A recent study by the National Bureau of Economic Research has revealed that simplifying the rules of applying for financial aid is essential to facilitate more low-income students attending college. The study — “Into College, Out of Poverty? Policies to Increase the Post-secondary Attainment of the Poor” — is actually a review of 17 previous studies, all which examined the efficacy of various programs aimed at increasing access to college and keeping students enrolled. The authors of “Into College, Out of Poverty” found that confusing and cumbersome paperwork is a major deterrent to programs, such as the Pell Grant, in reaching their goal of enrolling (and retaining) low-income students who would not otherwise have gone to college. If targeted stud...

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...

This story about creative financing for college ran over the weekend in my local paper. The article does a great job of outlining some of the financial challenges families are facing in the midst of this country’s economic crisis. It was good to see that staying in school is still a priority for the two families featured in the piece, but rather heart-wrenching to read the real life stats. For example, did you know that, across the board, the value of savings in 529 Plans has dropped 21% over the past year? And the market drop isn’t just hitting parents who were saving for their kids’ future. It is also hitting universities and their endowment plans, which are a major source of funding for university-based aid like scholarships and tuition reductions. The article cites ...

Are you planning to be a teacher? Do you know about the (relatively) new federal education grants for teachers? If not, you should! The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program was created by Congress in 2007 to provide provides grants of up to $4,000 per year to education students planning to teach in schools that serve low-income students. Unlike other federal education grants (such as the Pell Grant), the TEACH Grant is not need-based. While you must complete a FAFSA to qualify, you do not have to demonstrate financial aid. Here’s the catch: In exchange fro a TEACH Grant, you agree to serve as a full-time teacher for at least four years in a high-need area (see the list of subjects below) with low-income students. You have eight year...

President Obama’s budget plan calls for a number of sweeping changes for federal student aid, from student loans to state grants to education tax credits. It also proposes to big adjustments in the Federal Pell Grant Program. The Pell provides need-based grants to low-income students. While the amount of the grant is set each year by the Congress, the Pell Program is often criticized for not providing enough aid to keep up with the rising costs of higher education. If President Obama passes his budget, however, the Pell Grant Program will be transformed into an entitlement program that grows every year to keep pace with inflation. Just like Social Security and Medicare, Pell Grants would no longer be dependent on Congressional approval for rate increases. Instead, low-income stud...

Welcome to the final part of the Financial Aid Finder’s five-part FAFSA Workshop. If you want to catch up on parts 1-4, follow these links: Essential FAFSA Documents FAFSA PIN Common FAFSA Blunders FAFSA Deadlines Well, we have arrived at the final installment of our FAFSA workshop. For some of you, this may no longer be relevant, since you had March 1st (or earlier) deadlines by which to complete your FAFSA. If you are still working on your application, however, you might find some good tips in today’s FAQs. A special thank you to everyone who sent me their questions. I hope that our answers today are able to help you, but if you are still confused, leave me a comment below so I can follow up with you. I am applying to three private schools and two state schools. How many FAF...

Welcome to part 4 of the Financial Aid Finder’s five-part FAFSA Workshop. If you want to catch up on parts 1-3, follow these links: Essential FAFSA Documents FAFSA PIN Common FAFSA Mistakes And remember that next week, I will be answering your FAFSA questions, so send ‘em in to me on email or leave me a comment with your queries. Today, I am focusing on FAFSA deadlines. You would think that with something like a deadline, this post would be pretty short. But the reality is, when it comes to the FAFSA, deadlines are anything but cut and dry. Let’s start with the obvious. The federal deadline for FAFSA on the Web applications is midnight Central Daylight time, June 30, 2009. But June 30th is far from the end of the story and here’s why: Although the FAFSA is the for...

May 4, 2006 Throughout most of the application process the potential student is courting the college but as a recent article in the New York Times points out, when decision making time approaches the roles are reversed. Some schools will lay on the charm extra thick to entice students to choose their acceptance. Personal e-mails, letters, phone calls from Professors, small receptions are all just a few examples of how the college will court their acceptees. According to some college admission staff high quality students have more options to choose from because they are applying to more schools, therefore to them it is increasingly important to lay it on thick. I don’t know about you but I missed the boat when it came to personal invites to sail on the dean of admissions yacht b...

By now you have heard of “Ivy League” schools. Some people are not clear on which schools are actually considered “Ivy.” The Ivy League was created in 1954 and includes the eight most prestigious and selective universities in the United States. The eight Ivy League schools are: Brown University Columbia University Cornell University Dartmouth University Harvard University Princeton University University of Pennsylvania Yale University Don’t automatically rule these schools out by presuming they are out of your league. Many of these schools offer a great multitude of scholarships and are often very good at offering financial aid as a means to “diversify” their students. The rule of thumb is you never know until you apply! ...