Many people find applying for, and dealing with, financial aid for college more of an obstacle than a blessing. If you are an average financial aid beginner then this article is for you. It is designed to address some of the challenges of financial aid and provide a clear cut path to success.

So what exactly is Federal Student Aid (FSA) and how does it differ from private loans? FSA programs are administered by both the Department of Education and the Office of Federal Student Aid. The FSA disburses money to colleges to post to student accounts and is not based on the students credit score. Private loans are funds issued by a lending institution, such as a credit union or bank, and are in fact based on the students credit score. FSA cannot be denied unless you have already received the maximum amount for the grade level you are in; private loans can be denied by the lender based on the students credit score.

Stafford loans come in two flavors; subsidized and unsubsidized. Subsidized loans are loans which the government pays the interest on while you are enrolled in school. Unsubsidized loans are loans which the borrower is responsible for the interest on from the date the funds are dispersed. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need and may be used to finance the family contribution. Continue reading about getting financial aid ...

Original article by, DJ Digital Gem and courtesy of Associated Content, Inc.

Posted by Candice Arnold on December 29, 2008 at 11:49 AM | Leave a Comment (0)

Role of Your Financial Counselor in Your Protection

As many college students head off into the next semester of school, there is growing concern over the increased risk for identity theft and fraud as it relates to student loans and borrowing money for college. If you are considering financial aid for college, it is important to become familiar with the risks associated with student loans and borrowing money from independent organizations.

With competition for students, many student loan lending institutions have come up with creative ways in which to attract the student body as borrowers. While most financial institutions offer credible programs, there may be questionable marketing tactics in the process of securing borrowers. To ensure your optimal outcome in borrowing money for school, it is important that you first obtain counseling from your school's financial aid office and only borrow from organizations approved by your school's financial aid officials.

Solicitations mailed to you, offering student loans and financial assistance for school, are not uncommon. While there are some mail solicitations that are credible and offer great resources for funding your financial need, there are some that are questionable. Because many mail solicitations appear to be actual loan documents, it is not uncommon to feel unsure about what documents are truly financial aid related to those authorized by your school and what is considered to be questionable material. Continue reading about questionable student loans ...

Original article by, Christine Cadena and courtesy of Associated Content, Inc.

Posted by Candice Arnold on December 29, 2008 at 7:43 AM | Leave a Comment (0)

One thing I hear a lot about college students is that 1) they never have any money and 2) they use their parents credit cards. I worked full time while I went to school, and many of my classmates had part-time jobs or paid internships, so I don't know how true those two statements are. What I do know is that books are expensive and some students have to pay for their books out of pocket. No one wants to carry around $500 dollars or more in cash; it isn't safe, especially with things the way they are now. Credit cards come with the added burden of fees and interest rates, but pre-paid credit cards don't, and they allow anyone to carry as much as $2,500 safely and securely. Companies like AchieveCard make buying books for school much safer and more convenient.

For students who work or have paid internships, all or part of their paychecks can be direct deposited to their cards so they never have to worry about adding money to them. Plus, there's the added benefit of knowing that once a purchase is paid for with a pre-paid debit card, it's done. No bills will be arriving in their or their parents' mail boxes. No collections agents will call about missed payments. That brings up another good point: Parents can more easily control their children's spending limits with pre-paid debit cards. If they only load $200 dollars onto the cards, then $200 is all their children have to spend. It's impossible for them to exceed their spending allowance, which might help them to learn how to budget their money better.

For safety, convenience and staying out of debt, an AchieveCard pre-paid debit card is the way to go.

Posted by Candice Arnold on December 26, 2008 at 10:30 AM | Leave a Comment (0)