9 April 2017

FAFSA® Changes for 2017-18

Summary

On Sept. 14, 2015, President Obama announced significant changes to the Free Application for Federal Student Aid (FAFSA®) process that will impact millions of students. Starting this year, students will be able to:

• Submit a FAFSA® Earlier: Students will be able to file a 2017-18 FAFSA as early as Oct. 1, 2016, rather than beginning on Jan. 1, 2017. The earlier submission date will be a permanent change, enabling students to complete and submit a FAFSA as early as October 1 every year.
• Use Earlier Income Information: Beginning with the 2017-18 FAFSA, students will report income information from an earlier tax year. For example, on the 2017-18 FAFSA, students (and parents, as appropriate) will report their 2015 income information, rather than their 2016 income information.

FAFSA® Process Changes

The 2016-17 FAFSA was the final FAFSA to launch on January 1. Students who need to complete the 2016-17 FAFSA will be able to access and submit the form anytime between Jan. 1, 2016, and June 30, 2017. Beginning with the 2017-18 FAFSA, the start date will move from January 1 to October 1 of the previous year. This means that students who complete the 2017-18 FAFSA will be able to submit the form anytime between Oct. 1, 2016, and June 30, 2018.

In addition to changing the FAFSA launch date, the requirements for reporting income information will also change. Currently, FAFSA applicants provide income information from the "prior tax year." For example, 2016-17 applicants must report 2015 income information. Beginning with the 2017-18 FAFSA, applicants will provide income information from one tax year earlier-the "prior-prior" year. This means that the 2017-18 FAFSA will collect 2015 income information. As a result of this change, more students and families will be able to complete their FAFSA using income information imported electronically from the IRS, using our IRS Data Retrieval Tool (DRT), rather than submitting applications with income estimates that may need correcting, or worse, waiting until the previous year's tax return has been filed.

The following table provides a summary of key dates as we transition to using the early FAFSA submission time-frame and earlier tax information.

FAFSA® Changes Impact

Recent research and the Department of Education's own data suggest that implementing an earlier start date and using earlier income information will benefit students. Benefits include:

(a) alignment- the financial aid application process may be more aligned with the college admission process,

(b) certainty-applicants will not need to estimate income or taxes paid, and,

(c) less pressure-more time for students and parents to explore and understand financial aid options and apply for aid before state deadlines.

11 January 2016

FAFSA vs. CSS Profile

If you are starting the college planning process, there are two terms you need to become familiar with. Free Application for Federal Student Aid (commonly referred to as FAFSA) and College Scholarship Service (CSS) Profile. It is very important that you know the differences between the two and the deadlines associated with each.

• Different methodology: The FAFSA is offered through the Federal Government as a way to determine eligibility for aid on a financial-need basis. It is known as Federal Methodology (FM). Ever accredited school in the country uses the FAFSA. The CSS Profile is required by only certain colleges and universities to determine eligibility for institutional aid. It is known as Institutional Methodology (IM). Make sure you check with the schools your child is interested in to see if they require the CSS Profile.
• Submission dates: The CSS Profile can be submitted as early as the fall of the student's junior year of high school; the FAFSA cannot be submitted until January 1 of the student's senior year of high school. Both of these dates are changing for the next financial aid season.
• Cost: The FAFSA form is free to fill out. The CSS Profile has an initial fee of $25 to fill out and submit to one school. An additional fee of $16 each is required to submit it to additional schools.
• Minimum student contribution: The FAFSA assumes that students may not be able to contribute any money towards college. The CSS Profile assumes a minimum level of contribution from the student.

A school can choose to use the CSS Profile in addition to the FAFSA financial aid application primarily because it allows the school to ask specific questions about a student's financial aid situation that the FAFSA simply cannot (the FAFSA is a fully standardized form). If you have concerns about filling out the FAFSA or CSS Profile, please don't hesitate to reach out to us.

1 January 2016

FAFSA® Changes for 2017-18

Summary

On Sept. 14, 2015, President Obama announced significant changes to the Free Application for Federal Student Aid (FAFSA®) process that will impact millions of students. Starting next year, students will be able to:

• Submit a FAFSA® Earlier: Students will be able to file a 2017-18 FAFSA as early as Oct. 1, 2016, rather than beginning on Jan. 1, 2017. The earlier submission date will be a permanent change, enabling students to complete and submit a FAFSA as early as October 1 every year.
• Use Earlier Income Information: Beginning with the 2017-18 FAFSA, students will report income information from an earlier tax year. For example, on the 2017-18 FAFSA, students (and parents, as appropriate) will report their 2015 income information, rather than their 2016 income information.

FAFSA® Process Changes

The 2016-17 FAFSA will be the final FAFSA to launch on January 1. Students who need to complete the 2016-17 FAFSA will be able to access and submit the form anytime between Jan. 1, 2016, and June 30, 2017. Beginning with the 2017-18 FAFSA, the start date will move from January 1 to October 1 of the previous year. This means that students who complete the 2017-18 FAFSA will be able to submit the form anytime between Oct. 1, 2016, and June 30, 2018.

In addition to changing the FAFSA launch date, the requirements for reporting income information will also change. Currently, FAFSA applicants provide income information from the "prior tax year." For example, 2016-17 applicants must report 2015 income information. Beginning with the 2017-18 FAFSA, applicants will provide income information from one tax year earlier-the "prior-prior" year. This means that the 2017-18 FAFSA will collect 2015 income information. As a result of this change, more students and families will be able to complete their FAFSA using income information imported electronically from the IRS, using our IRS Data Retrieval Tool (DRT), rather than submitting applications with income estimates that may need correcting, or worse, waiting until the previous year's tax return has been filed.

The following table provides a summary of key dates as we transition to using the early FAFSA submission timeframe and earlier tax information.

FAFSA® Changes Impact

Recent research and the Department of Education's own data suggest that implementing an earlier start date and using earlier income information will benefit students. Benefits include:

(a) alignment- the financial aid application process may be more aligned with the college admission process,

(b) certainty-applicants will not need to estimate income or taxes paid, and,

(c) less pressure-more time for students and parents to explore and understand financial aid options and apply for aid before state deadlines.

27 November 2015

The FSA ID

The Federal Student Aid PIN was replaced with the FSA ID on May 10, 2015. Going forward, students and parents will be required to use an FSA ID, made up of a username and password, to access certain U.S. Department of Education websites. The FSA ID has replaced the Federal Student Aid PIN to confirm your identity when accessing your financial aid information and electronically signing your Federal Student Aid documents.

How Do I Get a FSA ID?

The FSA ID process consists of three main steps:

1. Enter your log-in information.
   1. Provide your e-mail, a unique username, and password and verify you are at least 13 years old.
   2. Please note, your username does not expire, but your FSA ID password will expire every 18 months.
2. Enter your personal information.
   1. Provide your Social Security number, name, and date of birth.
   2. Include your mailing address, e-mail address, telephone number, and language preference.
   3. Provide answers to five challenge questions.
3. Submit your FSA ID information.
   1. Agree to the terms and conditions.
   2. Verify your e-mail address. (Note: By verifying your e-mail address, you can use your e-mail address as your username when logging into certain U.S. Department of Education websites.)

Click HERE to create a FSA ID.

Please feel free to contact the FAFSA office if you have any questions or require assistance in setting up your new FSA ID.

15 October 2015

Financial Aid Awards

Colleges and universities send out numerous financial aid award letters every year to high school seniors and returning students. Unfortunately, these letters can be very confusing to read. If parents cannot interpret an aid award letter, they won't know if a school is shortchanging them.

Below are four things to look for when reviewing a financial aid letter:

1. Look for the cost of attendance

The cost of attendance includes such things as tuition, room/board, textbooks and other miscellaneous fees. Ideally, these costs will be itemized on your student's financial aid letter. The cost of attendance is crucial in determining if the school is offering you a good deal or not.

2. Check for grants and scholarships

This is the money that doesn't have to be repaid, so the more you see here the better! Be sure to check the terms of what is being offered (e.g. is it for four years or just one year). Does your student have to maintain a minimum grade point average? Look carefully at the conditions of the grant or scholarship and be sure to contact a financial aid counselor if you have any questions.

3. Watch out for the loans

One way that schools make their packages look more attractive is to include loans. Expect to see government loans included in your child's aid package. Examples of these include subsidized Stafford Loans and the Perkins Loan. Don't be impressed if you see a PLUS Loan for Parents or an unsubsidized Stafford Loan, which are available to all parents of all incomes.

4. Look for your expected contribution

There should be a line in the aid package letter stating what the school expects the child to contribute and what the parent(s) must contribute. These numbers are based on the calculations that are generated when a family files for financial aid (e.g. filling out the FAFSA).

Bottom Line: Read your aid award letters very carefully. Part of Premier College Funding services' includes reviewing aid award letters. Please feel free to reach out to us if you need any assistance in this process.

4 September 2015

Purchasing Textbooks for College

Check out some possible options to paying bookstore costs for college textbooks.

Four ways to save money on college textbooks (read full article):

1. Ask the professor
2. Use comparison tools
   1. Textbook Save Engine - will find the lowest prices on the Internet, turning up rentals or used titles that are an average 85% off the original price
   2. Campusbooks.com - will provide a side-by-side analysis of prices and buyback history to help you decide whether to rent or buy
3. Know the traps
   1. use the ISBN book number to obtain the exact book your class will use
   2. sell books back to the college bookstore if purchased from there or from other online book buyers
4. Save your receipts for tax time - American Opportunity Tax Credit, which will defray up to $2,500 spent on out-of-pocket college costs, including course materials, fees, and tuition

9 November 2014

The Road Less Taken

Scholarships are obviously a great way to help subsidize a college education. Whether they are a need-based institutional grant or from your local Parent Teacher Organization, every dollar helps. However, there are alternate pathways to college that allow students to save A LOT of money.

We are going to help highlight some of these pathways (as well as actionable tips) that could potentially save you tens of thousands of dollars. Some of these pathways will be:

Graduating early

Getting your degree in 3 (or even 3.5) years can take a huge chunk out of the cost of attending a college. I graduated in college in 3.5 years, which saved me roughly $25,000 in tuition/room/board. We are going to explore some strategies to help more students do the same.

Community College

Community (or two-year) colleges often get a bad wrap. They are seen as being the option for people who couldn’t hack it at a four-year school. This is unfortunate, because the cost of a 2-year school is only about 40% that of a four-year school. For a bright and motivated student, this can be an incredible opportunity for savings. Most importantly remember: the four-year college is the institution that is granting your Bachelor’s degree.

Online Colleges

Much like 2-year colleges, online colleges have suffered from a perception problem. Schools like Capella University and University of Phoenix are no longer the only options in the online space. Numerous reputable non-for-profit colleges and universities (including Georgetown, Johns Hopkins, and the University of North Carolina) have degree options. Schools like Arizona State University and Drexel University have even started offering Bachelor’s degrees. The best part of an online degree is the ability to earn a full income while going to school.

21 July 2014

The Low Down on 529 Plans

What is a 529 Plan?

A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. 529 plans are named after section 529 of the Internal Revenue Code (IRS). While most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations for investors who invest in 529 plans in their state of residence.

Types of 529 Plans

• Prepaid
  • Prepaid plans allow one to purchase tuition credits at today's rates to be used in the future. Most prepaid tuition plans are sponsored by state governments and have residency requirements. Currently, only 12 states provide a prepaid tuition plan.
• Savings
  • Savings plans are different in that all growth is based upon market performance of the underlying investments, which typically consist of mutual funds. Most 529 savings plans offer a variety of age-based asset allocation options where the underlying investments become more conservative as the beneficiary gets closer to college age. All fifty states sponsor at least one type of 529 plan.

What can 529 Plans be used for?

Money from a 529 plan can be used for tuition, fees, books, supplies and equipment required for study at any accredited college, university or vocational school in the United States and at some foreign universities. The money can also be used for room and board, as long as the fund beneficiary is at least a half-time student. Off-campus housing costs are covered up to the allowance for room and board that the college includes in its cost of attendance for federal financial-aid purposes. Qualified education expenses do not include student loans and student loan interest.

Does Having a 529 Plan Impact Financial Aid Eligibility?

While each educational institution may treat assets held in a 529 plan differently, investing in a 529 plan will generally reduce a student's eligibility to participate in need-based financial aid. Beginning July 1, 2006, assets held in pre-paid tuition plans and college savings plans are treated similarly for federal financial aid purposes. Both are treated as parental assets in the calculation of the expected family contribution toward college costs. Previously, benefits from pre-paid tuition plans were not treated as parental assets and typically reduced need-based financial aid on a dollar for dollar basis, while assets held in college savings plans received more favorable financial aid treatment.

11 May 2014

College Admissions Reading

The college admissions process can be quite the nerve-racking experience. Like anything else, it is filled with many unknowns. This is one of the most unsettling parts of the process–what exactly happens? The following is a list of books that we have read and think that you should check out. If anything, they will help demystify the process and help the stress melt away. They all relate to the admissions process in some way: from taking the SAT to what goes on in the admissions offices.

Admissions Confidential by Rachel Toor is an examination of what exactly goes on in an admissions office. This books serves to remove some of the mystique of the admissions process. Though at times cynical, this is an interesting view into admissions at a highly selective institution (in this case, Duke University). This is a book of the good, the bad, and the ugly.

Crazy U is another book about the college admissions process. This book, unlike this others, is written from the perspective of a parent. From high priced college consultants to stressing about test scores, Crazy U is an interesting book (and perhaps even more so, an interesting commentary on our culture). The irony of the book was that while Ferguson (the author) was stressed out and panic-ridden, his son was relaxed and confident that all would be well (which was the case).

The Gatekeepers by Jacques Steinberg tracks several students through the college admissions process. These students all apply to prestigious Wesleyan University and we are able to accompany them on their journey. Steinberg’s book is a bit less sensational than Toor’s, but is nonetheless entertaining and informative.

Acceptance: A Legendary Guidance Counselor Helps Seven Kids Find the Right Colleges–and Find Themselves is by David L. Marcus. While much of the media hype is focused on a handful of super-selective schools, Marcus’ book does a great job of talking about more “regular” students.

Cal Newport’s aptly named How to Be a High School Superstar: A Revolutionary Plan to Get into College by Standing Out (Without Burning Out) is a terrific book that uses a variety of case studies to help students help themselves and find their passion.

28 April 2014

Early Admissions and Financial Aid

Early Decision and early action (hereafter referred to as ED and EA) policies have become really popular. On the surface, it is a great deal—you apply to your dream college early, you get in early, and you don’t have to worry about sending out dozens of applications. However, what if you are unsure whether you can afford your dream college? Are you expecting to receive merit-based scholarships?

What is the difference between Early Decision (ED) and Early Action (EA)?

Typically there are two types of ED and EA respectively: EDI, EDII, EA, and Single Choice EA:

• Early Decision I (ED1) is a binding admission policy. You apply with the understanding that if admitted, you will enroll in a specific college or university. The deadlines for ED are early than regular decision deadline and the benefit is that you will be notified of your decision sooner. If you are admitted under a binding early decision program, you must withdraw all of your other applications.
• Early Decision 2 is the same as Early Decision 1, but with a later application deadline. It is also binding and you are notified earlier.
• Early Action is a non-binding admissions program. Unlike regular ED, students do not have an obligation to attend a school if they are admitted. They can submit all of their other applications and enjoy the benefit of an early notification for their EA choices. Students may apply early action to other schools that offer the policy (but may not apply ED or single-choice early action).
• If this was not all confusing enough, some schools have Single-choice EA. This means that while you are not bound to attend the school if admitted, you may not apply to other schools under an early admission plan.

The financial aid ramifications vary greatly depending upon what early admissions program you are applying under. Not all early programs are the same. When in doubt, call the admissions office of the school in question. They will help you clarify any details about their schools’ early admissions policies.

How can this affect my financial aid?

If you are looking to receive a merit scholarship, it is not advisable to apply under a binding early program. Merit aid is very competitive and many schools do not offer guaranteed merit aid—no matter how impressive your credentials, merit aid is not a given at most schools.

Bottom line: if you are seriously looking for any scholarships or if need-based aid may not be enough, early decision is not the wisest move. Most colleges will certainly allow you to be released from your ED agreement (though they will not be happy about it). The downside of this is that you will no longer be considered for admission—you burn that bridge.

So who is Early Decision for?

ED is for students who are 100% (not 99.9%) that a particular school is right for them. These students should also be comfortable with what the college will look like financially.

29 January 2014

Scholarship Scams

Every year, several hundred thousand students and parents fall victim to scholarship scams. The victims of these scams lose more than $100 million annually. Scam operations often use official-sounding names containing words like "National," "Federal," "Foundation," or "Administration" to fool unsuspecting students and parents into thinking that they are federal agencies or grant-giving foundations. The lure of "free money" can dupe even the most skeptical of people. Listed below is some advice on identifying scams.

Warning Signs

• Application Fees - Beware of any "scholarship" that requires an application fee, even a small fee of $10-$20. Most legitimate scholarship sponsors do not require an application fee.
• Other Fees - If you pay money to get information about an award, apply for the award, or receive the award, it might be a scam. Note: there are some legitimate scholarship search services that charge students a fee to compare the student's profile against a database of scholarships. It can be very difficult to differentiate between these legitimate services and scam imitators.
• Guaranteed Winnings - No legitimate scholarship can guarantee that applicants will win an award.
• Unsolicited Opportunities - Most scholarship sponsors will only contact applicants in response to an inquiry.
• Mail Drop or Residence for a Return Address - If the return address is a post office box number or a residential address, it is probably a scam.

How the Scams Work

Scams are hard to uncover because the operations are usually small, change location and name frequently, and can continue for years before being discovered. Thinking that their child didn't win the scholarship, parents often won't realize they've been scammed.

• The Low Interest Loan - In return for the initial fee, you might be offered a low interest education loan. If the loan is not issued by a bank, it may be a scam.
• Name Recognition - Do not get confused by scam scholarships that sound similar to genuine award programs.

Acknowledged Scholarship Scams

• National Science Federation
• Guilford Scholarship
• Student Aid Incorporated
• Higher Education Scholarship Program (HESP)
• Olin L. Livesey Scholarship

21 January 2014

There is always more to learn about scholarship and financial aid. For example, have you ever wondered how to:

• save over $19,000 for a single college semester while still in high school?
• determine a financial “safety school” to fall back on?
• find and be competitive for the best merit scholarships at the nation’s top universities?

We have you covered with Scholarships360 Courses. If you haven’t checked them out yet and are looking to increase your financial aid and scholarship IQ, feel free to take a look. Right now, we have three courses available for high school and college students. In order of publication (most recent to oldest):

Course #1: Self-Studying AP Exams: The Guide to Saving $19,403 per Semester

This course looks at how you can take an AP exam in high school without ever taking the corresponding AP class. If you do well enough on the exam, you can gain college credit that has the potential to drastically lower your tuition bill. Included in this course:

• a walkthrough of the entire self-studying process, from talking to your guidance counselor through test day
• a look at some of the easiest AP exams to prepare yourself for
• a directory of the best review books to help you study and ace the exams

Course #2: Finding a Safety You Love (and can afford)

The admissions process has two hurdles: getting into school and paying for it. This guide will help students identify a safety school that will make financial sense for them and their families. While safeties are backup schools, it is smart to have an affordable plan. Included in this course:

• thinking about potential safety schools
• a quick overview of merit aid vs. need-based aid, and a guide to help figure out which will you be looking for
• some tools to help you through this process, including the net-price calculator

Course #3: Merit Scholarships 101

If you’ve ever wondered how students magically get full rides to the best schools in the country, this course has the answer: they’ve probably been awarded a merit scholarship. Merit scholarships are great for students rich and poor, as they award solely based on the merit (or, achievement) of the student. This type of scholarship can be spectacular for a student who doesn’t qualify for financial aid but isn’t wealthy enough to comfortably shell out $50,000/year for a college education. Included in this course:

• a link to a list of the top merit scholarship programs at the nation’s best schools
• a guide to choosing between a spot at a great school with merit aid or a spot at a school with a no-loan financial aid policy
• advice on how to best go about applying for a merit scholarship but, more importantly, finding a program that’s a fit for you

We hope these courses help in your quest to get the best education for the best possible price! As always, direct any questions/recommendations/thoughts to brian@scholarships360.org or will@scholarships360.org.

11 August 2013

Introduction to Student Loans Types

The word l-o-a-n has become a four-letter word, but loans are a reality for many students. Many schools have financial aid packages that “gap” (ie: do not meet all need) students which leaves loans as a final option.

Additionally, the cost of attendance of a college is more than just tuition, room, and board. Travel expenses to school, books, a computer, and other expenses add up. Scholarships are the best option (because you do not need to pay them back), but few students are lucky enough to pay for college in its entirety with scholarship grants.

Loans come in all shapes and sizes, so we hope that this introductory dive into the world of student loans is useful.

Let’s take a look at the two main student loan types:

Federal Student Loans

Federal Student loans can fall under two broad categories: student loans and parent loans. Broadly student loans are taken out by students and parent loans are taken out by parents of students.

Federal Student Loans

Federal student loans are loans from the government made directly to students. Theses loans require no payments as long as the student is enrolled in school at least half time. Federal student loans include Stafford Loans which can be subsidized or unsubsidized. What is the difference? Both types of Stafford loans accrue interest when you are in college, but with Subsidized Stafford Loans, the government pays the interest while you are in school. Other Federal student loan types include Perkins Loans and Federal Direct Student Loans.

Federal Parent Loans

Parents can be a HUGE part of the financial aid process for students. From helping you fill out the FAFSA to paying a chunk of the bill, they can be very helpful. Parents of students who are dependents can actually take out loans to help pay for college. The federal government offers loans called Parent PLUS (Parent Loans for Undergraduate Students) loans. These can help pay for the cost of attending a college that is not covered by their child’s financial aid package. These loans can range up to the full cost of attendance. It should be noted that these loans are the financial responsibility of the parent, not the student.

Private Student Loans

Private student loans are typically the final type of loan families will look at (they are also called alternative student loans). If you are in a situation where your federal/institutional loans and grants are not enough, private student loans are a way to bridge the gap. The rates offered are usually higher than federal student loans (another reason they are third options, but payments can be deferred until graduation. Private student loans can be made to parents or students.

Edvisors offers some wonderful tools to help students and families research, compare, and apply for private student loans.

Do you have further questions about student loans?

If you have further questions, it is always worth getting in touch with the financial aid office at your school (or the school you are interested in attending). While many of these conversations will be more relevant at a later date, it is good to make the connection now.

5 August 2013

Early Admissions and Financial Aid

Early Decision and early action (hereafter referred to as ED and EA) policies have become really popular. On the surface, it is a great deal—you apply to your dream college early, you get in early, and you don’t have to worry about sending out dozens of applications. However, what if you are unsure whether you can afford your dream college? Are you expecting to receive merit-based scholarships?

What is the difference between Early Decision (ED) and Early Action (EA)?

Typically there are two types of ED and EA respectively: EDI, EDII, EA, and Single Choice EA:

• Early Decision I (ED1) is a binding admission policy. You apply with the understanding that if admitted, you will enroll in a specific college or university. The deadlines for ED are early than regular decision deadline and the benefit is that you will be notified of your decision sooner. If you are admitted under a binding early decision program, you must withdraw all of your other applications.
• Early Decision 2 is the same as Early Decision 1, but with a later application deadline. It is also binding and you are notified earlier.
• Early Action is a non-binding admissions program. Unlike regular ED, students do not have an obligation to attend a school if they are admitted. They can submit all of their other applications and enjoy the benefit of an early notification for their EA choices. Students may apply early action to other schools that offer the policy (but may not apply ED or single-choice early action).
• If this was not all confusing enough, some schools have Single-choice EA. This means that while you are not bound to attend the school if admitted, you may not apply to other schools under an early admission plan.

The financial aid ramifications vary greatly depending upon what early admissions program you are applying under. Not all early programs are the same. When in doubt, call the admissions office of the school in question. They will help you clarify any details about their schools’ early admissions policies.

How can this affect my financial aid?

If you are looking to receive a merit scholarship, it is not advisable to apply under a binding early program. Merit aid is very competitive and many schools do not offer guaranteed merit aid—no matter how impressive your credentials, merit aid is not a given at most schools.

Bottom line: if you are seriously looking for any scholarships or if need-based aid may not be enough, early decision is not the wisest move. Most colleges will certainly allow you to be released from your ED agreement (though they will not be happy about it). The downside of this is that you will no longer be considered for admission—you burn that bridge.

So who is Early Decision for?

ED is for students who are 100% (not 99.9%) that a particular school is right for them. These students should also be comfortable with what the college will look like financially.

14 March 2013

10 Tips on How to get a College Scholarship

24 March 2012

Saving Money on your College Bill

The cost of college tuition is on the rise, and families are often concerned about how to make ends meet...The first thing a student needs to do is fill out the FAFSA..he first thing a student needs to do is fill out the FAFSA...Gender also plays a role in applying for aid. Read the full article.....

17 March 2012

100 Free College Rides You Don’t Need Daddy to Pay For

The following list was posted on a blog in 2008, but it is worth investigating even today.

Academic Achievement

Getting good grades and scoring well on the SAT or ACT can help you get a free ride at these schools.

1. Alice Lloyd College: In Pippa Passes, Kentucky, Alice Lloyd College offers fee tuition to students who demonstrate achievement on the SAT/ACT as well as GPA in pre-college curriculum.
2. The Cooper Union: The Cooper Union offers academic programs in architecture, art, and engineering. Undergraduates are admitted solely based on merit and all receive full scholarships.
3. The University of Arizona: Provided that you have exceeded testing standards, you can receive a tuition waiver to attend the University of Arizona.
4. Union College: Union Colleges grants full tuition to all students who are National Merit Finalists.
5. Oregon Institute of Technology: National Merit Scholarship Finalists and those with otherwise excellent qualifications can receive full resident tuition and fees from the Oregon Institute of Technology.
6. Lorain County Community College: At this community college, students can earn merit based free tuition or receive the Diversity Incentive Award, which gives Lorain County high school graduates of specific ethnic groups free tution.
7. Drew University: Students who have completed the Governor’s School in the Sciences can get free tuition from Drew University.
8. Cisco Junior College: Texan high schoolers who graduate in the upper 25 percent of their class can receive full tuition and fees from this college.
9. Arizona State University: At Arizona State University, you can get a full tuition waiver, provided that you have exceeded standards on testing in the state.
10. Southeast Missouri State University: This Missouri school offers full tuition to valedictorials and those in the top 10% of their class with excellent test scores.
11. Alfred State College: In New York, this college offers free tuition, room, and board to students with excellent academic achievement.
12. Temple College: If you’re a valedictorian or salutatorian from an accredited Texas high school, you can get free tuition from Temple.
13. Dallas Baptist University: National Merit Finalists can get free tuition from this university.
14. Southwestern University: Students with a 1400 on the SAT or who are in the top 5% of their class can apply for the Brown Scholar Awards program, which awards full tuition, room and board.
15. Baylor University: National Merit Finalists who select Baylor as their first choice college will receive free tuition.
16. Spring Arbor University: National Merit Finalists will get a free ride at Spring Arbor University.
17. Kilgore College: National Merit Finalists receive a 100% tuition guarantee at this college.
18. Lon Morris College: Students who graduate in the top two percent of their class, or those who have scored in the ninetieth percentile or above on the SAT or ACT will get full tuition at Lon Morris College.
19. East Texas Baptist University: If you’re a National Merit Semi-Finalist, your full tuition is paid for at East Texas Baptist University.
20. CUNY Honors College: All students who are accepted to CUNY’s Honors College will receive tuition and many other expenses for free.
21. Texas Women’s University: You can get full tuition and fees at this university if you’re a valedictorian or salutatorian.
22. Northern Arizona University: Arizona students who have excellent test scores can receive a tuition waiver for Northern Arizona University.
23. McMurry University: If you qualify for McMurry University’s honors program, your full tuition and fees will be covered.
24. Weatherford College: Valedictorians can get free tuition from this school.
25. Blinn College: Texas valedictorians and salutatorians can receive full tuition and fees from Blinn College.
26. Southwestern Adventist University: Students who are National Merit Finalists can get 100% tuition coverage from this university.

Work-Study

These schools will ask you to work in order to earn your tuition.

1. Berea College: At this liberal arts college, you’ll be expected to work for your tuition.
2. College of the Ozarks: This college brands itself as "Hard Work U," as all of its full time students are required to work with the school in order to pay their tuition.
3. North Carolina at Chapel Hill: Students who have low income and work on campus can attend UNC-Chapel Hill for free.
4. Deep Springs College: In Colorado, this all-male liberal arts college offers two year programs with a full scholarship to all of the school’s 26 students, who participate in manual labor as part of their education.
5. United States Coast Guard Academy: The Coast Guard Academy’s students attend tuition-free and will also receive a monthly stipend while in school.
6. Webb Institute of Naval Architecture and Marine Engineering: Students of the Webb Institute study naval architecture and marine engineering. Tuition is paid by participating in a winter work term, in which students wotk in the maritime industry.

Need Based

Students who come from low income families can get free admission from these colleges and universities.

1. University of Washington: Washington State residents who demonstrate need may be eligible for free tuition at the University of Washington.
2. John Carroll University: Families making less than $40,000 per year can enroll incoming freshmen tuition-free.
3. Texas A&M: Students whose families earn incomes less than $60,000 are eligible for free tuition at this Texas university.
4. Washington State University: Washington State University has a similar program to University of Washington’s. Washington resident students who qualify for Federal Pell or State Grants can apply for a free tuition program.
5. Texas Tech University: You can get free tuition and fees from Texas Tech if your family’s income is $40,000 or below.
6. Claremont McKenna College: Claremont McKenna College will award students with 100% of their determined need. The college also matches full Army ROTC scholarships with a grant for full room and board.
7. Michigan State University: The Spartan Advantage program offers full tuition coverage for the neediest Michigan students.
8. Stanford: If you get accepted to Stanford and your family earns less than $100,000, you can go to Stanford for free.
9. Harvard College Financial Aid Office: Through the Harvard Financial Aid Initiative, students from families with annual incomes below $60,000 will not have to pay for tuition.
10. Soka University: Soka University, a private college in California, offers free tuition to students whose families make less than $60,000 per year.
11. University of Texas: If your family earns less than $25,000 a year, you can attend the University of Texas for free.
12. University of Virginia: As a part of the AccessUVa program, you can attend the University of Virginia for free.
13. Sacred Heart University: Families with an income of less than $50,000 can send their children to Sacred Heart University for free.
14. Dartmouth: This elite school will allow students whose families make less than $75,000 a year to attend school for free.
15. University of Pennsylvania: Students from families who have an income below $90,000 will not pay tuition at the University of Pennsylvania, and students with a family income below $40,000 will not have to pay room and board, either.
16. MIT: MIT waives tuition for all of its students who come from families that earn less than $75,000 per year.

Professional Demand

These programs are designed to add incentive for qualified professionals to enter the market.

1. The Teacher Academy: At The City University of New York, exceptional students can receive free tuition, stipends for internships, as well as a guaranteed full time teaching position.
2. United States Military Academy at West Point: If you receive a nomination to attend West Point, you will be granted admission and do not have to pay for school.
3. Barclay College: This Christian college offers full tuition to all on-campus students.
4. Call Me Mister: This program at Clemson University and other colleges recruits black males to become teachers, and offers them free tuition.
5. The Curtis Institute of Music: Founded in order to train exceptionally gifted young musicians, The Curtis Institute provides merit based full tuition scholarships to the students who are chosen to attend the school.
6. United States Air Force Academy: Students enrolled at the United States Air Force Academy do not pay tuition, provided you fulfill your service with the US Air Force.
7. Crossroad Bible Institute: This institute offers a free religious education to those who are in prison.
8. University of Central Florida College of Medicine: This college offers a free medical education to a very select group of students.
9. United States Naval Academy: Students in the US Naval Academy do not pay tuition, instead repaying the Navy through years of service.
10. Franklin W. Olin College of Engineering: This college supports the engineering as a creative design, vehicle for human and societal needs, and a creator of value. As such, the college offers free tuition to all that are accepted.
11. Abilene Christian University: Abilene Christian University gives full tuition to students who have declared their major in computer science or technology.
12. Cleveland Clinic Lerner College of Medicine: Students at the Cleveland Clinic of Case Western Reserve University will receive free tuition.
13. Master’s Baptist College: This Baptist bible college is a ministry of Fargo Baptist Church.
14. United States Merchant Marine Academy: Students of the US Merchant Marine Academy do not pay tuition.
15. New Wine Bible College: This college operates as a non-profit ministry, offering free religious education to students.

Location Based

A number of cities, counties, and states offer free tuition to students who either excel in their studies, or demonstrate a serious need.

1. J.F. Drake State Technical College: If you’re a high school graduate of specific Alabama counties, you can study for free in J.F. Drake State Technical College’s summer session.
2. University of California: As a resident of California, you can attend University of California tuition free.
3. El Dorado, Arkansas: Students living in El Dorado, Arkansas, can get a free ride to college.
4. Clay County, Mississippi: Clay County students can get free tuition at East Mississippi Community College.
5. Philadelphia: Students in Philadelphia who have stalled their college degree can get free tuition from Philadelphia in order to finish their studies.
6. New Jersey: Students who graduate in the top 20% of their class can get free tuition through the NJ Stars program.
7. Tulsa Community College: All high school graduates in Tulsa County, Oklahoma, can receive free tuition at Tulsa Community College.
8. Newton High School: Graduates of this high school will receive a four year tuition scholarship.
9. Highline Community College: In association with Federal Way Public Schools, students can attend the college tuition-free.
10. West Virginia: West Virginia offers a merit-based program that gives full tuition scholarships to qualified students.
11. Oklahoma: Oklahoma’s Promise entitles students whose families have an income of $50,000 or less to receive free tuition.
12. Owens Community College: This community college offers free tuition to select public schools in Ohio.
13. Brookhaven College: This college has partnered with a variety of high schools to offer tuition-free courses.
14. The Kalamazoo Promise: Residents of Kalamazoo can get free tuition to universities in Michigan.
15. Clark University: Students who live in specific neighborhoods or who attend the University Park Campus School will receive free tuition at Clark University.
16. Akron, Ohio: Children who are residents of Akron can attend the University of Akron or advanced trade schools can get free tuition.
17. University of Minnesota: Minnesota residents can take advantage of the University of Minnesota’s free tuition program.
18. University of Georgia: Georgia residents who maintain at least a B average will be able to attend the University of Georgia tuition-free.
19. Century College: High school graduates with a financial need from select St. Paul high schools can attend Century College tuition free.
20. California State University: Residents of California can receive free tuition from California State University.

Online

Get free tuition from these online colleges and you’ll truly get a good deal. You won’t even need to pay for room and board!

1. Andrew Jackson University: Take your education anywhere, for free, with this online tuition-free university.
2. Trinity College of Biblical Studies: Apply to this online bible college to get a free religious education.
3. The DiUlus Institute: You’ll be able to attend this online research institute for free.

International

Go overseas for a free education with one of these schools.

1. Jonkoping International Business School: This university in Sweden promises free education for all of its students.
2. Free University of Bozen-Bolzano: You’ll be able to study economics, education, computer science, and more in this free, multi-lingual university.
3. Uppsala University: Uppsala University is a well ranked, free university.
4. Karolinska University: Study in a hospital setting for free with this medical school.
5. Ecuador universities: If you become a police or military officer in Ecuador, you will be able to receive a free higher education.
6. KTH Royal Institute of Technology: You can get a free technological education at the Royal Institute of Technology.
7. Warwickshire College: Adult students can get free tuition from this college.
8. Lund University: At Lund University in Sweden, you will not have to pay tuition fees.

Special Groups

These schools and programs offer free tuition to special groups such as veterans and senior citizens.

1. Wyoming Veterans’ Benefits: Veterans, war orphans, and widows can get free tuition in Wyoming.
2. North Carolina Wesleyan College: Under the Silver Scholars Program, senior citizens 60 and above can take courses at this college tuition free.
3. University of Rochester: In a number of the University of Rochester’s programs, veterans will receive free tuition.
4. Hill College: Hill College offers free tuition to blind or deaf students, foster care students, and students who have graduated high school early.
5. Disabled Veterans’ Children in Indiana: Students who are children of disabled veterans are eligible for free tuition in Indiana.
6. Benedictine University: Armed forces veterans can get free tuition at Benedictine University.

2 February 2012

529 Educational Savings Plans

These plans are pretty easy to set up, and you can do it yourself. But there ARE drawbacks to any 529, and you should be aware:

1. Withdrawals: There's a 10% penalty on withdrawals if you don't use the money for education (that 10% penalty is in addition to the taxes you'll have to pay on capital gains)
2. Monitoring: You still have to monitor the investments: There is no "safe" investment that you can buy and forget. (Some funds claim to do this, but it's not true.)
3. Contributions: Contributions are not tax deductible (it's not like an IRA or 401(k))

As long as you understand the limitations of a 529 plan, you can enjoy two key benefits:

1. Tax-free growth and tax-free withdrawals
2. Contributions can be made by anyone, including all your relatives

Vanguard looks like a good 529 plan. They require a $3,000 minimum to get started, and you can make automatic contributions of $50 or more. You can do the entire thing online and save yourself a lot of fees.

14 January 2012

Paying For College Scholarship Guide

2 March 2011

What does college really cost?

Financial aid myths

Funding your child's college education

24 February 2010

Search the College Board database — more than 2,300 sources of college funding

Learn to spot a scholarship scam

7 August 2009

Payment Plan Available for College

1. Sign Up for a Tuition Payment Plan (also called installment plans) - Students who aren't sure how to pay tuition costs not covered by financial aid may consider signing up for a tuition payment plan.
   1. These plans allow borrowers to spread tuition payments over nine to 12 months without having to pay interest or go through a credit check. To sign up, families pay an enrollment fee of about $50 to $75 per year. Enrollment deadlines vary by school, but most cutoff dates are in August. This option is only worthwhile if you can afford the monthly payments.
2. As part of the College Cost Reduction and Access Act signed into law last September, a new repayment plan became available to grads on July 1 that will make it easier for them to afford their federal loans by basing monthly payments on their income as opposed to their outstanding federal loan balance. Also, those who decide to consolidate their variable-rate Stafford and Plus loans will be able to do so at a rate of as low as 2% -- a historic low.
3. Income-based repayment (IBR) plans are available to grads repaying federal Stafford loans Graduate Plus loans (loans given to graduate students) and federal consolidation loans that are doled out through the direct loan and the federal family education loan programs.The new plan requires borrowers to pay up to 15% of their discretionary income. See http://www.smartmoney.com/personal-finance/college-planning/3-ways-to-make-college-loan-payments-more-affordable/ for more information and sample calculations. After being on the plan for 10 years, public sector employees are forgiven of any remaining debt. There is a catch, though. In some cases, a borrower could make payments that are less than what they owe in interest – making it that much harder to ultimately pay off their tab. Borrowers no longer qualify for the IBR plan when their monthly payments start to exceed the amount their regular student loan payments would be. At that point, borrowers are switched to a traditional payment plan.
4. Income-contingent payment plan, requires borrowers to pay 20% of their discretionary income. After being on the plan for 10 years, public sector employees are forgiven of any remaining debt. There is a catch, though. In some cases, a borrower could make payments that are less than what they owe in interest – making it that much harder to ultimately pay off their tab. Borrowers no longer qualify for the IBR plan when their monthly payments start to exceed the amount their regular student loan payments would be. At that point, borrowers are switched to a traditional payment plan.
5. Consolidate loans at historically low rates. When you consolidate, you could lock in fixed rates on Stafford loans of between 2% (for those in the grace period, which is the six months after graduation) and 2.5% (for those later in the repayment process) -- down from 3.61% and 4.21%, respectively, which are the current unconsolidated rates. Those who consolidate parent Plus loans would receive an interest rate of 3.38%, down from 5.01%.If you're thinking about consolidating, these fixed rates will only be available between July 1, 2009, and June 30, 2010.

The table below from the College Board provides an overview of four types of federal loans plus private, or alternative, and state loans. The loans range from least to most expensive:

Note: The federal Grad PLUS Loan, available only to students in graduate or professional school, is not included.

Other articles from the College Board which may be of assistance:

• Borrowing: The Parental Role
• How Much Should You Borrow?
• How the Borrowing Process Works