More money in the pockets of the students means more for the city of Carbondale.
According to a university news release, 6,685 SIU Carbondale students received $23.2 million in federal financial aid and $170,000 in Parent Plus Loans. While that will be the bulk of the funds, according to the news release, more will come.
In fiscal year 2010 and 2011, more than $182.6 million was dolled out in undergraduate financial aid with more than $99 million in graduate stu-dent financial aid.
City Manager Kevin Baity said it is difficult to track exactly how much the city benefits because there are variables that include bursar bills, credit card debt, and rent and utilities owed. It is also difficult to track the benefits because sales tax revenues are recorded as monthly sales in quarterly increments. However, he said it’s probably safe to say that the $23.2 million will be beneficial.
“Of the $23.2 million, I would venture to say the university will retain a very large portion as payment towards the students’ bursar bills,” Baity said. “If the students were to actually receive 5 percent or $1.16 million, they may spend 20 percent or $232,000 in Carbondale. Based on that number, the city could realize up to $7,000 in retail sales tax, depending on what was purchased.”
According to SIU 42 percent of financial aid refunds were electronic direct deposits and the rest were through physical checks.
codell.rodriguez@thesouthern.com
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2012年1月23日星期一
2012年1月19日星期四
Families of College Bound Students: Tips on Financial Aid Forms
For parents of college students and prospective college students (Fall of 2012), financial aid forms need to be submitted soon. Typically financial aid forms for prospective students are due in January or February, while forms for returning students are due in March or April. Be sure to check the deadlines for each school where the student is applying and/or attending. Depending on the school there may be multiple forms to fill out. The first step is to determine which forms are needed:
For prospective students, beginning in the Fall of 2011 all colleges are required to post a “net price calculator” on their websites that help families figure out what freshman year will cost. The calculations are designed to be an estimate; the financial aid office will have the final say on the actual financial aid award. It is based on the “Expected Family Contribution” computed based on information on the FAFSA form.
The process of financial aid should also involve investigating grant opportunities from sources other than the college. There are numerous opportunities for scholarship and grants and many have a separate application process. School guidance offices are often the best place to start the investigation.
In addition to financial aid, there are several tax advantages for the families of college students. The American Opportunity Credit replaces the Hope Credit through 2012. The American Opportunity Credit is a maximum tax credit of $2,500 and has a higher income limit qualification than other tax benefits. Read IRS Publication 970, “Tax Benefits for Education” to determine if you are eligible. Other tax benefits may be available to you depending on your circumstances.
FPA Member Jeanne Gibson Sullivan, CFP®, is a financial planner and principal of Financially in Tune in Wakefield, MA and a parent of two sons – a freshman in college and a high school junior.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.- Free Application for Federal Student Aid (FAFSA) Form: This is the basic form required for financial aid at all colleges including all federal student loans, such as Stafford Loans and PLUS loans. The FAFSA form asks for information such as student and parent income and assets, but does not take into consideration retirement assets or the equity in the primary residence. The FAFSA will determine the family’s “Expected Family Contribution”, which is the amount that the family is thought to be able to pay – often a higher number than the parent thinks they can afford! Information and forms can be found at www.fafsa.ed.gov . Even if the family does not think they are eligible for need-based aid, but wants to access Stafford loans and PLUS loans, the FAFSA must be filled out. Certain merit scholarships may also require completion of the FAFSA forms.
- Stafford Loans: Most students who fill out a FAFSA form are eligible for unsubsidized Stafford loans. First year students can borrow up to $5,500. The interest rate on unsubsidized loans is currently 6.8 percent and is not based on the applicant’s credit score. Need-based subsidized Stafford loans now have an interest rate of 3.4 percent in 2011-12 and the interest does not accrue while the student is in school.
- Federal Direct PLUS Loan: Parents can also borrow through the Direct PLUS program. Parents can borrow up to the cost of attendance less any other financial aid received. The interest rate is presently 7.9 percent and is charged beginning with the disbursement of the loan. Please note that certain fees apply to these lending programs, so read the details carefully.
- CSS PROFILE Form: Some private colleges use a different methodology for calculating financial aid and require the College Board’s CSS PROFILE form. A list of schools requiring the CSS PROFILE form can be found on the College Board website . The CSS PROFILE form asks more detailed and broader financial questions than the FAFSA and takes into account other factors such as the equity in your house. Some schools may also request a copy of a tax return, so if possible, try to get your taxes done early.
- Additional Forms: Occasionally a college may require supplemental information, so be sure to check with the school.
For prospective students, beginning in the Fall of 2011 all colleges are required to post a “net price calculator” on their websites that help families figure out what freshman year will cost. The calculations are designed to be an estimate; the financial aid office will have the final say on the actual financial aid award. It is based on the “Expected Family Contribution” computed based on information on the FAFSA form.
The process of financial aid should also involve investigating grant opportunities from sources other than the college. There are numerous opportunities for scholarship and grants and many have a separate application process. School guidance offices are often the best place to start the investigation.
In addition to financial aid, there are several tax advantages for the families of college students. The American Opportunity Credit replaces the Hope Credit through 2012. The American Opportunity Credit is a maximum tax credit of $2,500 and has a higher income limit qualification than other tax benefits. Read IRS Publication 970, “Tax Benefits for Education” to determine if you are eligible. Other tax benefits may be available to you depending on your circumstances.
FPA Member Jeanne Gibson Sullivan, CFP®, is a financial planner and principal of Financially in Tune in Wakefield, MA and a parent of two sons – a freshman in college and a high school junior.
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2012年1月11日星期三
Everest offers college financial aid forum
Beacon-News Staff January 10, 2012 6:38PM
NORTH AURORA — Everest College in North Aurora is sponsoring a financial aid informational session Wednesday, open to anyone wanting to learn more about handling the costs of a college education.Students under 18 must bring a parent or legal guardian.
Everest College experts will present a primer on navigating the world of financial aid. Presenters will explain different types of loans and grants, FAFSFA, who is eligible for aid, and how to apply.
The forum is scheduled for 6:30 to 8:30 p.m. at the college, 150 S. Lincolnway, Suite 100. For information, call 630-896-2140 or visit www.everest.edu.
© 2011 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit www.suntimesreprints.com. To order a reprint of this article, click here
2012年1月9日星期一
Subsidized student loans must stay
The facts: On August 2, the Senate gave the final approval to raise the national debt limit by $2.4 trillion. The rise of the debt ceiling prevented a sudden jump in student loan interest rates, but lawmakers considered other measures, including removing subsidized student loans.
Our opinion: The raising of the debt ceiling and its potential consequences will be detrimental to students with financial aid or those already accruing massive student loans.
The increase of the debt ceiling was a controversial compromise that prevented a federal default but opened the door to further economic issues. One segment affected by the raise is federal and bank loans — particularly student loans. The specific effects to University student loans as a result of the debt ceiling are uncertain but deeply troubling, and lawmakers should make sure to maintain subsidized student loans throughout the debt crisis.
Tuition rose by 6.5 percent this academic year, and several reductions have already been made to available student financial aid. Paying for college has become an increasingly difficult task even for those deemed able to pay without financial aid or student loans.
Student loans traditionally took the form of subsidized loans, meaning that students could take loans without interest during the time that they were in school. Lawmakers are now considering revoking subsidized student loans, which would mean that students would have to pay interest while still in school.
With the mounting unemployment rate, it is difficult for students to get adequately paying jobs while in school unless they qualify for programs such as work-study. The complication is that students will not qualify for work-study or other forms of financial aid if they begin accruing income above a certain rate.
This means that students will have to balance loans with interests, jobs with menial pay, the constant threat of losing financial aid, rising tuition and textbook costs, full-time student status and an ever-mounting debt upon graduation.
The raised debt ceiling also means the government will be less likely to support banks providing student loans, which means that banks will be far more selective about their loans. Currently, when students are unable to pay back student loans on time, banks receive their money from the government and students must then reimburse the government. If the government fails to back banks, they will be far more reluctant to hand out loans.
All of these consequences suggest that students’ futures will be negatively impacted if lawmakers do away with subsidized loans. With the current debt crisis it is inevitable that certain cuts and revisions will have to be made to a variety of programs. However, the availability of subsidized student loans is a component of financial aid that should not be altered.
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Our opinion: The raising of the debt ceiling and its potential consequences will be detrimental to students with financial aid or those already accruing massive student loans.
The increase of the debt ceiling was a controversial compromise that prevented a federal default but opened the door to further economic issues. One segment affected by the raise is federal and bank loans — particularly student loans. The specific effects to University student loans as a result of the debt ceiling are uncertain but deeply troubling, and lawmakers should make sure to maintain subsidized student loans throughout the debt crisis.
Tuition rose by 6.5 percent this academic year, and several reductions have already been made to available student financial aid. Paying for college has become an increasingly difficult task even for those deemed able to pay without financial aid or student loans.
Student loans traditionally took the form of subsidized loans, meaning that students could take loans without interest during the time that they were in school. Lawmakers are now considering revoking subsidized student loans, which would mean that students would have to pay interest while still in school.
With the mounting unemployment rate, it is difficult for students to get adequately paying jobs while in school unless they qualify for programs such as work-study. The complication is that students will not qualify for work-study or other forms of financial aid if they begin accruing income above a certain rate.
This means that students will have to balance loans with interests, jobs with menial pay, the constant threat of losing financial aid, rising tuition and textbook costs, full-time student status and an ever-mounting debt upon graduation.
The raised debt ceiling also means the government will be less likely to support banks providing student loans, which means that banks will be far more selective about their loans. Currently, when students are unable to pay back student loans on time, banks receive their money from the government and students must then reimburse the government. If the government fails to back banks, they will be far more reluctant to hand out loans.
All of these consequences suggest that students’ futures will be negatively impacted if lawmakers do away with subsidized loans. With the current debt crisis it is inevitable that certain cuts and revisions will have to be made to a variety of programs. However, the availability of subsidized student loans is a component of financial aid that should not be altered.
http://tourism9.com/
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