http://www.edfed.com Edfed Articles en-us 2006 Edfed. All rights reserved.Office: 175 S. Lake Ave. Suite 200,Pasadena, CA 91101 admin@edfed.com Sun, 21 Mar 2010 07:06:06 PDT http://www.edfed.com 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. http://www.edfed.com/resources/articles/index.php?id=130441 Gitanjali Hazarika Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130438 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130439 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130435 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130436 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130432 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130433 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130429 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130430 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130423 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130428 Wed, 31 Dec 1969 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). http://www.edfed.com/resources/articles/index.php?id=130425 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130426 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130420 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130421 Carina Zaragoza Wed, 31 Dec 1969 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). http://www.edfed.com/resources/articles/index.php?id=130418 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130419 Wed, 31 Dec 1969 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). http://www.edfed.com/resources/articles/index.php?id=130414 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130415 Carina Zaragoza Wed, 31 Dec 1969 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? http://www.edfed.com/resources/articles/index.php?id=130417 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130411 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130412 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130408 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130409 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130405 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130406 Carina Zaragoza Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130404 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130401 Carina Zaragoza Wed, 31 Dec 1969 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, http://www.edfed.com/resources/articles/index.php?id=130369 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130370 Wed, 31 Dec 1969 What about transferring high-interest rate credit card balances? Will that improve your credit score? Usually it will notâ€"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. http://www.edfed.com/resources/articles/index.php?id=130371 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130372 Wed, 31 Dec 1969 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? http://www.edfed.com/resources/articles/index.php?id=130373 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130374 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130375 Wed, 31 Dec 1969 In summary, any errors you find in your credit report that are descriptive in natureâ€"referencing where you live or work, your personal information, such as the spelling of your name or your Social Security numberâ€"those are cases where you write directly to the credit bureaus. http://www.edfed.com/resources/articles/index.php?id=130376 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130377 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130378 Wed, 31 Dec 1969 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? http://www.edfed.com/resources/articles/index.php?id=130379 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130380 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130381 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130382 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130383 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130384 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130385 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130386 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130387 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130388 Wed, 31 Dec 1969 You can save thousands of dollars just by making simple changes around the house. Here are some everyday energy tips: http://www.edfed.com/resources/articles/index.php?id=130389 Wed, 31 Dec 1969 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. http://www.edfed.com/resources/articles/index.php?id=130390 Wed, 31 Dec 1969 Insurance is very importantâ€"in the long run, it can save you lots and lots of money. http://www.edfed.com/resources/articles/index.php?id=130391 Wed, 31 Dec 1969 Extra cash in your bank account could mean a lot of positive things for you. You could pay down debt with itâ€"especially those student loans. You could jump-start your savings, particularly those of you who have been procrastinating about funding that cash cushion you know you need. You could certainly add to your retirement nest egg. You could do a laundry list of things with that extra money that would certainly be a benefit to you as long as you used the money in a positive way and didn't just blow it. So many times, unfortunately, we do just that. http://www.edfed.com/resources/articles/index.php?id=130392 Wed, 31 Dec 1969 The logical place to look for more money is in your line of work. I've determined four ways you can start: negotiate a good package from a new employer, make sure the deduction on your W-4 is keeping money in your pocket, ask for a raise in an existing job, and take advantage of the benefits offered to you by your employer. http://www.edfed.com/resources/articles/index.php?id=130393 Wed, 31 Dec 1969 Get That Well-Earned RaiseI know there are onerous bosses, but the truth of the matter is that if you want to put some extra money in your pocket you may have to deal with that boss yet, because one way to find yourself some extra money is to walk right into your boss's office and get yourself a raise. http://www.edfed.com/resources/articles/index.php?id=130394 Wed, 31 Dec 1969 Be specific in what you want. Let's say the boss does turn you down. Assume that he or she won't give you a raise right now no matter how much you demonstrate your case, quantify your value, and negotiate from a position of strength. Here's what to do next to make sure you ultimately get that raise. Put the ball in your boss's corner. Not only are you going to be specific in saying http://www.edfed.com/resources/articles/index.php?id=130395 Wed, 31 Dec 1969 Take Advantage of the Benefits Offered to YouFor starters, if you contribute to your 401 (k) plan at work, or a 403(b) plan if you work in the private sector or with a nonprofit, when you contribute to these employer-sponsored retirement savings plans, what you are effectively doing is reducing your taxable income. You save money for retirement but you also often get matching contributions from your employer. http://www.edfed.com/resources/articles/index.php?id=130396 Wed, 31 Dec 1969 For those of you at home, let's start by taking a look around your immediate vicinity. No matter where you reside, though, I hope you'll no longer think of your resting place as merely a roof over your head. In fact, the place where you live might turn into one of the biggest financial windfalls for youâ€"a source you can immediately tap for some additional cash. Some of you are probably thinking that I'm talking about homeowner's tapping the equity in their homes. No, in most cases, I don't think it's prudent to arbitrarily tap the equity in your home, not even to pay off student loan debt. http://www.edfed.com/resources/articles/index.php?id=130397 Wed, 31 Dec 1969 Some of you in very expensive parts of the country should definitely consider getting a roommate and/or renting a room in your houseâ€"or maybe even your basement, depending on your circumstances. You might say, http://www.edfed.com/resources/articles/index.php?id=130398 Wed, 31 Dec 1969 One way to use your house as a cash cow, without tapping any equity, is to get Uncle Sam to underwrite what is probably the biggest investment you have ever made in your life. Simply itemize your deductions. http://www.edfed.com/resources/articles/index.php?id=130399 Wed, 31 Dec 1969 Let's turn now to some quick sources of cash that you may not know about. First of all, do you know that 26 million Americans are currently the legal and rightful owners of unclaimed property in this countryâ€"to the tune of $100 billion or more? http://www.edfed.com/resources/articles/index.php?id=130400 Wed, 31 Dec 1969 A college education can cost tens of thousands of dollars. The price may be daunting, especially if you have no help from parents, trust funds, or inheritances. And of course, these sources of funding simply aren†t available to some students. But it is possible to pay for college all by yourself. All it takes is some research and a lot of leg work. This guide provides the ins and outs of finding money to pay for college. http://www.edfed.com/resources/articles/index.php?id=130368 Wed, 31 Dec 1969 Federal student loan consolidation might be a foreign concept to many students as there are very few educational resources on the subject. However, there is no lack of marketing by consolidation companies to students. Marketing tactics are relentless and, at times, illegal. Recently, New York Attorney General Andrew Cuomo began investigating the lending and marketing practices of several student loan companies, as well as the relationships between student loan companies and schools. Findings included the uncovering of revenue-sharing agreements between student loan companies and universities. With so many deceptive practices by both student loan companies and schools, students must educate and protect themselves. In order to assist you as you maneuver through the sales pitches and incentives, this article provides a step-by-step guide to consolidating your federal student loans successfully. http://www.edfed.com/resources/articles/index.php?id=130367 Wed, 31 Dec 1969 In college we all learn lots of things that, hopefully, will help us throughout life. Many of us learn how to work in teams, how to better communicate with others, and how to take new information and apply it in various ways. Lots of college grads also learn technical skills such as how to perform surgery, argue a court case, or write computer programs. Unfortunately, the one thing we don't learn in school is how to manage our bills wisely. http://www.edfed.com/resources/articles/index.php?id=130298 Wed, 31 Dec 1969 Never overestimate your income or expect to land a high-paying job that's far above the national average. Along those same lines, you also should avoid a common mistake made by many recent college grads. Simply put: don't equate your gross income with your ability to pay various bills. Just because you're making $40,000 a year doesn't mean you'll be bringing home $40,000 annually. And it certainly doesn't mean you should go out and buy a $40,000 car! http://www.edfed.com/resources/articles/index.php?id=130299 Wed, 31 Dec 1969 If you're operating without a normal monthly budget, that's a huge mistake. In fact, the lack of a budget is a big part of the reason that the average American now has nearly $10,000 in consumer debt, most of which is personal credit card debt. Of course, many people have mortgages, auto loans, student loans, and other consumer debt. But it's possible that you can have tons of bills and still exist in a state of denial about your finances. http://www.edfed.com/resources/articles/index.php?id=130300 Wed, 31 Dec 1969 Your Credit Standing Is as Important as Your DegreeNo doubt you tracked your grades carefully throughout school. Now you have an even more important report card to pay attention to. http://www.edfed.com/resources/articles/index.php?id=130301 Wed, 31 Dec 1969 Always guard your credit rating. Don't let your future career options be limited because you mishandled your credit and debt. I have heard of cases where job offers have been put on the table (in writing no lessâ€"with formal salary packages, benefits, and a slew of perks), only to have those offers rescinded once the company has done its review and found a candidate's credit to be poor. It may not sound fair but it certainly is legal. So these are some of the ways in which your credit clearly impacts you in a very big and real wayâ€"and it goes far beyond your ability to get a loan. http://www.edfed.com/resources/articles/index.php?id=130302 Wed, 31 Dec 1969 Credit Cards and Student Loans Are Not Free MoneyMillions of college students blow it big time when it comes to taking on credit card debt and student loans. I don't know how it happens. Actually, I do know at least part of the cycle with credit cards. You walk on campus and a credit card marketer is there, saying something like: ''Hey, want a free T-shirt?'' All the student hears, pretty much, is the word free. http://www.edfed.com/resources/articles/index.php?id=130303 Wed, 31 Dec 1969 Saving Now Saves Problems LaterEveryone wants to have more money, but not everyone wants to save more money. Yet the two go hand in hand. It's critically important that you learn how to budget and set aside money on a regular basis, because otherwise you're destined to constantly be broke and in debt. And who wants that? http://www.edfed.com/resources/articles/index.php?id=130304 Wed, 31 Dec 1969 After you earn your degree (or if you leave school for any reason, or fall below half-time enrollment status), the clock immediately starts ticking and you have anywhere from six to nine months before you must begin repayment of your student loans. Your loan provider will typically give you information about your repayment schedule and will let you know the date you are to begin repaying your college debts. http://www.edfed.com/resources/articles/index.php?id=130305 Wed, 31 Dec 1969 Direct loans are another story. Federal Stafford and PLUS loans are also offered through the something called the William D. Ford Direct Loan Program. You can find out more about these loans at www.ed.gov/directloan. When placed in default, these loans get immediately assigned to the Education Department's debt collection service. http://www.edfed.com/resources/articles/index.php?id=130306 Wed, 31 Dec 1969 Some of you may be thinking: ''What about me? I didn't take out a federal loan. I got a private loan through a state organization, bank, or other lender.'' This is an increasingly common scenario. http://www.edfed.com/resources/articles/index.php?id=130307 Wed, 31 Dec 1969 Repaying student loans, while a financial hardship for many, can be done at some level by practically all borrowers if you have some income. The options presented here are assume that: http://www.edfed.com/resources/articles/index.php?id=130308 Wed, 31 Dec 1969 Under a standard repayment plan, your monthly payment amount is fixed for a loan term as long as ten years. That might sound like a long time. But it's actually the shortest time frame available out of all the repayment options. You have the option, however, of prepaying any of your student loans if you're particularly flush with cash. However, most college grads will need ten years, and then some, to fully repay their college debts. Depending on how much money you borrowed in school, it's possible that your loan term could be shorter than ten years. But no matter how many years it takes you to repay your obligations, with the standard repayment plan you must make payments of at least $50 a month until your loans are paid in full. http://www.edfed.com/resources/articles/index.php?id=130309 Wed, 31 Dec 1969 An extended repayment plan is intended to give college grads a little breathing room in repaying their student loans. This payment option lets you pay off your college debt in as little as 12 years or as many as 30 years, depending on how much money you borrowed while in school. http://www.edfed.com/resources/articles/index.php?id=130310 Wed, 31 Dec 1969 In contrast to the standard and extended repayment plans, the graduated repayment plan lets you ease into your student loan payments. This program begins with very low payments, which gradually increase every two years. When you start out on this plan, your payments will be equal to either just the interest on your loan, or half of the payment you'd make on a standard payment plan. http://www.edfed.com/resources/articles/index.php?id=130311 Wed, 31 Dec 1969 When you pay off your student loans based on the income contingent repayment plan, your monthly payments are based strictly on your income and the amount of debt you had. Your monthly payments also fluctuate annually as your income changes. Income contingent plans let you take as long as 25 years. And these loans feature a unique characteristic not found in any of the other loan programs: after 25 years worth of payments, whatever you owe is written offâ€" you don't have to pay it! http://www.edfed.com/resources/articles/index.php?id=130312 Wed, 31 Dec 1969 Other individuals who might want to consider an income contingent repayment plan are those who have specific prospects for higher incomes in the future. This might be if you know you're getting married, for example, and in a year from now your income combined with your spouse's will be higher than it is now. Or maybe you're in an apprentice-type program on your job, and if you successfully complete your training you'll get a pay raise next year. In these types of scenarios, you might find comfort in using the income contingent repayment method to pay down your student loan debt. http://www.edfed.com/resources/articles/index.php?id=130313 Wed, 31 Dec 1969 Consolidation can factor into your different repayment options. In order to consolidate your federal student loans, you must be in your six-month grace period or already repaying your loans. You have the right to consolidate a wide variety of college debts including: http://www.edfed.com/resources/articles/index.php?id=130314 Wed, 31 Dec 1969 Ah, private student loans: the bane of any college student's existence. But unfortunately, private student loans are oftentimes a necessary debt. Federal student loans, the lesser of the education-debt evils, are rarely enough to cover the entire cost of college. First-year, independent undergraduate students can only borrow a maximum of $7,500 per year. This is hardly enough to cover the cost of tuition, fees, books, and living expenses. The average cost of attending college is $12,796 per year — for a public school. The expense more than doubles for private schools, with the cost averaging $30,367. That measly $7,500 shelled out by the government doesn't come close to covering everything, so most students are forced to borrow private education loans. http://www.edfed.com/resources/articles/index.php?id=130315 Wed, 31 Dec 1969 Besides consolidating your loans, there is another underused method to lower your monthly student loan payments when you're cash-strapped. It's not very talked about, and most college grads have no idea this option is available to them. I'm talking about negotiating with the federal government for a reduced monthly payment. Many people mistakenly think this is not possible. But the truth of the matter is that it is not only possible, it's perfectly acceptable under federal law. You just have to learn how the system works, which is exactly what I'm about to reveal. http://www.edfed.com/resources/articles/index.php?id=130316 Wed, 31 Dec 1969 The Statement of Financial Status asks for pertinent identifying information, such as your Social Security number. The Department of Education also requests the name, phone number, and address of your employer. To some of you, this may seem like a big hassle. But it's nothing like the much greater hassle you could face down the road (keep reading about wage garnishments) if you get behind on your student loan payments and find yourself on the wrong side of the Department of Education. A much better alternative is to simply ask for help now. http://www.edfed.com/resources/articles/index.php?id=130317 Wed, 31 Dec 1969 One thing you can count on is getting a little help from the government in other ways as it pertains to student loans. For parents in particular, you and your child may be entitled to deduct from your taxes up to $2,500 of the annual interest you pay on student loans. http://www.edfed.com/resources/articles/index.php?id=130318 Wed, 31 Dec 1969 While there are four universal repayment options for federal student loans, repayment options vary from lender to lender in the world of private loans. Generally speaking though, you have fewer repayment alternatives with private loans. http://www.edfed.com/resources/articles/index.php?id=130319 Wed, 31 Dec 1969 Loan cancellations and loan forgiveness options are nonexistent with private lenders. Additionally, while many private lenders offer deferments (and sometimes forbearance at their own discretion), deferments aren't legally mandated, as is the case with federal loans if you meet certain requirements. Still, the ease with which private loans can be obtained is attractive to many students and families. In most cases, you just pick up the phone to call a lender, or fill out a simple application online, and you'll know within minutes whether you're approved for a private loan. Some private loans have maximum dollar limits while others let you borrow up to the total cost of your education. It's worthwhile, there- fore, to be judicious in obtaining these loans. Only borrow what you truly need. http://www.edfed.com/resources/articles/index.php?id=130320 Wed, 31 Dec 1969 Some college grads with enormous college debt see loan consolidation as a panacea. While it's true that loan consolidation can significantly lower your monthly payments, you also need to be smart about deciding whether consolidation is really right for you. http://www.edfed.com/resources/articles/index.php?id=130321 Wed, 31 Dec 1969 The two foremost methods for delaying student loan payments are deferments and forbearances. It's important to distinguish between the two because they are very different mechanisms. A deferment is a suspension of your loan payments. You are automatically entitled to a deferment if you meet certain conditions. For example, deferment is mandatory if you earn less than the poverty lineâ€"right now that's $1,100 monthly or $13,200 a year for a family of twoâ€"or if your student loan payments exceed 20 percent of your income. http://www.edfed.com/resources/articles/index.php?id=130322 Wed, 31 Dec 1969 You are automatically entitled to a student loan deferment if you meet certain conditions, and if you do qualify, your normal monthly payments get suspended. The interest charges accruing on those student loans are either paid by the government or paid by you, the borrower; it just depends on the type of loan. http://www.edfed.com/resources/articles/index.php?id=130323 Wed, 31 Dec 1969 If you receive forbearance on your student loans, you must pay the interest charges on the loans, unlike with deferments. If you don't pay that interest before the end of the forbearance term, it gets capitalized and added to your loan repayment amount. http://www.edfed.com/resources/articles/index.php?id=130324 Wed, 31 Dec 1969 What if you get nowhere trying to convince your lender to suspend, postpone, or reduce your monthly student loan payments? You may find a sympathetic earâ€"and a bit of helpâ€"with an advocate within the Department of Education. http://www.edfed.com/resources/articles/index.php?id=130325 Wed, 31 Dec 1969 With the variety of payment plans available, a host of payment postponement options, not to mention loan assistance repayment programs and help from other sources such as the FSA ombudsman's office, it's ludicrous to let your student loans slip into defaultâ€"or stay there if they're already in default status. http://www.edfed.com/resources/articles/index.php?id=130326 Wed, 31 Dec 1969 If you have a student loan that is in default, you're probably pretty concerned about how to get out of this jam. To begin with, let's clarify what it means to have a loan in default as opposed to having a loan that is merely delinquent, or past due. http://www.edfed.com/resources/articles/index.php?id=130327 Wed, 31 Dec 1969 Banks and other lenders reviewing your credit report won't hold it against you that you've gone to school, earned a degree, and accumulated $10,000, $50,000, or even $100,000 worth of student loan debt in the processâ€"as long as you are paying it on time. http://www.edfed.com/resources/articles/index.php?id=130328 Wed, 31 Dec 1969 The permanence of student loan debt is not the only challenge you'll confront with a defaulted loan. When you have to pay the additional collection costs tacked onto a defaulted loan, it is not a small sum of money by any stretch of the imagination. The Department of Education allows for their contractors to be paid up to 25 percent more than the initial principal and interest that you incurred as a borrower. In other words, you are going to pay what they call a contingent fee, which is the collection agent's commission. http://www.edfed.com/resources/articles/index.php?id=130329 Wed, 31 Dec 1969 Defaulted student loans make you subject to wage garnishments, another of the fierce tools available to the hands of the Department of Education. But let me explain this process in a bit more detail because it is very different than a traditional wage garnishment. The kind of garnishment that the Department of Education can do is called an administrative wage garnishment. http://www.edfed.com/resources/articles/index.php?id=130330 Wed, 31 Dec 1969 Do yourself a favor and follow the instructions on this form to the letter. For instance, fill in all lines that request dollar values or other information. If your answer to something is zero, don't just leave the line blank. Insert a zero (0). Also, provide written proof for all the statements you make on the form. If you say your credit card bills are $500 a month, give a copy of your Visa and MasterCard statements. And above all, if you claim any kind of financial hardship due to having kids, or child-care costs, you absolutely must submit a supplemental form called Declaration of Caregiver Services. This form needs to be filled out by the person who provides day-care for your children. That person will have to attestâ€"under penalty of lawâ€"that he or she cares for your kids, and that you pay him or her X amount of money on a weekly or monthly basis. Without this important document, all your claims for child-care expenses will be disallowed, so don't forget to submit this form too. http://www.edfed.com/resources/articles/index.php?id=130331 Wed, 31 Dec 1969 If you do get a dreaded notice of a wage garnishment in the mail, don't panic and run off to Guatemala. Instead, face the issue head on and decide how you want to proceed. You basically have three options: (1) Pay the amount they ask; (2) pay a reduced amount; or (3) don't pay at all. http://www.edfed.com/resources/articles/index.php?id=130332 Wed, 31 Dec 1969 Before the hearing, you must also submit the Financial Disclosure Statement or another financial disclosure form of your choosing that details your income, expenses, and so forth. http://www.edfed.com/resources/articles/index.php?id=130333 Wed, 31 Dec 1969 Personally, I think it's a shame that so many people slip into default, especially in situations where it could have been readily prevented if only the borrower knew his or her options. In other cases, student loan defaults could be staved off if only school officials did more to help those who are at risk of having their student loans go into default because, believe it or not, there is plenty of evidence out there that suggests clear patterns of who is more apt to default on a student loan and who is not. http://www.edfed.com/resources/articles/index.php?id=130334 Wed, 31 Dec 1969 I'm sure you just want to know: Who do I have to call, and what can I do to fix things? Fortunately, you have several options. You'll also be glad to know that some recent changes in the law have actually made it easier than ever to get out of default. In a nutshell, to get out of default, you have four alternatives: http://www.edfed.com/resources/articles/index.php?id=130335 Wed, 31 Dec 1969 The quickest, easiest way to get out of default is to consolidate your loans. Federal loan consolidation is not available for private, or so-called alternative loans, only for federal loans. There are two federal loan consolidation programs: FFEL consolidation and direct consolidation loans. http://www.edfed.com/resources/articles/index.php?id=130336 Wed, 31 Dec 1969 The only way to get the default completely removed from your credit report is to go through the longer loan rehabilitation process, where you make 9 monthly payments on FFEL and direct loans, or 12 monthly payments on Perkins loans. This, in my opinion, is the preferred route, as it will help you restore your credit in a big way and that past default won't haunt you for years to come. http://www.edfed.com/resources/articles/index.php?id=130337 Wed, 31 Dec 1969 As an alternative to loan consolidation, you can begin making payments on that old student loan debt. If you can't afford your regularly scheduled payments, you will be able to enter a loan rehabilitation program. Loan rehabilitation is available for most loans, including FFEL, federal Stafford loans, and federal PLUS loans. Defaulted loans in this category have likely been placed with a state guaranty agency. If you had a direct loan that went into default, then those loans are sent right to the Department of Education's debt collection services. If you had a Perkins loan, it could have either remained with the school or been sent to the Department of Education for collection. By now you should've tracked down your loans to find out where they are. But as a reminder, you can call 1-800-4-FED-AID (1-800-433-3243) if you need help locating your defaulted loans. http://www.edfed.com/resources/articles/index.php?id=130338 Wed, 31 Dec 1969 For a college grad with big student loans, it's probably the closest thing you can imagine to hitting the lottery: getting a discharge or cancellation of all your loans and making those debts instantly vanish. Unlike the lottery, you're not going to receive a million dollar prize. But if you can get a lender to agree to cancel or forgive $20,000, $50,000, or even $100,000 worth of student loans, wouldn't that feel like you hit the jackpot? http://www.edfed.com/resources/articles/index.php?id=130339 Wed, 31 Dec 1969 Well, I believe you when you say you're aliveâ€"and trust me, I'm glad that you still have a pulse! But just because you're still breathing doesn't mean you or someone you love can't benefit from a death-related disability discharge of your student loans. http://www.edfed.com/resources/articles/index.php?id=130340 Wed, 31 Dec 1969 If you were totally and permanently disabled in years past, you used to be able to get a letter from a doctor that testified to your condition and that supported your application to have your student loan debt completely discharged. Back in 2002, however, the Department of Education tightened the guidelines and the rules concerning those loans that were being discharged due to permanent and total disability. Essentially, the department said you can be deemed totally and permanently disabled only if: http://www.edfed.com/resources/articles/index.php?id=130341 Wed, 31 Dec 1969 If the school that you attended closed before you could earn your degree, or if you withdrew from the school or were on an approved leave no more than 90 days before it closed, you can also qualify to get your student loans cancelled. Those of you who completed your studies elsewhere or by transferring academic credits from the closed school to another school are not eligible for this discharge. http://www.edfed.com/resources/articles/index.php?id=130342 Wed, 31 Dec 1969 Other categories that you might qualify for with regard to getting your student loans discharged or cancelled pertain to service-based work. You can get your educational loans cancelled, or at least greatly offset, for jobs in teaching and public service. Teachers qualify for loan forgiveness in the amount of $5,000 or $17,500 under the Teacher Loan Forgiveness Program. The money is usually doled out to those who teach in low-income neighborhoods, those who teach certain math, science, and special education subjects, and individuals who work in places where there are critical shortages of qualified educators. Additionally, child-care providers, nurses, and others in the medical field who are helping individuals in impoverished areas or high-need communities can also qualify for loan discharges. So if you happen to be a doctor or nurse working in one of these areas, by all means investigate and see whether you qualify for a loan cancellation and in what amount. http://www.edfed.com/resources/articles/index.php?id=130343 Wed, 31 Dec 1969 Unfortunately, part of what's makes it tough is that for most discharges, the ultimate authority on the matter is the holder of your loan. The loan holder has the final power to say yes or no to your request for a discharge and you don't have the right to appeal the decision to the Department of Education, except in two instances: with false certification and forged signature discharges on FFEL and direct student loans. If your claim for a discharge for these types of loans is rejected, you can take your case to the department and ask officials there to review your denial. http://www.edfed.com/resources/articles/index.php?id=130344 Wed, 31 Dec 1969 TeachersTeaching is a great and honorable profession. You help to mold and shape young minds. You're educating the next generation. And you're a role model for hundreds of youth. Despite these facts, teachers often get scant respect. Nowhere is that more evident than in their paychecks. Well, despite the low salaries in the teaching profession, you can get a teaching gig that can help you pay off your loans, or more, accurately, one that will qualify you to have your loans forgiven. http://www.edfed.com/resources/articles/index.php?id=130345 Wed, 31 Dec 1969 The bad news is that you graduated with a ton of debt to get your law degree. The good news is that many law schools forgive the loans of students who serve in public interest or nonprofit positions. To find out how you can get your law school loans forgiven, start by reaching out to Equal Justice Works (www.equaljusticeworks.org), which was formerly called the National Association for Public Interest Law. All you college grads with law degrees should write or call Equal Justice (2120 L Street, NW, Suite 450, Washington, DC 20037-1541; phone 1-202-466-3686) and ask for a copy of the group's 48-page book called Financing the Future: Responses to the Rising Debt of Law Students. http://www.edfed.com/resources/articles/index.php?id=130346 Wed, 31 Dec 1969 Did you go to med school and wind up with student loans equal to some people's mortgages? Rest assured that you can get help knocking those education debts down. Here's a sampling of what's out there for doctors, nurses, occupational therapists, and others working in the healthcare field. http://www.edfed.com/resources/articles/index.php?id=130347 Wed, 31 Dec 1969 In addition to all these program-specific options, federal entities, and national organizations, your state or school might offer service-based programs that cancel, reduce, or repay part of your student loans. http://www.edfed.com/resources/articles/index.php?id=130348 Wed, 31 Dec 1969 Worried about how you'll pay back those massive private loans or those huge federal loans? Well maybe you don't have to pay them back at all; maybe your boss will repay them. One of the best-kept secrets of the student loan universe is that many employers will happily pay off your college debts as part of an employment incentive contract. In other words, we're in a highly competitive, global economy and most employers want to hire good people. And when they get talented workers, they strive to keep them. http://www.edfed.com/resources/articles/index.php?id=130349 Wed, 31 Dec 1969 For now, though, just consider the possibilities under this tremendously powerful, but apparently underutilized, program that could help tons of college grads pay off their debts. http://www.edfed.com/resources/articles/index.php?id=130350 Wed, 31 Dec 1969 Quasi-federal agencies include the Legal Services Corporation (LSC) and the Smithsonian Institution. The LSC, established by Congress in 1974, is a private, nonprofit corporation designed to make sure all Americans have equal access to justice under the law, regardless of their income. The LSC offers legal help to Americans who otherwise couldn't afford it. http://www.edfed.com/resources/articles/index.php?id=130351 Wed, 31 Dec 1969 Another catch is that you have to maintain an acceptable level of performance on the job to continue getting student loan repayments. It's up to you and your employer to work out the definition of what's acceptable. The entire Federal Student Loan Repayment program, by the way, is at the discretion of your boss. The law states that your employer can even create a program specifically made for you! http://www.edfed.com/resources/articles/index.php?id=130352 Wed, 31 Dec 1969 While student loans are a huge financial burden, it certainly isn't the only form of debt that most college grads carry. According to the College Board, the average student graduates from college with more than $2,700 in credit card bills. That's just the average, of course. Many students have lots more debt than that; some have none. But if you've been battling the credit card blues, take heart. You can whip that seemingly unbeatable monster called credit card debt. You just have to know the best strategies to do itâ€"and be willing to implement a proper plan of action. http://www.edfed.com/resources/articles/index.php?id=130353 Wed, 31 Dec 1969 When you start considering which debts to pay off first, you have to determine the true source of your angst, so you can attack it. In general, there are three big problem areas for people battling credit card debt. http://www.edfed.com/resources/articles/index.php?id=130354 Wed, 31 Dec 1969 For those of you troubled by high dollar balances, start devoting a bigger portion of your credit card repayments to those accounts that are maxed out, or close to being maxed out. You'll gradually start to see those balances decline, and your stress level will simultaneously decline. http://www.edfed.com/resources/articles/index.php?id=130355 Wed, 31 Dec 1969 Negotiating with your creditors is one of the hands-down best ways to manage and ultimately reduce your credit card bills. So many people neglect this option, however, because they are either afraid to do it, or unaware that they can negotiate to get some relief from those ever-growing credit card balances. http://www.edfed.com/resources/articles/index.php?id=130356 Wed, 31 Dec 1969 Get Late Fees Removed EasilyEven when you're dealing with the line workers, the customer service reps, 99 percent or more have the power to do things like eliminate a late fee on your credit card account at least one time every 12 months. But they are not going to volunteer do this. They won't call you up and offer it to you. http://www.edfed.com/resources/articles/index.php?id=130357 Wed, 31 Dec 1969 Confirm Serious Negotiations in WritingFor bigger disputes, as may be the case if you signed up for a card at a specific rate and they suddenly say it's another rate, by all means do send a letter to the creditor. If you are attempting to negotiate a settlement of some type, I would definitely say start with the phone call and see whether or not you have a receptive customer service representative or a very responsive supervisor. After you settle on some terms and create an agreement, solidify your agreement in writing. http://www.edfed.com/resources/articles/index.php?id=130358 Wed, 31 Dec 1969 One of the biggest disservices that we do to ourselves as consumers is when we hide from the credit card company or others we owe. Credit card companies shouldn't have to hunt you down. In fact, there are five times when you should be the one to initiate a phone call with your creditors. http://www.edfed.com/resources/articles/index.php?id=130359 Wed, 31 Dec 1969 Restructure the Terms of Your PaymentSome credit card companies and banks will say, OK, if you can't pay for two or three months right now, we'll let you forgo those payments in the short term and will add those payments to the back end of your loan in order to help you come current and get back on track. http://www.edfed.com/resources/articles/index.php?id=130360 Wed, 31 Dec 1969 Negative information can legally stay on your credit report for seven years, and a bankruptcy can stay in your credit report for ten years. After seven years, you are entitled to have that negative information removed. But understand this little-known fact: your credit information can be reported seven years from the date of last activity. http://www.edfed.com/resources/articles/index.php?id=130361 Wed, 31 Dec 1969 Fortunately, if you are financially unable to pay your bills, this country has a system designed to help you to eliminate those debts. It is called bankruptcy. And although bankruptcy laws have been reformed in late 2005â€"and I only recommend bankruptcy as a last resortâ€"you should nevertheless know about your options. http://www.edfed.com/resources/articles/index.php?id=130362 Wed, 31 Dec 1969 FICO stands for Fair Isaac Corporation, which is the business that compiles credit scores for millions of people nationwide. Your FICO credit score is based on five different things, the most important of which is your payment historyâ€"in other words, your track record of paying your bills on time. That accounts for 35 percent of your FICO score. But another thing that goes into computing your FICO score is the length of your credit history, which is sometimes known as the average age of your accounts. http://www.edfed.com/resources/articles/index.php?id=130363 Wed, 31 Dec 1969 There are federal rules that dictate who can get their accounts re-aged, and under what circumstances. The rules and regulations concerning re-aging are established by an organization called the Federal Financial Institutions Examination Council. In the year 2000, that entity established rules for re-aging. http://www.edfed.com/resources/articles/index.php?id=130364 Wed, 31 Dec 1969 Let's talk about how you can boost that almighty FICO credit score. Your FICO score is a critical three-digit number that tells people a heck of a lot about you from a financial perspective. Your FICO score ranges from 300 to 850; the higher your score, the better a lending risk you're deemed. In my life, I have only known one person who had a perfect 850 FICO credit score. This is something that is so rare that even most loan officers and bankers say they're never seen a perfect 850 FICO score. http://www.edfed.com/resources/articles/index.php?id=130365 Wed, 31 Dec 1969 You can't afford to skip any billsâ€"and I mean any bills, ever. Not the mortgage, not your credit card payments, not car payments. It's not just delinquent student loans or overdue medical bills that can ruin your credit. You probably will be shocked to know that the slightest infraction may get reported in your credit fileâ€"anything from a late payment on your cell phone bill to a skipped payment to your utility company. http://www.edfed.com/resources/articles/index.php?id=130366 Wed, 31 Dec 1969 You've been putting off consolidating your federal student loans. You know that you should, and you've had a nagging feeling for a while now telling you to just do it. But if you procrastinate much longer, your chance to save thousands of dollars with EdFed's borrower benefits may be gone! Now is the time to consolidate your federal student loans! http://www.edfed.com/resources/articles/index.php?id=130294 Brooke Heath Wed, 31 Dec 1969 On September 11th, the IRS news release ''Back-to-School Tax Breaks Help Teachers Pay Classroom Costs; Aid Parents, Students With College Tuition'' stressed the importance of saving receipts and maintaining expense records to take full advantage of deductions on educational expenses and credits available on federal income tax returns for 2007. http://www.edfed.com/resources/articles/index.php?id=130286 Surajit Sen Sharma Wed, 31 Dec 1969 Nearly 200 undocumented immigrants who have graduated from Arizona high schools were given $1.8 million in private scholarships by Arizona State University to pay for out-of-state tuition. These students are ineligible for in-state tuition because of Proposition 300, a law that requires undocumented residents to pay higher out-of-state tuition rates. The difference between in-state and out-of-state tuition for full-time students at the university's Tempe campus is about $12,000. http://www.edfed.com/resources/articles/index.php?id=130287 Amit Agarwal Wed, 31 Dec 1969 When taking out a student loan you should know that you are undertaking a promise to repay, irrespective of whether you graduate successfully, have difficulty finding a job, or choose to withdraw from college. Defaulting on federal student loans can cost you much more than the amount you originally borrowed. However, there are ways to avoid default and steps you can take to get out if you are already in default. http://www.edfed.com/resources/articles/index.php?id=130289 Amit Agarwal Wed, 31 Dec 1969 Federal loans offer a great way for parents and students alike to pay for educational expenses. The following loans can be utilized for educational purposes and are eligible for student loan consolidation. http://www.edfed.com/resources/articles/index.php?id=130290 Nihit Aurora Wed, 31 Dec 1969 The federal government will cancel all or part of an educational loan under certain conditions. Cancellation is available provided there has been no default on the loan. This practice of canceling the loan is also called Loan Forgiveness. http://www.edfed.com/resources/articles/index.php?id=130291 Shaileja Mammen Wed, 31 Dec 1969 The HEROES Act, or Higher Education Relief Opportunities for Students Act, 2003, protects the interests of service members in terms of their ability to receive federal student aid. The HEROES Act helps to lessen paperwork, avoid red tape, and ensure federal student aid for members of the armed forces. This is different from the HERO Act, known as the Heroes Earned Retirement Opportunities Act, which allows service members to use tax-free combat pay for investing in IRAs. http://www.edfed.com/resources/articles/index.php?id=130292 Surajit Sen Sharma Wed, 31 Dec 1969 Student loan consolidation saves more of my life than it saves me money. Of course, I am not as lucky as those who managed to raise their credit ratings before going for consolidation. For those lucky few, I guess, student loan consolidation is really worth it if the only considered factor if the amount saved on repayment. For the rest, the general view is that student loan consolidation means greater payout in the long run in exchange for just three benefits: http://www.edfed.com/resources/articles/index.php?id=130293 Surajit Sen Sharma Wed, 31 Dec 1969 An impasse blocking the approval of the 2007-2008 California state budget that provoked widespread discontentment among students and parents was finally resolved on August 24. Governor Arnold Schwarzenegger approved the state budget after a 52-day deadlock, enabling students to access state grants just as their fall semesters began. http://www.edfed.com/resources/articles/index.php?id=130283 Amit Agarwal Wed, 31 Dec 1969 The Alabama Connecting Classrooms, Educators, and Students Statewide (ACCESS) Program is a distance-learning initiative that connects more than 20,000 students across the state of Alabama. Recently, Governor Bob Riley announced the expansion of the ACCESS Program to 100 additional schools. The program is now accessible to more than 20,000 students. Using integrated technology, the ACCESS Program makes advanced-level courses and electives available that otherwise would not have been available to schools. http://www.edfed.com/resources/articles/index.php?id=130284 Nihit Aurora Wed, 31 Dec 1969 Online degrees can help you climb the corporate ladder without wasting work hours. The convenience and flexibility of online degree courses make them popular with working professionals from all industries. Previously, the campus attendance components of distance learning and correspondence courses made them unrealistic for most professionals. Today, most distance-learning courses require only Internet connections to enroll. For some people, e-learning has become the best method of study, and for some, campus attendance is never required. It enables students to continue their studies without campus attendance and without leaving the workplace, while services like email, message boards, and chat sessions keep them connected with their academic peers. http://www.edfed.com/resources/articles/index.php?id=130280 Jini Maxin Fernandez Wed, 31 Dec 1969 If you discover that there is a gap between the actual cost of your education and the amount of money that you are eligible to receive from the federal government to fund your education, you can borrow private student loans to fill the gap. http://www.edfed.com/resources/articles/index.php?id=130281 Nihit Aurora Wed, 31 Dec 1969 Students who take out loans from different lenders often don†t realize that consolidating these loans into a single loan could save them the trouble of having to keep track of every payment. Consolidation, in most cases, extends the repayment terms and reduces the interest rates on some loans. http://www.edfed.com/resources/articles/index.php?id=130282 Amit Agarwal Wed, 31 Dec 1969 In the virtual blitzkrieg of higher education costs, students must compete with one another to secure college scholarships. But not everyone gets scholarships. However, with the backing of the federal government and many student loan companies, loans have made higher education possible for students who miss the scholarship bus. http://www.edfed.com/resources/articles/index.php?id=130275 Gitanjali Hazarika Wed, 31 Dec 1969 Students depend on loans to bridge the gap between the amount students and families can reasonably afford to pay for education and the costs of attendance. Student loans have low interest rates, and repaying them is convenient with the variety of available deferment, forbearance, and cancellation options. http://www.edfed.com/resources/articles/index.php?id=130276 Shaileja Mammen Wed, 31 Dec 1969 A student loan is a type of borrowing which is subject to repayment. In case of default, the government guarantees the federal loans that students borrow for their higher educations. These loans are guaranteed by guaranty agencies or student loan guarantors. For every disbursement, the agencies are paid a default fee that goes toward insurance on the loan amount. http://www.edfed.com/resources/articles/index.php?id=130277 Amit Agarwal Wed, 31 Dec 1969 Scholarships are the ideal way to pay for higher education, as they don't have to be repaid. However, it is nerve-wracking for students to deal with both the pressures of study and the process of earning scholarships. http://www.edfed.com/resources/articles/index.php?id=130278 Roshan Tolani Wed, 31 Dec 1969 The W-2 statement often confuses veterans and leads to mistakes when filling out the FAFSA. Worksheet B of the FAFSA asks for the details of applicants†untaxed incomes. However, the same amount may also need to be reported as ‽earned income” elsewhere on the FAFSA. If the applicant has not filed tax returns, then figures that are present both on Worksheet B as well as under ‽earned income” can be doubly counted and lead to miscalculations of the applicant†s need. This article tries to clear that confusion and provide guidance for reporting combat pay, subsistence, and other allowances like housing on the FAFSA. http://www.edfed.com/resources/articles/index.php?id=130279 Surajit Sen Sharma Wed, 31 Dec 1969 A recent study conducted by Policy Analysis for California Education (PACE) found that the first semester of college is a pivotal period in students' academic careers. The study, titled ''Beyond Access: How the First Semester Matters for Community College Students' Aspirations and Persistence,'' followed first-time students enrolled in California community colleges aged 17 to 20 in the fall of 1998. The study, based on system data gathered over a six-year period, tracked graduation and retention rates of first-year students to arrive at its findings. The findings of the study suggest that it is most important to focus on preparing high school students for college and that simply increasing college access doesn't solve the problems faced in building a more educated population and workforce. http://www.edfed.com/resources/articles/index.php?id=130272 Surajit Sen Sharma Wed, 31 Dec 1969 A recent study conducted by Policy Analysis for California Education (PACE) found that the first semester of college is a pivotal period in students' academic careers. The study, titled ''Beyond Access: How the First Semester Matters for Community College Students' Aspirations and Persistence,'' followed first-time students enrolled in California community colleges aged 17 to 20 in the fall of 1998. The study, based on system data gathered over a six-year period, tracked graduation and retention rates of first-year students to arrive at its findings. The findings of the study suggest that it is most important to focus on preparing high school students for college and that simply increasing college access doesn't solve the problems faced in building a more educated population and workforce. http://www.edfed.com/resources/articles/index.php?id=130273 Surajit Sen Sharma Wed, 31 Dec 1969 Nine tribally controlled colleges and universities will receive federal grants worth nearly $12 million. U.S. Secretary of Education Margaret Spellings announced that the grant, provided under Title III of the Higher Education Act, will allow colleges and universities to develop activities to improve and expand their services for students with Native American heritages. http://www.edfed.com/resources/articles/index.php?id=130269 Amit Agarwal Wed, 31 Dec 1969 In response to the communications sent by Secretary of Education Margaret Spellings to schools, lenders, and guarantors regarding proposed student lending rules, several organizations weighed in with their comments. http://www.edfed.com/resources/articles/index.php?id=130270 Amit Agarwal Wed, 31 Dec 1969 U.S. Secretary of Education Margaret Spellings sent out letters to colleges, universities, lenders, and guarantee agencies that participate in the federal guaranteed student loan program. The letters urge them to work together on the principles of the new regulations that the department proposed in June. However, the regulations, in light of the congressional ''sunshine'' acts and New York Attorney General Andrew Cuomo's code of conduct, will not be effective until July 2008. http://www.edfed.com/resources/articles/index.php?id=130266 Amit Agarwal Wed, 31 Dec 1969 A study published in the July issue of Sociology of Education by sociologist Robert Crosnoe of the University of Texas at Austin found that obese students are less likely to attend college because of bad experiences they have at school. The study also found that obesity affects girls more than boys. http://www.edfed.com/resources/articles/index.php?id=130267 Surajit Sen Sharma Wed, 31 Dec 1969 Predatory lending is the use of unethical lending tactics to keep gullible borrowers in debt as long as possible. Predatory lenders usually target vulnerable groups like students, the elderly, minorities, and people with poor credit records. http://www.edfed.com/resources/articles/index.php?id=130263 Nihit Aurora Wed, 31 Dec 1969 The University of Texas System will follow a new code of conduct pertaining to colleges†relationships with student loan providers. The System has asked campus presidents to set up the procedures outlined in the Texas Higher Education Fair Lending Practices Agreement by September 30. http://www.edfed.com/resources/articles/index.php?id=130264 Amit Agarwal Wed, 31 Dec 1969 Scholars studying at American universities have a wide range of avenues available to them for distributing their scholarly work. The Internet has added an extra dimension to their endeavors, extending the concept of academic publishing to include ''virtual'' publishing. http://www.edfed.com/resources/articles/index.php?id=130260 Nihit Aurora Wed, 31 Dec 1969 According to a report released by the Government Accountability Office, the ''exceptional performer'' program that rewards lenders who meet certain requirements for servicing student loans does not help reduce default rates and instead has proven costly. http://www.edfed.com/resources/articles/index.php?id=130261 Amit Agarwal Wed, 31 Dec 1969 The U.S. House of Representatives recently voted to approve a 2008 spending bill for the Departments of Education, Labor, and Health and Human Services. This bill proposes increasing the maximum Pell Grant by $390. Additionally, it includes an increase of $2 billion for the No Child Left Behind Act and proposes increasing funding by more than $227 million for a variety of programs addressing issues such as employment, job training, and worker protection. http://www.edfed.com/resources/articles/index.php?id=130248 Nihit Aurora Wed, 31 Dec 1969 The U.S. Senate, by a thumping majority of 78-18, recently passed legislation that cuts subsidies for student loan lenders participating in the Federal Family Education Loan (FFEL) Program. Though not unexpected, the $18 billion cut over five years came as a disappointment to the lenders, some of whom called it http://www.edfed.com/resources/articles/index.php?id=130249 Amit Agarwal Wed, 31 Dec 1969 Often students on the threshold of pursuing higher education realize they are stuck in an elevator between high school and college. One door must close before they reach their ultimate destination. http://www.edfed.com/resources/articles/index.php?id=130251 Gitanjali Hazarika Wed, 31 Dec 1969 When looking for an education loan, you may find the idea of taking out a home equity loan or line of credit to be an attractive alternative. But you should first pause and decide which choice would best suit your needs, as there are many factors that need to be considered. http://www.edfed.com/resources/articles/index.php?id=130252 Amit Agarwal Wed, 31 Dec 1969 A 'veteran' of the U.S. Armed Forces (Army, Navy, Air Force, Marines, or Coast Guard) is a person who has engaged in active service in the U.S. Armed Forces, was a National Guard or Reserve enlistee who was called to active duty for purposes other than training, or was a cadet or midshipman at one of the service academies and had an honorable release (i.e., was released under conditions that were not dishonorable). http://www.edfed.com/resources/articles/index.php?id=130253 Surajit Sen Sharma Wed, 31 Dec 1969 The federal government will cancel all or part of an educational loan under certain conditions. This benefit is available provided the borrower has not defaulted on his or her loan. Student loan cancellation is also called loan forgiveness. http://www.edfed.com/resources/articles/index.php?id=130254 Shaileja Mammen Wed, 31 Dec 1969 An income-based repayment (IBR) plan has been designed as part of the Higher Education Access Act of 2007. This plan has been conceived for students who intend to pursue jobs that are not lucrative enough, such as those in public service. Although the House has passed the bill, it still waits in the White House corridors for President Bush's signature. Bush aides have reportedly recommended that the president veto the bill in its present form. http://www.edfed.com/resources/articles/index.php?id=130255 Gitanjali Hazarika Wed, 31 Dec 1969 Conducted by the U.S. Department of Veterans Affairs (www.va.gov), the Survivors' and Dependents' Educational Assistance (DEA) Program provides up to 45 months of educational benefits to eligible candidates. The offered benefits can be applied to certification, apprenticeship, and on-the-job training, in addition to education at a degree-granting institution. http://www.edfed.com/resources/articles/index.php?id=130256 Surajit Sen Sharma Wed, 31 Dec 1969 Perkins Loans are federal loans awarded to undergraduate and graduate students with financial need. Such loans are financed with government funding and contributions from students†schools. Perkins Loans are granted by schools and must be repaid to students†educational institutions. http://www.edfed.com/resources/articles/index.php?id=130257 Shaileja Mammen Wed, 31 Dec 1969 What are the advantages of student loan consolidation?Do I need to have a minimum amount of debt to consolidate?Will consolidation affect my credit rating?Will consolidation help me save money? http://www.edfed.com/resources/articles/index.php?id=130258 Roshan Tolani Wed, 31 Dec 1969 Veterans education benefits are usually treated as resources for federal student aid purposes and do not need to be reported as income on one†s FAFSA. It is vital to recognize whether a benefit is treated as a resource or as income. Resources decrease need-based financial aid, and if a resource is misreported as income on the FAFSA, the applicant both raises his or her expected family contribution (EFC) and reduces his or her federal student aid eligibility. http://www.edfed.com/resources/articles/index.php?id=130259 Surajit Sen Sharma Wed, 31 Dec 1969 It's no secret that Americans depend on schools to prepare their children for higher education and gainful employment. Recently, the State Council of Higher Education for Virginia (SCHEV) proposed a six-year plan to match K-12 teaching with university-level education. The plan, which would begin in 2007, aims to improve schools so that the schools, in turn, can better prepare students for college educations and ultimately enable them to become members of what the plan hopes will be a stable, dynamic workforce. Among the plan†s goals is also improving financial aid for Virginia†s students, in addition to the following: http://www.edfed.com/resources/articles/index.php?id=130245 Nihit Aurora Wed, 31 Dec 1969 The U.S. Department of Education announced that it would give loans totaling almost $400 million to four historically black colleges and universities (HBCU) affected by Hurricane Katrina. Dillard University, Xavier University, Southern University at New Orleans (SUNO), and Tougaloo College received $165 million, $160 million, $44 million, and $28.6 million, respectively. SUNO will use the funding to construct its first residential facility; Xavier University and Dillard University will use the loans for renovation and new construction; and Tougaloo College will use the money for renovation, refinancing, and campus modernizations. http://www.edfed.com/resources/articles/index.php?id=130246 Amit Agarwal Wed, 31 Dec 1969 College education is still a dream for almost 20 million of the nation's working poor adults, according to a report released on July 7 by the Institute for Higher Education Policy (IHEP). IHEP reports that in 2005, working poor adults between the ages of 24 and 64 earned an average salary of $19,000 per year compared to an average salary of $56,000 for non-poor adults. Even with monetary aid, studying at a state university is beyond the means of most working poor adults. The average cost of tuition and fees at universities stands at about $13,000, which is excessive for those with low incomes. http://www.edfed.com/resources/articles/index.php?id=130242 Surajit Sen Sharma Wed, 31 Dec 1969 Higher education in the United States has become an expensive affair lately, outstripping the ability of many families to pay for higher education costs and forcing more and more students to obtain loans from a variety of sources, such as government grants, federal aid, and private lending agencies. According to a report by the nonprofit Project on Student Debt, the average college graduate in the country owes around $19,200 in education-related debt. The total amount owed in student loans has more than doubled over the past 10 years. http://www.edfed.com/resources/articles/index.php?id=130243 Nihit Aurora Wed, 31 Dec 1969 The University System of New Hampshire†s board of trustees has approved a budget that includes a nearly 7% tuition hike for 2007-2008 in-state students. The budget also includes a 5.2% increase in tuition for out-of-state students along with an 11.3% increase in student financial aid. The university system has been increasing tuition and aid since 2000. Since then, tuition has risen by about 6% each year, while financial aid has increased by about 12%. http://www.edfed.com/resources/articles/index.php?id=130239 Amit Agarwal Wed, 31 Dec 1969 Beginning this fall, the University of Alabama will offer a program that provides tuition and fees to deserving community college transfers. Recently, trustees of the university approved $500,000 in funding, which is expected to help at least 170 needy students coming from community colleges. Although other states have similar programs to help needy students from community colleges, this program is the first of its kind in Alabama. The university is prepared to increase funding for the program to $1.5 million based on the program†s level of success. http://www.edfed.com/resources/articles/index.php?id=130240 Surajit Sen Sharma Wed, 31 Dec 1969 Congress and the U.S. Department of Education are considering moves that would force colleges to publish information about their performance. http://www.edfed.com/resources/articles/index.php?id=130235 Shaileja Mammen Wed, 31 Dec 1969 The Illinois Student Assistance Commission (ISAC) was founded in 1957 with an objective to provide superior financial support for postsecondary studies. It helps eligible students from the state of Illinois attain their postsecondary educational goals. Since its inception, ISAC has seen an extensive increase in the number of students availing themselves of its services. The chief priority of ISAC is to provide convenience and access to quality education to eligible students in Illinois. http://www.edfed.com/resources/articles/index.php?id=130236 Nihit Aurora Wed, 31 Dec 1969 Many students must turn to educational loans to fund their schooling, but are often overwhelmed and confused about all of the things to consider initially when borrowing the loans, and then again after graduation when dealing with the loan debt. http://www.edfed.com/resources/articles/index.php?id=130238 Brooke Heath Wed, 31 Dec 1969 Senator Edward M. Kennedy and members of the Health, Education, Labor, and Pensions (HELP) Committee have asked U.S. Secretary of Education Margaret Spellings to refrain from imposing new accreditation regulations on colleges and universities until Congress reauthorizes the Higher Education Act. http://www.edfed.com/resources/articles/index.php?id=130232 Amit Agarwal Wed, 31 Dec 1969 Teach For America jobs are sought after by recent college graduates. Teach For America works to support about 2.5 million students in low-income communities in the U.S, and Business Week recently named the organization on its list of the 25 most wanted employers. Teach For America provides quality education to students at public schools in low-income communities. Its members are dedicated administrators, college graduates, and graduating seniors. http://www.edfed.com/resources/articles/index.php?id=130233 Shaileja Mammen Wed, 31 Dec 1969 The College Cost Reduction Act of 2007 introduced by U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, proposes the largest investment in college education since the 1944 GI Bill, according to the committee†s website. If passed, this legislation will help students and families pay for college at no extra cost to U.S. taxpayers. http://www.edfed.com/resources/articles/index.php?id=130229 Shaileja Mammen Wed, 31 Dec 1969 On June 13, a ''Report to the President on Issues Raised by the Virginia Tech Tragedy,'' was submitted jointly by Michael O. Leavitt, Alberto R. Gonzales, and Margaret Spellings. The report, a joint effort of the Departments of Health and Human Services, Homeland Security, Justice, and Education, puts forth findings and recommendations for containing similar incidents in the future. http://www.edfed.com/resources/articles/index.php?id=130230 Surajit Sen Sharma Wed, 31 Dec 1969 First, it was a donation of $33 million in April for increasing and maintaining faculty salaries. And now, another donor extends a support amounting to $100 million out of which $85 million will go to increase funds meant for need-based aid at the university. The Washington and Lee University's qualitative excellence and progressive outlook has succeeded to raise this awesome support for its new program focusing on leadership and integrity. http://www.edfed.com/resources/articles/index.php?id=130226 Surajit Sen Sharma Wed, 31 Dec 1969 This week, legislation was introduced by Illinois Senator Dick Durbin (D) that would allow private student loans to be forgiven upon bankruptcy. Currently, neither private nor federal student loans will be discharged for a borrower who files for bankruptcy, with the rare exception of extreme hardship. http://www.edfed.com/resources/articles/index.php?id=130227 Brooke Heath Wed, 31 Dec 1969 The Pennsylvania Higher Education Assistance Agency (PHEAA) spent more than $400,000 in legal fees in an effort to keep its travel expenses out of the public eye. Nevertheless, last week, the Pennsylvania Supreme Court ordered PHEAA to disclose the same information that it spent more than $409,000 to keep hidden. http://www.edfed.com/resources/articles/index.php?id=130224 Brooke Heath Wed, 31 Dec 1969 A recent study shows that more than half of 2007 graduates had full-time jobs lined up prior to graduating this spring. According to the preliminary results of a study conducted by the National Association of Colleges and Employers (NACE), 51.2% of graduates who had searched for jobs had accepted jobs in early May. Additionally, close to 30% more had offers that they had not yet accepted. http://www.edfed.com/resources/articles/index.php?id=130222 Brooke Heath Wed, 31 Dec 1969 EdFed has come up with another great way to learn about student loans, consolidation and other important topics! Now you can listen to important this information on your MP3 player or IPOD though our useful Podcasts! http://www.edfed.com/resources/articles/index.php?id=130219 Wed, 31 Dec 1969 Ohio University alumni with defaulted student loans have reason to worry. Recently, the Office of Ohio State Attorney General Marc Dann announced that he is in pursuit of a number of alumni who have neglected to repay their student loans and, as a result, have gone into default. http://www.edfed.com/resources/articles/index.php?id=130220 Brooke Heath Wed, 31 Dec 1969 Recently, U.S. Senator John Edwards (D-NC) publicized his new plan that would require all students to borrow directly from the Department of Education. The prospective presidential candidate hopes to eliminate the Federal Family Education Lending (FFEL) Program in order to make college more affordable for more students. http://www.edfed.com/resources/articles/index.php?id=130217 Brooke Heath Wed, 31 Dec 1969 These days it seems like you are always talking to voice recordings. Anytime you call a large company, for any reason, chances are that you will go through an automated system and wait for several minutes while you are placed on hold for the ‽next available representative.” Eventually, (if you remembered to call on the right day, at the right time when business is slow) you talk to a person that has no idea what is going on with your account. This is due to the simple fact they have never looked at your account or heard your name even uttered before you called. http://www.edfed.com/resources/articles/index.php?id=130216 Wed, 31 Dec 1969 This week, legislation was passed in New York that will protect college students and their families from conflicts of interest regarding student lending. Initiated by New York State Attorney General Andrew M. Cuomo, the Student Lending Accountability, Transparency, and Enforcement (SLATE) Act of 2007 will provide a solution to recent scandals that have affected students and families across the country. http://www.edfed.com/resources/articles/index.php?id=130214 Brooke Heath Wed, 31 Dec 1969 Last week, the Arizona Supreme Court agreed to hear a case filed by former University of Arizona students who claim that tuition increases for in-state students are unconstitutional. The lawsuit against the Arizona Board of Regents was initiated after a $1,000 tuition raise in 2003 increased in-state tuition by nearly 40%. http://www.edfed.com/resources/articles/index.php?id=130212 Brooke Heath Wed, 31 Dec 1969 It seems like these days everywhere you look there is an advertisement offering some service or product for free. Maybe it is a free laptop, clothes, or food. The list goes on and on. These offers sound tempting, but after you read the fine print or follow that little asterisk to the bottom of the page, you learn that they are not what they seem. Usually the product is only free with the purchase of something else, or after months of waiting for mail in rebates, etc. Wouldn†t it be nice to finally find something that was truly for free - with no strings attached and no hidden fees? http://www.edfed.com/resources/articles/index.php?id=130209 Wed, 31 Dec 1969 Now that you've consolidated all of your loans through EdFed and have cut back your monthly loan payments by almost half, what are you going to do with all of the extra money you have? There is no shortage on things that you can spend all of your extra money on! Here at EdFed, we not only help you with your consolidation needs but we're also here to give you suggestions on how to spend the thousands that you saved by consolidating too! http://www.edfed.com/resources/articles/index.php?id=130206 Wed, 31 Dec 1969 Paying for a college education can be a very expensive venture. Tuition, books, fees, housing, utilities, cell phone bills, food, car payments, insurance, it just keeps on going and going. As a student, you are trying to balance school, possibly working and paying for all of these expenses. Most college students think the easiest way to easy this burden is a credit card. They think that putting all of their expenses on their credit cards is the best solution. http://www.edfed.com/resources/articles/index.php?id=130207 Wed, 31 Dec 1969 There are many myths out there about paying for school with financial aid that can make students and parents alike nervous. Like urban legends, many student loan myths are false, but they get passed around enough, that people start to believe them. However, like the old saying goes, you should not believe everything that you hear! Read on as EdFed sets the record straight on five commonly-heard financial aid myths! http://www.edfed.com/resources/articles/index.php?id=130208 Wed, 31 Dec 1969 As a college student, you are constantly dishing out thousands of dollars towards various expenses, including tuition, books, fees, housing, food, cell phone bills, utilities, insurance and car payments. The list could go on forever. And, if you are like many students in America, part of your education is probably funded through private student loans. http://www.edfed.com/resources/articles/index.php?id=130210 Wed, 31 Dec 1969 It is no lie that going to college is an expensive adventure. Between tuition, fees, housing, food, cell phone bills, insurance and car payments, your expenses can really add up. And unless you are lucky enough to have the money to pay for those expenses, you will probably be paying for school with student loans. Federal loans can be easy to obtain, but what do you do when you need more money than the limits on federal loans can provide? That is where private loans come into play. http://www.edfed.com/resources/articles/index.php?id=130211 Wed, 31 Dec 1969 Last week, the American Civil Liberties Union (ACLU) filed an appeal asking a federal court to reconsider its verdict in a case challenging the Higher Education Act†s Aid Elimination Penalty. This penalty denies financial aid to any student who has been convicted of a drug offense. The ACLU argues that the penalty is unconstitutional and has asked the court to take another look at the constitutional validity of the act. http://www.edfed.com/resources/articles/index.php?id=130204 Brooke Heath Wed, 31 Dec 1969 In an effort to help its students become well-rounded and better prepared to enter the workforce, Northwest State Community College in Archbold, OH, will require that all students take at least one online course prior to graduating. http://www.edfed.com/resources/articles/index.php?id=130201 Brooke Heath Wed, 31 Dec 1969 Last week, Kentucky†s Council of Postsecondary Education approved a tuition and mandatory fee increase for the state†s public universities for the 2007-2008 academic year. http://www.edfed.com/resources/articles/index.php?id=130199 Brooke Heath Wed, 31 Dec 1969 Regardless of where you are in your college timeline, still in high school, just beginning, an upper classmen, getting ready to graduate, or a recent grad, no one hopes to graduate with the burden of thousands of dollars of student loan debt on their shoulders. To help you to avoid this fate, EdFed has made a list of was to help you save money. http://www.edfed.com/resources/articles/index.php?id=130193 Brooke Heath Wed, 31 Dec 1969 Congratulations on taking that first step to securing your future career and finances by attending college! Though obtaining a college education is well worth all of the hard work and stress, it can also be very expensive! Fortunately, there are many financial aid options available to help you reach your goal of earning a college degree. http://www.edfed.com/resources/articles/index.php?id=130194 Brooke Heath Wed, 31 Dec 1969 Going to school to earn your Bachelor†s degree is a life-changing experience. It is stressful and exciting all at the same time. You are expected to balance multiple classes, that expect you to study 2 hours outside of the classroom for every hour spent in class; multiple projects or assignments that sometimes have to be done in a group setting with people that do not comprehend the concept of pulling their own weight; dealing with roommates that have less-than-desirable habits; and maybe trying to fit a little bit of a social life and sleep in somewhere. http://www.edfed.com/resources/articles/index.php?id=130195 Brooke Heath Wed, 31 Dec 1969 Pursuing a college degree is an important first step to ensuring professional and financial success in your future. But it not only requires motivation and intelligence, it also requires funding. http://www.edfed.com/resources/articles/index.php?id=130196 Brooke Heath Wed, 31 Dec 1969 Being accepted into a graduate school or professional school is a great accomplishment! But pursuing higher education also means paying higher tuition costs. Graduate school and professional schools cost a lot more than undergraduate schools. For example, at an unnamed Ivy League school, tuition for undergraduates is $16,832. However, at the same school the tuition more than doubles for graduate programs at $40,592. http://www.edfed.com/resources/articles/index.php?id=130197 Brooke Heath Wed, 31 Dec 1969 Continuing EdFed†s series of articles on how to fund your education with financial aid, this article will offer you information on the basics of private loans. While private loans do fall into a separate category from federal loans, they are financial aid, nonetheless. http://www.edfed.com/resources/articles/index.php?id=130198 Brooke Heath Wed, 31 Dec 1969 In an ongoing course of action, New York Attorney General Andrew M. Cuomo announced Monday that his office had signed settlements with major universities. The terms of the settlements require schools to adopt a new landmark College Code of Conduct governing arrangements with student loan lenders as well as reimburse students money that was paid to the schools by lenders for loan business. http://www.edfed.com/resources/articles/index.php?id=130191 Brooke Heath Wed, 31 Dec 1969 You have been accepted into the school of your dreams! You have taken the first step to better yourself and gain an education. But have you considered how you will pay for it? Before you take out your student loans, look into the option of having free money ‽granted” to you! http://www.edfed.com/resources/articles/index.php?id=130187 Brooke Heath Wed, 31 Dec 1969 Though they are a federal loan, Parent Loans for Undergraduate Students (‽PLUS loans”) are almost entirely different from the other loans in the federal loan family. http://www.edfed.com/resources/articles/index.php?id=130188 Brooke Heath Wed, 31 Dec 1969 Many students depend on part-time employment to aid them in paying for their schooling. This is a good idea, but before you start bussing tables at the local cafĂ© consider getting a job that can have long-term benefits through the federal work-study program. http://www.edfed.com/resources/articles/index.php?id=130189 Brooke Heath Wed, 31 Dec 1969 Perkins loans are federal student loans that are unique in that they are campus-based aid given through a student†s school. The funds are contributed from both the federal government as well as the school, so they are still considered federal loans. Because the school acts as the lender, the borrower will repay the school, once he or she enters their repayment period. http://www.edfed.com/resources/articles/index.php?id=130190 Brooke Heath Wed, 31 Dec 1969 Last week, key House lawmakers introduced a bill that would simplify the application that parents and students must complete to receive federal financial aid for college. http://www.edfed.com/resources/articles/index.php?id=130184 Brooke Heath Wed, 31 Dec 1969 If the rising cost of college tuition has you scratching your head about how to pay for your education, you may want to ask the governmentâ€"for a loan, that is. Federal government loans are a great source of funding for your schooling. One of the most commonly borrowed federal loans, the Stafford loan, is a very affordable loan as it has a low interest rate, as well as great benefits. http://www.edfed.com/resources/articles/index.php?id=130186 Brooke Heath Wed, 31 Dec 1969 The Department of Education implemented a new policy last week that will allow graduate and professional students with Direct PLUS Loans to automatically be enrolled with in-school deferment status based on information reported by schools through the Enrollment Reporting Process (formerly known as the SSCR). http://www.edfed.com/resources/articles/index.php?id=130182 Brooke Heath Wed, 31 Dec 1969 The California Osteopathic Medical Board suspended the license of a local physician who had failed to repay his student loan debt, which totaled almost $1 million. Furthermore, the physician, Herman Benjamin Bell, 59, had also obstructed federal authorities†efforts to collect the debt by submitting false statements about his financial situation. http://www.edfed.com/resources/articles/index.php?id=130169 Wed, 31 Dec 1969 What is student loan consolidation? Student loan consolidation is a tool to combine all your debt into one loan, with one bill and one payment made to one lender. http://www.edfed.com/resources/articles/index.php?id=130171 Roshan Tolani Wed, 31 Dec 1969 As a recent graduate, you may find yourself struggling with your educational debt. You envy your friends going out and having fun on the weekends while you are trying to scrape together enough money to make your monthly payments. Will life always be like this? It doesn†t have to be. Consolidating your student loans can save you thousands of dollars over the life of your loans. This will free up money for you to use on more important things. http://www.edfed.com/resources/articles/index.php?id=130172 Roshan Tolani Wed, 31 Dec 1969 Both federal and private student loans promise can seem like good options to pay for higher education. Is one absolutely better than the other? Read on to learn the facts, and then decide yourself! http://www.edfed.com/resources/articles/index.php?id=130173 Roshan Tolani Wed, 31 Dec 1969 These days, your education can determine the course of your career and financial future. Unfortunately, higher education is becoming increasingly out of reach because of the heavy financial costs that can be attached to it. For many people, a higher education is simply unattainable without outside aid. This is where student loans play a crucial role. http://www.edfed.com/resources/articles/index.php?id=130174 Roshan Tolani Wed, 31 Dec 1969 Although loans have a negative stigma attached to them, not all loans are bad. Borrowing student loans can be a positive thing. They assist you in furthering your education and developing a good career. Student loans can be considered a positive investment provided they are the right loans for your financial situation. It is also important that you are educated about your loans and your responsibility to your lends. This article will help you understand how the loan process works in the life cycle of a student loan. http://www.edfed.com/resources/articles/index.php?id=130175 Roshan Tolani Wed, 31 Dec 1969 Congratulations on finishing your schooling or earning your degree! Taking out a student loan was a great investment in your future. However, it is now time for you to repay your student loans. http://www.edfed.com/resources/articles/index.php?id=130176 Roshan Tolani Wed, 31 Dec 1969 Making a mistake while filing the Free Application for Federal Student Aid (FAFSA) can delay processing and affect your chances of adequate or appropriate funding. Though help for completing the FAFSA can be found online at U.S. Government and other non-governmental websites, a substantial number of FAFSA applications each year are delayed because of simple errors. In this article, we have listed some points that will help avoid the most common mistakes in FAFSA applications. http://www.edfed.com/resources/articles/index.php?id=130177 Surajit Sen Sharma Wed, 31 Dec 1969 One of the most important criteria in determining educational opportunities in the United States is a person†s citizenship status. While an official U.S. citizen need not worry about this issue, there are many people who aspire to pursue a college or graduate school education but have not received full citizenship. These people are thus are concerned about their eligibility for federal financial aid or other assistance towards a higher education. The citizenship status of the applicant directly affects the chances of finding federal financial aid and this article will help make sense of these issues. http://www.edfed.com/resources/articles/index.php?id=130178 Surajit Sen Sharma Wed, 31 Dec 1969 The filing for the 2007-2008 Free Application for Federal Student Aid (FAFSA) began on January 1, 2007. Speed and accuracy in filing the FAFSA is of paramount importance, since federal aid and other aid is usually disbursed on a first come, first served basis. This article will help to decide whether an applicant should file the FAFSA as an independent or a dependent applicant for the 2007-2008 FAFSA. http://www.edfed.com/resources/articles/index.php?id=130179 Surajit Sen Sharma Wed, 31 Dec 1969 Questions 18, 19, and 20 of the Free Application for Federal Student Aid (FAFSA) 2007-2008, deal with determining the state in which the applicant legally resides. As FAFSA authorities provide this information to relevant schools and state agencies, the applicant†s chosen state of legal residence has a discernible impact upon his or her Expected Family Contribution (EFC) calculation. This in turn determines the financial aid package that the applicant can receive from his or her school. Therefore, this is a decision on the part of the applicant that must be carefully considered. http://www.edfed.com/resources/articles/index.php?id=130180 Surajit Sen Sharma Wed, 31 Dec 1969 For students who are attending college or planning to do so, the rising costs of education can be frustrating. Students may even begin to wonder how they will pay for the costs of obtaining an education. Financial aid is one solution. It is designed to bridge the gap between the funds that you have and the amount that you need in order to meet your educational expenses. http://www.edfed.com/resources/articles/index.php?id=130181 Roshan Tolani Wed, 31 Dec 1969 Last week in Los Angeles, eight people pled no contest with regard to their involvement in a scam aimed at fraudulently taking out more than $200,000 in student loans from the federal government. http://www.edfed.com/resources/articles/index.php?id=130167 Wed, 31 Dec 1969 The first step in applying for federal aid is to file your Free Application for Federal Student Aid (FAFSA). This is a crucial factor when it comes to assessing qualifications and determining the amount of funding to award the recipient. http://www.edfed.com/resources/articles/index.php?id=130165 Wed, 31 Dec 1969 There are many benefits to student loan consolidation. When a borrower consolidates student loans, he or she locks in the current, low interest rate, eliminating the need to worry about how interest rates will skyrocket in the future. http://www.edfed.com/resources/articles/index.php?id=130164 Wed, 31 Dec 1969 Despite the available information on funding, the large packets distributed by colleges, and the talks with financial aid counselors, it is still very possible to not understand the basics of federal aid. Therefore, we would like to introduce you to three major government programs. http://www.edfed.com/resources/articles/index.php?id=130162 Wed, 31 Dec 1969 The Pennsylvania Higher Education Assistance Authority (PHEAA) is in the press once again, this time because it has announced the appointment of a new chairman. William F. Adolph, Jr., was elected to be the next Chairman of the PHEAA Board of Directors; he will be the seventh board chairman in PHEAA†s history. http://www.edfed.com/resources/articles/index.php?id=130160 Wed, 31 Dec 1969 With a massive federal deficit to combat, Congress has been searching for ways to trim the federal budget. Some of the programs that affect the lives of hundreds of thousands of students and graduates across the country fell under the scalpel when funding for federal student loan programs was cut. http://www.edfed.com/resources/articles/index.php?id=130140 Brooke Chappell Wed, 31 Dec 1969 With around 65,000 undocumented immigrants graduating from high school every year in the U.S., the subject of immigrant financial aid is often a frustrating one. http://www.edfed.com/resources/articles/index.php?id=130141 Charisse Dengler & Anne O'Dell Wed, 31 Dec 1969 In early February, Congress passed a bill that inspired outrage among students and educators across the nation. The Deficit Reduction Act, which was created to reduce the nation†s deficit, has sliced billions of dollars in funding from major educational programs; but is it really as bad as it seems? http://www.edfed.com/resources/articles/index.php?id=130142 Charisse Dengler Wed, 31 Dec 1969 Life is good. After years of hard work and taking out loans, you†ve graduated, and you have a great job. The money is coming in, you†re building a good credit history, and you have had no problems making your student loan payments. You†re on the way to having everything you†ve been working for, both professionally and financially. So why should you bother with consolidating your student loans? Because you still need to protect your financial future. http://www.edfed.com/resources/articles/index.php?id=130143 Brooke Chappell Wed, 31 Dec 1969 In determining the rate of interest for a privately guaranteed student loan, such as EdFed†s Tuition Loan, lenders use a dizzying array of factors. A potential borrower†s credit history, international banking trends, and corporate loans held by national banks are all deciding factors in just how much actual payments will exceed the principal of a student loan. http://www.edfed.com/resources/articles/index.php?id=130144 Anne O' Dell / Amy Wong Wed, 31 Dec 1969 Whether you†ve taken out federal student loans or private student loans to fund your education, it†s imperative that you not ignore your debt while you†re still attending school. Consolidating your student loan debt is the smartest way to take control of your finances and prepare for your future. Finding a lender you can trust while you†re still in school is a smart way to get ahead. Think of it this way: once you graduate, you†ll be bogged down with finding a job and making big life decisions. It will be reassuring to know that you†ve already chosen a consolidation lender to reserve your borrower benefits and help you take control of your financial future. http://www.edfed.com/resources/articles/index.php?id=130149 Wed, 31 Dec 1969 For graduates lugging around thousands of dollars in student debt, the prospect of financial freedom is enough to make them do just about anything, including volunteering their time for the good of others. By participating in volunteer loan forgiveness programs, students can have a portion of their debt forgiven after performing a designated amount of public service. http://www.edfed.com/resources/articles/index.php?id=130154 Wed, 31 Dec 1969 Joining the military has its perks. In exchange for serving the country, personnel are given many options for financial assistance for education. To support higher education, the military has created financial aid programs such as the Montgomery G.I. Bill, the Tuition Assistance Program, the Student Loan Repayment Program, and ROTC scholarships. http://www.edfed.com/resources/articles/index.php?id=130155 Wed, 31 Dec 1969 With the recent interest-rates increase for all federal student loans, college students and graduates need to know that there is a program that will let you reduce the new, higher rates by as much as 1.25 percent. The program, which gets quite a bit of press these days, is called student loan consolidation. It is very important for you to realize that there are two vastly different types of student loan consolidation programs: one for federal student loans and one for private student loans. An overview of each follows below. http://www.edfed.com/resources/articles/index.php?id=130156 Wed, 31 Dec 1969 Under the legislation recently passed by Congress, interest rates on all federal student loans have risen. As of July 1, 2006, all new federal Stafford loans will be disbursed with a 6.8-percent interest rate, up from 4.7 percent the year before. Interest rates for student loans have not been this high for six years. http://www.edfed.com/resources/articles/index.php?id=130157 Wed, 31 Dec 1969 Private loan consolidation, like private education loans, has nothing to do with the federal government. In reality, private consolidation loans are just another form of consumer lending such as credit cards. Because of this, private loan consolidations are different from federal loan consolidations. http://www.edfed.com/resources/articles/index.php?id=130158 Wed, 31 Dec 1969 Do you ever think that you cannot afford consolidation? Do you ever think that you cannot consolidate because your loans are in deferment? If you do, then you are the victim of some widespread myths about consolidation. This article reveals the main misconceptions that many people have regarding consolidation, and it sets the record straight. http://www.edfed.com/resources/articles/index.php?id=130159 Wed, 31 Dec 1969 Fed up with being bogged down with debt, students across the nation are taking matters into their own hands, campaigning for changes in federal financial aid. Angered by legislation such as the Deficit Reduction Act, which sliced funding for federal aid programs more than ever before, student organizations are preparing for battle. http://www.edfed.com/resources/articles/index.php?id=130145 Charisse Dengler Wed, 31 Dec 1969 A scholarship is probably the first kind of financial aid that comes to a student†s mind when he or she contemplates trying to get free money for school. Competition for these privately funded, merit-based awards is fierce; still most colleges and universities report more than half of all first-year students receive some kind of scholarship. http://www.edfed.com/resources/articles/index.php?id=130146 Wed, 31 Dec 1969 As the result of two 2003 Supreme Court cases, colleges and universities nationwide are now making minority scholarships and other programs available to everyone. While the cases, which involved the University of Michigan, did not outlaw race-specific programs, they did leave the law in an ambiguous state, causing officials to rethink many of their policies. http://www.edfed.com/resources/articles/index.php?id=130147 Wed, 31 Dec 1969 As an high school student thinking about college, or a current undergraduate student contemplating a graduate degree, you may sometimes feel like funding your education is an impossible task. http://www.edfed.com/resources/articles/index.php?id=130148 Wed, 31 Dec 1969 More college graduates are able to pursue careers in public service than ever before because of loan repayment assistance programs. The programs help students manage educational debts, which can sometimes vault into the six-digit range--in exchange for commitment to work in certain fields or disciplines. http://www.edfed.com/resources/articles/index.php?id=130151 Wed, 31 Dec 1969 When you are paying for school, it is sometimes difficult to see the light at the end of the tunnel. College can be insanely expensive. However, did you know that some of your higher education expenses may help you reduce your federal income tax? The Internal Revenue Service allows tax savings for individuals and families who pay higher education costs. The benefits vary depending on your eligibility, but both deductions, which reduce the amount of income subject to tax before the tax is calculated, and tax credits, which reduce the amount of income tax dollar-for-dollar after the tax is calculated, are offered by the IRS. http://www.edfed.com/resources/articles/index.php?id=130152 Wed, 31 Dec 1969 Attention teachers, lawyers, doctors, and volunteers! Did you know that your job may qualify you for student loan forgiveness or cancellation? http://www.edfed.com/resources/articles/index.php?id=130153 Wed, 31 Dec 1969 In recent months, the press has followed the moves of the Missouri Higher Education Loan Authority (MOHELA) and Governor Matt Blunt†s plan to sell its assets in an attempt to invest in campus construction. The latest development in the MOHELA story is a plan proposed by Senate Democrats. http://www.edfed.com/resources/articles/index.php?id=130138 Wed, 31 Dec 1969 The College Board's Trends in College Pricing 2006 states that the cost of attendance at a public four-year college increased from $10,375 to $12,796 between the 2001-2002 academic year and the 2006-2007 academic year. The total cost at a private four-year institution increased from $27,404 in 2001-2002 to more than $30,000 in 2006-2007. These astounding numbers mean one thing: action must be taken in order to encourage students not to give up their dreams of higher education. http://www.edfed.com/resources/articles/index.php?id=130136 Wed, 31 Dec 1969 More and more higher education institutions are doing their parts to bridge the gap between the cost of college and available financial assistance. Individual financial programs, such as the http://www.edfed.com/resources/articles/index.php?id=130134 Wed, 31 Dec 1969 Members of the student loan industry expressed mixed reactions after the announcement of an upcoming Missouri Higher Education Loan Authority (MOHELA) proposal. Governor Matt Blunt will propose a detailed plan to transfer $350 million dollars from Missouri's student loan agency to campus-enhancement projects. He believes that financing the buildings in which future students will learn will lead to success. However, opponents of the proposal state that if Governor Blunt†s plan is implemented, these same future students will have greater difficulties with affording loans. http://www.edfed.com/resources/articles/index.php?id=130132 Wed, 31 Dec 1969 On December 23, Robert T. Stafford died in Rutland, VT, at 93. Stafford represented his state in the U.S. Senate for 17 years. Despite his passing, his effect on student loan funding will remain considerable for years to come. Because Stafford was a strong advocate of educational opportunity, in 1988, Congress named the main federal guaranteed student loan program after Stafford. His namesake loan has financially assisted millions of college students pursuing their dreams of higher education. The senator†s legacy will be perpetuated by the existence of Federal Stafford Loans. http://www.edfed.com/resources/articles/index.php?id=130130 Emily zaborniak Wed, 31 Dec 1969 One month ago, the Pennsylvania Higher Education Assistance Authority (PHEAA) was ordered by a Commonwealth Court to release various documents after being found guilty of violating the state†s Right-to-Know Law in a 5 to 2 ruling. Now PHEAA has appealed the verdict and plans to take the case to the Pennsylvania Supreme Court. http://www.edfed.com/resources/articles/index.php?id=130128 Emily zaborniak Wed, 31 Dec 1969 As Education and Workforce Committee Chairman Howard ‽Buck” McKeon (R-CA) passes the torch to incoming Chairman George Miller, a new agenda is being laid out for the upcoming year. Miller†s itinerary focuses on strengthening the middle class by improving public education, making college more affordable, and keeping America†s workforce competitive. http://www.edfed.com/resources/articles/index.php?id=130126 EMILY ZABORNIAK Wed, 31 Dec 1969 Recent reports have shown that large populations of potential college students do not understand how to fill out the Free Application for Federal Student Aid (FAFSA), nor are they aware of the financial assistance available to them based on the application. In fact, just last week, our newsletter relayed the results of the 2006 Massachusetts College Goal Sunday survey, which revealed that more than 95% of students needed help when attempting to complete the FAFSA and that more than one-third asked for one-on-one assistance with doing so. http://www.edfed.com/resources/articles/index.php?id=130124 Emily Zaborniak Wed, 31 Dec 1969 At the 2006 Federal Student Aid (FSA) conference, U.S. Secretary of Education Margaret Spellings spoke to an audience of more than 3,000. The audience consisted of officials representing more than 2,000 colleges and postsecondary institutions, lenders, guaranty agencies, higher education associations, nonprofits, software developers, and others dedicated to helping students achieve their higher education goals. Spellings' speech was written with enthusiasm and the intention to ignite motivation to keep America focused on making higher education attainable. She began by citing a hard-hitting fact: 90% of flourishing jobs require postsecondary education. College degrees have become critical to advancing the careers of our country's young people. http://www.edfed.com/resources/articles/index.php?id=130122 Emily Zaborniak Wed, 31 Dec 1969 A recent survey report issued by Experience, Inc., entitled http://www.edfed.com/resources/articles/index.php?id=130120 Emily Zaborniak Wed, 31 Dec 1969 As of late, Senator Edward M. Kennedy (D-MA), known as an advocate for students' rights, has pushed to make his voice heard more loudly on funding issues. Earlier this month, Kennedy joined Susan Collins (R-ME), Norm Coleman (R-MN), and Russ Feingold (D-WI) in lobbying to raise the maximum Pell Grant award, which is currently set at 4,050 dollars. At a mid-November press conference, Kennedy outlined his legislative agenda for the upcoming session, keeping higher education at the forefront by introducing a new bill called the Student Loan Sunshine Act. The bill proposes legislation that would require colleges and lenders to provide detailed accounts of their arrangements with one another. http://www.edfed.com/resources/articles/index.php?id=130118 Emily Zaborniak Wed, 31 Dec 1969 Credit card companies know just how to market to eager young college students. Walk across almost any college campus, and you will see representatives waving free t-shirts, throwing free Frisbees, and dangling free key chains. The only thing a college student has to do in order to receive any of these http://www.edfed.com/resources/articles/index.php?id=130116 Emily Zaborniak Wed, 31 Dec 1969 In response to annual hikes in college tuition despite the absence of corresponding increases in income, dependence on student financial aid has skyrocketed. However, the government has had trouble filling the expanding gap between expenses and resources for students in need. As a result, U.S. Senators Edward Kennedy (D-MA), Susan Collins (R-ME), Norm Coleman (R-MN), and Russ Feingold (D-WI) are lobbying to make higher education more affordable for those who qualify for Pell Grants. http://www.edfed.com/resources/articles/index.php?id=130114 Emily Zaborniak Wed, 31 Dec 1969 When the scramble to earn financial aid is on, college students might find themselves accepting student loan offers without doing much research on them. At the time, it is a resounding sigh of relief to have the costs of education temporarily funded; but when the tassels are moved and the diplomas are mailed, many graduates find that they should have learned more about their student lending. http://www.edfed.com/resources/articles/index.php?id=130112 EMILY ZABORNIAK Wed, 31 Dec 1969 The middle class definitely considers its status intermediate when it comes to facing tuition costs. Most families do not make enough to pay for rising expenses but, at the same time, earn too much to qualify for certain grants and financial aid. As a result of a recent proposal made by state higher education officials, the latter circumstance may change for New England families. http://www.edfed.com/resources/articles/index.php?id=130110 Emily Zaborniak Wed, 31 Dec 1969 Education leads to achievement, yet with every passing year, the dream of being able to afford college turns into a harsh reality governed by dollar signs. Tuition is increasing exponentially, while household income and pay rates are merely holding steady or decreasing. According to a report released by the Campaign for America†s Future, prospective Hispanic students have been significantly affected by the economic incongruence. http://www.edfed.com/resources/articles/index.php?id=130108 By Emily Zaborniak Wed, 31 Dec 1969 What is a credit score? What actions help or hurt my credit? How can I improve or maintain my credit score? It's all very confusing to the average borrower, but such information is essential knowledge if you want to make smarter financial decisions. This article will help you make sense of it all so that you can get-and maintain-a good credit score. We've all been there. While browsing through your favorite store, you see something you really like. Maybe it's on sale. You really can't afford it, but how can you pass it up? You may not get another chance to buy it at this price again. You've got the answer. You'll charge it! After all, that's what your credit card is for; right? http://www.edfed.com/resources/articles/index.php?id=130106 Carleen Trapp Wed, 31 Dec 1969 On Friday, September 29, 2006, the U.S. Department of Education issued an audit citing the National Education Loan Network (Nelnet)'s alleged wrongful use of tax-exempt bonds to profit from high-interest payments made by the U.S. government. According to the audit, Nelnet has collected $278 million in federal subsidy payments, in addition to $882 million it wrongly charged the U.S. government. Nelnet has disputed these findings but insists it will http://www.edfed.com/resources/articles/index.php?id=130104 MARY WALDRON Wed, 31 Dec 1969 A troubling trend is doing away with the conventional wisdom that student loans are good debt. It's a common belief that, like a home loan, student loan debt will turn into an asset. But it doesn't always turn out that way. Increasingly, people are finding themselves unable to pay off or falling behind on their loans.The U.S. Department of Education recently reported that the national default rate on federal student loans rose slightly, to 5.1 percent in 2004 (the most recent year for which data is available), from the previous year's record low of 4.5 percent. http://www.edfed.com/resources/articles/index.php?id=130102 Wed, 31 Dec 1969 A new program in Iowa is paying off student loans for thousands of teachers, but there's a catch: those who take advantage of the program have to stay in state and teach subjects in shortage areas, such as math and science. The new program, called the Iowa Student Loan Teacher Educational Loan Forgiveness Program, was announced by Gov. Tom Vilsack. It comes amid a nationwide teacher shortage. http://www.edfed.com/resources/articles/index.php?id=130100 Teresa Cendreda Wed, 31 Dec 1969 In the wake of the September 11th attacks, a federal program was created that was designed to examine the financial aid records of selected college students. Project Strike Back was a joint effort between the U.S. Department of Education and the FBI; it was first disclosed by the Medill School of Journalism at Northwestern University in Evanston, Ill.USA TODAY was granted access to official documents through Freedom of Information Act requests. According to authorities, ‽fewer than 1,000” students were targeted by the FBI in terrorism investigations and their financial aid records subsequently examined. http://www.edfed.com/resources/articles/index.php?id=130097 Judith Earley Wed, 31 Dec 1969 The Independent 529 Plan, a prepaid tuition plan for private colleges, celebrated its three-year anniversary last week; now a new law solidifies the plan†s future. http://www.edfed.com/resources/articles/index.php?id=130098 Jennifer Woods Wed, 31 Dec 1969 There may not be any truth to the factors commonly believed to affect how much money students will borrow to pay for school. People often assume that the relationship between tuition and cost of living will predict whether students will borrow a lot â€" potentially too much? Attending a public college in a high tuition state? Attending a private college? Living in an expensive part of the country? But a recent report issued by the Project on Student Debt is debunking that myth. http://www.edfed.com/resources/articles/index.php?id=130094 Teresa Cendreda Wed, 31 Dec 1969 Congress is grappling with a hot button issue â€" immigration legislation that would make a college education tens of thousands of dollars cheaper for illegal students than U.S. citizens. The controversy stems from the senate bill S.B. 2611, the so-called ‽DREAM Act,” which would allow states to offer in-state tuition to illegal immigrants. Currently, that practice is banned under the federal Illegal Immigration Reform and Immigrant Responsibility Act of 1996. It prohibits public colleges from favoring undocumented students by offering them in-state tuition rates, unless those same rates are extended to all U.S. citizens regardless of their state of residency. http://www.edfed.com/resources/articles/index.php?id=130095 Teresa Cendreda Wed, 31 Dec 1969 National Science and Mathematics Access to Retaining Talent (SMART) Grants were created by Congress last winter to help colleges and universities graduate more students in high-demand fields such as physics, engineering, and some foreign languages. But something went horribly wrong this month on the campus of Utah State University. http://www.edfed.com/resources/articles/index.php?id=130091 Judith Earley Wed, 31 Dec 1969 Mary Beth Pinto, associate professor of marketing at Penn State University, and Phylis Mansfield, assistant professor of marketing at Penn State Erie, have conducted a telling study about students†financial burdens entitled ‽Financially at-risk college students: An investigation of credit card usage, student loan debt and prioritization of debt repayment.” http://www.edfed.com/resources/articles/index.php?id=130092 Amy Wong Wed, 31 Dec 1969 Last week, the Department of Education (ED) announced that it will establish up to four negotiated rulemaking (Neg Reg) committees to determine what regulated changes can be made in an effort to incorporate recommendations made by the Secretary's Commission on the Future of Higher Education. The Commission intends to release its final report by mid-September, having voted and approved the third draft report earlier this month. This is according to a report published by Higher Education Washington, Inc. http://www.edfed.com/resources/articles/index.php?id=130088 Judith Earley Wed, 31 Dec 1969 Nashville - The National Conference of State Legislatures (NCSL) has released its State Budget and Tax Actions 2006: Preliminary Report. http://www.edfed.com/resources/articles/index.php?id=130089 Amy Wong Wed, 31 Dec 1969 According to a report from the Higher Education Washington, Inc., NewsLine, the University of Michigan is expanding its M-PACT financial aid program. More than 400 UM students will see the effects immediately and save at least $5,000 a year because of these changes. The M-PACT program replaced student loans with grants for the neediest students and is part of a 10-percent increase in financial aid grants for both new and returning Michigan students. About two-thirds of UM students receive some form of merit- or need-based financial aid. http://www.edfed.com/resources/articles/index.php?id=130085 Judith Earley Wed, 31 Dec 1969 Washington, D.C. - After 11 grueling months, eight meetings, and numerous emails, the Commission on the Future of Higher Education has finally agreed to send their final report to U.S. Education Secretary Margaret Spellings. http://www.edfed.com/resources/articles/index.php?id=130086 Amy Wong Wed, 31 Dec 1969 President Bush is expected to sign legislation that would give permanent tax-free status to a current law that allows families to withdraw funds from college-savings accounts, according to a report from The Chronicle of Higher Education http://www.edfed.com/resources/articles/index.php?id=130082 Judith Earley Wed, 31 Dec 1969 Aug. 1 - Senator Edward Kennedy sent a letter to Margaret Spellings, Secretary of the Department of Education, asking her to close off a federal student-aid law loophole that allows colleges to act as their students' lenders. http://www.edfed.com/resources/articles/index.php?id=130083 Amy Wong Wed, 31 Dec 1969 There are many benefits of student loan consolidation. When you consolidate your student loans, you can lock in low interest rates, reduce your monthly payments, simplify your life, and improve your credit score. In the coming weeks, we will be looking at each of the benefits in more depth. http://www.edfed.com/resources/articles/index.php?id=130079 Wed, 31 Dec 1969 Money is a serious matter and we run the risk of disastrous ruin if we ignore it. Still, that doesn't mean we shouldn't pause now and then to chuckle over financial issues. They are often funny, after all. And we do need some giggles in our lives â€" on a regular basis, even. It was with this philosophy in mind that I recently went on an Internet hunt for some credit card jokes. Here are a few I liked. http://www.edfed.com/resources/articles/index.php?id=130080 Wed, 31 Dec 1969 According to a report on the American Student Assistance website, House Committee on Education and the Workforce Chairman Howard http://www.edfed.com/resources/articles/index.php?id=130076 Judith Earley Wed, 31 Dec 1969 The Commission on the Future of Higher Education released a revised draft of their report on the state of higher education in America. http://www.edfed.com/resources/articles/index.php?id=130073 Judith Earley Wed, 31 Dec 1969 Senator Edward Kennedy (D-MA) recently wrote a letter to Charles Miller, chairman of the Secretary of Education's Commission on the Future of Higher Education, offering numerous strategies on how to bolster student financial aid. http://www.edfed.com/resources/articles/index.php?id=130074 Amy Wong Wed, 31 Dec 1969 The National Center for Education Statistics (NCES) released Dealing With Debt, an analytical report that suggests that 1992-93 graduates were able to deal with their student loans despite a heavy loan burden. http://www.edfed.com/resources/articles/index.php?id=130071 Amy Wong Wed, 31 Dec 1969 Lawmakers wanted President Bush to sign an extension of the Higher Education Act (HEA) by June 30, 2006, when the current HEA was set to expire. The bill, H.R. 5603, was proposed by Rep. Ric Keller (R-FL) on June 14, and was approved by the House of Representatives under suspension of the rules on June 21, 2006. http://www.edfed.com/resources/articles/index.php?id=130070 Judith Earley Wed, 31 Dec 1969 You are well on your way to achieving your goals. Your dream job is within reach. It seems you are very close to having everything you've ever wanted. Or are you? When it comes to reaching your financial goals, your income is only half of the equation. You must also be able to manage your expenses. Developing good financial habits will help propel you down the road to financial success. http://www.edfed.com/resources/articles/index.php?id=130015 Wed, 31 Dec 1969 For graduates lugging around thousands of dollars in student debt, the prospect of financial freedom is enough to make them do just about anything, including volunteer their time for the good of others. By participating in volunteer loan forgiveness programs, students can have a portion of their debts forgiven after performing a designated amount of public service. http://www.edfed.com/resources/articles/index.php?id=130020 Charisse Dengler Wed, 31 Dec 1969 Preparing for college or grad school takes a significant amount of financial planning. One year of college may cost tens of thousands of dollars, and the cost of college educations continues to rise at a rapid pace. With the current low interest rates on traditional saving products, such as bonds and CDs, you may need to explore other options to help make the most of your money and cover your school expenses. http://www.edfed.com/resources/articles/index.php?id=130001 Wed, 31 Dec 1969 I know, after reading the title of this article, you are probably thinking, http://www.edfed.com/resources/articles/index.php?id=130002 Wed, 31 Dec 1969 For those individuals who are thinking about attending college or graduate school, there are many things to consider. From which school to attend to deadlines, one must devote a lot of time and energy to this endeavor. http://www.edfed.com/resources/articles/index.php?id=130004 Wed, 31 Dec 1969 Attending college or a graduate or professional school will generally create debt. Students typically have to take out loans to pay for school and living expenses. Credit cards are a convenient, albeit risky, way to pay for food or books. In order to tackle debt upon graduation, it is best to consolidate your debt. Consolidation will lower your overall costs. http://www.edfed.com/resources/articles/index.php?id=130005 Wed, 31 Dec 1969 If you are having trouble making ends meet, you may want to consolidate your federal education loans. Consolidation usually substantially lowers your monthly payments, which will free up more of your money and may help you get on top of your finances. http://www.edfed.com/resources/articles/index.php?id=130006 Wed, 31 Dec 1969 When it comes to paying for college or graduate or professional school, there are many things to consider. Yearly tuition is but one factor that will determine how much to borrow. Books, fees, room and board, and living expenses must also be accounted for. This is not an exhaustive list. There are many hidden expenses that should be added to your budget. And that's the key word here: budget. It is crucial to plan a budget even before choosing which schools to apply to. http://www.edfed.com/resources/articles/index.php?id=130007 Wed, 31 Dec 1969 Many people dread the process of applying for loans. If you have applied for loans through other lenders, you may have experienced the agony of having to fill out long and complicated loan forms. The anxiety from whether or not you were approved may have kept you awake at night, or the process may have left you so discouraged that you did not complete your application at all! At EdFed, we strive to keep the application process for our consolidation and loan programs as easy and as painless as possible. http://www.edfed.com/resources/articles/index.php?id=130008 Wed, 31 Dec 1969 EdFed can save you hundreds of dollars per month by consolidating your loans… http://www.edfed.com/resources/articles/index.php?id=130009 Wed, 31 Dec 1969 When you hear about the benefits of federal consolidation, you may think that it is too good of a deal to be valid. Lower monthly payments, fixed interest rates, and additional benefits are offered-all without a credit check, income verification, or fees! It seems too good to be true, but this is one time when you can believe the hype. http://www.edfed.com/resources/articles/index.php?id=130010 Wed, 31 Dec 1969 These days, there are very few students who can afford to pay for college without some form of education financing. Two-thirds of undergraduate students have some debt, while 88% of law students need to borrow to finance their education. A typical undergraduate may graduate with more than $20,000 of debt, while graduate students may have significantly higher indebtedness. http://www.edfed.com/resources/articles/index.php?id=130011 Wed, 31 Dec 1969 Many Student Loan Companies Are Not Banks, But Simply Marketing Companies..You probably receive a lot of solicitations at home and via email from a variety of people regarding your student loans. However, it is probably exceedingly rare that you receive a solicitation from an actual bank... http://www.edfed.com/resources/articles/index.php?id=130012 Wed, 31 Dec 1969 The student loan industry can be perplexing, especially for those financially challenged individuals who don't know the difference between a fixed interest rate and a variable interest rate. It is essential for any and all borrowers to understand this vital loan information, as interest rates directly affect the loan amount borrowed and the amount a borrower will pay over the life of the loan. http://www.edfed.com/resources/articles/index.php?id=130013 Wed, 31 Dec 1969 You have done it! You graduated, and you have a great job. You are making plenty of money, and life could not be better! You are building a good credit history, and you have had no problems making your student loan payments. Even if you are in this situation, you should still consolidate your federal student loans to protect your financial future. http://www.edfed.com/resources/articles/index.php?id=130014 Wed, 31 Dec 1969 As a recent graduate, you may have found yourself in a situation where you are having trouble dealing with your education debt. You may be watching your friends going out, having fun on the weekends, while you are stuck at home trying to scrape together enough money to make your monthly payments. Federal loan consolidation can help ease your financial burden by lowering your monthly payments and helping you keep more cash in your pocket. http://www.edfed.com/resources/articles/index.php?id=130016 Wed, 31 Dec 1969 As a student, you probably have federal and/or private loans that will become due upon graduation. You may not be worried about them yet, but there are things you can do now to prepare yourself for successful repayment. Establishing and protecting your good credit is essential for your financial future, and planning ahead will help you achieve your goals. http://www.edfed.com/resources/articles/index.php?id=130017 Wed, 31 Dec 1969 When you apply for a federal loan consolidation, there is no need to be nervous about providing your Social Security number. Your credit history does not factor into the approval process. Your Social Security number is, however, required to access your federal loan information. http://www.edfed.com/resources/articles/index.php?id=130018 Wed, 31 Dec 1969 If someone were to ask you to pull out your most recent student loan statement, would you walk over to your desk drawer and pull out your http://www.edfed.com/resources/articles/index.php?id=130019 Wed, 31 Dec 1969 As a person thinking about pursuing a higher education, or as a current student, you may sometimes feel like funding your education is an impossible task. Let's face it. College and grad school are very expensive, and unless you are independently wealthy, you may need to find creative ways to pay for your education. However, don't despair! http://www.edfed.com/resources/articles/index.php?id=130021 Wed, 31 Dec 1969 When you are paying for school, it is sometimes difficult to see the light at the end of the tunnel. School can be insanely expensive. However, did you know that some of your higher education expenses may help you reduce your federal income tax? The Internal Revenue Service allows tax savings for individuals and families who pay higher education costs. http://www.edfed.com/resources/articles/index.php?id=130024 Wed, 31 Dec 1969 Each year, millions of students use federal student loans to finance their education. Federal loan consolidation is a program providing many benefits to borrowers. It is authorized by the Higher Education Act of 1965, which is the same act that allows for federal student loans. http://www.edfed.com/resources/articles/index.php?id=130025 Wed, 31 Dec 1969 So you're about to turn 30, and mid-level management isn't exactly where you'd thought you'd be by now. Perhaps you're itching for something more rewarding and you've realized time really isn't on your side. But not all is lost. If graduate or professional school is where you belong, then it can be accomplished. http://www.edfed.com/resources/articles/index.php?id=130026 Wed, 31 Dec 1969 If after looking at the price of law school, you are still interested in attending, then it is important to know what law schools look for in potential students. Law schools want to see high academic achievement along with a desire to become a part of the legal profession. http://www.edfed.com/resources/articles/index.php?id=130027 Wed, 31 Dec 1969 We've all been there. While browsing through your favorite store, you see something you really like. Maybe it's on sale. You really can't afford it, but how can you pass it up? You may not get another chance to buy it at this price again. You've got the answer. You'll charge it! After all, that's what your credit card is for; right? http://www.edfed.com/resources/articles/index.php?id=130028 Wed, 31 Dec 1969 The best thing to do when faced with thousands of dollars in student loans is to pay the loans off fast. This will save you money in interest and get those loans out of your life once and for all. But how can one pay off student loans quickly when saddled with credit card debt, rent or mortgage payments, healthcare costs, and a slew of other financial responsibilities? By eliminating unnecessary expenditures and putting your loans on top of your priority list. http://www.edfed.com/resources/articles/index.php?id=130030 Wed, 31 Dec 1969 If you have a college degree, or a more advanced degree, the U.S. Government realizes that you are far more likely to make a significant effect on society with your higher education than you would without your higher education. Moreover, the government knows you are going to be paying a lot of tax during your career after you graduate. http://www.edfed.com/resources/articles/index.php?id=130031 Wed, 31 Dec 1969 Student loan consolidation is more beneficial than you might think. First of all, you will get a fixed rate and protect your loans from rate changes that can go as high as 8.25% on federal student loans. You'll have one lender and one monthly payment, streamlining your repayment obligations and giving you less of a headache. http://www.edfed.com/resources/articles/index.php?id=130032 Wed, 31 Dec 1969 Thinking wisely about money and exerting financial willpower must start early-as early as your teenage years. Once you have been accepted to a college or university, you are forced to be financially responsible. If you are not, then many sleepless nights of wondering how you'll pay the rent await you. http://www.edfed.com/resources/articles/index.php?id=130033 Wed, 31 Dec 1969 On July 19, the Democratic Leadership Council (DLC) released ‽Saving the American Dream,” a proposal to produce one million more college graduates each year by 2015. http://www.edfed.com/resources/articles/index.php?id=130077 Amy Wong Wed, 31 Dec 1969