College Goal Sunday

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Updated: Sunday, 12 Feb 2012, 10:13 PM EST
Published : Sunday, 12 Feb 2012, 10:13 PM EST

Fort Wayne, Ind. (WANE) – The government gives out billions of dollars for students to go to college. That even includes student loans.
Dian Suarez and his mother came to College Goal Sunday. This program is to help families fill out their Free Application for Federal Student Aid form, or FAFSA form online. Suarez is a freshman at I.P.F.W. He found out he didn’t have to take out any loans.
“I got lucky and I was able to get enough to pay for what I needed,” he said.
Many students need and rely on student loans to pay for their education. Suarez said if he’s faced with taking out a loan, he hopes to have a job waiting on him before he graduates.
“I’ll have to make sure I have a job and be able to pay it back eventually,” Suarez said.
Martin Murphy with I.P.F.W. said in this economy, finding a job isn’t so easy, which makes it harder on graduates to pay back loans.
“They’re graduating here out of college and they’re looking six to 12 months looking for a job and see, those students loans start kicking in,” Murphy said.
That’s why he stresses students should use their loans responsibly, such as on tuition and room and board, instead on a new car or new furniture for an apartment.
Murphy said it usually takes graduates between 10 to 15 years to completely pay back their loans, that’s if there’s no stop in payment. Usually, if you can’t find a job within the six month grace period or don’t make enough money to pay back your student loans, for federal loans, you can postpone payment. Sometimes, without penalty.
The deadline for completing the FAFSA form is March 10th. The deadline to make any changes to your FAFSA is May 15th.

Interest rates for common student loan could double this summer

Break’s over.
For the last five years, Congress has cut students a break on the interest rate for unsubsidized student loans, the most popular kind used at Ball State. Starting in July, if the low rate of 3.4 percent isn’t reinstated, it could go back to 6.8 percent, which represents an average $2,000 increase over the course of paying back the loan.
In 2007, the College Cost Reduction and Access Act was passed, which reduced the rate to 3.4 percent for undergraduate students. It was meant to help make college more affordable during poor economic times. Now the plan is about to expire.
“They only had a five-year plan,” said John McPherson, director of Ball State’s Scholarships and Financial Aid. “And now the only way to keep the cost low is to come up with more money to pay for it.”
Rep. Joe Courtney (R-Calif.) recently introduced a bill to keep the rate at 3.4 percent, and President Barack Obama has said he wants to keep it for at least a year.
“A college education is key to success in today’s economy,” said Courtney in a press release on his website. “But for many students, the spiraling costs of higher education are creating an immense barrier.”
For the average student using a subsidized Stafford Loan, it could means about a $2,000 increase over 10 years, according to information from the National Association of Student Financial Aid Administrators.
“If you look at averages, obviously a college degree provides opportunities you can never get anywhere else,” McPherson said. “Over the life of a person, it’s not going to be huge.”
Sophomore Joseph Dimaggio uses loans and grants to pay for college, and since he decided to add a second major, he anticipates being in college an extra two and a half years. He said he’s afraid that he’ll have to spend several years paying back his loans before he can start to settle down.
“There are a lot of things I’d rather do with $2,000,” he said.
He said he wants to become an actuarial scientist, and he said it’s important to know what jobs are in demand.
“We hit such a low,” he said. “And I have a lot of friends that are older and overqualified for the job they have, especially in teaching.”
Last academic year, about 10,400 Ball State students used subsidized Stafford loans. Altogether, they borrowed $44 million.
Even if the interest rate is brought back to 6.8 percent, McPherson said this is the best deal for most students, especially if this is their first time taking out a loan. Private lenders might deny them, or give them a higher interest rate, McPherson said.
Perkins loans have a fixed 5 percent interest. But they are for extremely needy students, and not many people qualify, he said.
With a subsidized loan, the federal government absorbs the interest while a student is in college and six months afterward. If the CCRAA program is abolished, students would be responsible for the interest accumulated during the six months after they graduate.
With unsubsidized loans, students pay the interest that is built up during college and during the six-month grace period after graduation. The government uses a formula to determine a student’s need and how much money they will receive with each type of loan. The formula includes factors like income, family size, number of people already in college and the family’s assets.
Every year, two thirds of Ball State students borrow some kind of loan, McPherson said. In 2010-2011, undergrads were leaving college with an average debt of $24,121.
Rob Tyler, an adjunct professor of personal finance and the founder of Tyler Wealth Management, offered examples of how this would impact students. His estimate: not very much.
To repay the average student loan over 10 years with an interest rate of 3.4 percent, the monthly payment is about $237.59. At a rate of 6.8 percent, the monthly payment jumps to $277.79, an increase of just $40.20.
Tyler crunched a few numbers based on loan information from the Ball State Credit Union.
The interest rate for a loan from the credit union on a new car, for example, is 2.99 percent. In order to offset the extra $40.20 a student is paying back on student loans, and with the interest rate for a new car taken into consideration, they would need to buy a car that costs $2,237 less than what they had previously budgeted.
On a loan for a new house, Tyler used a 4.5 percent fixed interest rate on a 30-year mortgage for his example. In that case, to accommodate the extra $40.20 a month in student loans, he or she would want to buy a house that’s about $8,000 less than they budgeted — not a huge amount relative to a $200,000 home.
“You have to think, what’s my sacrifice?” Tyler said. “Your college education is going to last you a lifetime.”
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Public Safety

The mad dash to cobble together college funding will soon be under way.
In the weeks ahead, colleges will begin mailing out their much-anticipated acceptance letters and financial aid packages. The notices will alleviate pent up anxiety and finally give high school seniors a clearer idea of what their futures will hold.
But amid all the emotions, students and families will also need to start sorting out how they’ll pay for tuition. The average bill now comes in at more than $17,000 to attend an in-state public college.
The problem is that navigating the universe of financial aid can be confusing. That’s because there’s a vast patchwork of grants, scholarships and loans available. But a failure to compare the options and explore the alternatives could mean the difference in thousands of dollars in debt upon graduation.
Adding to that confusion is a spate of headlines in recent weeks regarding changes in financial aid. To help navigate this process, here’s a look at what’s behind the recent changes.
—
Comparing costs » As part of his broad plans to make higher education more affordable, President Barack Obama recently said he wants to make it easier for families to estimate the cost of college.
As it stands, there isn’t a uniform template for financial aid award letters, and officials say the forms can be difficult to decipher, even misleading. For example, schools usually provide a total “out of pocket” cost after subtracting aid such as grants and scholarships. But some schools also subtract loans from that figure, even though loans have to be repaid and actually push up costs because of interest charges.
In other cases, interest rates and other loan terms are not spelled out. Officials say this could lead to students taking on more debt than they realize.
To address the issue, the Department of Education and the newly created Consumer Financial Protection Bureau announced in October that they are developing a model financial aid form. There aren’t any plans yet to make the form mandatory. But once a template is finalized, Congress could vote to require colleges to use it to maintain access to federal aid. The adoption of such a form has also been widely supported by student advocates.
Separately, Obama is pushing for a “college scorecard” that would require schools to disclose their graduation rates, rate of employment and debt repayment among graduates.
—
Interest rates » Taking out a student loan to attend college has become the norm, with two-thirds of graduates leaving campus in debt. But not all loans are alike. So it might have caught your attention last month when Obama said in his State of the Union address that the fixed interest rates on student loans are set to double in July if Congress fails to act.
Before you panic, keep in mind that there are primarily two types of federal student loans: subsidized and unsubsidized. The difference is that the government doesn’t start charging interest on subsidized loans until the student graduates. With unsubsidized loans, interest starts accruing right away.
The loans also come with different interest rates. Unsubsidized loans currently charge a fixed rate of 6.8 percent. The interest rate on subsidized loans was gradually lowered to its current fixed rate of 3.4 percent over the past few years. But the law that temporarily reduced the rate sunsets in July.
So unless Congress extends the reduction, the rate on subsidized loans will snap back to 6.8 percent.
Next Page »

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Will President Obama's Blueprint Cut College Costs?

Mark Kantrowitz is the founder of the Web sites finaid.org, and fastweb.com. He regularly answers reader questions on The Choice. Readers can post comments of their own at the end of this essay.
In his State of the Union address, President Obama announced several proposals to make college more affordable. These included doubling the number of federal work-study program jobs over five years, a one-year extension of low interest rates on certain federal student loans and a permanent extension of the American Opportunity Tax Credit. President Obama also “put colleges on notice,” telling the colleges that if they can’t stop tuition from going up, the financing they get from taxpayers each year will go down. The president also announced initiatives to help families make informed decisions concerning college costs and quality.
More money for college is better than none. As a nation, we must put a priority on increasing federal and state investment in higher education. Maintaining the status quo or making slight tweaks to student aid financing is not enough.
Yet a key concern is that increases in some student aid programs may come at the expense of cuts in other more effective student aid programs.
It is unclear how President Obama plans on paying for increases in student aid financing while Congress concentrates on cost-cutting. Congress cut $8 billion a year out of the Pell grant program last year by ending the year-round Pell grant program, which allowed students in accelerated degree programs to get two Pell grants in a single year. Congress reduced the income threshold at which a student qualifies for a full Pell grant from $32,000 to $23,000. This cuts the Pell grants by $1,100 to $1,700 for nearly 14 percent of Pell grant recipients. Additional cuts are looming on the horizon.
The tight federal budgets yield a zero-sum game, where increases in one form of federal student aid force cuts in other forms of student aid. Adding 700,000 more federal work-study jobs over five years will cost more than $1 billion a year.
But how will the Obama administration pay for a one-year extension of the 3.4 percent interest rate on subsidized Stafford loans for undergraduate students? Approximately 7.4 million students will borrow about $3,500 in subsidized Stafford loans on average, costing the federal government more than $7 billion. The permanent extension of the American Opportunity Tax Credit will add several billion dollars more a year in tax expenditures. If the Obama administration doesn’t find savings elsewhere in the budget, these spending increases will force cuts in the Pell grant program, causing declines in Bachelor’s degree attainment by low-income students. That would be a bad bargain.
The risk is that the proposals for increasing student aid financing may be little more than a shell game, where the federal government gives with one hand and takes back with the other. For example, President Obama’s proposal for a one-year delay in the doubling of interest on the subsidized Stafford loan program will be coupled with increases in interest rates on the Perkins loan program. The re-engineering of the Perkins loan program will increase the interest rate on the Perkins loan from 5 percent to 6.8 percent and transform the subsidized Perkins loan into an unsubsidized Stafford loan. (This will save students some money, by shifting borrowing from higher-cost private student loans to lower-cost federal education loans. But it still involves increasing some interest rates to reduce others). Shuffling the deck doesn’t yield a net gain if there is no improvement in college graduation rates or other public policy objectives.
If the federal government can pay for cutting the interest rates on subsidized Stafford loans in half, then why was it necessary to cut the average Pell grant? Changing the interest rates and subsidized interest benefits on student loans has no impact on college access and completion rates. In contrast, the Pell grant program enables low-income students to enroll in college and to graduate. Cutting Pell grant financing forces low-income students to borrow more, shift enrollment to lower-cost colleges or drop out of college. Increasing the interest rate is a better alternative than cutting the Pell grant.
President Obama’s proposal to provide colleges with an incentive to keep tuition affordable will have a modest impact on tuition inflation. The proposal will base a college’s allocation of federal campus-based aid on whether the college keeps net tuition affordable, limits tuition increases and helps low-income students to enroll and graduate. But the $10 billion in campus-based financing represents only about 6 percent of all federal student aid financing and the allocation formula is complicated. The prospect of losing this financing may force some colleges to increase tuition even faster to compensate for the loss of campus-based aid financing.
There are limits to the ability of colleges to control costs. The consumer inflation rate has little to do with increases in college costs. College costs are largely driven by increases in the number of faculty and staff, increases in salaries, increases in facility costs, energy costs, equipment costs and health care costs, increases in institutional financial aid financing and decreases in federal and state financing. For example, if a college has a discount rate of 37 percent, the college must increase tuition by $1.59 to net $1 in additional revenue. This contributes to college tuition increasing faster than inflation by adding a multiplier effect.
President Obama’s proposal to create a mandatory “Financial Aid Shopping Sheet” and “College Scorecard”, on the other hand, will do more to constrain increases in college costs. This standardization of college cost and financial aid disclosures will provide families with clear, correct and comparable information about the real bottom-line cost of college.
This will help them make informed decisions concerning the tradeoffs between college affordability and other factors in college choice. More families will choose high quality but lower-cost colleges, forcing colleges to cut costs while maintaining or improving quality.
Now it’s your turn, Choice readers. Tell us your opinion on the president’s proposal, or at least Mr. Kantrowitz’s analysis of it, by using the box below.
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Will President Obama's Blueprint Cut College Costs?

Mark Kantrowitz is the founder of the Web sites finaid.org, and fastweb.com. He regularly answers reader questions on The Choice. Readers can post comments of their own at the end of this essay.
In his State of the Union address, President Obama announced several proposals to make college more affordable. These included doubling the number of federal work-study program jobs over five years, a one-year extension of low interest rates on certain federal student loans and a permanent extension of the American Opportunity Tax Credit. President Obama also “put colleges on notice,” telling the colleges that if they can’t stop tuition from going up, the financing they get from taxpayers each year will go down. The president also announced initiatives to help families make informed decisions concerning college costs and quality.
More money for college is better than none. As a nation, we must put a priority on increasing federal and state investment in higher education. Maintaining the status quo or making slight tweaks to student aid financing is not enough.
Yet a key concern is that increases in some student aid programs may come at the expense of cuts in other more effective student aid programs.
It is unclear how President Obama plans on paying for increases in student aid financing while Congress concentrates on cost-cutting. Congress cut $8 billion a year out of the Pell grant program last year by ending the year-round Pell grant program, which allowed students in accelerated degree programs to get two Pell grants in a single year. Congress reduced the income threshold at which a student qualifies for a full Pell grant from $32,000 to $23,000. This cuts the Pell grants by $1,100 to $1,700 for nearly 14 percent of Pell grant recipients. Additional cuts are looming on the horizon.
The tight federal budgets yield a zero-sum game, where increases in one form of federal student aid force cuts in other forms of student aid. Adding 700,000 more federal work-study jobs over five years will cost more than $1 billion a year.
But how will the Obama administration pay for a one-year extension of the 3.4 percent interest rate on subsidized Stafford loans for undergraduate students? Approximately 7.4 million students will borrow about $3,500 in subsidized Stafford loans on average, costing the federal government more than $7 billion. The permanent extension of the American Opportunity Tax Credit will add several billion dollars more a year in tax expenditures. If the Obama administration doesn’t find savings elsewhere in the budget, these spending increases will force cuts in the Pell grant program, causing declines in Bachelor’s degree attainment by low-income students. That would be a bad bargain.
The risk is that the proposals for increasing student aid financing may be little more than a shell game, where the federal government gives with one hand and takes back with the other. For example, President Obama’s proposal for a one-year delay in the doubling of interest on the subsidized Stafford loan program will be coupled with increases in interest rates on the Perkins loan program. The re-engineering of the Perkins loan program will increase the interest rate on the Perkins loan from 5 percent to 6.8 percent and transform the subsidized Perkins loan into an unsubsidized Stafford loan. (This will save students some money, by shifting borrowing from higher-cost private student loans to lower-cost federal education loans. But it still involves increasing some interest rates to reduce others). Shuffling the deck doesn’t yield a net gain if there is no improvement in college graduation rates or other public policy objectives.
If the federal government can pay for cutting the interest rates on subsidized Stafford loans in half, then why was it necessary to cut the average Pell grant? Changing the interest rates and subsidized interest benefits on student loans has no impact on college access and completion rates. In contrast, the Pell grant program enables low-income students to enroll in college and to graduate. Cutting Pell grant financing forces low-income students to borrow more, shift enrollment to lower-cost colleges or drop out of college. Increasing the interest rate is a better alternative than cutting the Pell grant.
President Obama’s proposal to provide colleges with an incentive to keep tuition affordable will have a modest impact on tuition inflation. The proposal will base a college’s allocation of federal campus-based aid on whether the college keeps net tuition affordable, limits tuition increases and helps low-income students to enroll and graduate. But the $10 billion in campus-based financing represents only about 6 percent of all federal student aid financing and the allocation formula is complicated. The prospect of losing this financing may force some colleges to increase tuition even faster to compensate for the loss of campus-based aid financing.
There are limits to the ability of colleges to control costs. The consumer inflation rate has little to do with increases in college costs. College costs are largely driven by increases in the number of faculty and staff, increases in salaries, increases in facility costs, energy costs, equipment costs and health care costs, increases in institutional financial aid financing and decreases in federal and state financing. For example, if a college has a discount rate of 37 percent, the college must increase tuition by $1.59 to net $1 in additional revenue. This contributes to college tuition increasing faster than inflation by adding a multiplier effect.
President Obama’s proposal to create a mandatory “Financial Aid Shopping Sheet” and “College Scorecard”, on the other hand, will do more to constrain increases in college costs. This standardization of college cost and financial aid disclosures will provide families with clear, correct and comparable information about the real bottom-line cost of college.
This will help them make informed decisions concerning the tradeoffs between college affordability and other factors in college choice. More families will choose high quality but lower-cost colleges, forcing colleges to cut costs while maintaining or improving quality.
Now it’s your turn, Choice readers. Tell us your opinion on the president’s proposal, or at least Mr. Kantrowitz’s analysis of it, by using the box below.
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Crowd waiting for Pres. Obama to speak in Ann Arbor WITH SLIDESHOW

By Erica McClain
For the Press & Guide

ANN ARBOR — As 3,000 people wait to hear from President Barack Obama at U of M’s Al Glick Fieldhouse, there are quite a few expectations from the crowd on education. “Hopefully, the government will help with socialized loans again, and the cost of education will be affordable for all,” said 28-year-old Cooley Law student Jason Andrews.
He added education is not a bubble.
“It should be affordable for meaningful people who have a desire to better themselves,” he said.
Andrews referenced Obama’s background as the son of an immigrant and how far he has been able to come.
“I just want my children to be able to afford that, too,” he said.
With Stafford loan rates set to double in July, from 3.4 percent to 6.8 percent, due to the upcoming expiration of the College Cost Reduction and Access Act, Andrews isn’t alone in his concern.
“For some it might be worth going to a private school, but for me, personally, I agree with lowering the rates because it doesn’t seem fair for someone to pay $25,000 per year for school,” U-M freshman Alec Lessner said.
U of M’s Office of Financial Aid estimates that a school year at the university as a fulltime freshman or sophomore costs $25,204 – with $12,634 making up tuition costs alone. Continued… Continued…

Ethan Fitzgerald, another U of M student, hoped the president would announce plans for a new program to aid college students with financial woes. Deleise Cole Wilson said she wanted to hear what Obama had to say for college students.
“I was impressed with what he had to say in the State of the Union,” Cole Wilson said.
Others, however, were just excited to have the chance to hear the president in person.
“I’ve been very supportive of the president, and I just wanted to see him in person,” said Ann Arbor resident Nancy Stoll.

ANN ARBOR — As 3,000 people wait to hear from President Barack Obama at U of M’s Al Glick Fieldhouse, there are quite a few expectations from the crowd on education. “Hopefully, the government will help with socialized loans again, and the cost of education will be affordable for all,” said 28-year-old Cooley Law student Jason Andrews.
He added education is not a bubble.
“It should be affordable for meaningful people who have a desire to better themselves,” he said.
Andrews referenced Obama’s background as the son of an immigrant and how far he has been able to come.
“I just want my children to be able to afford that, too,” he said.
With Stafford loan rates set to double in July, from 3.4 percent to 6.8 percent, due to the upcoming expiration of the College Cost Reduction and Access Act, Andrews isn’t alone in his concern.
“For some it might be worth going to a private school, but for me, personally, I agree with lowering the rates because it doesn’t seem fair for someone to pay $25,000 per year for school,” U-M freshman Alec Lessner said.
U of M’s Office of Financial Aid estimates that a school year at the university as a fulltime freshman or sophomore costs $25,204 – with $12,634 making up tuition costs alone. Continued…
Ethan Fitzgerald, another U of M student, hoped the president would announce plans for a new program to aid college students with financial woes.
Deleise Cole Wilson said she wanted to hear what Obama had to say for college students.
“I was impressed with what he had to say in the State of the Union,” Cole Wilson said.
Others, however, were just excited to have the chance to hear the president in person.
“I’ve been very supportive of the president, and I just wanted to see him in person,” said Ann Arbor resident Nancy Stoll.
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Maximize financial aid by filling out FAFSA

As of Jan. 1, the Free Application for Federal Student Aid, or FAFSA, became available for the 2012-13 school year. The FAFSA qualifies students for federal grants, loans and work-study jobs, and serves as the basis for determining aid eligibility for many private awards. In light of other 2012 financial aid changes that will make it tougher for some students to pay for college, maximizing your federal aid eligibility is more crucial than ever. Here’s how to get an A in FAFSA 101.

Understand the basics

The sole purpose of the FAFSA is to determine your expected family contribution, or EFC — the amount the government believes your family can chip in for college that year. Based primarily on your family’s income and assets, the EFC qualifies students for federal grants, loans and work-study programs. It’s also one of the main factors used by colleges to determine how much your family can pay relative to the cost of that school and how much the college will contribute to your total aid package.
“Everyone should fill out the FAFSA,” says Beth V. Walker, founder of College Funding Coaches, a college finance planning firm headquartered in Las Vegas. “There are a lot of parents who think they make too much money and that they’re not going to qualify for anything, but I think it’s a surprise to many people to know that the merit-based aid is handed out many times through the need-based door.”
All undergrads, regardless of their family’s income, can qualify for a total of $27,000 in unsubsidized Stafford loans over four years, reports the Department of Education, while families with adjusted gross incomes of $60,000 or less can also usually expect some federal grant aid, says Walker. Unlike student loans, grants need not be repaid, though certain conditions may apply. Before filing, families can get an estimate of their EFC by using the FAFSA4Caster tool at Fafsa.ed.gov.

The loopholes

Understanding the federal aid methodology is especially important in light of 2012 financial aid changes. This year, the interest rate on subsidized Stafford loans for undergrads will increase, subsidized Stafford loans for grad students will be eliminated and students will have fewer semesters to qualify for a Pell Grant. It will also become harder to qualify for the full Pell Grant award. As of last year, families with adjusted gross incomes of $30,000 or less automatically qualified for a full Pell. This year, that threshold will decrease to $23,000, reports the Department of Education.
“Generally, need-based financial aid is going to be harder to get next year than it was last year,” says Jay Murray, president of Solutions for Tuition, a college planning firm in Lone Tree, Colo.
Families can take action. While most families can’t change their income, they can maximize their federal aid eligibility by filing the FAFSA as close to Jan. 1 as possible and by shifting or spending assets held in the student’s name.
“Student assets are assessed at 20 percent,” says Murray, meaning for every dollar in an account in a student’s name, the government will subtract 20 cents from the student’s aid package. This starts with need-based grants. “Parental assets are assessed at (up to) 5.6 percent.” The exception, Murray says, is 529 plans. These are assessed at the parental rate regardless of whether they’re held in a parent’s or student’s name.
Gary Carpenter, executive director of the National College Advocacy Group, a nonprofit organization in Syracuse, N.Y., says families can also increase their aid eligibility by knowing which investment vehicles the government doesn’t take into consideration.
“The FAFSA form does not assess the family home. It does not assess retirement accounts. It does not assess life insurance policies or annuities,” says Carpenter. “Also, they do not assess personal assets like automobiles, clothing, furniture — none of that is assessed.”
Families looking to shift assets from assessable accounts to sheltered ones can do so by maxing out their retirement accounts, paying down the mortgage on their primary home and purchasing personal items the student will need before filing the FAFSA. These personal items can include a computer or dorm supplies. Families who need those assets to be available for college costs can simply move funds from an account in the student’s name to a 529 plan or one held in the parent’s name.
Sandy Baum, a senior fellow at the George Washington University Graduate School of Education, adds that students should also alert their school’s financial aid office about expenses that aren’t considered on the FAFSA.
“For example, if you fill out (the FAFSA) and your parents made a reasonable income last year and then they lose their jobs, you want to be sure you go to the financial aid office,” she says. “Tell them this because they can adjust your aid award to account for those unfortunate new circumstances. That’s terrifically important.”
By letting your aid office know about factors that aren’t included on the FAFSA, such as medical expenses, death in the family, divorce or parental job loss, and by providing documentation, families can keep aid officers abreast of their current financial situation and increase their chances of landing college aid.
More From Bankrate.com
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Volunteers will help college bound students with financial aid applications on College Goal Sunday

GRAND RAPIDS – College bound students seeking free assistance with filling out the federal financial aid application, known as the FAFSA, should plan on attending the College Goal Sunday event in their area on Feb. 12.
“For many students and their families, college seems like an unachievable and unaffordable dream,” said state Superintendent of Public Instruction Mike Flanagan, about the statewide event. “College Goal Sunday locations have financial aid experts who can help families complete these complex applications and maximize financial assistance for students wanting to go to college.”
Last year, more than 1,600 students received assistance at College Goal Sunday events from volunteers. According to the state, statistics show that students who complete and submit FAFSA forms are more likely to go on to college.
The annual event is a collaborative effort of the state Department of Education, the Michigan Student Financial Aid Association, and EduGuide. The program was created to increase the number of students who continue education beyond high school and earn post-secondary degrees. The FAFSA is required of any student seeking financial aid including grants, loans, and many scholarships.
“It is critical that high school seniors and their parents are aware of these College Goal Sunday events,” said Bryan Taylor, president of EduGuide. “Students must complete and file a FAFSA in order to secure financial aid and should file by the March 1st priority date to ensure eligibility for federal and state programs.”
On Sunday, Feb. 12, student financial aid experts will be available to guide students and their parents through each step of completing and filing the free FAFSA. Students under age 23 are encouraged to attend with a parent or guardian. Parents and students should bring their completed 2011 Federal tax return (1040) if possible, or their W-2 and 1099 forms.
Dozens of sites across Michigan will be hosting College Goal Sunday from 2 to 4 p.m.including: Grand Valley State University Pew Campus Building A, located at 401 Fulton St.; Davenport University-Holland campus, 643 South Waverly Rd. and Newaygo County Regional Educational Service Agency, 4747 West 48th St. in Fremont; Loutit District Library, 407 Columbus Drive in Grand Haven and Western Michigan University
Schneider Hall – Business Court, 1903 W Michigan Ave. in Kalamazoo.
For a complete list of locations and additional information visit the website.
Prizes will be awarded during events, including a $1,000 scholarship, two $500 scholarships, and three $250 scholarships. Additional support for College Goal Sunday was provided by the C.S. Mott Foundation, the Lumina Foundation for Education, and the DTE Energy Foundation.
Email: mscott@grpress.com and follow her on Twitter at Twitter.com/GRPScotty.
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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:

• 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 divorced parents and parents who never married, the rules may vary as to what is required, so check with the school as well as FAFSA and CSS Profile.
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.
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Web chat focus was financial aid

BY CATHY JETT
Michael Farris fielded a variety of financial aid questions during the monthly Money Talk$ webchat Tuesday on fredericksburg.com.
Below is a sampling of the inquiries and the answers provided by Germanna Community College’s coordinator and director of financial aid. A complete transcript of the webchat is archived at fredericksburg.com/News/chat3/Archive?chat_id=140.
;”>My daughter is headed to Virginia Tech next year, and financing it will be a stretch for us. Our FAFSA [Free Application for Federal Student Aid] indicates that our EFC [Expected Family Contribution] is well beyond what we will pay, but we don’t have anywhere near that much money set aside.
Are there any good ‘tricks of the trade’ you can offer? Should she get her own apartment next summer to get the aid based off her own income vs. her parents?
–TS in Spotsylvania
Unfortunately, there are no “tricks” to gaining eligibility that way. Her dependency status is not associated with her place of residence or whether or not she earns an income of her own. It is based on her age, primarily. It is very difficult for a student under the age of 24 to gain independency for aid eligibility purposes.
I would recommend her possibly pursuing on-campus student employment for her first year, and maybe balancing that with a low-interest student loan. There are also parent-specific student loans that are available to folks in your situation.
This is a great opportunity to reach out to the folks in the financial aid office at Virginia Tech for more detailed information about what types of aid they have to offer.
Tip: There is no substitute for engaging the financial aid office at the school that the FAFSA is being sent to. Having worked in several different financial aid offices, at schools on both the East and West coasts, I know how critical the conversation between student and family and the college or university is. Plus, each school awards its financial aid differently. As soon as the FAFSA has been completed, call the school.
;”>Do parents’ financial obligations and credit histories have a significant impact on what financial aid is available to their children?
–KD in Fredericksburg
As a rule, no. The FAFSA examines income and assets as opposed to credit scores and familial expenses. The exception would possibly be if a parent is trying to borrow a parent-specific student loan on behalf his or her son or daughter. Federal parent loans require a credit check.
;”>What about students with disabilities does the state work with the college to fund someone that is physically disabled and has no income? Does the college offer funding for disabled students?
–BA in Stafford
Great question. In short, yes. The Federal Application for Aid takes this into account, and is able to identify and assist students with documented disabilities and supplement any existing federal or state disability benefits with additional federal funds for eligible students.
Cathy Jett: 540/374-5407
Email: cjett@freelancestar.com

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Canadian Financing Bulletin (CFB) Reports CDN Financings for the Week of January 03-06 and Announces the Upcoming …

VANCOUVER, BRITISH COLUMBIA–(Marketwire -01/11/12)- The Canadian Financing Bulletin has been a leader in tracking financing activities of Canadian capital markets in the mining, energy and technology sectors for over seven years. Our unparalleled service offers unique insight into small and micro cap stocks, as well as comprehensive comparative reports detailing the worldwide reach of Canadian companies in these sectors. With the listings of active proposed placements, investors and companies that might not otherwise receive analyst coverage are potentially brought together. As well, we offer coverage of activity in the bond market for users to be made aware of lower-risk opportunities.
Vancouver Resource Investment Conference at the Vancouver Convention Centre is Cambridge House’s largest annual conference. This year’s conference will surpass previous years’ numbers with approximately 500 booths on the tradeshow floor representing more than 600 junior resource mining companies. Two speaking halls along with six workshops will run concurrently over the two-day conference providing investors with up to date information from industry experts. New this year, will be the launch of Cambridge House’s Investor College. The purpose of the college will be to deliver educational information to the junior or senior investor. A broadcast centre will also be located at the middle of the trade show floor where live onstage media will record and broadcast at various locations around the conference.
Also new this year; there will be a debate between Frank Holmes and Gordon Chang:
DEBATE: This January we have confirmed internationally acclaimed bestselling author, Gordon Chang and award winning philanthropist and global leader in fund managing, Frank E. Holmes. Frank Holmes is the Chief Executive and Chief Investment Officer at US Global Investors. He is also the recipient of both Mining Fund Manager of the Year Award from The Mining Journal and International Citizen of the Year Award from the World Affairs Council of America. Gordon Chang literally wrote the book on why one should be wary of China’s growth. Published in 2006, The Coming Collapse of China is a piece that is still gaining momentum and has attracted the attention from the likes of the LA Times to Asia Times and all in between. One might be familiar with Chang from appearances on Fox News or his regular contributions to Business Insider. On January 23, these two intellectual behemoths will take off the gloves and debate whether China is on a course to Grow, Slow or Blow. Don’t miss this and many more exciting features that will be on display at the 2012 Vancouver Resource Investment Conference.
In this week’s report, the CFB published term sheets for 10 new proposed placements from the mining, oil/gas (termed metals and energy in the report) and technology sectors. Of those, nine were for mining stocks and one for technology stocks, with the total value of new proposals reaching almost $7m. None of these placements were designated a ‘flow through’ issuance and there were no new debenture offering. The largest new public proposal was by Bannerman Resources Ltd (BAN.V), which launched a share offering consisting of 17.78m shares at a price of $0.225 for gross proceeds of $4.182m in a non-brokered placement.
The CFB published term sheets for 39 placements that were closed during the week. Of these, 27 were for mining stocks, four for oil/gas, and eight for technology stocks, with the total value of these closings being almost $248m. Eight of these placements were designated ‘flow through’ issuances and one debenture placement closed. The largest public closing was by Yoho Resources Inc. (YO.TO) which issued 4.55m shares at a price of $3.30 for gross proceeds of $15m in an offering led by FirstEnergy Capital.
The CFB also tracked three amendments to placements published at the end of the weekly report. To date, there have been 380 weekly reports created by CFB; backdated reports can be obtained by subscribers.
Click HERE to download the summary.
About the CFB and Blender Media:
The Canadian Financing Bulletin is produced and distributed by Blender Media, an integrated creative agency specializing in both online and print design, development and maintenance. Blender Media’s work includes extensive strategies for shareholder communication, intuitive design interfaces and the opportunity to be memorable in a sea of investment possibilities.
Blender Media has the support of over 450 satisfied clients and utilizes investor focused online exposure solutions that help clients stay in touch with their shareholders, including the CFB.
Since CFB began offering its weekly report over seven years ago, it has developed other more wide reaching reports that have now been published. Our quarterly and year-in-review reports provide charts, graphs and other comparative tables that exhibit sophisticated capital market intelligence. The data in these reports has been read by thousands of executives, investment advisors, fund managers, and investors from around the world. CFB has also recently begun offering specialized monthly reports, focusing on individual segments within the sectors CFB covers (i.e., gold, uranium, oil, etc.) To date, there have been 169 reports created by CFB; several of these reports are currently posted on the CFB website.
As one can see, CFB offers an important perspective into Canadian capital markets. These markets play a crucial role in the financing of companies active worldwide in various business sectors, specifically for natural resources exploration and development. Canada maintains a leadership role due to a number of factors:

--  A history of significant natural resources;
--  Efficient and transparent capital markets;
--  Strong backing from the investment community; and
--  Regional clusters of the world's most innovative, organized and
aggressive exploration and development personnel, in cities like
Vancouver, Calgary and Toronto.

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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

 

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dar Education Lending Announces an Initiative to Help Colleges Provide Private Student Loan Consolidation Options to …

Cedar Education Lending announced that it is working with College Financial Aid and Alumni Offices to help spread the word about Private Student Loan Consolidations to recent graduates.
New York, NY (PRWEB) January 10, 2012
Cedar Education Lending announced that it is working with College Financial Aid and Alumni Offices to help spread the word about Private Student Loan Consolidations to recent graduates.
“Financial Aid offices at colleges and universities throughout the country do a terrific job advising students of Federal loan programs, grant-aid, scholarships, private loan and other financial aid opportunities,” said Ms. Samantha Karageorge, Cedar’s CMO. “Prior to graduating, students often have the chance to meet with their Financial Aid Office to discuss their outstanding Federal loans and repayment responsibilities upon graduation. This often is not the case with their Private Student Loans. Furthermore, most colleges don’t provide information or advice to recent graduates about the availability of Private Student Consolidation Loans like those offered by Cedar Education Lending.”
More specifically, Cedar has already begun working with a number of Alumni offices to include information about Private Student Loan Consolidations in the services and benefits sections on their websites, including advice, consolidation loan calculators, and links that would enable graduating students or recent graduates to better understand their options in regard to Federal and Private Consolidation Loans. This initiative will enable students to better plan for their financial future and make navigating the process a lot easier.
###
Samantha Karageorge
Cedar Education Lending
201-321-9932
Email Information

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Her tuition solution

Photo by James Keivom/New York Daily News

John Jay College student Angy Rivera, an undocumented collegian who doesn’t qualify for federal aid or loans, is going online to raise tuition money by selling $5 “education bracelets.”

John Jay College student Angy Rivera doesn’t have a green card — and that means she doesn’t qualify for federal financial aid or loans to help with $2,565 in tuition a semester.
Like some other undocumented students around the country, she’s turned to the Internet to raise the money so she can stay in school.
Using Facebook or the website Chipin.com, they are coming out as undocumented and asking for help, often selling something homemade in exchange for donations.
“At 3 yrs old I became undocumented in the United States,” Rivera, 21, posted on her Chipin page, where she sells handmade “education bracelets” for $5.
“Often times it’s hard to ask for help, but now, I’m asking you to place a donation that will help me continue my education.”
Tuition hikes forced her to cut back to part-time. “The few scholarships that I did receive only paid off a semester or two,” she said.
The Colombian-born criminology student has raised only $60 of a $1,000 goal, but some of the money has come from perfect strangers.
New York allows undocumented students to pay in-state tuition rates, but state and federal aid is off-limits. The Board of Regents is pushing to open New York’s Tuition Assistance Program to all students.
Students around the country are in similar straits and turning to Chipin.
In Florida, Juan Escalante, 22, raised $1,000 by sending, “I am undocumented” T-shirts to those who donated $25.
He was able to make his final tuition payment and graduate from Florida State University in Tallahassee last month.
Texas A&M student Jose Luis Zelaya crochets and sells beanie hats, and has gotten so good he thinks he can break the Guinness World Record for most stitches per minute.
He’s sold about $1,000 worth through a Facebook page.
When he was 13, Zelaya left a life on the streets in Honduras to join his mom in Houston.
Last month, he was chosen to give the invocation at his graduation. Now, he’s in an education master’s program.
“It is a pretty heavy burden, but I have been able to do it so far,” said Zelaya, 24. “A lot of people are impressed that I’m a guy and that I’m making beanies for a good cause.”
epearson@nydailynews.com

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Schulte Roth & Zabel LLP Announces Election of New Partners and Promotion of Associates to Special Counsel

NEW YORK–(BUSINESS WIRE)– Schulte Roth & Zabel LLP is pleased to announce the election of Eric A. Bensky, Jennifer Dunn, Christopher S. Harrison and David J. Karp as partners. The firm also announces the promotion of James T. Bentley, Michael G. Cutini, Farzad F. Damania, William I. Friedman, Frank J. LaSalle, James Nicoll and Leonora M. Shalet to special counsel.
Eric Bensky is resident in the firm’s Washington, D.C. office. The other new partners and special counsel are located in the firm’s New York office. David Karp is resident in both the New York and London offices.
“We are very proud of these individuals who have distinguished themselves through their contributions to our clients and the firm,” said Alan Waldenberg, a member of the firm’s executive committee. “The depth of their knowledge and experience greatly enhances the value of our legal services and reflects the firm’s commitment to providing the highest level of guidance and client service.”
PARTNERS
Eric A. Bensky, a partner in the litigation group, focuses his practice on securities litigation, including civil, disciplinary and criminal proceedings and investigations before federal and state courts, the Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA), various stock exchanges, and arbitration panels of FINRA and other self-regulatory organizations. He received his B.A., with high honors and high distinction, from the University of Michigan and his J.D., with honors, from the University of Chicago Law School.
Jennifer Dunn, a partner in the investment management group, advises hedge funds, private equity funds, hybrid funds, funds of funds and investment advisers in connection with their structuring, formation and ongoing operational needs, general securities laws matters, and regulatory and compliance issues. After obtaining a B.A., cum laude, from the University of Pennsylvania, Jennifer received her J.D. from Columbia Law School.
Christopher S. Harrison, a partner in the M&A and private equity practices of the business transactions group, concentrates his practice on hedge fund mergers and acquisitions, private equity transactions, and domestic and cross-border mergers and acquisitions. Christopher also serves as an adjunct professor at New York University School of Law. He has a B.A. from Friedrich-Schiller-Universität and a J.D., cum laude, from New York University School of Law.
David J. Karp, a partner in the business reorganization group, focuses his practice on corporate restructuring, special situations and distressed investments, distressed mergers and acquisitions, and the bankruptcy aspects of structured finance. In addition, David leads the firm’s distressed debt & claims trading practice, which provides advice in connection with U.S., European and emerging market debt and claims trading matters. He received his B.S. from Cornell University and his J.D. from Fordham University School of Law.
SPECIAL COUNSEL
James T. Bentley, a special counsel in the business reorganization group, practices in the areas of distressed mergers and acquisitions, debtor-in-possession financing, corporate restructuring, and out-of-court workouts. James received his B.A. from Boston College and his J.D., cum laude, from Brooklyn Law School. After earning his law degree, James clerked for Chief Judge Carla E. Craig of the Eastern District of New York Bankruptcy Court. Prior to joining SRZ, he was an assistant vice president in Citigroup’s Global Corporate Banking Group.
Michael G. Cutini, a special counsel in the litigation group, focuses his practice in the areas of complex commercial and business, securities and shareholder, and bankruptcy litigation on behalf of privately and publicly held companies and financial services industry clients, including hedge funds, private equity funds, and prime and clearing brokers, as well as advising clients on compliance with antitrust laws, particularly in the context of mergers and acquisitions. He received his B.A., summa cum laude, from the State University of New York Fredonia and went on to obtain his J.D., cum laude, from Syracuse University College of Law.
Farzad F. Damania, a special counsel in the business transactions group, focuses his practice on capital markets and securities law, mergers and acquisitions and general corporate law. Farzad received his B.A. from St. Xavier’s College and his LL.B. from Government Law College, both in Bombay, India, and he received his LL.M. from Chicago-Kent College of Law, Illinois Institute of Technology.
William I. Friedman, a special counsel in the litigation group, concentrates his practice on AML, OFAC and FCPA issues and other regulatory areas. Prior to joining SRZ, William was with the New York Stock Exchange, where he served as special counsel in its Division of Enforcement. After graduating with honors from Brandeis University, he earned his M.B.A. from Baruch College, CUNY, and received his J.D. from Brooklyn Law School. After earning his law degree, William served as a law clerk to the Hon. Bernard J. Fried of New York County, Supreme Court, Criminal Branch.
Frank J. LaSalle, a special counsel in the litigation group, practices in the areas of complex commercial, securities, corporate governance, accountants liability, intellectual property, real property, class action defense, bankruptcy and creditors rights litigation, and securities regulatory investigations and examinations. Frank earned his B.A. and M.A. from Miami University and his J.D. from University of Akron School of Law.
James Nicoll, a special counsel in the business transactions group, focuses his practice on corporate finance transactions, counseling corporate clients on compliance with the federal securities laws and on general corporate matters, venture capital and mergers and acquisitions. He holds a B.S. from Cornell University and a J.D. from the University of Pennsylvania Law School.
Leonora M. Shalet, a special counsel in the investment management group, focuses her practice on advising investment funds (including hedge funds, private equity funds, hybrid funds and funds of funds) and investment advisers in connection with their structuring, formation and ongoing operational needs, general securities laws matters, and regulatory and compliance issues. Leonora earned an LL.B. in Law with French Law from Birmingham University, Birmingham, England as well as a French Law Diploma from Limoges Law School, France (ERASMUS). Leonora is also a graduate of the Legal Practice Course from Nottingham Law School, Nottingham Trent, England.
About Schulte Roth & Zabel LLP
Schulte Roth & Zabel LLP (www.srz.com) is a full-service law firm with offices in New York, Washington, D.C. and London. As one of the leading law firms serving the financial services industry, the firm regularly advises clients on corporate and transactional matters, as well as providing counsel on securities regulatory compliance, enforcement and investigative issues. The firm’s practices include investment management; M&A securities & capital markets; litigation; business reorganization; distressed debt & claims trading; employment & employee benefits; environmental; finance; individual client services; intellectual property, sourcing & technology; real estate; regulatory & compliance; structured products & derivatives; and tax

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Financing College Costs in 2012: Smart Tips

Most likely, your 529 plan and equity in your home are still down, but tuition keeps rising. Still, there’s money out there for students who need help with college financing. Here are 12 tips to help you attend school for less in 2012.
Go to college despite the job market
The year 2011 provided several arguments to skip college — high unemployment rates, tuition hikes and a harsh job market for grads. Go anyway.
“The jobs that are growing, the industries that are growing and the markets that are going to be available to students are those that require higher education,” says Brittania Morey, spokeswoman for the Iowa College Access Network. “Students who are choosing to go to college are preparing themselves for the work world of tomorrow.”
According to a 2010 report by Georgetown University, 63% of jobs offered by 2018 will require postsecondary education. Morey says students can cut college costs by searching for scholarships early and investigating awards in their community.
Don’t eliminate yourself
The biggest mistake students make is believing they’re not eligible for college aid. A 2009 study by Finaid.org showed that 2.3 million students who would have been eligible for the federal Pell Grant missed free college cash because they didn’t apply.
While students attending pricey institutions frequently apply for aid, the likelihood is lower at cheaper schools and community colleges, says Diana Fuentes-Michel, executive director of the California Student Aid Commission.
“That’s where folks tend to believe that they wouldn’t qualify for financial aid because of the low cost,” she says.
The U.S. Department of Education reports that all students, regardless of income or financial assets, are eligible for up to $27,000 in federal Stafford Loans over four years.
File for FAFSA fast
The Free Application for Federal Student Aid, or FAFSA, qualifies students for federal grants, loans and work-study jobs as well as some private and state-sponsored awards. Filing it as close to Jan. 1 as possible maximizes your college aid eligibility, says Lynda Forster, CEO of the financial aid consulting group Collegiate Capital Corp. in Mineola, N.Y.
“Most (families) think that financial aid forms must be completed after the tax returns are done, and that is not accurate,” she says. “You cannot wait until April. All of the money is already awarded.”
Since federal grants are distributed on a first-come, first-served basis, Forster recommends that families file the form using estimates of their income and assets. If they need to change something, families can file corrections at FAFSA.ed.gov.
Choose your major carefully
From private loan-forgiveness programs to state and federal grants, there’s money available to students majoring in high-demand fields. While the federal government offers up to $4,000 per year to future educators through the Teacher Education Assistance for College and Higher Education, or TEACH, Grant Program, individual states offer similar college financing initiatives for up-and-coming teachers, nurses, fire and emergency medical technicians, public defenders, child care employees, health care workers and those pursuing jobs in other fields.
Students who know their major can check with their school’s financial aid office to see if there are awards available in their fields. Professional organizations and nonprofits, such as the National Restaurant Association and the National Environmental Health Association, also offer awards to students in specific fields of study.
Find a ‘safety’ school
Guidance counselors recommend that students apply to an academically safe school. Martha Savery, director of community outreach for the Massachusetts Educational Financing Authority, recommends that students apply to a financially safe school, too.
“We always tell families (not to) self-select based on the cost that you see in the admissions material because many colleges and universities are able to provide a substantive financial aid package,” Savery says.
As of Oct. 29, all institutions that receive federal funding are required to post a net price calculator on their website that can help families estimate college costs with aid factored in, according to the National Center for Education Statistics. Students also can compare net prices of different schools by income level on the NCES website.
Meet the deadlines
With more students vying for aid, there’s stiff competition for dollars. Don’t eliminate yourself by missing a deadline, Savery says.
“If your child was applying for admission to XYZ university, you would not contact that admissions office and say ‘You know, I’d like just three or four more days just to tweak my essay,’” she says. “(Families) need to look at the deadlines from a financial aid perspective in exactly the same way.”
Ask the boss
A 2010 study by Business and Legal Resources, a compliance consulting firm in Old Saybrook, Conn., showed that nearly 85% of U.S. companies offer tuition reimbursement to employees. That’s up from 52% in 2007.
There are some pretty big catches. More than 75% of employers require that course work be job-related to qualify for reimbursement. Companies also may restrict how much reimbursement employees can get, require a certain grade point average or limit reimbursement to employees at a certain job level. More than 60% of companies offering reimbursement require employees to stay with the organization after completing study.
Go federal first
Federal loans are still the cheapest student loans. Through June 30, subsidized Stafford Loans will carry a 3.4% fixed interest rate. All Stafford Loans — subsidized, unsubsidized and grad loans included — disbursed after June 30 have a 6.8% fixed interest rate, according to the Department of Education. Stafford Loans are capped at $27,000 over four years for dependent students, but Morey says that federal loans to parents can help.
Through the Parent PLUS Loan, families can borrow up to the cost of attendance minus financial aid the student has received, and they’ll only pay 7.9% in interest — a rate that’s far below those of many private loans, according to DOE.
Cap those loans
Federal student loans also can be capped at 15% of a student’s “discretionary income.” That’s defined as earnings above 150% of the poverty line. For 2011, discretionary income would include earnings above $16,335 for a family of one, according to the Department of Health and Human Services. Earn less than $16,335, and the federal government won’t charge you anything for your student loan as long as your income stays below that threshold.
A double bonus is that students who make consecutive loan payments for 25 years will have their debt forgiven, according to the Oakland, Calif.-based Project on Student Debt. The time frame is reduced to 10 years for students who work in public-service professions such as teaching or social work after graduation.
Despite the tremendous potential savings, research shows that few students take advantage of the program. A White House fact sheet from October says that only about 1.3% of students with federal loans opt for income-based repayment.
Fight the hikes
Thanks to state budget cuts, tuition and fees at the average two- and four-year public institutions rose by about 7% this year, according to the College Board in New York. But in states such as Florida and California, prices at undergraduate state universities rose by 15% or more.
“The immediate kind of response to (tuition hikes) is to put it on a credit card or to look to their parents to try to get them to take a loan out,” says Fuentes-Michel.
The problem is that parents frequently can’t take on additional debt, and credit card interest rates are substantially higher than those of federal student loans. Instead of falling in the plastic trap, Fuentes-Michel recommends that students look to federal loans, private scholarships and part-time employment for college financing.
Save the right way
One of the strangest loopholes of financial aid is that how you save can impact your aid just as much as how much you save.
“Money put into a student’s name is not the place where you want to park it,” says Forster. “A student’s assets and income (are) counted much higher than a parent’s.”
While assets saved in a parent’s name can subtract up to 6 cents for every dollar from your federal need-based scholarships and grants package, every dollar of student assets takes away 20 cents, according to the White House’s National Economic Council. Money saved in a grandparent’s or relative’s name won’t count at all. However, 529 plans are one exception. Funds stored in a 529 plan in the student’s name count as parental assets, according to FinAid.org, the college financing resources website.
Reconsider 529 college savings plans
Many 529 plans lost value when the market dipped in 2008, but they’re coming back — this time with more conservative investment options. In the past two years, states including Nebraska and Indiana have added financial options insured by the Federal Deposit Insurance Corp. that allow parents to access 529 tax incentives without taking any market risks.
On top of providing federal tax-free growth, certain states also provide state tax incentives and matching grants to encourage account holders to save.
Copyright 2012, Bankrate Inc.


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