Managing Your Finances
Student Loan Team Meetings Underway

This month, a group of negotiators dubbed the Student Loan Team began the first of several meetings focusing on student loan legislation. Made up of representatives from universities, colleges, associations, guarantors, and lenders, the Student Loan Team has taken on the responsibility of making regulations for several requirements created by the College Cost Reduction and Access Act of 2007 (CCRAA). Representatives from various sectors impacted by CCRAA legislation are taking part in the rule-making process in an effort to reach a consensus all invested parties will be satisfied with.
Financial Aid Awarding Differs between Like Colleges, Report Finds

The Institute for College Access and Success (TICAS) has found that student access to financial aid varies widely according to each institution. This may not seem too surprising given the maze that is financial aid. However, more interestingly, the report has found that similar institutions have varying financial aid policies. What is true at one community college might not be the case at another community college, the report found.
Pay Down Your Debt

What about the amounts owed on your credit card accounts and other bills? The experts at Fair Isaac tell me that shifting debt around is not going to boost your credit score by and large. You have to pay that debt down. Some people think,
Build a Credit History

The length of your credit history also plays a role in your FICO credit score. Generally, the longer you have been in the credit game, the longer you have had a credit history, the more likely it is that you will have a higher FICO score.
Do not Transfer Balances the Wrong Way!, Part 1

What about transferring high-interest rate credit card balances? Will that improve your credit score? Usually it will not—although it can save you money in finance charges in the long run. If you ever want to transfer balances from one credit card to another, keep these five tips in mind.
Do not Transfer Balances the Wrong Way!, Part 2

Know the fees and terms imposed by credit card companies. Many banks will charge you 2 or 3 percent of any balance transfer amount that you make. Some will charge you that 2 or 3 percent up to a certain amount, say a maximum of $50. Either way, those are pretty hefty fees. You should also know when the promotional period expires on any balance transfer offer. If it's six months, then you should plan to pay off the balance before that time in order to reap the full benefits of that 0 percent offer you received.
Things That Affects the Credit Rating

Let's do a quick, one minute test assessing your knowledge about how various things affect your credit rating. Are the following statements true or false?
How to Build a Credit Rating, Part 1

To improve your credit standing, you must first know how the credit reporting system works. The Big Three credit-reporting agencies are Equifax, Experian, and TransUnion. These are the giants of the credit-reporting world, although there are actually hundreds of credit bureaus out there.
How to Build a Credit Rating, Part 2

Put it in writing. Your next step is to write directly to the three credit reporting bureaus and let them know about the mistakes. The errors or omitted information I just described often tend to be things that can be easily remedied.
How to Build a Credit Rating, Part 3

In summary, any errors you find in your credit report that are descriptive in nature—referencing where you live or work, your personal information, such as the spelling of your name or your Social Security number—those are cases where you write directly to the credit bureaus.
Credit Card Tricks, Part 1

Part of being a wise consumer when it comes to managing credit is knowing what games some credit card companies play that can wind up costing you money. If you are a smart consumer, part of what you have to do is to watch out for different tricks or gimmicks of the credit card industry. Frankly, these tricks they use are all very legal, but I think some of them represent questionable practices at best in terms of what credit card companies are doing which (intentionally or otherwise) trips up consumers really puts your credit health in jeopardy.
Credit Card Tricks, Part 2

Beyond universal default, you should know about your credit card's billing cycle. Be cautious with any cards using the double billing cycle, because that determines when it is that you are going to pay interest on the things that you purchased.
Credit Card Tricks, Part 3

The mail madness trap is a no-win situation that a lot of other consumers find themselves subjected to with credit card companies. This trap has to do with you getting your payment in on time when you are sending it through the mail. Some credit card companies have fine print notices that state that they can legally count your credit card payment as having been received many days after it actually arrived at the company. How is this possible?
Credit Card Tricks, Part 4

Sure a credit card company might offer you certain ''freebies'' in that stack of paperwork that you are getting along with your statement. Sure, they might say you can do a balance transfer or take advantage of a new credit card offer with a lower interest rate. But in reality there is always a catch.
Preventing Identity, Part 1

You can't open the paper or look on the news without learning about how yet another criminal has stolen the identity of some unsuspecting victim. Identity theft occurs when a person misappropriates your personal information, like your Social Security number or your driver's license, and then uses that data for his or her own financial gain. For example, if thieves get hold of your Social Security number, they might open up a number of credit card accounts without your knowledge or consent. That is fraud.
Preventing Identity, Part 2

Don't carry your credit cards with you unnecessarily. If you get robbed, or a thief steals your purse at the movies, at least they'll only get your bag, but not all of your credit information.
Tips for Couples

As with most areas in a relationship where compromise is necessary, the same thing will be true of your finances. So you'll have to collectively decide a multitude of things concerning money.
Costs

According to Upromise.com, the average college student earns $7.50 an hour and works 25 hours a week. That translates into $187.50 a week. Even if a student worked full-time at 40 hours a week (which most don't, because they have classes, labs, papers to write, and more), that would only amount to a gross salary of $300 a week, or a measly $15,600 a year.
How to Save on Housing

Housing costs are a big chunk of everyone's budget, so it stands to reason that this may be the one area where you can significantly cut back on your expenses. In many cases it is possible, but for some of you, I warn you now: drastic steps may be necessary to slash your housing costs.
Your Car, Part 1

To cut your transportation expenses, you'll need to first think carefully about your personal and professional needs and how critical it is for you to have reliable transportation. In some cities, like New York or Boston, having a car is unnecessary and will definitely set you back financially in ways that make it impractical, and often downright impossible, to own a car. In other places, like Los Angeles, you may feel like you desperately need some wheels to get around. If you do buy a car, or you already have one, here are some helpful cost-cutting suggestions to follow.
Your Car, Part 2

Remember to factor in all the costs of having a car. That means the car payment, the insurance, the costs of gas and maintenance, and any expenses you have to pay for storing the car or parking it in a garage at your residence or place of work. You'll also no doubt want to have the car cleaned every now and again. For some of you, the costs may outweigh the benefits, and you may decide that public transportation is a much better, much more cost-effective solution.
Save on Food and Household Items, Part 1

You can certainly add to your cash savings by eliminating wasteful spending or cutting back on things that only serve to take dollars out of your pocket.
Save on Utilities, Part 1

You can save thousands of dollars just by making simple changes around the house. Here are some everyday energy tips:
Save on Utilities, Part 2

Don't be so quick to buy the latest brand name clothes either. Who knows if that dress you're wearing is a designer label or a knock off from H&M anyway? By the way, when you're out shopping, avoid signing up for those store credit cards just to get a so-called savings of 10 or 20 percent. These cards not only carry very high interest rates, often around 20 percent, they can also lower your credit score.
^ Top
Planning for School
Using Credit Cards in College: Manage Your College Finances without Destroying Your Financial Future

While there are many resources for those considering taking out student loans, there are few warnings available to students about the cardinal sins that credit card users inadvertently commit and end up repenting later. Read on for some important advice on using credit cards in college.
Kennedy Introduces Legislation That Would Alter Federal Financial Aid

On April 3 Senator Edward M. Kennedy (D-MA) introduced legislation that would make sweeping changes to federal financial aid. The bill, given the short name ''Strengthening Student Aid for All Act,'' is intended to ensure students have sufficient access to financial aid, in the forms of both grants and loans.
Community College Tuition Policies Reexamined

The American Association of Community Colleges met in Philadelphia this week for its annual conference. Among the speakers was bestselling author Amy Tan, who attended San Jose City College. The conference was composed of various presentations on topics ranging from green campuses to increasing enrollment to assisting military personnel with transitioning from active duty back to school.
No Threat to Federal Student Loan Availability

On March 17, 2008, witnesses testified before the Senate Education Committee regarding the availability of federal student loans. The committee met at Northeastern University in Boston and was called by Senator Edward M. Kennedy (D-MA), chairman of the Health, Education, Labor, and Pensions (HELP) Committee. Recent reports of possibly reduced or no funds for the fall semester have prompted Congress to take action.
Report Released on Federal Loan Borrowing Trends

The National Center for Education Statistics released a report entitled Trends in Undergraduate Borrowing II: Federal Student Loans in 1995-96, 1999-2000, and 2003-04. The report tracks and examines the changes in student borrowing over several academic years. Christina Chang Wei and Lutz Berkner authored the report.
Pennsylvania State University Switches to Direct Loan Program

The Pennsylvania State University system announced this week that it will move to the Direct Loan Program. The Direct Loan Program is the funding arm of the U.S. Department of Education and offers Stafford and PLUS loans, among others. The Direct Loan Program is funded by the U.S. Treasury.
Congress Urges Secretary of Education to Take FFELP Loan Action

Senator Edward M. Kennedy (D-MA) and Representative George Miller (D-CA) wrote to Secretary of Education Margaret Spellings urging her to take action to ensure the availability of loans for students. They also stressed the importance of students’ receiving their funds in a timely manner and thus expressed their concern over the uncertainty in the student loan industry.
Survey Tracks College Degrees and Employment Rates

The U.S. Department of Education's National Center for Education Statistics (NCES) released findings from a survey conducted over a 10-year period. The survey, titled Ten Years After College: Comparing the Employment Experiences of 1992-93 Bachelor's Degree Recipients with Academic and Career-Oriented Majors, followed approximately 9,000 bachelor's degree recipients and their subsequent employment rates. The entire report is publicly available in PDF format.
Legislation Could Simplify Financial Aid Application Process

In a bipartisan effort, both Democrats and Republicans are calling for a simplification of the financial aid application process. Both parties last month voted in approval of a bill that would allow applicants to simply check a box on their tax returns. Certain information required for financial aid would then be directly sent to the Department of Education. This information would automatically answer questions found on the Free Application for Federal Student Aid (FAFSA).
New Jersey Loan Guarantor and Attorney General Reach Settlement

The New Jersey Higher Education Student Assistance Authority (HESAA) and the New Jersey Attorney General have reached an agreement that ends an investigation into the loan guarantor’s business dealings with two Federal Family Education Loan Program (FFELP) lenders. The details of the agreement were announced in a press release posted on the New Jersey Office of the Attorney General’s website.
Higher Education Act Renewed

The Higher Education Act of 1965 was overwhelmingly approved on Thursday, February 7, 2008. The House of Representatives voted 354-58 to approve the reauthorization of the bill (H.R. 4137).
Secretary Spellings Announces New Teaching Ambassador Fellowship

Secretary of Education Margaret Spellings has announced the new Teaching Ambassador Fellowship Program. The fellowships offer positions with the U.S. Department of Education for teachers to share their input with policymakers. The Teaching Ambassador Fellowship Program will initiate its first cohort in the 2008-2009 school year.
Major Lender Exits FFEL Program

College Loan Corporation, the eighth-largest Federal Family Education Loan Program (FFELP) lender in the country, will exit the FFELP business on March 1, 2008.
No Comprehensive Analysis of Cuts to FFEL Program, Secretary Says

Secretary of Education Margaret Spellings asserted that she has not seen any strong evidence that the cuts to the Federal Family Education Loan Program (FFELP) have had negative impacts on students or lenders. Her remarks came after a speech made at the National Press Club on January 9, 2008. Spellings fielded questions centered on the No Child Left Behind Act, among other topics, including the state of the student lending industry.
^ Top
Paying for School
Department of Education Funding Updates

The U.S. Department of Education (DOE) has begun to accept applications for various grant programs for the upcoming fiscal year. Notices have been made public via financial aid organizations and associations, such as Higher Education Washington Inc. and the National Association of Student Financial Aid Administrators. Information about institutional grants can be found on the Department of Education website.
Private Loans: An Alternative Source of Funding

If you're a freshman just entering college or a returning student, you are probably aware that you will need to find various sources to help you fund your education. You do have a few options, including one you may be hesitant to opt for. However, it may be a necessary choice, and there are some hidden benefits that you may not be aware of. Private student loans can bridge the gap between traditional sources of funding and the cost of attending your school.
Comparing Private Student Loans

The average cost of attending a four-year public university is $6,185 per year. That cost almost quadruples for a private university, with the cost of attendance averaging $23,712 per year. More often than not, federal aid doesn’t cover the entire cost of college. The Federal Pell Grant totals $4,310 for the 2007-2008 academic year . Federal Stafford Loans total $3,500 to $20,500 , depending on a student’s year in school and her/his classification (dependent or independent). Based on these numbers, an entering freshman can only receive a total of $7,810 in federal aid (if s/he qualifies for a Federal Pell Grant). This aid does not come close to covering the cost of attending a private university.
Higher Education and the Economic Mobility Gap

A study released Tuesday, February 19, examines the correlation between earning a college degree and economic mobility. Among the findings: economic mobility has not changed significantly for children of poor or middle-class backgrounds. The researchers concluded that this could lead to a severe decline in opportunities for poor and even middle-class families in the future.
Report on High School to College Transition

Why do some high school students transition more smoothly and more successfully to college than others? This is the central question investigated in the study School Strategies and the ''College-Linking'' Process: Reconsidering the Effects of High Schools on College Enrollment. The study appeared in the January 2008 issue of Sociology of Education. The journal is published by the American Sociological Association.
Overpayments Made to Lender Must Be Paid Back

The Department of Education has demanded that the Pennsylvania Higher Education Assistance Agency (PHEAA) pay back an estimated $15 million it inappropriately billed the federal government. PHEAA was able to bill such an exorbitant amount through a loophole in federal law that has since been closed.
Student Loan Programs Scaled Back, Some Terminated

The recent subprime mortgage meltdown has made its way into the higher education sector. Coupled with the recent student loan industry fiasco and current economic uncertainty, several leading student loan lenders have announced they will cut back or eliminate altogether loan programs.
Committee Meeting Held to Negotiate TEACH Grant Program

A rulemaking committee has begun negotiations to sort out the details of the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program. The committee will hold multiple sessions, the first of which began on January 8 and ended on January 10. The schedule calls for two more sessions. The second session will run from January 22 to January 24, and the third session will be held from February 6 to February 8.
^ Top
Loan Consolidation
Private Student Loan Consolidation Checklist

So, you've decided to take control of your education debt by consolidating your private student loans. That's a wise decision and one that will benefit your financial future for years to come. However, some legwork is required to ensure that you consolidate your private student loans with a reputable lender and receive fair terms. Here's a checklist of things you need to look out for and investigate before choosing a lender (in no particular order of importance).
Help! I Don't Know What I've Borrowed!

Has this happened to you? Were you so desperately in need of money to pay for college tuition, books, and room and board that you signed anything that was put in front of you? You're not alone. Students enter college without much training from their high schools on the subject of borrowing or even on financial aid basics. Recent studies have found that ''to most high school students, college financial aid is 'the most complicated black box in the world.''' It's no surprise, then, that entering freshman simply sign promissory notes and understand little about what they are undertaking.
Private Student Loan Consolidation: Myths Debunked

Private student loan consolidation. It's almost an enigma. With few lenders offering such programs, and scarce information available to borrowers, precious little is known about this type of education debt management. Does it even exist? What does it entail? Is it for me?
Turn your variable interest rate loans into a fixed interest rate loan

Federal student loan consolidation is a great way to simplify your life. A federal student loan consolidation allows you to combine all of your federal education loans into a single loan. However, many borrowers may not be aware of another excellent benefit. Federal student loan consolidation turns your variable interest rate loans into fixed interest rate loans. Federal student loan consolidation is the sure way to protect your federal education loans from future interest rate increases.
^ Top