June 2, 2008 by Mara Strom

Whether you're for Obama, Clinton or McCain, here's an issue you might want to consider: Financial aid for our nation's service men and women. Do you know where your candidate stands?

A new GI Bill is being debated in Congress, which if passed, would be the biggest expansion of education benefits to veterans since World War II. Sponsored by Senate Democrat and Vietnam War veteran Jim Webb (VA), the plan would give anyone who has served in the military for at least three years a full-ride scholarship to any of their in-state public universities. The plan would also boost monthly housing stipends for student veterans.

The Senate passed the bill 75-22 last week with strong bipartisan support. The House is set to take up the measure after its week-long Memorial Day break. President Bush has threatened to veto the bill if it reaches his desk.

Why hate on a bill designed to assist our nation's heroes? For one thing, Bush says, the bill is too expensive. The nonpartisan Congressional Budget Office has estimated that the proposal would cost $51.8 billion over the next 10 years.

Presidential candidate Barack Obama has vowed to fight any attempts by the administration to kill the measure. "Our intention is to override that veto when it comes back to the House and the Senate," he said at a town hall meeting in Texas. "We've got to have outstanding educational benefits for veterans when they come home."

But what does the Pentagon think? Perhaps surprisingly, top brass is also opposed to the bill, saying it discourages soldiers from reenlisting. While open to substantially boosting college aid for veterans, the Pentagon wants soldiers to have to commit to six years of service before becoming scholarship-eligible.

Senator John McCain, the presumed Republican nominee, agrees: "Encouraging people to choose to not become noncommissioned officers would hurt the military and our country very badly," he said at a Memorial Day event in New Mexico.

The Federal Government currently provides financial aid to veterans and active duty members of the military through the Montgomery GI Bill and other measures. However many former soldiers say it's far from sufficient to meet their costs.

What do you think — do you agree with Bush, McCain or Barack on this one? And would a guaranteed free ride induce you to sign up?

Every year, the federal government spends more than $86 billion to help young people go to college. As the single largest provider of student aid in the world, the US federal government offers grants, fellowships, loans and work study programs.

Your key to this massive treasure chest is the FAFSA, otherwise known as the Free Application for Federal Student Aid. The application, which can be filled out on paper or on-line, calculates your family's ability to pay for your college degree. Calculations are based on income, assets and other factors, such as the number of additional dependents in college.

The FAFSA is used not only by the federal government to determine your aid eligibility, but also by your college or university to allocate its own scholarships, plus state and private assistance.

In short, the FAFSA is the most important document you will fill out in your quest for college – second only, perhaps, to the college application form. To maximize your award, follow these four easy tips for filing your FAFSA:

# 1. Be Prepared
Before you even start filling in your FAFSA, make sure you have gathered all the required materials, including:

• Social security cards

• Income tax returns from the previous tax year

• Your spouse’s documents – if you are married; your parents’ documents – if you are a dependent

• Current bank, mortgage and investment statements

#2. Beat the (Filing) Buzzer
The FAFSA’s deadline is June 30th, but many schools offer "priority processing deadlines". In other words, getting in your FAFSA early will qualify you for first-come, first-serve aid through your college. Therefore, aim to return your completed FAFSA as soon as possible after January 1st.

#3. Be Pedantic About the Particulars
Double and triple check the accuracy of the information on the FAFSA, because even minor mistakes can cause costly delays. Be on the look out for these common errors:

• Use only your legal name

• Confirm all social security numbers

• Count yourself as one of the members of your household attending college during the award year

• If your parents are divorced and remarried, include your step-parents' income and assets

#4. Go Virtual
Applying on-line is faster – not to mention preferred, by a growing number of colleges and universities. To apply on-line, go to the FAFSA site. In lieu of signing your application, the on-line FAFSA requires a secure, individual PIN number, which you can apply for here.

May 24, 2006

Okay so the rumors are true, '06-'07 tuition has been announced and the news isn't great.

Tuition for both public and private universities have gone up anywhere from 3-8 percent and that's just the start. Universities are citing a plethora of reasons which can include anything from facility updates to an increase in gas prices. Does anyone else have a problem with this? An increase in gas prices is causing tuition to rise! I get that utilities will increase but does that really relay into an additional $300 bucks per student?

If you are a prospective student or parent of a prospective student now is the time to really cozy up with the financial aid process. Study this website, and ask a question or post a comment. The more free information we can share, the more people may get to go to college. Who's with me?

Student Aid Update >>>

May 14, 2006

The First Rule of Financial Aid is to apply! It should be rule number two and three as well, it's that important.

Why is it so important? Because you will never know how much money you can receive until you apply, if you don't apply you are guaranteed nothing. This may seem quite obvious but a recent article in the WTOP (Capital News) has shown that lower income earning families are not applying for federal aid.

The FAFSA can be a pain to fill out but think of how much more of a pain trying to juggle all your debt will be down the road. Federal aid comprises the bulk of financial aid so filling out the FAFSA is a good idea. The form is now online and the FAFSA website can be read in both Spanish and English. In addition there is information that will help you to fill the thing out.

The WTOP article brought up another good point: don't wait until the deadline has passed. This may seem like common sense but there are a lot of people that wait until the deadline has passed and then apply. When their bill comes around they are surprised at the amount but since the deadline passed they really never applied, pay attention to those due dates!

Don't let the sticker price scare you off and if your reading this article your on the right path to find money for school. But make sure you apply for aid at every kind of school, whether it be private, public, community or trade get your application for aid in and try to do it as early in the game as you can.

Student Financial Aid >>>

Februrary 20, 2006

The first thing to remember is that you are not alone. Students have been dealing with this reality for a long time.

Do not assume that you won't qualify for aid since your parents earn over the eligibility mark. Always fill out the FAFSA no matter what. You may qualify for a Stafford Loan. It will be more difficult to try to get a large loan as a student but federal loans like the Stafford will help.

Try making your case to the financial aid office of your choice. This does not always help but it is worth a shot. At the very least they deal with students in your situation all the time and will have some helpful advice.

Don't forget to scour for scholarships and grants as they do not need to be paid back. Most importantly get your information in as early as possible. Money for college is not infinite and the early bird does get the worm!

Remember there are plenty of college graduates that earned their degree without the financial support of their parents so you know it is possible. Please use our website to do some important research on how to get your financial aid for college.

February 18, 2006

A common question students have is how they can manage their debt and their financial aid.

Unfortunately when you fill out the FAFSA form there is no place to put down the amount of debt you owe. The form basically wants to know about your income, your family's income and assets.

Non-traditional students may already have a substantial debt of some kind. It is wise to seek out a way to eliminate or lower this debt before you take on financial aid in the form of loans. Obviously scholarships and grants are still okay since they are gift money and do not need to be repaid. If you can not afford credit counseling there are a number of free resources that you can utilize. A couple you may want to try are the National Foundation for Credit Counseling and Primerica.

February 13, 2006

Many gay students in the past have tried to downplay their sexual orientation when trying to earn scholarships or grants. Today the number of scholarships for gay students are on the rise.

Organizations such as the National Lesbian and Gay Journalists Association offers various student awards and scholarships for aspiring gay and lesbian journalists. With some dedicated research gay students can find a plethora of scholarship opportunities. Many private donors to organizations that offer the scholarship cite the lack of help and support they had when they were going through the process.

It is always a good idea to be specific as possible when applying for scholarships and grants. Embracing and capitalizing on what makes you different will open up a whole new range of scholarships that may be closed to may others.

February 9, 2006

At least 175,000 people are denied federal financial aid due to prior drug offenses according to a recent article in Yahoo News. However, the Budget Reconciliation Act that was just passed has provided a provision to allow students who have drug offenses a new chance at federal student financial aid.

The provision is targeted at older non-traditional students. Federal Financial aid forms began requesting information on convictions in the year 2000. Individual states vary in how their policies for distributing aid to drug offenders.

January 30, 2006

If you are a student you may already be conscious of your grades for college entrance purposes. One more reason to keep those grades up is the correlation between grades and financial aid.

Students don't have to be the valedictorian or the next Rhodes Scholar but good grades will equal more money. A combination of good grades & early application for financial aid is a wonderful formula for gaining financial aid. Scholarships and grants also come more easily to students who have shown hard work through good grades. If you plan early enough and study hard to receive good grades there is no reason you should not be able to gain thousands of dollars in financial aid.

January 24, 2006

The Coverdell Education Savings:

This type of college savings plan can be applied to more than college. A Coverdell Education Savings Account can be used as savings for elementary through high school education as well as college.

Parents or students may contribute up to $2,000 a year tax-free. A few stipulations are that single parents may not earn more than $110,000 and parents filing joint taxes cannot have their adjusted income be more than $220,000.

Any balance unused can be transferred to a sibling or another family member without penalty. As long as the money is used for education purposes (tuition, books, fees etc.) the money will not be taxed. The Hope and Lifetime Earning Credits can be used in the same year by the beneficiary of the Coverdell account as long as the same expenses are used for both benefits.

The Coverdell is typically considered the parents asset which is a good thing. Remember a child is expected to pay 35% of their assests when financial aid is evaluated as opposed to the 5.64% that is required of parents.
For more information on this type of savings please click here.

The 529 College Savings Plan:

In my research there is a lot of conflicting reports on 529 Savings Plans. People either rave about them or think they are a terrible idea.

Basically a 529 Savings Plan allows parents to put money into a state sponsored savings account. Single parents may contribute up to $11,000 a year and couples may contribute up to $22,000 a year.

Not every state offers these types of saving plans. If your state does not offer one you can find a financial advisor who can set up one for you in another state. Hidden financial fees and set up fees can make people oppose this type of plan so don't rule it out but be aware that it can exist.

The 529 Plan like the Coverdell is tax free when used for educational purposes. Friends and families can also contribute to the plan, making great gifts!

There are many other college savings plans out there. Make sure you do your homework and find one that is perfect for you and your family.