the current interest rate for Stafford Loans is approximately 3.37%; the rate for PLUS Loans is about 4.17%). Repayment begins six months after a student leaves school (or studies less than half time), and a student or parent has 10 years to repay the loan.

A note about “outside scholarships”: Time spent searching for scholarships isn’t well spent. Scholarships may seem to be a good way to reduce your out-of-pocket expenses, but colleges often reduce the amount of the aid package you’re offered if you receive a scholarship. Don’t accept a scholarship without checking with the financial aid office at the college you’ll attend.

Judith I. Grassi is Executive VP of Academic Management Services in Swansea, Massachusetts.

Source: careersandcolleges.com

Posted by Shawn Augustson, CollegeRecruiter.com on February 5, 2007 at 7:25 PM | Leave a Comment (0)

Students who are determined to pay less for college don't just fill out their financial aid form, sit back, and hope for the best. They come up with an organized plan to make sure they explore all the aid that may be available to them. They know that diverse financial aid packages consist of funding from four major sources?the federal government, their state, their college, and private scholarships. And they don't forget that old saying: every little bit helps.

You can make sure that you don't miss out on college cash, too. Review the basics of the four major financial aid sources for undergrads, then read our profiles of students who tell exactly how they have paid for college. As their stories show, a higher education may not be cheap, but if you take an active role in the financial aid process, you can afford it.

1. Federal Government
Uncle Sam towers over all sources of aid, providing about $95 billion in funding. When you send in your Free Application for Federal Student Aid, or FAFSA , you will find out if you qualify for these programs:

Federal Pell Grants. These grants go to students demonstrating significant need, typically from families with incomes under $30,000. Award amounts are guaranteed, and the current maximum is $4,050.

Federal Supplemental Educational Opportunity Grants (SEOGs). Ranging from $100 to $4,000 a year, these awards are also for undergraduates with exceptional need. Unlike Pell Grants, this program does not guarantee an award if you qualify?it depends on the availability of funds provided to each school.

Federal Work-Study. This program offers aid in the form of jobs paying at least minimum wage to undergraduates with financial need. The average award is about $1,800. Federal Perkins Loans. These low-interest (5%) loans allow undergraduates with exceptional financial need to borrow up to $4,000 a year. The total amount borrowed during college cannot exceed $20,000.

Federal Stafford Loans. The Stafford is the government?s major loan program. With a variable interest rate that can never exceed 8.25%, these loans offer up to $2,625 for freshmen, $3,500 for sophomores, and $5,500 for juniors and seniors. Although the interest rate while you?re in school is still low (4.7%), it?s gone up about 2% over last year. You can borrow even more if you?re considered financially independent of your parents.

There are two types of Stafford loans?subsidized and unsubsidized. Subsidized loans are awarded based on need, and you are not charged interest while you're in school or in deferment (an official time when you are able to delay repayment for example, if you're unemployed). Repayment typically begins six months after you graduate, leave school, or drop below half-time status. Unsubsidized loans are available regardless of need. However, with these loans, you're responsible for the interest from the day you receive the loan until it is repaid.

Federal PLUS Loans. This non-need-based program lets parents borrow for each dependent child who is enrolled at least half time. PLUS provides an amount no more than the cost of tuition, room and board, etc., minus the amount of aid already received. First payments on these loans must be made 60 days after the final disbursement. The interest rate is currently about 6%.

In the past, you could only take out Stafford and PLUS loans through a private lender, but now you can take out a direct loan if you?re attending one of more than 1,000 schools that participate in the Federal Direct Student Loan Program. If you take out a loan under this plan, the U.S. Treasury is your lender?not a bank. Loans through private lenders are still most prevalent.

Tax Credits. Depending on your family's income, you or your parents may be able to benefit from special tax deductions during the years that you're in college and beyond. The Hope tax credit lets your parents claim up to $1,500 during each of your first two years of college. The Lifetime Learning Credit allows an annual maximum of $2,000 and applies to subsequent years of enrollment. Additionally, the government's student loan interest deduction allows you or your parents to deduct up to $2,500 from your taxes during each of the first five years you repay your loans after college, depending on your income. Also, the government allows penalty-free withdrawals from Individual Retirement Accounts if the money will be used to pay for college. The military offers funding for those willing to serve as well.

2. State Government
When you?re done researching federal resources, look closer to home. Contact your state?s department of education and ask for literature on grants, tuition assistance, fee reductions, and loans. You may have to fill out additional financial aid forms, but most states currently rely on the FAFSA. Many state funding programs offer financial incentives to keep students?especially top ones?within their borders. In Northeast Ohio, for example, 15 state and private colleges have banded together with local corporations to create a program called College 360 (www.college360.org), which is trying to discourage ?brain drain? from the area. In addition, reciprocal arrangements between states often permit students to receive discounted tuition in other, usually nearby states. Although many programs are need-based, several consider academic, military, or minority status. For a complete list of state higher education agencies, visit the Education Resource Organizations Directory (www.ed.gov/ Programs/EROD/index.html).

3. Colleges
Colleges offer a variety of funding from their own financial resources, including grants, scholarships, student job programs, and low-interest loans. Be sure to check with your college?s financial aid administrator to learn about programs you may qualify for. Although some will be based on need, college awards frequently recognize academic achievement or a special talent. Many schools also have dollars to support specific fields of study.

Furthermore, at about 460 colleges, students are able to participate in cooperative education. Through this system, undergrads divide their time between on-campus learning and off-campus earning. Co-op students work at a job related to their field of study and earn course credit as well as a salary, which is typically between $2,500 and $15,000 a year.

4. Private SourcesCorporations, professional associations, unions, religious groups, and other ?private? organizations award scholarships to students based on a wide range of qualifications, including need, heritage, and talent?whether it be artistic, athletic, scientific, or something else. Although these types of awards make up one of the smaller slices of the financial aid pie (see chart above), they can still make college affordable.

Because there are thousands of scholarships out there, finding the ones you qualify for can be a daunting task. For a fee, scholarship search services will hunt for awards that match your qualifications. However, there are many free ways to find scholarship dollars.

Now that you know the fundamentals of the top four sources, intensify your search and double-check your aid offers to make sure you?re getting your fair share.

Source: careersandcolleges.com

Posted by Shawn Augustson, CollegeRecruiter.com on February 5, 2007 at 7:20 PM | Leave a Comment (0)

With a little ingenuity – and a fair amount of hard work – students who don’t have a lot of money can still fulfill their dream of a college education without having to rely so heavily on loans.

Literally thousands of scholarships, fellowships and grants from hundreds of private sector sources are available to help cover the cost of going to college. But while technology has made finding many of those scholarships easier, the application process still represents a major commitment of time and effort. And more than ever, students need to be aware of the pitfalls of searching for scholarships.

The Internet is a great place to start your scholarship research. Websites such as Scholarship Hunter (www.scholarshiphunter.com), FastWeb (www.fastweb.com), Scholaraid (www.scholaraid.com), and Sallie Mae (www.salliemae.com) provide free, online access to a wide range of financial resources.

Another good idea is to check the websites of large corporations. Wal-Mart, K-Mart, and Ford Motor Company are just a few of the major companies that provide significant amounts of educational funding.

While you’re surfing the Web, don’t forget to explore scholarships close to home. Hundreds of organizations send notifications regarding scholarship availability to high schools and colleges each year. A variety of civic groups including the Boy and Girl Scouts, Rotary Club, the Jaycees, religious organizations, women’s clubs, and fraternal lodges such as the Elk and Moose offer awards annually. Your parents’ employer (especially the military) may also have a scholarship program. And speaking of family, the so-called “heritage scholarships” are also worth pursuing. Any organization to which your parents or grandparents belonged may offer scholarships to descendants, even if your parents or grandparents are deceased.

Finding scholarships though is only half the battle. Applying for them requires time, discipline, organization, and a concentrated effort. Here are some suggestions that will go a long way to help ensure the application process is successful:

- Do exactly what you are asked when you fill out an application.

- Keep track of scholarship deadlines and meet them without fail.

- You may find out about a scholarship opportunity at the last minute and have little time to complete the application. To prepare for this situation, be sure to have letters of recommendation already on hand from teachers and others who know your qualifications and write up an “activity resume” in advance. Of course, this will also save time even if you are not facing a tight deadline.

- Use school breaks to research and apply for scholarships rather than during the school term when your schedule is filled with homework and extracurricular activities. This way, you can give the application process your undivided attention.

Finally, be aware of scholarship scams. Many students and their families needlessly pay fees to companies to do scholarship searches when the previously mentioned websites perform this service for free. And, by all means, avoid companies that guarantee scholarships – loans are the only guaranteed form of payment available for college.

# # #

Karen Kendall is director of the Office of Scholarships and Financial Assistance at Hollins University in Roanoke, Va.
http://www.hollins.edu

Posted by Shawn Augustson, CollegeRecruiter.com on February 2, 2007 at 5:27 AM | Leave a Comment (0)