Category Archives: financial aid

college costs, college planning, financial aid

Is it possible? Can it be done? Is it affordable?

My good friend Jeff Sheely over at the College Money Insider created this amazing Infographic about the college admissions process and what it takes to accomplish your goal of attending college.

If you’re a parent of a college-bound teen you may be asking yourself the same question, especially as it relates to paying for the education. You might want to jump over to my blog at CollegeParenting.com (The #1 Question Parents Ask Me) to check out my suggestions and then take a look at Jeff’s infographic to help you visualize the process.

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Copyright © 2011 Student Loan Marketplace
 

financial aid, scholarships

A Review-How to Win College Scholarships

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Being a College Prep Expert at CollegeExpertPanel.com has put me in contact with some other experts in the field of college admissions. This contact has given me the opportunity to once again, give you the BEST information from the BEST sources, helping you to help your student apply to college and get accepted.

When I find a product that can save you thousands of dollars on tuition, I get so excited because I know that you, as a parent, are in need of some financial relief. Let’s face it, even if you have saved and planned, who can’t afford to avail themselves of every opportunity to save money? On the other end of the spectrum, if you haven’t been able to gather a small fortune for college, tools that allow you to finance the education without parent loans are a godsend.

Monica Matthews’ “How to Win College Scholarships: A Guide for Parents in 10 Easy Steps” is one of those godsends. I have read this short, concise book and I can tell you she makes it EASY to hit the ground running, get organized, and help your student find those scholarships. She falls into a class that I like to call “parent advocates”. We are the ones who have done the leg work, succeeded, and want to pass on our parent related expertise to other parents. Monica has done the leg work in the scholarship search process. She found herself in that awkward place with her son–a promising student aspiring to college, and parents who wanted to support that decision financially.

Instead of taking out loans, or going back to work full-time, Monica opted to spend her time helping her son search, find and apply for scholarships. In 10 easy steps, she outlines the process she took, gives you bottom line tips along the way, and provides you with some “out-of-box” tools to help your student stand out with the scholarship committees. She addresses all the aspects of scholarship applications from essays, to recommendation letters, to transcripts, to the application completion and delivery.

The best part about Monica’s e-book is that it’s simple and easy to understand. If you follow her easy 10 step program, the scholarship process becomes doable for any parent and their student. You can sit back and hope that your student does all the work, or you can offer help and support by grabbing a copy of Monica’s book, reading it, and rolling up your sleeves.

Who wins? Your student will win by graduating without debt. You will win by helping your student find and win those scholarships for their undergraduate and online MBA degrees. Once those winning letters begin to flood your mailbox, you’ll be glad you took my advice and added Monica’s e-book to your college admissions library.

 

Grab yourself a copy TODAY–>How to Win College Scholarships: A Guide for Parents in 10 Easy Steps

 

 

college costs, college planning, financial aid

Last Night's FREE Webinar

FOR THOSE WHO ATTENDED (OR MISSED) THE WEBINAR LAST NIGHT

The recording of last night’s webinar is up. This webinar will remain up until February 1st for viewing.

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Tonight is the night that Paul Hemphill, college cost saving guru and parent advocate, teaches you How to Pay Less for College. As a parent advocate myself I appreciate Paul’s keen insight into the parent’s dilemma–Help! How can I send my kid to college and protect my retirement, assets and not go broke in the process?

A sidenote: You know I wouldn’t steer you wrong. The webinar is FREE. You will learn how to look at financial aid differently and learn how to take charge of the process. PLUS, Paul (just for me) is throwing in an amazing FREE bonus at the end of the webinar that you absolutely don’t want to miss out on.

It’s a win-win for you and an hour of your time that will be well-spent.

To go along with tonight’s webinar, I’ve also posted an article (just to wet your appetite): 10 Tips to Cut College Costs

college costs, financial aid

College Helper #4-Jeff Sheely

Even though Christmas has passed and we’re thinking about New Years, I’m continuing my College Helper series because my decorations are still up! And…there are plenty more helpers to add to the list.

Today’s College Helper is Jeff Sheely of Overture Marketplace (who looks quite spiffy in his elf attire). I can’t say enough about the help this guy provides to students and parents of college-bound teens. His “Free Guide to Smart Borrowing” is a must read for every family. His blog is jam-packed with useful information about loans, making wise financial choices, and budgeting during college.  His site is not just another site peddling student loans. It’s a site dedicated to helping parents understand the often overwhelming loan process.  It provides the comparison tool that helps students choose which one is best for them. In fact, it’s the only comparison tool that shows students the actual rates and terms they’ll get from the lenders – everyone else shows “as low as” rates that can be very misleading.

If you’re a parent of a college-bound teen, bookmark Jeff’s blog, his site, and follow him on Twitter and Facebook. He’s a stand up guy offering you the best information about loans to help you make an informed decision.

college planning, financial aid

The Key to Financial Aid Success: Preparation!

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In just under a month, it will be time to file your Free Application For Student Aid (FAFSA) for the 2011-12 school year. The FAFSA is the key to accessing your Federal Student Aid – including grants, work-study and Federal loans – and other valuable financial assistance. Whether or not you think your family will qualify, you should always apply for aid; you might be surprised at the results!

To help you make sure that you do everything necessary to get your college aid, below is a list of tips for preparing the FAFSA for submission. These are just the basics – there’s a much more detailed checklist at the bottom of this post.

If you have any questions, please feel free to reply in the comments and we will do our best to help you out!

Where to File

Starting January 1, 2011, the 2011-2012 FAFSA can filed online or downloaded at http://www.fafsa.gov. Some high schools may also have printed FAFSA forms available.

1. Determine Who Will File: You or Your Student?

The FAFSA is filed in the name of the student – the one who will be receiving the financial aid. You may submit the FAFSA on behalf of your student.

Regardless of who does the actual filing of the FAFSA, the student’s signature is always required, and if the student is considered a dependent, at least one parent must also sign.

2. Determine Dependency Status Ahead of Time

Every student who applies for financial aid with the FAFSA will either be considered a dependent or an independent student. There is a special worksheet created to determine dependency status.

To access the worksheet on the FAFSA website, click here.

NOTE: The current version is for the 2010-11 school year, but there are not likely to be major changes for 2011-12.

3. File Your Tax Returns Early

In order to complete the FAFSA fully, parents of dependent students and students who worked during the past year need to have their 2010 tax return information ready.

4. Gather Documents Before Starting

Filing the FAFSA will be much easier if you have everything together before starting. For the 2011-2012 school year, you’ll need the following documents:

  • Social security and driver’s license numbers
  • Student’s 2010 W-2s and tax returns
  • Parent’s 2010 W-2s and tax returns (if student is Dependent)
  • Bank statements
  • Business financial statements (if student or parents own a business)
  • Citizenship records – alien registration or permanent resident card (if you are not a U.S. Citizen)

5. Use the FAFSA on the Web Worksheet

The FAFSA on the Web Worksheet is a convenient way to organize all of the required information you’ll need to fill out the FAFSA. To access a PDF version of this worksheet, click here. (Note that the 2011-2012 worksheet isn’t available yet)

6. Apply for FAFSA PIN Now

In order to file your FAFSA form electronically online, you will need to sign it. This can be done electronically with a PIN, or you can print, sign, and mail in the signature page which will be provided to you when you complete the FAFSA. Both students and parents need to sign the FAFSA.

See the Department of Education’s FAFSA PIN website for more information.

Questions?

If you start preparing now, filling out your FAFSA on January 1st will be a breeze! If you have any questions or need additional guidance, feel free to reply in the comments below. We look forward to helping you!

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This guest post is contributed by Jeff Sheely, who blogs about financial aid and education financing at Overture Student Loan Marketplace, where students and parents can get information or compare private student loans to make more informed decisions about how to pay for college.

He’s happy to answer your questions in the comments, or you can connect with him on Twitter or Facebook.

admissions, college guidance, college planning, financial aid, parenting

College Access and Opportunity Guide—A Review

The Center for Student Opportunity created the College Access and Opportunity Guide to help low-income and first generation college-bound students make their college dreams become a reality. As a parent, I found this guide informative and helpful in providing direct information about the college admissions process.

There are helpful tips on how to stay involved in the college process without overstepping your boundaries. The guide clearly sets out the steps to take from beginning to end, along with insider advice from college students and other experts. There is clear discussion about loans, scholarships and how to find the perfect fit college. Also included is an excellent section specifically directed towards parents helping them to listen, encourage and how to let their college-bound teen handle the process by guiding them through the process.

But the real meat of this guide is the college specific information. The guide features 284 colleges and universities highlighted for their outreach efforts, financial aid opportunities and student support services. Instead of focusing solely on the numbers, this guide helps students locate and find important programs at each school that can help prepare for college (Access Programs), locate schools that provide financial incentives for admitted students (Opportunity Programs), and support services for college students to help them persist to graduation (Success Programs).

Each of these colleges is committed to supporting first-generation, low-income, and minority students on their campus and in their community. Profiled colleges are included in light of the programs and opportunities they present for this group of students.

If your college-bound teen falls into this group who want to make their college dreams a reality, you should pick up a copy of this simple-to-read and understand guide.

For more information about the Center for Student Opportunity you can visit them on their website at www.csocollegecenter.org.

admissions, college guidance, college planning, college visits, financial aid

My Top Favs from the Top 100

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CollegeScholarships.org recently posted a list of the Top 100 Education advice blogs, of which I am proud to say my Parents Countdown to College Coach blog was #5 on the list. If you’re a parent of a college-bound teen you should take some time to peruse the list and check out the valuable information provided on each of the blogs. Bookmark the page and keep it in your favorites folder for future reference. Some of MY FAVORITES were on the list as well:

9. The Word-Nerd – “I’ve been an SAT tutor off and on for over 10 years,” writes Jenn Cohen, President & Chief Word-Nerd. “My husband, Gary and I started Word-Nerd because I wasn’t happy with what was available to my students for vocabulary prep, so we did it ourselves!  We hit a range of topics from SAT prep tips to college admissions to general rambling about the state of education, all with the aim of not taking ourselves (or college prep) too seriously.” Recommended posts: “Practical advice for choosing a college” and “What does my SAT score mean?”

23. My College Guide –  This entertaining-yet-still-educational blog advises college students on how to prepare for college. Categories include choosing a college and/or a major, college applications and interviews, or transferring to a different school. Recommended posts: “Choosing a College Major You Can Live With” and “The College Letter of Recommendation Is Not My Grandma Thinks I’m Wonderful”

48. College Blogaversity -“I write my blog to take a different twist to what everyone else in my field is saying,” explains Paul Hemphill. “The fact that I have videos with my blog makes my point. Videos are easier to do and easier to receive from the perspective of the viewer. As a result, students will more likely view my message than someone else’s who doesn’t use video.” Recommended posts: “College Double Major: Waste of Effort, Money, and Time” and “Community College – The Vital Alternative.”

73. College Admissions –  Blogger Jeannie Borin, M.Ed, has an extensive educational background having served as counselor, school administrator, admissions director, teacher and curriculum supervisor for over twenty years in both the public and private sectors. Her affiliation with the National and Western Association of College Admissions Counselors as well as the Higher Educational Consultants Association keeps her on the forefront of innovative and current trends in college admissions and education.” She is also the Founder and President of the Los Angeles based independent college counseling firm College Connections, and writes for two other blogs: College Connections and Jeannie’s FYI College Admissions Blog. Recommended posts: “Tips For The College Fair” and “What to Do When Colleges ACCEPT You.”

56. Smart College Visit – The specific goal of this blog is to help college-bound students prepare for their future campus visit. Parents could also find some helpful advice from these articles, which range from academic programs, travel tips, and how to become a successful entrepreneur. Recommended posts: “Women Entrepreneurs on College Visits – 10 Questions to Ask,” “Student-to-Student: Questions to ask on a College Visit” and “Information Overload.”

Thanks CollegeScholarships.org for compiling such a great list!

college costs, college planning, financial aid

Understanding SAFRA



The college tuition system has been turned upside down now that the Student Aid and Fiscal Responsibility Act (SAFRA) is law. The Student Aid and Fisc-huh?!?

SAFRA is legislation President Obama tacked on to his infamous health care reform bill.

“The White House succeeded in not only getting the health care bill passed, but in making a huge change to the college loan system,” says Eric Yaverbaum, education expert and author of Life’s Little College Admissions Insights. “It’s gone largely unnoticed because it’s seemingly unrelated to the blockbuster changes in the health care industry.”

There’s been some controversy surrounding the issue of combining student aid reform with the seemingly unrelated matter of health care reform. But political views aside, let’s see how SAFRA affects students:

No. 1: You’ll get loans directly from the government — without a middleman.
While some schools have participated in the Federal Direct Loan Program since its inception in the early ’90s, SAFRA requires that all federal student loans now be originated through the U.S. Department of Education. This means funds come directly from the federal government, which provides the loans at a low interest rate.

“It’s so advantageous to students,” says Yaverbaum. “My daughter is about to enter her freshman year, and as a parent I couldn’t be more excited about it. College students are really going to benefit. Paying back college loans kills kids forever. Now it doesn’t have to be such an awful experience.”

Your credit score and employment status are not factored into your application for a direct loan … unless you have extreme adverse credit (say, your car got repossessed or you’re more than 90 days past due on that Urban Outfitters account). If you get denied, you can appeal or get a qualified co-signer.

No matter where you are in the borrowing process, visit StudentLoans.gov to find out if you qualify for one of the four types of Federal Direct Loans:

1. Federal Direct Subsidized Stafford Loans are based on financial need. The government pays the loan interest until you’re out of school.

2. Federal Direct Unsubsidized Stafford Loans are not need-based, and students are required to pay all interest charges.

3. Federal Direct Parent PLUS Loans (“PLUS” stands for “Parent Loans for Undergraduate Students”) allow parents to borrow money to help pay for their child’s education.

4. Federal Direct Graduate PLUS Loans offer the same terms as Parent PLUS for graduate and professional-degree students.

No. 2: You can consolidate loans you already have.
Federally guaranteed student loans will no longer be made by private lending institutions through what many of you already know as the Federal Family Education Loan (FFEL) Program.

What to do if you have an existing FFEL loan? For a one-year stretch — from July 1, 2010 to July 1, 2011 — current students who have FFEL loans can roll those into the Direct Loan program. The benefit is that you’ll only have to deal with a single lender (the Direct Loan Servicing Center) which means paying one monthly payment for all loans. Plus, your minimum monthly payment on a consolidated loan may be lower than the combined payments for FFEL loans.

No. 3: You’ll pay back less per month (and overall) and be done in fewer years.

Carrie Meyer, a rising senior at Ohio State University, has had to rely on three loans to cover her college tuition over the years: federal subsidized, federal unsubsidized and a personal loan. Meyer, a hospitality management student who currently works part time, still worries about paying off her loans after graduation: “With what I want to do, you don’t start out getting a big salary.”

Direct Loan borrowers can choose from several friendly payment plans, depending on needs — and you can switch to a different repayment plan if your situation changes. Beginning in 2014, the Income Based Repayment option will cap monthly loan payments at 10 percent of income and forgive remaining balances after 20 years of repayment. Sound like a lot? Actually, this is a major improvement from the current terms of capping repayments at 15 percent and 25 years, respectively.

No. 4: You could save big-time on loan payments if you go into public service.

Public Service Loan Forgiveness provides incentive for students to enter into full-time public service employment. The program forgives the remaining balance of a Direct Loan after a borrower has completed 120 monthly payments (that’s 10 years) while employed full time in public service. This includes government jobs, military service, safety professions, law enforcement, health care, social work, legal advocacy and some teaching positions.

No. 5: Maximum Pell Grant amounts will increase with inflation.

While SAFRA does not change the process for applying for federal grants, it does increase the amount of money awarded through the ever-popular Pell Grant program, which provides financial aid to low-income undergraduate students. For the 2009 to 2010 school year, the maximum Pell Grant was $5,350. The max will be upped to $5,550 for 2010 to 2011 and will gradually increase based on inflation costs beginning in 2013.

Students interested in applying for aid should complete a Free Application for Federal Student Aid at Fafsa.ed.gov or call 1-800-4-FED-AID. Keep in mind that this is not a one-time thing — students who want to be considered need to apply for aid for every school year, so it’s important to stay on top of application procedures.

A recent report released by the College Board found that millions in financial aid are left untouched by community college students. In the 2007 to 2008 academic year, 58 percent of Pell Grant-eligible students who attended community colleges applied for federal financial aid, compared with 77 percent of eligible students at four-year public institutions.

No. 6: Community colleges and minority schools will get big bucks for improvements.

Says College Board President Gaston Caperton: “Community colleges are a critical part of the education system, serving nearly half of all undergraduates in the United States.” The terms of SAFRA reflect this sentiment, as $2 billion is being committed to improving educational programs and updating facilities at community colleges. In addition, SAFRA has earmarked $2.55 billion to be invested in historically black and minority institutions.

Talk It up!

What do you think about SAFRA and its impact on the college student aid system?

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This article is by the editors at The Real College Guide. This article is made available to Parents Countdown to College Coach through a partnership with The Real College Guide.

college guidance, college planning, financial aid, parenting, Uncategorized

Being realistic about college debt

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It’s been in the news lately and it came up in a #CollegeBound chat yesterday: graduating with too much student loan debt. I wanted to lend my voice to the topic today and give parents something to think about and use in the future.

As I have said previously, I have a unique perspective in the college admissions process. As a parent, I’ve experienced all the frustration first-hand: the decisions about choices, the dilemma over financing, and the anxiety related to waiting for the final decisions. Something I haven’t talked about is how to handle making the final college choice when the acceptance letters and financial aid packages arrive. This can make a difference in the amount of debt your child graduates with and how it affects their life after college. Especially if you are unable to contribute to financing that education.

Case in point: my daughter’s decision to attend her “plan B or 2nd choice” college. After being accepted to her 1st choice/reach school, we waited for the financial aid award to arrive. In the meantime, awards from the other colleges she had applied to filtered in. She was offered a full-ride scholarship at one school, 80% of her financial need was met at two of the other colleges with grants and scholarships, and some small grants and loans from the rest of her college choices. Her 1st choice college met 0% of her financial need. Her heart was broken.

Here is where parenting comes into play. She wanted to attend her 1st choice college–her heart was set on it. She had been dreaming of it her whole life and any other option was out of the question. But, in order to attend, it would require financing the expensive education with loans (student and parent). While every fiber in me wanted to say YES, my common sense knew it would be a financial disaster. I sat her down, explained why she couldn’t go to her dream college, and she listened (while crying, of course). It might have broken both our hearts at the time, but it was the BEST decision for her in the long run.

To make a long story short, she fell in love with her Plan B college. It was smaller and offered a much better environment for her academically and socially. Most importantly, the college WANTED HER; as evidenced by their willingness to give her financial aid. They valued her contribution to the student body and from the moment she set foot on campus, she felt wanted. But the real payoff came when she graduated with only a small amount of college debt, being able to easily pay back the consolidated loans. Had she attended her 1st choice college, she would have graduated with close to $100,000 in debt, burdening her for years.

The bottom line:

  • Make wise financial choices about student loan debt.
  • Evaluate the financial aid packages and always consider the BEST offer.
  • Even if it’s disappointing for your child, you MUST be a parent and explain the consequences of graduating with too much college debt.
  • Disappointments are much easier to deal with than being saddled with debt after graduation.

If you liked this article, you might also like:

Choices. Choices. Choices.

Checking the “no financial aid needed” box

admissions, college guidance, financial aid

Checking the "no financial aid needed" box

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Last week, while participating in a #CampusChat on Twitter a question was asked by a parent about college financial aid. Since none of us participating were sure of the correct answer, I wanted to provide the parent with the correct answer and get some clarification myself on the subject.

Question: If you check the box that says, “no financial aid needed” on the college application, does it improve your chances for acceptance?

I immediately sought the answer from the two admissions representatives I have connections with on Twitter: Chip Timmons (@ChipTimmons)  of Wabash College  and Gil Rogers (@GilRogers) of the University of New Haven.

Chip responded by saying, “If the student is on the margin it may help provided they are prepared academically (i.e demanding curriculum, strong in high school). My guess is more schools are going to take that into consideration in the coming years as it gets tougher to fill classes”.

Gil responded by saying, “Not at the University of New Haven. With that said, at some schools it may if the student is on the wait list and the school is trying to control discounting.”

If you weigh both these responses, it appears that it’s not a determining factor unless other considerations are in place. The best advice would be to check with the colleges your teen is interested in and ask them if they use it as a factor. However, I wouldn’t plan on it being the card in your pocket to assure acceptance. And honestly, if you have a college-bound teen with an impressive high school record, you should make an attempt to get some merit aid; even if you can afford the entire tuition. It just makes sense to fill out the FAFSA and take your shot at grabbing a piece of the financial aid pie.

If you’re an admissions officer or college admissions expert, please leave your comments here and share your experience with us. We value your input.