FAFSA Time! January 18, 2007

January is here, which means a few things.

1) Resolutions…by now, many of you have abandoned your goals and aspirations to do things differently in ‘07. For those of you who have kept it up, congrats! I have kept up on my resultions a bit – no 6am spinning (YET) but I am faithful at making my coffee, shopping less, and helping others with education financing.

2) Cold weather…I saw on CNN today, there was snow about 30 miles north of LA – so wherever you are, you’re probably in for a chill. Bundle up, dig out the ice scraper, stock up on soup and hot chocolate, and it’ll be April before you know it (yeah right…).

3) FAFSA TIME…Come January, you are able to start filling out the FAFSA form for the 2007-08 school year. While the process can be daunting, regardless of how many years of FAFSA paperwork experience you have under your belt, there are solutions out there. Graduate students really can take advantage of Stafford loan funds, but the FAFSA is requried to do this. Get help with your FAFSA – while you’ll still need to do the application online, there are many sites with helpful tips and tricks to making the process a breeze!!

How Quickly Can I get a Loan? January 2, 2007

It is January, which means second semester is about to begin. If you are the minority, you have your FAFSA renewed and your financial aid in order. But if you are the average Sally, you are in a bind, and next tuition bill is due any day now. This is when you turn to an Alternative Student Loan. Alternative loans can be approved instantly and you can have the check in your mail box within 5 days. Which is great considering Federal loans can take months to be approved. Graduate students often have a lot to juggle, more so than undergraduates…which means graduate students often turn to alternative loans to not only fund their education but also they can live comfortably while getting their education. Of course with any loan, you want to research all of your options, and you only should take a loan out if you absolutely need it.

Have you transferred schools? December 28, 2006

Even though I never transferred colleges, I have heard that the financial aid process makes this no easy task. Students that are going to switch schools at a semester break cannot take their financial aid package to the new school. This is confusing because you assume that since you were awarded, say, $5,500, you can take whatever you didnt use in semester 1 to your new school for semester 2. Sadly, this isn’t the case. However, there is a good reason why – your school awards you money based on your EFC (expected family contribution) that is determined once you fill out a FAFSA (Free Application for Federal Student Aid). Your award is also based on your school, how much they award to other needy students, the cost of attendance, etc. So, just because you were awarded $5,500 at one school for an academic year, you might be able to get $18,500 at a school that has a higher cost of education. The flip side is also true – your award might be less at a different school.

Upon switching schools, fill out a new FAFSA form – the information you are submitting might be identical to a previous semester but it has to be sent to your new school. Give it time, though. You’ll need to get your SAR (student aid report) in the mail AND get the award letter from your school. THEN you should apply for a StaffordLoan – applying for a Stafford Loan before you were awarded the funds doesn’t speed up the process.

Once you stop attending your old school, your loans from that school will go into your 6-month grace period, then into repayment. To avoid paying while still in school, you can defer paying on these loans until you graduate from your new school. Contact your lender for information!

What if I only have a few days left in the semester but really need money? December 13, 2006

We all know how stressful and expensive the holidays can be – between travelling and buying gifts, your bank account might be tapped. For those in school, it’s even worse – I remember needing to buy poster boards, binders, and stuff like that for final presentations and feeling like that was about to break the bank! So…check out the GradLoans.com Private Loan – use it for those last minute educational expenses (like fees, books, presentation materials, a new computer to replace the one that’s running too slow, etc.)

You don’t need the school to certify it and you can borrow as little as $1,500 – payment waits until you graduate!

Don’t stress about those expenses you weren’t planning on – there is a simple solution!

“But what do I do with my undergraduate loans?” December 4, 2006

Graduate school is a common and, often times, necessary next step in advancing your education. What do you do with the loans for undergraduate school while you are enrolled in your graduate program? Most will just defer the loans until dropping graduate school is up. While this certainly is a good idea – there is a better one – CONSOLIDATE!
So, this means that all your undergraduate loans will be rolled into one account, one payment, one bank (lender) and you even get benefits for paying on time and setting up auto debit.
Take advantage of payment reduction of up to 60% and no payments while you are enrolled in graduate school!

Can You Afford Graduate School? December 1, 2006

I have a lot of friends who are sort of in that limbo status….they got their undergraduate degree a few years ago, and they feel stuck in their current job. In order to move on to better things they need more education. I am always hearing concern about whether graduate school is affordable or not. How will I live and go to school at the same time? This is where the private graduate school loan can help. This loan is unique because it is geared towards graduate students, so it meets all of your needs. It can be used to cover tuition, or just living expenses, or both. There are different types of these loans, and some of them do not have any origination fees. What I suggest to my friends is to figure out how much you will need to borrow, and then work out a budget, so that you know you will be able to afford the monthly payment on those loans once you are finished with the graduate program.

Gobble up the savings! November 21, 2006

Ok, excuse the silly title but we are all getting into Thanksgiving mode and I thought I’d post something for our readers who may already have Federal loans (Stafford, PLUS, GradPLUS, Perkins) and might want to consolidate. Typical loan terms are for 10 years – so regardless of how much you have in loan volume, any unconsolidated loan must be paid off in 10 years. This means monthly payments are really high and, often, unmanageable. One payment here another payment there – it all get confusing and really takes a hit on your cash flow. The best solution to this is consolidation – think one monthly payment (which can be done online), a lower payment and great benefits. You can get up to 1.25% off if you make 36 on time payments and set up automatic payments. That’s right, you get a discount for setting up auto pay! Check out StudentLoanConsolidator.com – they have great information, an easy online application and knowledgeable customer service reps who can help make such a stressful process a breeze!

I know I mentioned your savings. If you have…

$20,000 in Stafford loans at 6.54% unconsolidated gives you a monthly payment of $228/month. Consolidate this loan and you’ll have a payment of $155/month – save $77/month – $923 A YEAR!!

Again, you’ll retain all your federal benefits, such as deferment and forebearance so if you ever experience an economic hardship or go back to school, you can put off payment.

Happy Thanksgiving Everyone!

Scholarships it is! November 15, 2006

I recently got a question about scholarships. This is the best type of financial aid because it doesn’t have to be repaid! Check out www.StudentScholarshipSearch.com – Student Scholarship Search Center. It’s a free search site that allows you to check scholarships, grants and more. You can even search by your program, state of residence, and more!

So, for graduate students, I just searched the entire directory under the terms “graduate school,” and came upon 52 scholarships! Now, the trick with scholarships is to find the ones that match your program of study, interests, school, etc. as most of them have certain conditions you must meet to qualify. I just found a Real Estate scholarship – for any undergrad or graduate student studying real estate. A graduate student can get a scholarship of $30,000!!

Some tend to shy away from scholarships because they often require an essay or application and some other forms of documentation. THIS IS FREE MONEY! Do the extra work – it just might pay off!

For daily scholarship updates, be sure to tune in to the Financial Aid Podcast. Your host, Christopher Penn, always has new and unique scholarship offerings to share!

Can the Graduate Plus Loan be used for Living Expenses? November 7, 2006

Graduate school is not only expensive as far as tuition is concerned; it is also expensive for the student because it is so time consuming and holding down a full time job is nearly impossible. Often times the student needs an additional loan to help with everyday living expenses, including rent. Since the Graduate plus loan is a Federal student loan it has to be processed through the school. This means that you apply for the loan through a lender…and that lender sends the loan directly to the school. Typically, a school will only certify an amount that is needed to cover tuition and other school expenses. What does this mean though? It means that schools determine their own eligible school expenses…and it is up to a student to make them aware of other expenses you may have so when that loan comes to the school, you are both in agreement on how much you need. So basically you need to collaborate with the school so that you are on the same page as far as your budget is concerned…and then apply for the Graduate Plus Loan for the amount that has been determined by you and your school.

“It’s mid-semester…and I’m already broke” November 6, 2006

I remember this – all the budgeting and planning didn’t quite cut it and come November, I was broke. For me, it was all the expenses I never really thought about that got me into trouble – presentation materials, a new CD burner, ink cartriges (boy, are those expsnsive). And while I was able to find a way to pay for these things, thanks to my part time job, the same thing happened again in March and the next November. What a cycle! Had I known about the other options available to me, I would have been able to feel more comfortable with my finances. While Federal studnet loans, typically, are annual funds that go to the school, private student loans can be taken out at any point in the school year. You can even get one at every semester start date! Graduate students who may have really high expenses (lab fees, specialty equipment, computers, costly books, etc.) should look into the GradLoans private student loan. You can use it for whatever you want and Graduate students can apply on their own signature (check into adding a co-signer, though, for better rates/approvals).