1. The first mistake parents make is assuming that the Award Letter your child receives is set in stone because too much is still in the air at the time the awards letters go out. Many students will end up going to other schools leaving money on the table. Schools will have vacant seats and may be willing to sweeten the deal to fill their classrooms.

2. Many parents and students do not understand the "Early Decision" process. The early decision process is often binding. Your child agrees to the commitment if the college accepts your child with an adequate financial aid package. The school knows by this action, that they have no competition. This does not put you in the best position for cutting the best deal.

3. It is a big mistake not to develop a great relationship with the Financial Aid Officers at the potential schools. Financial Aid can be subjective. The Director is able to make adjustments and can use professional judgement to change items taking into account your current financial situation. So document your expenses and notify the financial aid office of any special circumstances as they occur.

It is now as important as ever to be very wise in our financial commitments. Understand how the college financial aid system works and allow it to work for both you and your student.

Article by, College Parenting Expert, Dr. Debi Yohn, whose advice on successfully getting college students through college with an emphasis on graduation and rewarding employment is sought by parents from around the world. Now for the first time, she reveals 27 Winning Strategies for Success - a guidebook geared to parents of new college students. Get her free e-Book now at http://www.collegeparentsadvice.com/ and improve your child's chances of a successful college experience.

Posted by Candice Arnold on April 29, 2009 at 7:22 AM | Leave a Comment (0)

You've finished college and now that your student loans are due, you're in more financial difficulties than ever. So as a student in financial trouble, you need help. Can you get financial aid for paying back student loans?

The truth is, no. It doesn't exist. But you do have some options, and there is some financial help available from the department of education as well.

If you're having trouble paying off student loans, one of the basic options is consolidation. If you want to play this card later, you can get through temporary financial difficult by deferring or forbearing payment. Stafford loans offer deferments but some private lenders do not; they are generally granted for unemployment or other economic hardship, or if you are still studying.

During deferment, you can either pay the interest only, or you can capitalize the interest, adding it to the total debt and paying interest on the interest after the deferment period. If your loan is subsidized, the government pays the interest during the deferment. If your loan was a need-based subsidized federal loan, you will receive help in this form if you have trouble paying back your loan.

Lenders may or may not allow a forbearance due to extreme circumstances. Generally they last 12 months, and interest continues to accumulate in every case.

Avoid defaulting a student loan. You can lose access to financial aid or social security services, your wages can be garnished, your tax returns withheld, and your professional title suspended or revoked. Continue reading ...

Article by, Adam Hefner and courtesy of Associated Content, Inc.

Posted by Candice Arnold on April 17, 2009 at 10:57 AM | Leave a Comment (0)

Financial Aid for College Students

The answer to the question "how much does financial aid cover" will vary on the amount that you received from the financial institution you accepted, where you are going to college, if you have any scholarships, how many hours you are taking, if you are attending an instate or out-of-state college, and the cost of classed per credit hour. If you are a first year applier for financial aid for college, the amount you will receive will be approximately enough to cover 15 to 18 credit hours. In layman terms, about $2000 for both semesters.

The college you have chosen to attend will split the financial aid in half to cover both semester. The reason this happens is because when you filled out the forms for the financial aid, you are doing it for a spring or fall term. The semesters are broken down into a school year like when you attended public schools.

You will then need to look at whether you are attending a community college, a public style four year college or a private college. Community colleges will have lower tuition fees per credit hour than the other two styles of colleges. The midlevel state colleges will have higher tuition fees than a community college. State colleges, such as Kansas State University, will have higher tuition fees than the other two styles of colleges. The accreditations for each of the colleges will vary slightly with each other due to the curriculum and actual setup of the colleges. Continue reading ...

Article by, Karen Barnes and courtesy of Associated Content, Inc.

Posted by Candice Arnold on April 17, 2009 at 10:50 AM | Leave a Comment (0)

This just in: more bad news from the front lines of the recession. According to the U.S. Department of Education, the student loan default rate has climbed from 4.6 percent in 2005 to 5.2 percent in 2006 to a preliminary figure of 6.9 percent for 2007. The 2007 rate is based on recent grads who began repaying their loans between October 2006 and September 2007 and defaulted before October 2008.

Of course, the recession is to blame:

The new rates "are from the early recession period, so that is the likely explanation for the increase," Robert Shireman, a senior adviser to Education Secretary Arne Duncan, said in a statement.

So how can current and future students sidestep these sad loan statistics? Some tips on avoiding loan default:

>> Consolidate your cashola.
Consolidating your student loans enables you to combine all your loans into a single loan so you can reduce your number of monthly payments. This makes repayment more manageable and it can also lower the amount of your monthly payment.

>> Make a new plan.
You can also lower your payments by changing your payment plan. Extended repayment, for example, enables those with more than $30,000 in student loan debt to lower their monthly payment by extending the loan over 25 years instead of 10 years. Other options include graduated, income-contingent, income-sensitive, and income-based repayment.

>> Defer the question.
Deferring your loan just means postponing payment. The nice part is that if you have a subsidized Direct Stafford or Consolidation loan, the government will pay the interest while the loan is in deferment. For all other loans, unpaid interest capitalizes (is added to the principal balance) when you enter repayment. There are several types of deferment, including programs for current students, military personnel, and new parents. Click here to determine your eligibility for deferment.

>> Grin and forbear it.
Forbearance is an arrangement to postpone or reduce your monthly payment for a specific period of time, during which you are charged interest. You may request forbearance of principal, interest, or both. But even if you receive a forbearance of interest, it will continue to accumulate and it will be capitalized when the forbearance ends. Click here to determine your eligibility for forbearance.

And the most vital tip for avoiding loan default:

>> Communicate your concerns.
Lenders will do everything in their power to help you avoid defaulting on your loan - as long as you keep them in the loop about your financial situation. Contact them at the first sign of trouble, and you can make arrangements to keep your loan (and your credit rating) in good standing.

Article by, Robyn Tellefsen and courtesy of CollegeSurfing Insider.

Posted by Candice Arnold on April 15, 2009 at 4:37 PM | Leave a Comment (0)