My student loan consolidation interest rate site

Federal Student Loan Interest Rate and Consolidation Fact Sheet 2006-2007.

Federal Student Loan Interest Rate and Consolidation Fact Sheet. Click here to download interest rates table. If you consolidate your lo...

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School-Consolidation Loan Can Help You Avoid The High Interest Rate On Your Student Loan

With college tuitions steadily on the rise, more and more people are unable to pay for post-secondary education out of their own pockets. Most students will apply for at least four separate loans duri...

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Student Loan Consolidation Center Student Loan Trust I Announces Updated Pricing Terms For Its Tender Offer for Some ... (PR Newswire via Yahoo! Finance)

On May 30, 2008, Student Loan Consolidation Center Student Loan Trust I, a Delaware statutory trust , distributed an Offer to Purchase and an accompanying Letter of Transmittal in connection with its offer to purchase some of its outstanding Auction Rate Student Loan Asset-Backed Notes, Senior Series 2004-1A for aggregate cash consideration not to exceed $19,000,000.

How does consolidating student loans help you? (Provo Daily Herald)

This is the time of year when the buzz starts up about student loan consolidation. Some people benefit from consolidating, others don't, and borrowers want to know which camp they fall in.

Fitch Confirms SLM Student Loan Trust 2003-7 (Centre Daily Times)

Fitch Ratings has confirmed the following ratings for SLM Student Loan Trust 2003-7:

Repay your college debt without breaking a sweat (MSNBC)

This is the time of year when the buzz starts up about student loan consolidation. TODAY Financial editor Jean Chatzky examines all there is to know about consolidating your student loans.

As Economy Struggles, Debt Consolidation Helps Thousands (Carteret County News-Times)

(ARA) - Everywhere you look you see news about the "credit crunch" and the mortgage foreclosure crisis and, if you're like most Americans, you're feeling the pinch too.

Managing Your Student Loans (BellaOnline)

Do you know where your student loans are? Here are some tips for keeping up with your loans after graduation.

SUSAN TOMPOR: Students, lock in low loan rates (Detroit Free Press)

College students who rush from one thing to the next should relax the next few weeks when it comes to consolidating student loans. You'll want to consolidate July 1 or after to lock in low fixed rates. Given the credit crunch, you won't see an onslaught of lenders urging you to consolidate. So you have to hustle on your own.

How To Stop "Recycling Debt" (CBS News)

Early Show financial adviser Ray Martin answers viewer questions on that, whether to put money toward paying down the mortgage or toward retirement, and whether to cash out a 401(k) to pay off a mortgage.

John F. Wasik: College-loan market is getting its own bailout (Asbury Park Press)

While most attention has been focused recently on faltering credit and housing markets, the federal student-loan market received a fairly quiet bailout.

How does consolidating student loans help you? - Daily Herald

How does consolidating student loans help you?
Daily Herald, UT - 18 hours ago
This is the time of year when the buzz starts up about student loan consolidation. Some people benefit from consolidating, others don't, and borrowers want ...

Financial facts to empower 'generation debt' - MSNBC

Financial facts to empower 'generation debt'
MSNBC - 20 hours ago
Pay off the debt with the highest interest rate before the highest balance. What determines how much you pay over the life of a loan is the interest, ...

Fitch Confirms SLM Student Loan Trust 2003-7 - FOXBusiness

Fitch Confirms SLM Student Loan Trust 2003-7
FOXBusiness - Jun 13, 2008
The reserve account is sized at 25 basis points (bps) of the sum of the current student loan pool balance plus accrued interest, with a floor of $3761650 or ...

How To Stop "Recycling Debt" - CBS News

CBS News

How To Stop "Recycling Debt"
CBS News, NY - Jun 14, 2008
One of the main benefits of "student loan consolidation" is a smaller monthly payment. After you tackle your student loans, look at your other debt -- write ...

Student Loan Consolidation Center Student Loan Trust I Announces ... - Stockhouse

Student Loan Consolidation Center Student Loan Trust I Announces ...
Stockhouse, Canada - Jun 12, 2008
On May 30, 2008, Student Loan Consolidation Center Student Loan Trust I, a Delaware statutory trust ("SLCC I"), distributed an Offer to Purchase (the ...

Student Loan Consolidation - Central Asian and Southern Caucasus Freedom of Expression Network (CASCFEN)

Student Loan Consolidation
Central Asian and Southern Caucasus Freedom of Expression Network (CASCFEN), Azerbaijan - Jun 12, 2008
... account that might qualify you for an interest rate break depending on the lender. Now, that's what you call hassle free student loan consolidation! ...
Loans Home Page Central Asian and Southern Caucasus Freedom of Expression Network (CASCFEN)
all 2 news articles

Important News for College Graduates - New America Foundation

New America Foundation

Important News for College Graduates
New America Foundation, DC - Jun 10, 2008
Variable interest rates go up and down from year to year, whereas a new consolidation loan interest rate is fixed at 3.61 percent. There's a catch. ...
A Reprieve on Student Loans Kiplinger.com
all 2 news articles

Consolidation Loan Irony - New America Foundation

Consolidation Loan Irony
New America Foundation, DC - Jun 12, 2008
And like many things in student loan policy, the story is filled with irony. As we pointed out earlier this week, borrowers with variable rate Stafford ...
Credit crunch causes student loan changes Politico
all 2 news articles

Students, lock in low loan rates - Detroit Free Press

Students, lock in low loan rates
Detroit Free Press, United States - Jun 11, 2008
If you do nothing, of course, the interest rates on your variable-rate student loans would drop anyway July 1. But you'd get that rate for only one year. ...

FAP809: Quack like a duck, pay for college

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Student Financial Aid News
+ Free credit reports, scores, and monitoring from Transunion
+ Chronicle: the U.S. Senate overwhelmingly approved legislation last week that would significantly expand veterans’ tuition benefits while providing billions of dollars for the wars in Iraq and Afghanistan. The bill awaits action in the House, where the president has enough Republican support to sustain a veto. In his address, the president said Congress should pass a bill to pay for the wars that is not “loaded up” with unrelated domestic spending.
+ Speaker of the House Nancy Pelosi reacted to the message by saying Congress wanted to “launch a new GI Bill for a full, four-year education for the veterans of Iraq and Afghanistan.” The administration opposes the Senate bill because it would give the college benefits to veterans with three years of service, which, it says, would discourage them from re-enlisting.
+ Is or was the lending crisis real? Have you been applying for student loans and found it any different than previous years? Let me know!

Scholarship Update
+ Chick and Sophie Major Memorial Scholarship
+ Duck calling scholarship open to all US high school seniors
+ $1,500 scholarship
+ Details at our free college scholarship search site

Financial Aid 101
+ For many who have graduated, it’s time to start thinking about student loan repayment
+ Grace periods - Stafford loans have 6 months, Perkins loans have 9 months
+ For any unsubsidized Stafford loan, the clock is running
+ For Stafford and PLUS loans taken out prior to July 1, 2006, you have variable interest rates - for graduating seniors, that’s probably freshman and sophomore year loans
+ Resetting rates take effect July 1
+ 3.60% - Stafford loans in grace (down from 6.62%)
+ 4.21% - Stafford loans in repayment (down from 7.22%)
+ 5.01% - Parent PLUS loans (down from 8.02%)
+ Wait until July 1, 2008 for student loan consolidation
+ Make extra payments to principal if possible
+ New Stafford subsidized loans start at 6.0% this July 1
+ Private student loans can fill the gap between scholarships, federal aid, and the cost of college

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
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Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Edvisors Jobs
+ Grad student? Get graduate financial aid information at the GradLoans.com blog!
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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FAP777: Birthday, Sallie Mae Student Loan Consolidation, HELOC

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Student Financial Aid News
+ Happy Student Loan Network anniversary Monique Leonard!
+ The Financial Aid Podcast celebrates 3 years on the air!
+ Hat tips to Mitch Joel, Erik & Diana, and pretty much my entire address book for this story:
+ Chronicle: Sallie Mae (ticker: SLM) announced today in a letter to colleges that it would no longer offer student loan consolidation under the federally guaranteed loan program. Students typically consolidate their loans after they graduate, combining loans from each of their years in college into a single loan to make it easier to manage when paying back the money. Until recent months, consolidations had been regarded as a highly profitable activity for loan companies because consolidation usually occurs as students enter years of repayment.
+ Lenders responsible for more than 16 percent of all student loans last year have left FFEL
+ In addition to announcing the termination of its consolidation-loan business, Sallie Mae told colleges that it would no longer pay for students the federally mandated origination fee on government-backed loans. “With the large number of lenders exiting the program,” Mr. Andrews and Mr. Feierstein wrote, “Sallie Mae cannot justify subsidizing some students at the expense of others who may be unable to get funds for college.”
+ What does this mean for you? If you’re graduating this summer, you’ll have fewer student loan consolidation options - but wait until after July 1 anyway.

Scholarship Update
+ Spring Break Photo Scholarship Contest
+ Whether you take a trip every year to the beach or hit the slopes in the snowy mountains - everyone makes plans for Spring Break. Send us a photo of your fun filled vacation or write a blog telling us about how you spent your break. If you have a video, upload it to the campaign and we’ll see if you made the most out of the best week in spring! No purchase necessary. No purchase necessary. Open to anyone who is a resident of the 50 United States, District of Columbia or Canada (excluding Quebec), has access to the Internet, and is 13 or older at the time of entry.
+ Deadline June 30
+ Details at our free college scholarship search site

Mail Bag
+ Lynne writes in: My daughter has financial aid in her private college. I am trying to get an equity loan and they are offering me a line of credit as well. If I get the loan I need it to lower my credit card interest rates and there fore consolidate them at a lower rate. If I take the line of credit also for “A rainy day” will the financial aid people want me to use that money for college tuition. I never asked for the line the bank is trying to just give it to me as I have more equity on my home than I am asking a loan for. Please help me. I don’t want to jeopardize my daughters financial aid for a “rainy day” that might never happen. Thank you Lynne
+ Any money you have is calculated on the FAFSA in checking or savings
+ It will count against you as a resource
+ In a rapidly falling real estate market - like the entire United States and a good chunk of Europe - the last thing you want to do is borrow equity if you’re anywhere close to the current assessed value of your house. If the market declines even a little when you’re at 100% loan to value, you suddenly become upside down, which means you owe more on your house than it’s worth
+ If you need a parent loan option, consider a PLUS loan, which is a federally guaranteed loan for parents of undergraduate students. Fixed 8.5% interest rate and the whole host of federal loan benefits, including no collateral.
+ Also, in recent news, banks have been outright canceling home equity loans and lines of credit arbitrarily, so if you’re counting on it, it may not be there for you

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
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Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Grad student? Get graduate financial aid information at the GradLoans.com blog!
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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FAP734: Innovative Ways to Pay for Student Loans, Securitization

Student Financial Aid News
+ Chronicle: More than a million private records of students were compromised in campus-security breaches in the United States last year, and the number of colleges reporting such incidents was far higher than the previous year, according to a study that analyzed reports on computer security by the news media and computer-security organizations.
+ About 100 of the incidents exposed Social Security numbers, involving a total of 1,085,708 records.
+ NASFAA: “By packaging mortgages, credit card balances, student loans and other debt into interest-paying bonds, securitization can be a win-win proposition: Investors earn decent interest rates and borrowers have more access to credit, presumably at lower rates than if banks alone were calling the shots,” The Los Angeles Times reports. “But as usual when Wall Street is involved, greed took over in the securitization market in recent years. Bonds tied to sub-prime mortgages, the riskiest of such loans, have seen the most dramatic fall-off. But the volume of debt packaged for sale to investors also declined last year in the auto, student-loan and small-business-loan sectors, according to data tracker Inside Mortgage Finance. The harsh truth is, if the securitization business - sullied though it may be - can’t celebrate a comeback in the next few years, the pain won’t be contained there.”

Scholarship Update
+ The Boston College Asian American Scholarship was created in 1995 through the initiative of a group of students, faculty, and administrators, to recognize BC juniors whose commitment to academic excellence, to promoting Asian American awareness, and to serving both the Asian American and the wider communities on and off campus, is exceptional.
+ The Scholarship provides 75% of tuition for senior year. In addition, up to four finalists will be awarded $1,000 grants for purchases at the Boston College Bookstore. All full-time, Boston College juniors who have maintained a cumulative GPA of 3.3 are eligible to apply for the scholarship.
+ $35,000
+ Details at our free college scholarship search site

Financial Hacks
+ BankNet360: A new website started by a recent graduate to pay back his education loans says much about the financial straights of many young alums today.
+ When Luke Livingston of Portland, Maine, graduated in May 2007, the last thing on his mind was debt. However, after realizing his entry-level salary would barely be enough to cover the basic cost of living, paying his student loans seemed impossible. The graduate of Clark University in Worcester, Mass. spawned www.sponsormyloans.com.
+ Livingston is charging $200 a month for a page of ads on SponsorMyLoans.com. He already has sponsors for March and May (April is currently in the works). He is using the money to pay back his loans, which Ã¢Â€Â“ unless interest rates increase Ã¢Â€Â“ will take Livingston seven years to retire.
+ What does this mean for you? Innovative ideas like this are great ways to pay for college or handle your loans afterwards, but you have to innovate - copying someone else’s idea won’t work
+ Who has money? Money comes from two places - corporations or crowdsourcing

Mail Bag
+ Wayne Henderson calls in to get show notes in a podcast
+ iTunes!

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Direct MP3 file download: Click here to download the MP3

Reminders
+ Student Loan Network $10,000 Scholarship - Apply in 32 seconds or less!
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Stafford federal student loans at StaffordLoan.com
+ Student loan consolidation at StudentLoanConsolidator.com
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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FAP733: The GI Bill and Veterans Financial Aid, CSS Profile, Mail Bag

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Student Financial Aid News
+ Inside Higher Ed: If any college in the country had an incentive to respond to the growing pressure from politicians to make higher education more affordable, it might be George Washington University, which Forbes recently characterized as “the most expensive four-year university in the U.S. (and most likely the world).”
+ At a time when when college prices are topping the concerns of policy makers in Washington and in the states, it can’t be helpful that when a reporter (not this one) asked an aide to the top Republican on the House education committee last week which colleges were most expensive, she unhesitatingly said, “Oh, George Washington University.”
+ “I don’t think it’s true that we’re the highest, but it’s a fact that people will focus on the entering sticker and not the more complicated story,” said Steven D. Knapp, who became George Washington’s new president last August.
+ On his very first day in office, Knapp told his cabinet that George Washington needed to do far more to bolster the university’s affordability, “so we don’t get in the situation where some portion of the population cannot afford to attend.” On Friday, GW joined the growing ranks of colleges announcing efforts to change their pricing and spending practices, unveiling a plan that focuses on moderating the growth of tuition for all students, while emphasizing affordability for the neediest students.
+ Inside Higher Ed: While momentum is growing in Congress to pass a new GI Bill, adding education benefits for a generation of veterans serving in Iraq, the Pentagon and Bush administration are opposed. The reason? The Boston Globe reported that it is fear that better education benefits would discourage those who have the option to leave from re-enlisting. The Globe quoted Robert Clarke, assistant director of accessions policy at the Department of Defense, as saying that “the incentive to serve and leave” might with better education benefits “outweigh the incentive to have them stay.”
+ Same story on Boston.com
+ Interesting point - fully funding the GI Bill would cost the same as 36 hours of operations in Iraq
+ GI BIll Details
+ $9,600 flat rate since the 1980s
+ Used to be full tuition, housing, and living costs for 8 million veterans

Scholarship Update
+ GFOA’s Minorities in Government Finance Scholarship
+ The GFOA’s Minorities in Government Finance Scholarship of $5,000 is available for award to an upper-division undergraduate or graduate student of public administration, (governmental) accounting, finance, political science, economics, or business administration (with a specific focus on government or nonprofit management). The purpose of the Minorities in Government Finance Scholarship is to recognize outstanding performance by minority students preparing for careers in state and local government finance. This scholarship is funded by Microsoft.
+ Eligibility:
+ Currently a full- or part-time upper-division undergraduate or graduate student in public administration, (governmental) accounting, finance, political science, economics or business administration (with a specific focus on government or nonprofit management).
+ Belong to one of the following groups (as defined by the U.S. Census Bureau): Black or African American, American Indian or Alaskan native, Asian, Native Hawaiian or Other Pacific Islander, Hispanic or Latino.
+ Citizen or permanent resident of the United States or Canada.
+ Recommendation by student’s academic advisor, department chair (undergraduate students), or dean of the graduate program (graduate students).
+ Student has not been a past winner of a scholarship administered by the Government Finance Officers Association of the United States and Canada.
+ Details at our free college scholarship search site

Mail Bag
+ Ollie writes in: My employer is offering a buy out package to trim it’s workforce. Although I am 40yrs old with a family, I have a great opportunity to get most of my basic yearly wages, med. coverage, and they will pay up to 15,000 in tuition.I can work a part time job and pursue an intense two year program. I need just a bit more money for my family to live on so we will not struggle very badly.Where should I look for money ? Is it illegal to get part of your student loan given back to you if my employer pays the bulk of the bill ? Is there any money out there designated for non- traditional students? I have about five weeks to make a decision.Your help would be greatly appreciated. I am a veteran and used part of my G.I. bill but I am way out of the ten year window
+ Scholarships and grants
+ Scholarship search secrets eBook
+ Federal student loans
+ Private student loans
+ Plenty of scholarships for non-traditional students
+ Check with the VA, too
+ Ricky writes in: I know there isn’t an easy method to file corrections for the CSS Profile. However, I made a pretty big mistake on mine, I’ve not realized, and need to send corrections to my schools. How should I go about doing that?
+ CSS Profiles do not offer corrections
+ The FAFSA does offer corrections
+ The process of correcting the profile has to be done at the financial aid office

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FAP732: Higher Education Act Reauthorization, Free Stuff Friday

Student Financial Aid News
+ The U.S. House of Representatives overwhelming approved legislation on Thursday that would crack down on conflicts of interest in the student-loan programs while holding institutions and states accountable for rising college tuitions.
+ The bill (HR 4137), which would reauthorize, or renew, the Higher Education Act for five years, would also require colleges to tackle illegal downloading by their students and make it easier for for-profit colleges to become eligible to award federal student aid.
+ During the daylong debate on the bill, the House approved 26 amendments, and rejected one: an amendment by Rep. Danny K. Davis, Democrat of Illinois, that would have made private student loans dischargeable in bankruptcy. That amendment, which would have allowed borrowers to wipe out their debt after five years of repayment, was fiercely opposed by the banking industry, but strongly supported by groups representing consumers and students.
+ In arguing for the amendment, Mr. Davis said it was unfair for the government to treat student loans more harshly than other forms of unsecured consumer debt.
+ “For many of these students who secure loans without the protection of bankruptcy, it’s like receiving a life sentence with no appeal,” he said. “We should give students the simple protection of bankruptcy that is provided for individuals with any other consumer loan.”
+ Republican opponents of the amendment countered that the restoration of bankruptcy protections would actually harm borrowers by forcing lenders to increase interest rates and trim borrower benefits to make up for lost revenue.
+ “This is going to help a small number of people but hurt a larger number of people,” said Rep. Ric Keller, Republican of Florida.
+ In the end, the amendment was defeated, 179 to 236.
+ I have an analysis piece on FinancialAidPodcast.com about why this measure was defeated
+ Among the other amendments adopted on Thursday were measures that would:
+ Require colleges to provide students with information on the anticipated cost of a college degree.
+ Allow the Internal Revenue Service to pre-populate portions of the Free Application for Federal Student Aid, or Fafsa, with existing tax data, at the request of students or families applying for aid. That provision would drastically reduce the number of questions aid applicants have to answer on the form.
+ Allow community-college students to have $10 of their student loans forgiven for each hour they spend as a mentor to an at-risk child.
+ Forgive interest accrued on the loans of active-duty service members and National Guard members during up to 60 months of assignment to a combat zone.
+ Make students who lost a parent or guardian in the wars in Iraq or Afghanistan eligible for the maximum Pell Grant.

Scholarship Update
+ Ron Brown Scholarship
+ $800,000 - 20 x $10K x 4
+ The Ron Brown Scholar Program seeks to identify African-American high school seniors who will make significant contributions to society. Applicants must excel academically, exhibit exceptional leadership potential, participate in community service activities and demonstrate financial need. The applicant must be a US citizen or hold a permanent resident visa card. Current college students are not eligible to apply.
+ Deadline January 19
+ Details at our free college scholarship search site

Free Stuff Friday
+ Wireless Key View for Windows
+ Time Machine Editor for the Mac
+ FactCheck those politicians!
+ OutSync for Windows
+ Send docs out for conversion with Koolwire
+ JoikuSpot
+ Amusing - Lifehacker has 10 DIY projects for your house
+ TrueCrypt
+ MezzoMan for Google Maps
+ Ript scrapbooking for Windows
+ Super Duper is now Leopard compatible

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
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FAP722: Sallie Mae, Nelnet in trouble, graduate financial aid mailbag

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Student Financial Aid News
+ This Sunday is College Goal Sunday in Massachusetts. Other states will vary. I’ll be at Framingham High School, and I’ll be bringing my video rig as well.
+ Chronicle: Sallie Mae, (ticker: SLM) the nation’s largest student-loan company, said it will stop offering loans to students at colleges with poor graduation rates.
+ The lender, which is struggling with financial difficulties including a falling stock price, announced the change on Wednesday, one day after it was revealed that Sallie Mae would also stop making private loansÃ¢Â€Â”those given by banks without any federal subsidyÃ¢Â€Â”to students whose credit ratings are below prime.
+ The moves are among service cutbacks a number of lenders have announced as they cope with a reduction in federal subsidies on government-backed loans and the overall tightening of credit markets stemming from the crisis in mortgage lending.
+ Albert L. Lord Sallie Mae’s chief executive, explained the decision in a conference call with industry analysts on Wednesday. “Education builds credit worthiness,” and “if there’s one single variable that’s critical, it’s graduation,” Mr. Lord said.
+ “Sallie Mae has lent too much money to students who have gone to schools without very good graduation records,” Mr. Lord said, without defining which colleges he had in mind.
+ As with the company’s new policy of not making private loans to students with poor credit ratings, a shift by Sallie Mae based on graduation rates could have its most significant effects on for-profit colleges and some categories of private institutions that rely on lower-income students. Sallie Mae did not restrict its boycott of colleges with low graduation rates to either private loans or federally guaranteed loans.
+ Students at colleges with low graduation rates are “singly responsible” for more than 60 percent of credit losses at Sallie Mae in 2007, Mr. Lord said.
+ Some college groups said the decision on private loans could be beneficial, since some lenders have been encouraging too many students to borrow beyond their means.
+ “This is a classic Sallie Mae moveÃ¢Â€Â”always trying to cream the good paper,” said Sarah A. Flanagan, vice president for government relations at the National Association of Independent Colleges and Universities.
+ In other student loan industry news, Nelnet (ticker: NNI) is exiting the student loan consolidation business in a press release yesterday and is also cutting 300 jobs
+ If you’re a Nelnet customer interested in student loan consolidation, come on over to StudentLoanConsolidator.com or call 877-328-1565
+ Tomorrow, another episode of Financial Aid Podcast Live!

Scholarship Update
+ The Alice L. Haltom Educational Fund exists for the purpose of furthering education in the field of information and records management. It is supported by contributions from various chapters of the Association of Records Managers and Administrators International (ARMA), companies, individuals, and other organizations.
+ Deadline May 1 each year
+ $2,000
+ Details at our free college scholarship search site

Mail Bag
+ Lorri writes in: My sister in law is trying to acquire enough money to go to Berkley or some major school like that for her Masters. Are there any scholarship/loan/grant websites or businesses she should look in too. I used the FASFA grant to get through college, but I don’t think that applies to a masters degree. Congrats on the $10,000 scholarship campaign, you do awesome work for others!
+ The FAFSA is a must for graduate students, too!
+ There are lots of scholarships and grants for graduate students - typically, scholarships and grants for graduate students focus more on the field of study than on financial need, in contrast to undergraduate scholarships
+ Graduate Stafford loans have higher limits than undergraduate ones
+ Graduate PLUS loans are just for graduate students
+ Make sure your sister in law has a copy of our free eBook, Scholarship Search Secrets

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
+ Click here to subscribe for free by email
+ Click here to subscribe for free in iTunes
+ Click here to add the Financial Aid Podcast to Google Reader or your Google Homepage

Direct MP3 file download: Click here to download the MP3

Reminders
+ Student Loan Network $10,000 Scholarship - Apply in 32 seconds or less!
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Discuss this episode at the Financial Aid Forum!
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Stafford federal student loans at StaffordLoan.com
+ Student loan consolidation at StudentLoanConsolidator.com
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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FAP718: Save hundreds of dollars in Free Stuff Friday

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Student Financial Aid News
+ Happy 39th anniversary to my parents
+ The Financial Aid Podcast January Newsletter shipped yesterday - if you’d like a copy and didn’t receive one, please email me! In this issue are three free eBooks, our $10,000 scholarship, and more.
+ Chronicle: Educational endowments posted an average 16.9-percent return on their investments in the 2007 fiscal year, up from 10.6 percent in the previous year. They were the strongest results since 2000, according to a survey released on Thursday.
+ The average spending rate of endowments was 4.4 percentÃ¢Â€Â”a decrease of 0.1 percent from the 2006 fiscal yearÃ¢Â€Â”but for those endowments that increased spending, the actual dollar amount spent rose by an average of 18.5 percent, Mr. Jarvis said.
+ Inside Higher Ed: In a twist on the debate over extending in-state tuition rates to undocumented students, a Colorado state senator is sponsoring legislation that would end the state’s requirement that parents meet residency requirements. The Denver Post reports that in addition to creating difficulties for homeless and foster children, the parental residency requirement has rendered students born in the United States to parents present in the country illegally ineligible for in-state rates.

Scholarship Update
+ Dr. Mary Tabacchi Scholarship
+ The ISPA FoundationÃ¢Â€Â™s Mary Tabacchi Scholarship will be awarded to an undergraduate student who has completed at least one-year of college and is seeking a spa-related degree with a demonstrated interest in spa management. The recipient will receive $2,500 USD to offset their education expenses, as well as registration, airfare and hotel accommodations to attend the ISPA Conference & Expo or ISPA Asia-Pacific Conference.
+ 2.75 GPA
+ Essays, references, transcripts
+ $2,500
+ March 1 deadline
+ Details at our free college scholarship search site

Free Stuff Friday
+ EveryStockPhoto
+ The Flickr Commons
+ Flickr Uploader
+ Qik video streaming from your phone
+ Namexif for Windows photo date renamer
+ Google Maps now shows gas prices
+ Target Disk Mode for the Mac
+ In one week, NAPFA teams up with Kiplinger’s Personal Finance Magazine to offer “Jump-Start Your Retirement Plan Days” on January 25th. 888-919-2345

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FAP696: Understanding What an Investment Is

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Student Financial Aid News
+ Inside Higher Ed: Haverford College announced Wednesday that it is moving to replace all loans in students’ aid packages with grants. At the same time, the college is creating a new endowment fund and asking (but not requiring) students who benefit from the change to pledge gifts to assure that future generations of students have the same opportunity to avoid loans. Tufts University on Wednesday announced that it would replace loans with grants for students from families with incomes up to $40,000.
+ Chronicle: The U.S. House of Representatives approved this afternoon a $555-billion budget package for 2008 that includes less-generous amounts for academic research and student aid than previous bills favored by Democratic leaders in Congress had contained. The sprawling measure, which the Senate passed on Tuesday, now heads to President Bush, who is expected to sign it.
+ Passage of the bill follows a month of tense negotiations between Congress and the president, who refused to sign any bill that exceeded his budget request. Ultimately, lawmakers were forced to shave millions of dollars from their proposed appropriations for domestic programs. Among the cuts: nearly $1-billion from the budget for the National Institutes of Health, which is the largest single source of funds for university research.
+ Under the bill, HR 2764, the maximum Pell grant, which is now $4,310, would be trimmed to $4,241, although the actual award would rise to $4,731 once funds from a student-aid bill enacted in September are included. The earlier measure provided enough money for a $490 increase above the maximum in the bill approved today. The new omnibus appropriations bill would finance every federal agency except the Pentagon for the 2008 fiscal year, which began October 1.
+ Funds for the TRIO and Gear Up programs, which prepare low-income students for college, would be frozen at 2007 levels, while spending would drop on several other student-aid programs, including Supplemental Educational Opportunity Grants, Perkins Loans, and the Leveraging Education Assistance Program, or LEAP.
+ IndyStar: Last Friday — the day he was renamed chief executive of Sallie Mae — Lord had to sell a whopping $34.6 million worth of his personal stock in the student loan giant to cover an unspecified loan. Then on Wednesday, shares plummeted 21 percent in value after Lord told analysts on a conference call the beleaguered company would consider reducing its dividend payment. To top it off, Lord wrapped up his rambling and, at times, tense conference call by dropping a four-letter bomb.
+ When an analyst asked how much equity it would take to improve Sallie Mae’s credit rating, Lord said, “You’re talking to the wrong guy. I don’t know that answer.” Lord told analysts he would answer questions in full at a company meeting in January. The call ended with Lord saying, “There’s no more questions, let’s get the (expletive) out of here.”

Scholarship Update
+ In an effort to help further the advancement of the geospatial tradecraft, the United States Geospatial Intelligence Foundation (USGIF) is dedicated to assist promising students interested in the geospatial sciences with scholarship awards. USGIF hopes to inspire students who are interested in all that GEOINT has to offer to invest their futures in this incredibly exciting and relevant field of study.
+ Last year, the Foundation awarded a total of 12 scholarships to recipients: two Ph.D. candidates, four master’s candidates, three undergraduates and three high school seniors. High school winners received $2,000 scholarships and the other winners received $5,000 scholarships.
+ June 15 deadline
+ Details at our free college scholarship search site

Economics 101
+ What is an investment?
+ Stock definition: laying out money or capital in an enterprise with the expectation of profit
+ Short version: it’s a bet
+ Different than savings
+ Savings has the intent of keeping your money safe, hence the name
+ An investment is a bet, just like Vegas, in which you want to make more money than you put in
+ The likelihood that you’ll do so is called risk
+ Risk is not the same as uncertainty - uncertainty means you don’t know what the odds are, whereas risk you do
+ Investing has levels of risk from small to outrageous
+ Important: with insured savings, FDIC/NCUA, up to a certain dollar amount, your initial money is guaranteed
+ Investments are NEVER guaranteed and you CAN lose it ALL
+ Why would you invest? To make money. Investing is one of the most powerful forms of passive income, where your money earns money
+ The likelihood of your money making money is the rate of return, or return on investment, and the more risk you take, the higher the potential return, because you’re in effect giving a loan to someone else
+ When you give a loan to someone in the form of an investment, you are paid based on the risk you take
+ There are lots of different kinds of investments - stocks, bonds, trusts, you name it. See a qualified financial planner to determine what blend of these tools is appropriate for you.

Promo
+ Private student loans from Act Education Loans at ActEducationLoans.com

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Reminders
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Discuss this episode at the Financial Aid Forum!
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Stafford federal student loans at StaffordLoan.com
+ Student loan consolidation at StudentLoanConsolidator.com
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

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FAP688: Scholarship Search Secrets eBook Released, Stafford Loans

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Student Financial Aid News
+ Scholarship eBook is done!
+ Inside Higher Ed: Harvard University on Monday unveiled a new approach to financial aid and a new definition of “middle income.” The result will be substantially more generous aid packages for Harvard students with families of incomes up to $180,000, who will be assured that family contributions to students’ costs will not exceed 10 percent of family income in a given year. Harvard is also eliminating all loans from aid packages and eliminating home equity in calculations of family wealth.
+ For Harvard students or prospective Harvard students, the news was clearly great and the university was praised by many for using its resources to try to attract a broader economic cross-section of students. While Harvard has no trouble attracting students, officials said that they were concerned that the university’s high sticker price ($45,620 including room and board) was discouraging some potential students from applying and that the university was losing some talent to flagship public universities. Harvard officials said that they believed the changes would make the university competitive on price with publics for many of these students.
+ That is but one reason that Harvard’s announcement could have a significant impact outside Cambridge. Most aid experts said that they believed only a handful of colleges and universities could afford to match Harvard’s policies, but that many institutions may feel new pressure to enhance aid packages.
+ NASFAA: “[Attorney General Andrew Cuomo’s] office has designed a system that would prevent private student loan companies from misleading the public, according to the official, who spoke on condition of anonymity because the office is currently in negotiations with several lenders,” reports the Associated Press. “Cuomo’s goal is to have lenders sign the code of conduct, and his office expects to announce the first of those agreements with lenders sometime this week. Under the agreement, companies would have to sign a uniform disclosure statement that would require them to list an annual percentage rate and provide students with an estimate of what their monthly payment would be and the amount they would pay for the life of the loan, the official said. Lenders would also be prohibited from using false insignia or other devices that appear to be part of the federal government. They also won’t be able to use checks, deceptive rebate offers or other gimmicks to entice students.”

Scholarship Update
+ Get a copy of our Scholarship eBook!

Mail Bag
+ Jen writes in: So, right now I am 19 and into my second year of college. I go to Riverside Community College and live at home. Right now, the financial aid that I get is a BOG Waiver and a Pell Grant that gives me about $4,500 for the year for full time enrollment. I also work part time and make $600 a month.
+ I am currently trying to get a student loan so that I can move into student housing for Spring semester but have absolutely no idea how to go about it. My college doesn’t offer student housing specifically but there is student housing near UCR nearby that I can move into and not have to go to that college.
+ My college said that they only accept a stafford student loan, which I have applied for online but when I saw that my school wasn’t on the list to set up an interview, I visited the Financial Aid Office.
+ I asked to set up a loan counseling interview and was told that I had to wait until Spring Semester to apply. I don’t understand why I would apply for a student loan after the semester has already begun.
+ I told her that my goal was to get a $10,000 loan to pay for housing. She told me that I could not get kind of a loan because the Stafford Loan would not award me that much and they don’t accept any other student loans.
+ So I’m pretty lost. I really need to move out and I don’t understand why I cannot get a loan that would allow me to do so. Should I look into a personal loan with my bank? I just want to know what my options are at this point as far as getting a loan to move out.
+ In reviewing the situation, RCC has two levels of cost of attendance - off campus at home, and off campus. Off campus at home COA is estimated at $5,306 and off campus is estimated at $16,534.
+ Financial aid package sounds like it’s been computed for Off campus at home
+ Options: first and foremost, apply for the maximum amount of Stafford Loan funding that you can. Your school is legally required to certify a Stafford Loan application from a third party lender besides the one on your school’s Financial Aid web site as long as you’re eligible to receive Stafford Loan funding
+ You should be eligible for a maximum of $8,500 in federal Stafford Loans - $4,500 in subsidized and an additional $4,000 in unsubsidized
+ Once you’ve tapped out the maximum amount of Stafford Loans, there are two options
+ The Parent PLUS loan is a federal education loan taken out by your parents. It’s got a fixed interest rate of 8.5% and is generally a very good option, but some parents don’t want the loan in their name
+ A private student loan like those at ActEducationLoans.com is another option, with variable interest rates based on credit. Almost certainly someone will need to co-sign the loan.
+ Whatever you do, you don’t want to take out a private student loan without maxing out your Stafford Loan aid - your financial aid office should certify the Stafford Loan for as much aid as possible because it’s in your best interest to borrow at as low a cost as possible

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FAP682: An introduction to zero based budgeting

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Student Financial Aid News
+ Inside Higher Ed: As if on cue, the U.S. Education Department on Friday released data that suggest how much higher student loan default rates would be if they were reported over a longer time frame, as legislation pending in the House of Representatives would require. The data released by the department show that the average cohort default rate Ã¢Â€Â” the rate at which a group of borrowers default on their loans by a certain point after the loans enter repayment Ã¢Â€Â” climbs by at least a percentage point a year for every year that is added to the term. And the statistics also show great variation by sector in the rates of default. Five years after a cohort of borrowers entered repayment in 2002, the average “cumulative lifetime default rate” for the group of borrowers was 10.6 percent. But the rate was 6.4 percent for borrowers from four-year private colleges, 7.9 percent for borrowers from four-year public colleges, 19.3 percent for students from two-year public colleges, and 22.9 percent for borrowers from for-profit colleges, according to the department.
+ NASFAA: “Student loans are often categorized as good debt, because a college education is considered a sensible long-term investment,” according to Gannett News Service. “But it’s important to understand that not all student loans are alike. Private student loans, which are often offered by the same lenders that provide federal loans, are more expensive. Interest rates are variable, so there’s no limit on how high they can go. And repayment terms aren’t as flexible as they are for federal loans. Yet despite these drawbacks, private student loan borrowing has soared in the past decade. This year, private loans accounted for 29 percent of all loans taken out by undergraduates, according to a report released last week by the College Board. So why do borrowers take out higher-cost loans? Marketing probably plays a role. Many lenders advertise private loans on television and over the Internet.”
+ Stafford federal student loans
+ Private student loans
+ This just in from NASFAA: Real-Time PINs Available Soon
+ Beginning January 1, 2008, students and parents will be able to apply for and receive a “real-time” PIN when completing a FAFSA on the Web or when applying for a PIN on the Department’s PIN Web site.
+ FAFSA tips and tutorials

Scholarship Update
+ The undergraduate scholarships are available to students who are enrolled in an Environmental Health Accreditation Council (EHAC) or is a NEHA (National Environmental Health Association) Institutional/Educational or Sustaining Member school (the colleges and universities are listed below). The undergraduate scholarship is to be used toward the tuition and fees of either your junior or senior year of college. The graduate scholarship is available to those students or career professionals who are enrolled in a graduate program of studies in environmental health sciences and/or public health. The graduate Scholarship is to be used toward tuition and fees associated with graduate studies.
+ Deadline February 1
+ Details at our free college scholarship search site

Financial Hacks
+ In tomorrow’s interview with Brad Barnett of JMU, he refers to zero based budgeting several times
+ Here’s a quick primer on zero-based budgeting, or active balanced budgeting
+ Technically, it’s called active balanced budgeting - ZBB is a corporate business practice which forces departments to justify every expense; rather than assign increases in the budget based on performance or inflation, each year, a department needs to start from zero and justify all expenses
+ Active balanced budgeting, or personal zero-based budgeting, assigns every dollar you receive and allocates it so that at the end of the month, your budget is balanced - every dollar earned is going to an expense, and you don’t spend anything you don’t have
+ Financial consultant Dave Ramsey calls it spending your money on paper before spending it in real life - sort of a simulation
+ Active balanced budgeting has a couple of weaknesses
+ It has trouble dealing with reconciling pay periods and expense periods
+ Budget based on expense period for the largest consistent expense - usually rent
+ Also has trouble working with unexpected large expenses
+ Still a very valuable tool, especially for planned expenses
+ Plan in silly stuff
+ Example spreadsheet online - including beer!

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FAP681: How to avoid defaulting on your student loans

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Student Financial Aid News
+ Inside Higher Ed: The Education Department’s “cohort default rate” Ã¢Â€Â” the rate at which student loan borrowers default within 12 to 24 months after they leave college Ã¢Â€Â” was initiated in the late 1980s largely to draw attention to institutions seen as preying on low-income students who may struggle to repay their loans. But changes Congress made in 1998 to how the rate is calculated have rendered it a far less useful indicator either of students’ indebtedness or of colleges’ malfeasance, numerous government and other reports have agreed in recent years.
+ An amendment attached to House of Representatives legislation to renew the Higher Education Act this month is designed to make the cohort default rate a more realistic assessment of how individual institutions (and lenders) are faring in keeping student borrowers on track to repayment, extending to three years from two the period over which borrowers’ defaults are measured. The change, if it becomes law, is likely to significantly raise most colleges’ default rates, which could cause problems for institutions that have historically had higher rates of student loan default Ã¢Â€Â” most notably for-profit career colleges, but also some two-year and historically black colleges.
+ The cohort default rate was largely born of concern in the mid- and late 1980s about the explosion of trade schools, particularly in cities with large populations of minority and low-income residents, that were seen as trying to build their enrollments (and profits) by enticing academically underqualified students to apply for Pell Grants or guaranteed student loans that they were unlikely to be able to repay Ã¢Â€Â” especially if they received a substandard education that did not lead to a good job.
+ The idea was that abnormally high default rates would signify a low-quality institution that was failing to prepare students for work and life, and that holding colleges accountable for the rates at which their students defaulted on loans Ã¢Â€Â” threatening loss of access to federal grant and loan funds for institutions whose rates exceeded 25 percent in three successive years or 40 percent in one year Ã¢Â€Â” would weed out fraudulent schools and force other institutions and lenders to take the issue of student debt more seriously.
+ Private student loans are an alternative to Title IV funding, and it’s worth investigating a school’s graduation and job placement rates before applying

Scholarship Update
+ The Brown Foundation for Educational Equity, Excellence and Research works
+ to foster academic achievement among our nation’s young minority scholars and
+ advance educational equity and multicultural understanding.
+ We encourage and assist qualified minority students to pursue a career in education through the Brown Foundation Scholarship Program.
+ Be admitted to a teacher education program. Confirmation of their acceptance is required by the date of the award.
+ Be enrolled at an institution of higher education with an accredited program in teacher education.
+ Be enrolled at least half-time as defined by the higher education institution of attendance.
+ Have a minimum 3.0 grade point average on a 4.0 scale.
+ Submit two recommendations: one from a teacher, counselor, or other school official and one from a person familiar with the applicant’s skills and abilities who is not a family member.
+ Details at our free college scholarship search site

Focus on Financial Aid
+ Three options to prevent defaulting on your student loans
+ Deferment
+ Forbearance
+ Student Loan Consolidation
+ Deferment is an entitlement that allows you to postpone your student loan payments for up to 3 years
+ Deferment forms
+ Forbearance is similar but discretionary from the lender
+ Read terms carefully
+ Student Loan Consolidation stretches out the repayment term
+ Monthly savings at higher total cost assuming you only make the minimum monthly payment
+ Student Loan Consolidation strategy - reduce monthly payments for the first few years after college, get on your feet economically, and then make MORE than the original payment OR accept that you will pay more in interest over the life of the loan

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FAP676: Private student loan market issues, job opportunities in a recession

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Student Financial Aid News
+ From the Houston Chronicle: First Marblehead Corp.’s (ticker: FMD) stock sank Monday after a Friedman Billings Ramsey analyst downgraded the student finance company, saying there may not be as much cash committed to covering unpaid student loans as people think.
+ First Marblehead helps banks like Bank of America Corp. and JPMorgan Chase & Co. package their student loans into pools and sell them as bonds. The company charges fees for advising on the deals and helping funnel the payments from the students to the bondholders.
+ The prices the bonds command _ and in turn the commissions First Marblehead charges _ are boosted by a nonprofit organization called The Education Resources Institute, or TERI. TERI promises to buy student loans that are in default, which rescues bondholders from losses. This makes the bonds safer and thus more appealing to investors.
+ After Fitch downgraded TERI’s credit last month, Snowling said he reviewed the organization’s finances and concluded it does not have enough cash to buy all the loans that are going to be in default.
+ Much of TERI’s $612 million in cash is restricted, and the organization can only commit $127 million to cover student loan losses, he said. That represents less than 1 percent of the $13.2 billion in loans TERI guarantees.
+ If student loan defaults overwhelm TERI’s cash, Snowling said First Marblehead will have to pledge more collateral itself, which eats into its profit on deals. Plus, the company will securitize fewer student loans and at lower prices because of the heightened risk, he said.
+ What does this mean for you? Private student loan credit requirements are probably going to get a lot tighter. Any time a lender has to buy back loans out of a securitization, it’s a loss, particularly if the loans default.
+ One of the many reasons the Student Loan Network is absolutely adamant about responsible borrowing - never borrow more than you can afford to repay. Everyone loses when you do.
+ In the short term, if the market believes that private student loans are a risky investment, credit available to First Marblehead will be more restricted, the same as is happening in the housing and mortgage markets. That means private student loans themselves will be harder to qualify for, with more rigorous credit checks, higher requirements in terms of credit score, and possibly higher interest rates if the number of loans defaulting spikes, which it may.
+ If you are in danger of defaulting, don’t just sit there. Call your lender and ask to negotiate a payment plan or other means of default aversion. If you have a loan from the Student Loan Network, and you’re in danger of defaulting, call us at 877-328-1565! We want to keep you out of default as much as you want to stay out of it.
+ Remember, private student loans are NOT your first loan of resort for paying for college. Choose federal student loans like those at StaffordLoan.com first.
+ Disclosures: First Marblehead powers our Act Education Loan Private Student Loans
+ I also own one share of FMD stock now worth half what it was earlier this year, about $27.

Scholarship Update
+ IFDA Student Member Scholarship
+ The IFDA Student Member Scholarship is offered to current IFDA student members who have completed four courses in interior design or related field and are in good standing. An additional letter of recommendation from an IFDA Professional Member is required. The student identification number must be included on the application form. The IFDA Educational Foundation will award a $2,000 Scholarship for the academic year to a full time student member.
+ Deadline March 31
+ Details at our free college scholarship search site

Jobcast
+ Evaluating job opportunities in a recession - which is where we’re headed if we’re not already there.
+ Look for companies with strong growth potential - they tend to be smaller rather than larger, more agile, and disruptive, doing something new in their vertical
+ Look for companies that are hiring on big paid job boards like Monster. If they’re willing to shell out cash to hire someone, they’re not at a point where trimming costs includes paid hiring
+ Look for compensation that has a strong base salary component, so that even if the economy trends downward, you still get a paycheck, as opposed to being purely commission-based
+ Look for benefits that will offset high personal costs - strong healthcare is a huge plus in a recession - 80/20 split is standard, but look for 100 less copay.
+ It is perfectly acceptable to ask in the job interview about the prospects for growth and stability - and be on the lookout for incongruent nonverbal communication
+ Look for job opportunities that have flexibility in them; a recession is not a great time to be making a major career change, but it is a great time to focus on training and professional development
+ It is perfectly acceptable to even ask about the financials if you’re interviewing for a management position
+ Obviously, stay away from jobs in troubled sectors like banking, lending, finance, mortgages, housing, real estate, etc.

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FAP675: 2007 Financial Aid Calendar, Hillary Clinton on Student Loans

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Student Financial Aid News
+ Inside Higher Ed: Rose State College, a two-year institution in Oklahoma, is dropping most Friday classes to help its students Ã¢Â€Â” most of whom have significant commutes Ã¢Â€Â” minimize gas purchases at a time of rising prices. Up until now, most Rose State courses met for either 75 minute sessions on Tuesdays and Thursdays or 60 minute sessions on Mondays, Wednesdays, and alternate Fridays. The latter group will now be shifted to Monday and Wednesday meetings of 75 minutes. Rose State officials stressed that classrooms would not be empty on Fridays: Professors have been asked to develop courses that will meet for longer periods, but only on Fridays.
+ Look for distance learning and online opportunities to increase as well
+ Distance learning private student loans
+ Chronicle: Texas A&M University at College Station is making students an offer they might have trouble refusing. Starting next year, students who take courses over the summer will pay half the normal tuition rate, according to todayÃ¢Â€Â™s Houston Chronicle. The universityÃ¢Â€Â™s goal is twofold: Its facilities will get more use year-round, and its students will move more swiftly to graduation. The cost of the pilot program, which might be tried later at other public colleges in Texas, will be borne by the state. Assuming that students can take courses they need to graduate, all they have to lose is their summer jobs and their tans.
+ Look for more colleges to offer “off-peak” learning opportunities - and if you’re a high school student, consider asking colleges if they’ll award credit in advance. The more freshman level courses you can take and be done with, the faster you’ll complete your degree - which means you’ll pay less for college. The 3 year college degree isn’t out of the question.
+ NASFAA: “Senator Hillary Rodham Clinton had some tough words Saturday afternoon for the college student loan industry, saying banks and other lenders had ‘ripped off’ students with high interest rates and repayment plans that were onerous on recent graduates and their families,” reports The New York Times. “‘I want to get rid of the student loan companies,’ Mrs. Clinton said at an event in Sioux City, as she laid out her college affordability plan in response to a parent’s concern about high tuition prices.
+ Let’s see, the student loan industry is an $85 billion/year industry. $60 billion of that is provided through student loan companies. Unfortunately, all of the candidates proposing this solution have not included how they’re going to make up the shortfall. The Department of Education’s budget certainly doesn’t have the flexibility to cover that.
+ Also a bit disingenuous: federal student loans like those at StaffordLoan.com are identical to the Department of Education loans.
+ Great conversation about the value of a college degree on the blog! Join the conversation!

Scholarship Update
+ The AEE Foundation Scholarship program was established to encourage qualified practitioners in energy engineering and energy management by awarding scholarships to further education in the field. To date the Foundation has awarded a total of over $520,000 in funds for use by 936 outstanding students. Scholarships shall be available to undergraduate and graduate degree candidates who are enrolled in engineering or management programs at accredited colleges or universities. Scholarship funds are to be used for courses directly related to energy engineering or energy management preferably within the curriculum leading to a major or minor in energy engineering.
+ Deadline May 1 of each year
+ 40 awards of $1,000 each
+ Details at our free college scholarship search site

Focus on Financial Aid
+ A review of the financial aid calendar for the rest of the year
+ October is early decision time for high school seniors - make sure you get an idea of cost of attendance and have your finances in order
+ November is a great time to begin scholarship search for the 2008 award year. Scholarships ramp up in January, so taking the time in November and December to crank out essays and do your scholarship Google prep will put you towards the front of the line when the gates open
+ November and December are good months to review your taxes and possibly see a CPA/CFP. Anything you can do in the last couple months of the year to minimize your AGI will benefit your taxes and your financial aid for the upcoming year
+ Get ready to file your FAFSA on January 1
+ It’s a great time of year to take inventory of your personal finances, do your budget, and figure out some goals to achieve for the next year
+ Again, most community banks and credit unions offer financial planning services either for free or at nominal cost
+ View the full financial aid calendar at StudentLoanNetwork.com

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FAP658: Interest rate cuts, temporary loans, single lenders, Matthew Ebel

Student Financial Aid News
+ Federal reserve cuts funds rate by 0.25% to 4.25%
+ Prime rate change to 7.25%
+ Upside: interest rates based on prime decrease
+ Downside: it seems the Federal Reserve is trying to stave off economic damage from the housing bubble by making lending easier, thus creating another bubble
+ Kind of like an alcoholic trying to stave off the effects of going sober by drinking heavily
+ From the Chronicle: The U.S. Education Department has sent a second round of letters to colleges that have a high proportion of students borrowing from a single lender, as part of its investigation into possible illegal inducements.
+ The letters, dated October 24, were sent to 55 colleges, from among a group of 921 that initially received inquiries in June, said Sara Martinez Tucker, the under secretary of education. Similar letters were also sent to 23 lenders, Ms. Tucker said.
+ “We’re not accusing them of anything illegal at this point in time,” Ms. Tucker told reporters in a telephone news conference on Wednesday, “but we want to be sure, based on what we’ve learned.”
+ The letters in the first batch, sent on June 29, were based on the suspicion that a college’s having a large volume of student-loan business with a single lender could be a sign of violations, such as having financial-aid Web sites that automatically direct students to a particular lender, department officials said.
+ Such situations are among the problematic practices the department has seen at colleges that give their students a list of “preferred” lenders, Jeff Baker, a policy liaison in the Education Department’s Office of Federal Student Aid, said at a meeting of financial-aid administrators after the first round of letters.
+ The department plans to issue new regulations today to govern relations between colleges and lenders, including a requirement that any college providing its students with a list of preferred lenders include at least three choices, the education secretary, Margaret Spellings, during Wednesday’s telephone news conference.
+ If you’re a financial aid professional and would like to make the Student Loan Network your #3 choice, please let us know! (yes, I know, aim higher, etc. but honestly, #3 at a major school is plenty good to start)

Scholarship Update
+ The Hispanic Engineer National Achievement Awards Corporation (HENAAC) Scholars Program addresses the immense need that the United States has to produce more domestic engineers and scientists. The goal of the program is to ensure college retention with a 3.0 grade point average or higher; to guarantee college graduation with an undergraduate technical degree in four-five years; and, to contribute to Hispanic communities by producing role models for future generations and securing the country’s place as the finest technological leader in the world.
+ Deadline April 30
+ Awards up to $5,000
+ Details at our free college scholarship search service

Mail Bag
+ Nick writes in: So, here’s the deal…I start classes in January, and I was approved for a federal loan with my school for $3500, which will only pay for classes, so they gave me an ‘additional unsubsidized stafford loan‘ of $4000 for supplies which I won’t see until about 1-2 months after I start taking classes… so that means I have to somehow either pay for supplies myself (impossible), or try and get a private loan of some kind.
+ I only need $2500 for supplies, which will be payed back after I get my additional loan amount of $4000 in February or March, so I don’t need a long term loan to pay for supplies. The problem is that I don’t have a job right now and I cannot get a co-signer. My parents offered to co-sign for loans, but got denied for the last 3 loan applications, and they are the only co-signers that I would have. Since they don’t have the credit, and I don’t have any credit myself, getting a private loan has been impossible to do.
+ Is there any way at all to get a [temporary] loan of $2500, which I can and will pay back 1-2 months later. I have no credit right now and cannot get a co-signer. Am I totally screwed?
+ Private student loans do require cosigners if your credit isn’t good.
+ Options might be seeing if the school has any kind of payment plan
+ Also consider peer lending services like Prosper.com or Lending Club
+ Be aware you’ll pay interest rates equivalent to most credit cards, probably above 12%
+ Ricky Mondello asks whether test scores should be posted on blogs
+ Depends on whether they’re good or not
+ Definitely include them in your social media college application
+ What, you don’t have a social media college application? Fine, we’ll create one in an upcoming show.

Podsafe Music
+ Matthew Ebel, Goodbye Planet Earth
+ Buy Goodbye Planet Earth today!

Reminders
+ Get the Financial Aid Podcast by email!
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Discuss this episode at the Financial Aid Forum!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Stafford federal student loans at StaffordLoan.com
+ Student loan consolidation at StudentLoanConsolidator.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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