Student Loan Help

For those of who don’t keep up the happenings in the financial aid world…there have been a few changes recently. The Higher Education Act of 1965 was reauthorized in August of 2008, with some interesting amendments within it…keep reading because these changes could affect you directly. 

Tuition Transparency List

The US Dept of Ed is going to release 6 lists annually regarding cost and cost increase in colleges:

1. Top 5% of schools with highest tuition increase in the recent year
2. Top 5% of schools with highest tuition increase in the past 3 years
3. Top 5% of schools with highest net price in the recent year
4. Top 5% of schools with highest net price in the past 3 years
5. Top 10 % of schools with the lowest fees
6. Top 10 % of schools with the lowest net price

The purpose of doing this is to hopefully keep tuition increases from  continuing…school’s obviously do not want appear on lists 1-4, and so hopefully will keep costs down, which will benefit future and current students

Changes in Student AID

1. The Pell Grant max will increase by $400 every year until 2014-2015
2. Convicted sex offenders will NOT be eligible to receive financial aid
3. As of July 1, 2009 a student will receive an automatic $0 EFC if a parent or guardian died in Iraq or Afghanistan after Sept. 11, 2001.
4. The work study program was continued through 2014
5. Community Service now can include helping a community recover from a natural disaster
6. If a student is displaced because of a natural disaster, the college can continue to compensate the student for their “work study”, limited to one school year.
7. Federal Perkins Loan was increased to $5000 for undergraduate students and $8000 for graduate students
8. People who have been convicted of a drug charge, can now regain their eligibility if they pass 2 unannounced drug tests (no word yet on how the gov’t plans on executing this piece of the legislation)

Changes in Need Analysis (how your school determines your aid package)

1. military housing is no longer considered an asset
2. veterans benefits are no longer counted as an asset effective July 1, 2010
3. A FAO (financial aid office) now has the ability to use tax returns from 2 years prior to the school year to determine an aid package
4. FAO’s can now award Dependent students whose parents refuse to fill out the FAFSA or does not help financially for college, the full unsubsidized amount (same amount that independent students get)
5. Students from the Federated States of Micronesia and the Marshall Islands now must have a ssn in order to receive aid for a college.

When you sit down with Mom and/or Dad and make a short list of schools you’d like to visit make sure not to exclude the pricey institutions like I did.

Now you should know I’ve always been conscious of the dollar. My parents divorced when I was three and my mom raised my brother and me by herself with no financial assistance. Funds were tight. We had enough for the bare essentials and nothing more, and that played a factor in my decision making process. I certainly didn’t want my Mom burdened with more debt nor did I want her to feel guilt over not having the financial means to send her son to school. I instead elected to work and attend a community college. And while I’m not saying that was a mistake by any means, I failed to explore all possible options.

What I should have done is apply to all the schools on my wish list, even the 40K per year ones. The rich schools can afford to give out more money, and thus, offer more attractive financial aid packages to lure students in. In many cases the more expensive sticker price ends up being closer to a wholesale price. I didn’t understand how the whole process worked at the time. I didn’t even know what the word endowment meant. By the way for those who don’t know an endowment is funds that are donated to an institution.

So don’t cross schools off your list the first go-around. Put them all on there. Princeton, Stanford, and even a few choice schools overseas if you feel so inclined. Keep all doors open until someone else shuts them. Don’t ever shut any doors on yourself.

Complete your FAFSA and see what kind of financial aid package you qualify for.

If you clicked on this blog I like you already. You are a bargain shopper. I mean why pay full price if you can get a deal? Heck, even millionaires are looking for deals. I once read how country star Shania Twain still cuts out coupons. Her rationale, “Why pay full price if I don’t have to?”

My inspiration for writing this blog is the thousands of college students I speak to each year who can not afford to go to school. A lot of them end up going to work for minimum wage and staying home with Mom and Dad until they’re 35. Now I’m not saying that’s a worthless existence by any means, but some do aspire for more. If you are one of those who reach for the stars than please read on. If you’re not, I bid you farewell as the remainder of this blog is not for you.

Have you ever heard of the Reserve Officers Training Corps (ROTC)? ROTC is a college-based, officer commissioning program that can foot the bill for your ENTIRE college education cost. But in return for them shelling out tens of thousands of dollars there is a non monetary price you must pay in return.

In most cases you will owe that particular branch of the military four years of active duty as a commissioned officer and four years in the reserve after graduation. Until that time you are required to stay fit, take one extra class each semester, and do volunteer work. Also, during a month over the summer you would most likely be required to go away for activities as well.

Additionally you may be required to wear your military uniform on campus one day per week and avoid the weekend keg parties to uphold the values of an ROTC recruit. This route is not for everyone but desperate times call for desperate measures. You have to think outside that box sometimes to get what you want.

Of course you may be able to land a sweet scholarship or two as well and avoid this path altogether. We have a comprehensive list of scholarships you may qualify for (click here to view). We also give away thousands of dollars each month to students just for signing up at scholarshippoints.com. It doesn’t cost you a dime and you could stand to win some benjamins.

As Tim Gunn from Project Runway says, “Make it work!”

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