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Attending college means an increased chance of finding a good paying entry level job after graduation, but more and more students are finding it difficult to afford college. Financial aid has been a way for many college students to attain a degree, but some recent changes have reduced the financial aid packages for some families. Most states saw their state allowance for financial aid from the federal government drastically reduced.

The biggest affect of these changes has been inflicted upon middle class families. The biggest impact for some students in terms of financial aid would be with their Pell Grant awards. Some students would see decreases in their awards and some would lose their allocation entirely.

Many college students are turning to alternate ways of making money, such as obtaining paid internships and co-ops. These internships and co-ops not only provide some income for the students, but also help them to get real world experience, which will prove valuable in their job searches when they graduate.

College students have also found that even unpaid internships provide great dividends. As they conduct their searches for entry level jobs, a lot of recent graduates have seen that the experience they gained from their internships helps them secure the best, highest paying jobs in a competitive market.

Recent graduates of today face more challenges than graduates from the past decade, thanks to the downturn in the economy. Reduced financial aid packages will make it tougher for future graduates to repay student loans. Fortunately, schools like Harvard University and the University of California system are doing what they can to ease the financial burden of higher education.

Article by freelance writer


Many families would not be able to afford to send their children to colleges without financial aid. Usually, the government and separate private and public organizations award financial aid to students, known as federal aid and private aid, respectively. Students are generally considered for grants and scholarships, but if you wish to apply for a student loan or a work-study or service program, you must indicate it on the applications. Grants and scholarships award a certain amount of money to students, which the student doesn't have to repay. Student loans, on the other hand, award a student a certain amount of money that accumulates interest over a period of time, depending on the type of loan; the student must then repay the amount of the loan plus the interest after college. If none of these financial aid options seems appealing, there are two other ways to pay for college. The work-study and service programs both help students attend college for little to no price if the student works while attending school or participates in a service program during or before attending school. For more information on the different grants, scholarships, and loans, and for the schools and organizations that participate in work-study and service programs, read the informational articles in this section. Continue reading ...


Richard Hemby is a writer who regularly writes about online degrees and college related topics for Online College Guru, an online college directory and comparison website.


Hi All,

I was contacted by a blog UniversityOnline.org because they thought their article entitled "Top 50 Free Websites to Look for Scholarships" would be of interest to my readers. Their blog focuses on resources to obtain an online education, but this article is not specific to scholarships for online educational institutions.

Here's the intro to the article and a few of the college scholarship resources on their list. To see the entire list of 50, click here:

Trying to find a scholarship to fund your college education can seem like the equivalent of finding a needle in a haystack. Besides, don't scholarships only go to the super smart, over-achiever types? Not necessarily.

Use these free search tools and website to find lots of scholarships, financial aid and information on applying for scholarships the right way. Sign up for a free email account to use specifically for scholarship searching. It will save you time and headaches if you use a separate email address because you could end up with a bunch of junk emails as you give out your personal information to some websites.

General Scholarship Search Tools

1. FastWeb - Fast Web allows students to search for scholarships based on their year in college, interests, major and region. Not only can students search for scholarships for free, but Fast Web has loads of articles on financial aid, student life and internship opportunities.

2. Scholarship Experts - Scholarship Experts was named "best scholarship search engine" by Forbes in its Best of the Web Review. Fill out the required information and you're on your way to finding a scholarship that fits your needs.

3. College Scholarships.org - College Scholarships.com has been helping students find money for college for free since 1999. The web site also has student loan and grant information available.

4. College Scholarships.com - College Scholarships.com allows students to search for scholarships and review scholarship essay samples for free.

5. Scholarships.com - Search for over 2.7 million scholarships with Scholarships.com's free search tool. Or students can create a profile and have matching scholarships and grants sent to them from the database.

6. College Board: Scholarship Search - College Board allows members to access, save and compare scholarship information from its database. Just sign up for a free account and start looking for free ways to fund your education.

They list 44 more in the article, so check it out!

Bye for now.


Lisa Orell.jpgArticle by Lisa Orrell, Millennial & Generation Relations Expert and courtesy of Lisa's Generation Relations Blog


Student loans are debt. While this may seem to be self evident, many young people tend to regard student loans as a nuisance left over from their student days. These loans are lightly regarded until it is too late, and their credit standing has been compromised. For the recent graduate, it is wise to assess the total accumulated debt from college and establish a plan to repay it quickly.

Although the combined amounts of the student loans can be astoundingly huge, the government who backs the loans tends to make even the largest loans manageable for the borrower. The good news is that most college graduates are able to find decent jobs and have little other debt to contend with at this point. This means that with another couple of years of tight living, most of the student loans can be eliminated.

See if any government programs exist in your field to reduce or write off student loans.

Jobs that deal in social areas like education, often have programs that target them to help pay off student loans. Usually, these programs require the young worker to stay in the field for about 5 years to reduce the loan to zero. A percentage of the loan becomes a write off each year and no payments are required during this time. Many times, loans of $10,000 to $20,000 can be repaid in this fashion. Continue reading ...


Article by, Allen Teal and courtesy of Associated Content, Inc.


The ceremonies are over. The cap and gown is hanging in the closet. The parties are done, too.

What isn't over is repayment of perhaps tens of thousands of dollars of student loans. And if you're a recent grad without a job in hand, it's a huge reality.

Washington Post financial columnist Michelle Singletary suggests that new grads should do just about anything they can to start paying off those loans. This means downsizing that cell phone contract when it's up for renewal, getting a roommate, moving back home or even taking a second job if you're already employed.

But what if you have no income? Singletary says that graduates who even suspect that they'll have difficulty repaying their student loans should get in touch with the respective lenders right away to discuss their dilemma. The options vary according to whether the loans came from Federal or private sources.

Many students who graduate without a job offer in hand are tempted big time to go directly to grad school. Singletary states that this is in most cases a bad idea because advanced degrees don't guarantee big salaries. Students who borrowed to finance an undergraduate education will most likely have to do so to finish a graduate program, incurring tons of additional debt in the process. And with the tightening of criteria for student loans, they might not even be able to borrow more money. Continue reading ...


Article by, Vonda Sines and courtesy of Associated Content, Inc.


I have a wonderful friend who offers the most complete information on college loans, Steve Sterling of www.mycollegecalendar.org He wrote me the following when I asked him a personal question... Where does a young person start, especially a student interested in the teaching profession? So, here is Steve...

First, here's a summary table of available loans:

http://www.mycollegecalendar.org/explore/pdf/student-loans-summary-table.pdf. This summary table is up-to-date for the 2009-2010 academic year and is a good starting point for understanding loan options. Another helpful summary table published by the Feds is http://studentaid.ed.gov/students/attachments/siteresources/Loan_Programs_Fact_Sheet_04_2009.pdf.

Your student should pursue the Federal Gov't. Loans first (of course!); they have the best interest rates and repayment options. IMPORTANT: the student probably will have to enroll at least as a half-time student (minimum 6+ credits each semester) to be eligible for the loans (check the loan eligibility criteria). The student also should research loans/grants/scholarships given by his/her state gov't (To find a state agency go to: http://wdcrobcolp01.ed.gov/Programs/EROD/org_list.cfm?category_ID=SHE ).

Regarding private loans, the largest (and easiest to use) lender for private loans is Sallie Mae ( http://www.salliemae.com/ ). Also, your student should call the financial aid office at the college he/she will attend to ask for a list of preferred private lenders and ask for suggestions/advice.

Also, your student may be eligible for future teacher-type grants from the Feds ( http://studentaid.ed.gov/students/attachments/siteresources/Grant_Programs_Fact_Sheet_04_2009.pdf ).

Lastly, if your student is planning to enroll in college in fall 2009, he/she should immediately complete the online FAFSA ( http://www.mycollegecalendar.org/explore/seniors/FAFSA-get-started.aspx). If he/she doesn't complete the FAFSA he/she won't be eligible for government (Federal and State) loans.


Dr. Debi Yohn.jpg 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.


According to the U.S. Census Bureau, the population of non-traditional students on college campuses was 40.9% totally 6.2 million students. A non-traditional student is one who is at least 24 years of age; normally between the ages of 24 and 69. They are married and single and many of them are parents! Some have been to college before, left and are now returning after a number of years; others went straight into the workforce. A new group of non-traditional students are popping up on college campuses all over the country. Those are the students are attending class alongisde their children!

I am one of those in the new classification. I am a junior, my youngest daughter is a freshman. I am pursuing a degree in Advertising/Public Relations,as she majors in Early Childhood Education. I want to go on and get my Master's while she wants to teach Kindergarten after graduation. I have a Pell Grant and she doesn't.

What?

Lauren lives on campus, her dad and I support her, and pay for the portion of school that her scholarships don't. Yet, I receive Pell money and she doesn't. It makes no sense to me, but this is the way that the system was set up.

The first thing you must do is fill out FAFSA (Free Application for Federal Student Aid) which is required for all students seeking any kind of financial assistance for higher education. One of the steps to this process is to figure your Expected Family Contribution. It asks for your student status: Are you full or part time? Are you dependent or independent student? Then it asks for your family size and wants to know how many are in college.

At this point, it says "Parents are not included in the college figure but instead must contact the school for a professional judgement review." Seems simple enough, yet, I've not spoken to anyone who has ever come out on the positive end of a professional judgement review. We certainly didn't. Continue reading ...


Article by, Paula Carpenter and courtesy of Associated Content, Inc.


The forms, applications, and documents that are required by financial aid offices can seem endless, and the process at times impossible. And unfortunately, it is something you get to deal with every year during school. When your frustration level rises, though, try to remember that the point of it all is to provide you with an opportunity that you could not otherwise afford.

To start you off, here are some tips to make applying for and dealing with financial aid as painless as possible:

What Can I Do Early?

File taxes early! The sooner you get them done, the sooner you can complete your applications for the year.

File your applications early! Although in most cases it does not hurt to submit your applications nearer to the deadline, many schools have penalties (which can add up to hundreds of dollars) for late or incomplete applications. It's pretty common to have documents disappear or to discover a missing signature on a form, and sometimes it can take the school or processing company a while to catch these things. If you get everything in early, you will still have time to correct any mistakes they find or to re-supply information that may have gotten lost in the shuffle.

Hang on to any and all important financial documents throughout the year and put them in one safe place. This will save you countless hours of searching through piles and drawers when the time comes to file the FAFSA. W-2s and your most recent pay stubs are a must, as are any papers linked to filing taxes. If you itemize your deductions, any receipts or tax write-offs will come in handy, and so will medical bills and financial records. You will probably be required to submit copies of many of these documents as well, so keep them easily accessible in a pre-determined place such as a file cabinet for when the time comes. Continue reading ...


Article by, Unigo and courtesy of Associated Content, Inc.


One thing about a bad economy it makes a lot of people rethink their situations. A lot of people will sit down and reassess their goals and objectives. One of the options people have is returning to college. We are seeing college enrollments up at just about all colleges. If there are no jobs then people want to go back to school and get a degree so that when the economy picks up and employers start hiring again they will be in a position to get a better paying job.

If someone doesn't have a sufficient amount of income to pay for college on their own they will have to look at securing financial aid. To determine if you qualify for financial aid you will probably have to submit a lot of information about your finances and sometimes your family's finances as well. In order to submit your information you will have to fill out an application which is for Federal Student Aid form, (www.fafsa.ed.gov). It can be a lengthy process. Sometimes it can take 45 minutes to an hour. Once you have submitted all of the information the system will let you know if you qualify for federally funded aid. Another thing that will be determined at this stage is the amount of money that you will need to contribute. Continue reading ...


Article by, Melvin Richardson and courtesy of Associated Content, Inc.


A number of talented international students want to pursue graduate studies with financial aid in an American university. The graduate schools in the U.S. can offer financial assistance to only a few students because of limited funds. Educational standards are high in the United States, but education in this country is not cheap. If you are unable to get financial aid - not a loan - from private or governmental agencies in your own country for graduate studies in this country, you have to use your own funds or borrow. The cost of the loan from a bank or other sources is usually very high. So, how do you fulfill your dreams to study in the United States with financial aid? Here are some tips:

1. Scholarships

A few scholarships are available exclusively for international students to fund their graduate studies. Check with the Graduate School of your university for which you wish to apply for more info. Contact The Office of International Student and Scholar Services also in the university for scholarship details.

The amount you will receive varies from scholarship to scholarship. It could range from a few hundred dollars to several thousand dollars. Some scholarships may cover the entire cost of your graduate education. Scholarships are competitive. You may get a scholarship on the basis of, among others, your undergraduate performance. Find out the requirements and deadlines, and apply early. You may want to check out internationalscholarhip.com for a list of scholarship opportunities.

2. GRE Scores and Financial Aid

If you want to attend a graduate school - with financial aid - in the U.S., score as high as possible on the GRE. You have to prepare for the test at least three months before you take the examination. A higher score on the GRE means you have excellent potential to get a financial assistance. These are usually in the form of research assistance (RA) / teaching assistance (TA). With a RA/TA, you get out-of-state tuition waiver too. Keep in mind that both the Graduate School and your Department consider your academic performance also to grant financial aid. Continue reading ...


Article by, neemtree1 and courtesy of Associated Content, Inc.


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.


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.


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.

Continue reading "Student Loan Defaults Increasing - Whose Fault?" »


Hiring is expected to be down in 2009 and chances are, the number of students enrolling in four-year colleges and universities will be down, too. College tuition goes up every year and student loans are getting harder to come by. Savvy parents, who have very young children, are taking advantage of 529 savings plans and programs like UPromise to prepare for future college expenses.

Parents whose children are already in college or hoping to attend within the next few years have options, too. Although FAFSA is always the best place to start, parents can also apply for PLUS Loans through other sources. These loans are great if you can get them because they aren't based on income. There's no such thing as having too much money to qualify. But great credit history is must, I'll bet.

Private student loans are another way to pay for college, but are likely to be tougher to get in the wake of recent mortgage foreclosures and job layoffs. Private lenders will probably want concrete proof that their money will be repaid.

Sites like NextStudent.com have advice and resources that can help parents, students and recent graduates to understand where and how to get the money they need to pay for college.


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.


Federal v. Private

Before we even look at the difference between these two types of loans, let's set the record straight: federal loans (which come from, or are guaranteed by the government) are your best option when it comes to student loans. Private loans - known as "alternative" loans (which come from private lenders or banks that are not guaranteed by the government) should absolutely be your last resort!

Wondering why?

The basic answer shows up in dollars and cents: federal loans generally have lower interest rates than private ones and have a fixed rate rather than variable. This means you will likely pay less for the same loan amount when you pay it back. Nice right? Another reason federal loans are a better option is that they have a lot more built-in protections for you (the borrower) than private loans do. (For example, a check the government sends you is less likely to bounce!) Continue reading ...

Article by, Athlon and courtesy of Student Loan Consolidation Rebate


You just graduated college and are eagerly looking for your first job in the real world. It's important to recognize that you already have some real world issues to contend with - your student loans. Interest rates have been on a steady rise over the past four years making this a very real problem for recent college graduates. The good thing about student loans is that you have a lot of control over making your repayments. Here are five tips to consider as you start to take ownership of your college education by tackling the mountain of debt you now find yourself buried under:

1. Measure all your debt. It's important to map out all your loans and other areas of debt before you start making repayments. If you have credit card debt that is accruing interest at a rate of 17 percent versus a student loan that carries a 7 percent interest rate then it's important that you knock off as much from your credit card debt as you can. While you're dealing with your credit card debt it's wise to pay the minimum on your student loans.
2. Tack on a little bit each month. If you can add even $20 to your monthly loan payments you'll be much better off in the long run versus consolidating your loans. Prepaying will help limit the amount of interest you'll wind up paying over the life of your loan.
3. Open up the competition. With recent legislation passed that no longer requires you to consolidate your loans from the same lender that originally serviced your loans; you can shop around for the best deals out there. This allows you more freedom in finding a company that will make your payments lower.
4. Is the grace period a friend or a foe? The six-month grace period where you don't have to make any payments until six months after you graduate can be awfully enticing. However, if you have a chance to lock in a lower interest rate while you're still in school you should jump all over the opportunity even though it means you'll lose the six-month grace period and will have to start making your payments right after graduation.
5. Look around for discounts. There are repayment discounts out there for the taking. Some companies will set up a plan where if you meet your first so and so payments on time you'll receive a discount. Other companies will knock off some of the interest rate if you make your payments online versus mailing in a check each month.

Article by Heather Johnson, who writes on the subject of teaching certificate. She invites your feedback at heatherjohnson2323 at gmail dot com.


As much as you may hate to believe it, having bad credit can actually keep you from attending the school of your dreams. Lenders are more reluctant these days to offer student loans to someone who has a bad credit history. So if your credit score is under 600 and you're hoping to get a loan for school, you might want to look into a credit repair service.

Help is available, if you're willing to pay a modest sum. Credit repair can be achieved free of charge through credit counseling services but they won't go to bat for you with your creditors the way RepairYourBadCredit.com will. For almost half the going rate of about $500 dollars for one year of service, you can have your bad credit repaired within three to six months.

RepairYourBadCredit.com is so certain they'll improve your credit rating by the time their finished that they offer a money-back-plus-$50-dollars-for-wasting-your-time guarantee. It sounds like a winning proposition. You won't be as out of pocket as you would if you went with one of their competitors, and you'll see results in less than half the time. Plus, if their credit repair services don't yield positive results, they promise to give you your money back plus an extra $50 dollars for your trouble. They kind of sound like the Proactiv of credit repair. What have you got to lose ... except a chance to attend the college of your dreams?


Provided By: Associated Content, Inc.

Student Loans

With the rising cost to attend college, and the recent cuts in government funding, many students currently in college or about to attend have a big decision to make. They must decide how they will fund their college tuition and books if they are not awarded enough scholarships or grants.

For some, student loans represent a necessary "evil".

Continue reading "Student Loans - What They Are and Why You May Need Them" »


Provided By: Associated Content, Inc.

With the cost of higher education on the rise across the United States, and Federal assistance rates not rising to match, the question of where to get money for college has become a very real concern for many students in the 18-23 age bracket, the bracket which is still required to claim Mom and Dad's income on their financial aid applications.

Continue reading "The World of Private Student Loans" »


Provided By: Associated Content, Inc.

If you are considering going to a college and money is a problem you may be eligible to apply for financial help. You can apply to get free or inexpensive money to help you get that college education.

Continue reading "How to Apply for Scholarships, Grants and Student Loans" »


Provided By: Associated Content, Inc.

College Loans Often Do Not Have to Be Paid Back Until After You Graduate, so You Can Hold Off on Paying for Your Education Until Your Education Starts Paying Off with a Great Job.
Make Your Education a Reality

College is expensive. If you are looking to attend a college or university, then you may also need to look into your college loan options.

Continue reading "Paying for College: Getting a College Loan" »

Find Out If You Qualify to Get Your College Education Subsidized by the Government
Provided By: Associated Content, Inc.

Start getting ready for college while you are still in high school, towards the end of 11th or the beginning of 12th grade. The URL (web address) is: www.fafsa.ed.gov. FAFSA stands for Free Application for Federal Student Aid, and is a must for any student looking to get financial aid for college.

Continue reading "Paying Your College Expenses" »

Are you ready to take your education to the next level? If so, graduate school is probably the next big step in your future. Grad school is an enormous commitment, but the rewards are just as tremendous. There are many reasons people choose to go back to school to get a graduate degree. For some, the lure of increased knowledge is enough. For others, the opportunity for personal fulfillment, career mobility and increased finances draw them back to academia. According to recent surveys done by the National Center for Education Statistics, Americans with a graduate degree earn an average of 35% to 50% more than those with only a bachelor's degree. Sounds great, right? But you're probably wondering how you can afford another degree. Don't let tuition be an obstacle to achieving your goal. There are a variety of government and private loans, as well as scholarships available to help you finance your education. Read on to discover some of the best ways to fund your graduate schooling.

Continue reading "Dollars for Grad School" »

By Don Rauf

Student loans can be a great financial tool - if you handle them the right way.

Waiting tables and working for a surveying firm helped David Hilmer attend college at the University of Wisconsin, Madison. But while the money he saved was a good start, it wasn't enough. "After about a year and a half, I was scrambling - wondering how I was going to cover my dorm expenses and tuition," he recalls.

Now working in Connecticut as a senior account executive for a computer consulting firm, Hilmer looks back and says that student loans (a federal Perkins, Stafford, and a university loan) enabled him to graduate.

With the cost of a college education escalating every year, students are relying more than ever on loans to help make ends meet. Two-thirds of undergraduate students graduate with some debt, according to the National Postsecondary Student Aid Study, conducted by the National Center for Education Statistics and the U.S. Department of Education.

Continue reading "Financing Your Education: The Lowdown on Loans" »

With the rising cost of education, many students rely on loans to help finance their education. While student loans are a good option for those in need of financial assistance, it can also create an overwhelming amount of debt.

After graduation, students not only face the pressure of finding the perfect job, they also begin to fully realize the financial burden of their student loans. Regardless of whether or not they finish their education or find a job after college, their loans must be repaid.

Continue reading "How to Avoid Debt After Graduation" »

Paul SiminoIt is always nice to see your clients doing well so I was thrilled to learn that Paul Simino is a finalist for the Ernst & Young Entrepreneur of the Year® 2007 Award in the Florida region. Paul is President & CEO of OneSimpleLoan®, a national student loan finance and consulting firm specializing in student loan consolidation.

According to Ernst & Young, the awards program was designed to recognize outstanding entrepreneurs on a regional, national and global level who are building and leading dynamic, growing businesses. Paul was selected as a finalist from nearly 100 nominations by a panel of independent judges. Award winners will be announced at a special gala event on June 21, 2007 at the Gaylord Palms Resort in Orlando.

In the four years since Paul founded OneSimpleLoan in 2003, the firm has grown from less than a dozen to more than 170+ employees and along the way has helped thousands of college students better manage their Federal student loan debt through consolidation.

Paul, the entire staff of CollegeRecruiter.com congratulates you on your remarkable success and wishes you and your team all the best. Kudos!

As seen in the news lately, student loans have a huge impact on young people’s lives. Finding the right loan or consolidation plan while being targeted by multiple lenders, not all of them honest, can lead even straight-A students to throw up their hands in confusion. A recent survey revealed that less than 15% of graduate professional students could identify the best loan for their financial needs. This is statistically worse than a random guess, and is at the heart of the need for transparency, analytical tools and a way for students to make real comparisons.

Continue reading "How to Find the Right Student Loan Consolidation Plan" »

Looking for a way to pay for your college education? Stafford Student Loans are the most widely sought after education loans sponsored by the federal government because they're a great, low-cost way for you to obtain the extra aid you need in order to meet college expenses.

Hey gang, it's been a few days, owing to a few technical issues here and there, but no worries, we're back in the game. Here's what you missed over the past couple of days:

1. Student loan consolidation controversy! It seems that some lenders are using delaying tactics to avoid releasing student loans to consolidation companies, like returning payoff statements with chewing gum stuck to them or with nothing on the statement except a coffee stain. The tactics are ethically questionable, but technically NOT illegal. Has this happened to you? Let me know - leave a message in the comments or email financialaidpodcast at gmail dot com.

2. On Tuesday's show we talked about money saving tips for college students. Among the tips: joining a credit union can potentially save you hundreds of dollars in pointless fees from major banks, and chances are your school has a credit union. Ask if students are eligible to enroll. Find a credit union near you with the NCUA finder! Other tips include actually showing up at class, because you're paying a hefty amount per hour.

3. Yesterday we touched on what warning signs often come with a scholarship scam. Among them - receiving unsolicited offers of scholarships, sites that have no WHOIS registration information, ANYONE asking you to pay money for a scholarship, and scholarship ID theft schemes where they ask you for sensitive information like your SSN or date of birth.

4. In today's show we answer listener questions, including whether you can get a student loan as a non-traditional student for child care and other related expenses. The answer? Yes, you can. Private student loans can be used for anything up to the cost of education, and that includes child care, food, living expenses, rent, even babysitting.

It's good to be back!

Check it out at:
The Financial Aid Podcast Web Site

If you have iTunes, visit:
FinancialAidPodcast.com/itunes

As always, please contact me with any feedback, either here, on the show, or on the phone.

Figuring out what you can borrow for student loans can be tricky, particularly if you're still in school, or not even to college yet. Choose right, and you'll be able to enjoy a comfortable standard of living after college, pursuing the life path you want. Choose wrong, and you get crushed by debt, or you don't go to/finish college. How do you determine what is a reasonable amount to borrow?

Work in reverse. Debt has to be paid off, so figure out how much debt is sustainable. Most financial planners advocate not exceeding 10% of your net income for debt service, so that's a good number to remember. What you can pay is of course dependent on how much money you make.

Statistically, college graduates average a starting salary around $30,000 per year. This is highly dependent on where you live, the cost of living, etc., but $30K for liberal arts, up to $50K in medical and technology fields seem to be about the national norms.

Let's work backwards now. From gross pay, we're going to write of 1/3 of the salary to taxes and mandatory deductions (social security, etc.). Yup. Uncle Sam takes that much. Here's the result, your NET income after taxes:

$30K gross: $20,000 net
$40K gross: $26,700 net
$50K gross: $33,300 net

Now, divide each by 12 and you get your net monthly income.

$30K gross: $20,000 net = $1,666/month
$40K gross: $26,700 net = $2,225/month
$50K gross: $33,300 net = $2,775/month

Okay. Now, let's assume you are free and clear of all other debts (credit card, auto, etc.) at the time of graduation and you just have student loans. You can now afford to make the following maximum payments at a 10% debt service to net income ratio:

$30K gross: $20,000 net = $1,666/month = $166/month
$40K gross: $26,700 net = $2,225/month = $223/month
$50K gross: $33,300 net = $2,775/month = $276/month

Today's federal student loan interest rates are 6.8% for Stafford Federal Student Loans. Based on this, we can use a student loan consolidation calculator in reverse to see the maximum amount of money you can borrow at 6.8% with and without consolidating your federal student loans.

$166/month = $14,424 if you don't consolidate, $18,700 if you consolidate
$223/month = $19,378 if you don't consolidate, $29,213 if you consolidate
$276/month = $23,983 if you don't consolidate, $39,765 if you consolidate

The higher your estimated income at graduation is, the more you can afford to borrow, and if you consolidate your federal student loans upon graduation, you will be able to borrow more. This is a pretty good methodology for figuring out how much you can afford to borrow - and a good example of how overborrowing can limit your career choices to jobs that can pay for your student loans.

For more information about student loan consolidation, visit StudentLoanConsolidator.com on the web.

Today's show answers listener questions and has followups about using federal student loans to pay off private student loans.

Kimberly writes: Yes, the federal loan can replace the private loan, and in most cases, aid administrators would reduce the private loan if adding the federal loan made the student have an overaward. We have one student who does this every year, but our costs are so high that she doesn't totally pay off the private loan. She does end up with a smaller private loan at the end of the year since her federal aid covers some of what the initial private loan covered. It all depends on the cost of attendance, the student's grade level and the directly billed costs. Make sense?

Gerrie writes: Usually the alt loan has to be taken into account in the cost of attendance. However if the cost of attendance is high enough that the student can take out the max Stafford as well as the amount of alt loan already borrowed, what that student does with the funds disbursed to him or her is up to them. As long as the student has maintained enrollment, you can retroactively award fall (taking into account the alt loan as a resource). However, if the COA is low enough it's possible that the earlier alt loan could impact the total Stafford borrowed.

Check it out at:
The Financial Aid Podcast Web Site

If you have iTunes, visit:
FinancialAidPodcast.com/itunes

As always, please contact me with any feedback, either here, on the show, or on the phone.

There's been a lot of controversy recently about private student loans and their role in the financial aid process. Charlie Miller's Commission on the Future of HIgher Education recommende scrapping federal student loans like the Stafford Loan in favor of private student loans. The Project on Student Debt says he's headed 180 degrees in the wrong direction. In today's show, I talk about:

+ What a private student loan is
+ Where to get one
+ When to get one
+ When NOT to get one

The short version: private student loans are ideal for bridging the gap between what aid you've received and what's left to pay for. They're not a good first resort simply because their rates are higher than federal student loans at the moment, and certainly they're much less appealing than scholarships and grants.

Private student loans come into play if you don't qualify for federal financial aid, or the aid you get isn't enough. Line up as many scholarships as you can, get as much grant aid as you can via the FAFSA, get your federal loans, and then get private loans.

Check it out at:
The Financial Aid Podcast Web Site

If you have iTunes, visit:
FinancialAidPodcast.com/itunes

As always, please contact me with any feedback, either here, on the show, or on the phone.

I talked yesterday with an LJ Blogger whose private student loan had been turned down, and she was inquiring what to do, who to apply with next. Before she did, I made some recommendations that are vitally important.

First - find out WHY you were declined before you do anything else. Remember - applying for a loan, any kind of loan, takes a bite out of your credit score. The more loans you apply for, the lower your credit gets. Why? Because it's assumed in the FICO formula that the more loans you apply for, the more desperate you must be - and therefore, a higher risk. Higher risk = lower credit score.

In this case, the borrower's cosigner, her grandfather, was the reason for the decline. Read more...

Continue reading "What to do if your student loan is declined" »

I've been talking today with a listener about credit-based private student loans, like the ones at AlternativeStudentLoan.com, and reminded her that every time you apply for a loan somewhere and you're declined, it's a ding against your credit rating. Make sure you've got your house in order first - all your information gathered, a cosigner who is credit-worthy, etc. before you apply, so that you maximize your chances of qualifying for the loan. If you don't, then each successive loan application is less likely to be approved because your credit score is declining.

If you haven't already, be absolutely certain your credit is clean with a free report from www.AnnualCreditReport.com (ignore all the ads).

Yesterday's podcast was an interview with Raza Khan from My Rich Uncle - and his take on the provocative, controversial ad campaign his company is currently running.

Check it out at:
The Financial Aid Podcast Web Site

If you have iTunes, visit:
FinancialAidPodcast.com/itunes

As always, please contact me with any feedback, either here, on the show, or on the phone.

A recent article in the New York Times highlighted what many students already knew - that not only was college getting more expensive, but the amount of federal aid available to students is not keeping up with rising education costs

A revision and update to the EFC, or Expected Family Contribution, formula for the 2005-2006 school year translates into an increase in what families have to pay before federal aid can kick in. In the New York Times study (June 6, 2005), the average amount of additional money that families must come up with is $1,749 per year, with some families experiencing increases between $6,000 - $7,000.

Why is the shift of the financial burden moving increasingly towards families? Part of the overall formula for determining federal financial aid is the rate of inflation - as inflation increases, the number of dollars that a family has would be expected to increase.

For example, a family with a household income of $50,000 in the year 2000 would be expected, based on a 3% inflation rate year over year, to have an income of $57,964. in 2005. By that assumption, the family would have more money to spend on education, and therefore federal aid could be reduced.

However, there is a flaw in the formula used to compute federal financial aid, and that flaw is this: the projected rate of inflation which the formula is based on does not necessarily reflect the actual rate of inflation. As a result, the formula assumes people make more money - in some cases, much more - than they actually do.

What is the solution for the increased gap between federal aid and the actual cost of education? Private student loans, such as the Act Education Loan from the Student Loan Network, can help to bridge the gap between federal aid, the actual cost of education, and expected family contribution. Loans such as the Act Education Loan are independent of federal financial aid computations, and are based on the creditworthiness of the borrower, rather than need-based formulas.

Source: ActEducationLoans.com

The single biggest factor that impacts the amount of interest you pay is your credit score. People with credit scores over 750 pay a lot less interest than people with scores of lower than 650. If you can increase your credit score by 100 points, you can pay less interest, pay more principle and get out of debt more quickly. Credit score is a huge factor in who gets richer and who gets poorer in this country.

The little known secret about credit scores.

Continue reading "Student Loan Secrets: Improve Your Credit Score and Pay Off Your Student Loans" »

Two American education loan borrowers and an education loan finance company (OneSimpleLoan of Oldsmar, FL) filed suit on April 18, 2006 in U.S. District Court of the Southern District of New York against the U.S. Department of Education. The suit resulted because of a little known provision in the Deficit Reduction Omnibus Reconciliation Act of 2005, that will on July 1, 2006, terminate the right of middle class Americans to refinance their consolidation loan debts under the Federal Family Education Loan Program, made even worse by the unpublicized and obscurely worded letter of the U.S. Department of Education that terminated those rights three months earlier by bureaucratic fiat.

Continue reading "Will A Lawsuit Resuscitate Reconsolidation of Student Loans? We Can Only Hope So..." »

Tonight's '60 Minutes' (CBS network) will explore Sallie Mae's clout in the student loan industry. Per the '60 Minutes' web site: "Making government-backed loans to college students has become so lucrative for the Sallie Mae Corporation that its stock has skyrocketed 2,000 percent in the last decade. But some students are left swimming in growing debt. Lesley Stahl reports."

Should be interesting viewing!

Next to being born into a wealthy family, Stafford Loans are the most widely sought after education loans sponsored by the federal government. Why? Well, it sure isn't because they're incredibly exciting. Rather, it is because they're a great, low-cost way for you to obtain the extra aid you need in order to meet college expenses. Federal Stafford Loans are an affordable lending alternative to other high-interest financing options that are available.