I have never hid my opinion from our readers that, if given a choice, federal student loans are far superior to private student loans. Federal student loans have lower interest rates, more favorable terms (such as income-based loan repayment), don’t require a co-signer, and freeze your repayments and interest while you’re in school. All these factors, coupled with the instability of the private loan market starting last fall, make federal student loans a much better option than private student loans for students. Congress concurs, which is why a House committee recently took up a bill to more closely regulate private student loans within its overhaul of banking regulations. If approved, the Consumer Financial Protection Agency Act of 2009 would create a new centralized fed...

Did you know that soldiers who are serving in active duty are charged interest on their student loans? Going to graduate school will free your student loan interest accrual, but serving in Iraq? No. A group of 15 senators is introducing a new bill to change this, providing immediate student loan debt relief to active-duty soldiers and members of the National Guard. According to a blog post from Senator Arlen Specter (R-PA), the bill would prohibit interest from accruing on direct student loans, regardless of the date of origination, for all service members on active duty for up to 60 months. This would save the average service member between $1,183 and $1,479 over the course of a 12- to 15-month activation period. Between this and the delays with tuition benefits from the new GI Bill, I am...

Welcome to the part 5 of my series on ways to reduce the cost of college.  It’s been a while since we have had an update, so this one is quite overdue, I’m afraid. Just to remind you, so far, I’ve spotlighted four suggestions: 1. Graduate from college in three years rather than four 2. Go to a local community college for up to two years before transferring to a four-year university 3. Volunteer for AmeriCorps and earn nearly $5,000 toward college 4. Take advantage of education tax credits and deductions to save up to $2,000 per year. Today I am focusing on a super easy way to save some money for college — by buying the food and other consumable goods your family already purchases. The program is called Upromise, and it was launched a decade ago. Today, there are ...

According to the New York Times, major delays by the Department of Veteran Affairs in issuing GI Bill benefit checks is causing countless vets to have to scramble to pay for college this semester. The new GI Bill, which took effect on August 1, 2009, was to provide more money than ever to cover tuition, books and housing. Eligible were veterans who had served since 9/11, as well as their dependents. Because of the VA’s antiquated technology, however, the Department has been unable to keep up with the more than 277,000 new applications. In fact, the Department reported last week that it had paid tuition for just 20,000 of the applicants, plus made payments to 13,000 more for other educational expenses, such as housing and textbooks. Processing of the benefit applications is takin...

Welcome to the part IV of my series on how to reduce the cost of college.  So far I’ve given you three suggestions: 1. Graduate from college in three years rather than four 2. Go to a local community college for up to two years before transferring to a four-year university 3. Volunteer for AmeriCorps and earn nearly $5,000 toward college This week’s tip is to reduce your college expenses by taking advantage of all available education tax credits and deductions. According to a recent survey, most taxpayers don’t even know about these tax breaks — and if they do, they aren’t using them in the most efficient manner possible. If you or your child is currently in college, education tax credits can help you to offset the costs. The best way to save money is wit...

President Obama visited George Mason University yesterday morning to mark the start of a new GI Bill with expanded higher education benefits for post-9/11 veterans. The law’s new programs, expected to provide $78 billion in assistance over the next decade, issued their first payments to colleges on August 1st. In his address to some 350 veterans, Obama confirmed his obligation to America’s servicemen and women. “We owe a debt to all who serve,” said President Obama. “And when we repay that debt to those bravest Americans among us, then we are investing in our future — not just their future, but also the future of our own country.” Among other new benefits, post-9/11 veterans will be able to attend any in-state public university at no cost. “...

I am initiating a new series of posts here at FinancialAidFinder on how to reduce the cost of college. According to the College Board, the average in-state Bachelor’s degree will run you $50,000 today. That figure covers tuition, room and board. The average American family earns $50,000 a year, so cash flowing that kind of money is absolutely impossible. That’s why I’m launching this new series. I’ll be looking at creative or non-traditional ways to reduce the cost of college and make it more affordable for more Americans. This week I am looking at a new trend among some colleges: the 3-year degree. The topic of three-year degrees has recently come into vogue, causing a great deal of debate among college administrators and educators. Setting aside the potential ac...

The National Center for Education Statistics recently released a report describing the characteristics of college graduates who have received Pell Grants and comparing them to non-Pell Grant graduates.  Here are some of the findings from their study: 36 percent of 1999-2000 bachelor’s degree recipients received at least one Pell Grant while in college. Pell Grant recipients had greater undergraduate “risk characteristics,” including delaying post-secondary enrollment or failing to graduate from high school than non-recipients Pell Grant recipients whose parents did not attend college took longer to finish their Bachelor’s degree than recipients whose parents held a least a bachelor’s degree. They also enrolled in graduate school at a lower rate. When con...

President Obama’s plan to federalize student loans and increase funding for the Pell Grant cleared its first legislative hurdle today when the House Education Committee approved the plan. Known as the Student Aid and Fiscal Responsibility Act of 2009, the President’s plan would expand the number of students eligible for Pell Grants. Currently 40 percent of American college students receive Pell Grant assistance. In addition, the bill would tie the dollar amount of the Pell Grant to the rate of inflation, allowing for a maximum increase from $5,550 next year to $6,900 by 2019. In order to pay for the increase in Pell Grant funding, the bill would eliminate subsidies for federal student loans by private lenders such as Sallie Mae, replacing them with direct loans from the feder...

Earlier this week we talked about whether or not distance learning is a good fit for you. Even if you passed our five-question “quiz” with flying colors, there’s another factor that any would-be student needs to consider: Cost. The viability of financial aid is a major factor for many students in selecting a school, and online schools are no different. In fact, a new study recently revealed that at least one in five college students in America is facing a shortfall in parental support due to job loss. Until 2006, U.S. law denied federal financial aid to any student who attended a college that enrolled more than 50 percent of its students at a distance. Fortunately, Congress saw fit to change that law and now online students at accredited schools are eligible for all fo...