September 4, 2008 by Mara Strom Welcome back to school!  By now, all you coeds should be happily ensconced in your gleaming ivory tower.  How is it going? I hope your transition has been a smooth one! So amidst all the excitement of a new year, have any of you encountered the sinking realization that all that money from your student loans, grants and scholarships isn’t going to go quite as far as you thought it would.  (I recall this realization vividly — it’s what led me to my first work-study job!) Yes getting a job on or off campus is one way to help with your cost of living.  But it’s also not too late to land a few more scholarships for the ‘08-’09 school year (and plenty more opportunities abound for those of you looking to fund your next y...

July 7, 2008 by Mara Strom Most of the time I come here and talk about what you should do to get financial aid…Gentle reminders about filing before the FAFSA deadline, applying for as many scholarships as you can, and picking the right student loan to cover the gap. Well, today, I’m going to be a little more ruthless. I’m going to tell you what NOT to do — under any circumstances — if you want financial aid. Don’t let one of these goofs gut your chances for the education you want and deserve. 1. Not Applying for Financial Aid This made sound too obvious to be true, but many students and their families assume they won’t qualify for financial aid so they don’t even bother applying. They think they make too much money — but even families makin...

June 8, 2008 by Mara Strom Unless your last name is Rockefeller, you’ll need to think long and hard about the expense of your college education. Even though more than 90% of college grads say their degree was “worth it,” the cost can still be staggering. If you’re in college — or planning to attend — here are five online calculators that can help you get a handle on your higher education finances. #1. Budget Calculator You got into the college of your dreams! Congratulations! But… can you afford it? The first step to figuring out whether Dream U is in the cards is to determine your total college-related expenses and estimate your (and your parents) available income to cover those expenses. This handy budget calculator from the U.S. Department of E...

April 24, 2008 by Mara Strom Don’t you just love it when your alma mater does something newsworthy that makes you truly proud to say you went to school there? Well, that’s what happened to me yesterday, when I learned some great news about Tufts University! My alma mater recently unveiled its plans to be the first university in America to help encourage students to work in the public sector by paying off their student loans. Tufts grads working either for non-profit organizations or for government agencies will be eligible for the award, which will cover a portion of their monthly loan payments and make certain career choices a lot more viable. In 2005, Tufts reported that the average starting salary for one of its grads working in the public sector was about $25,000 a year (mo...

America’s Top Colleges Are More Popular Than Ever April 7, 2008 It’s April, which means that if you were one of the hundred thousand high school seniors shooting for an Ivy League education, you already know your fate. Hopefully you’ve spent the past few days celebrating that golden acceptance letter. But if you’ve been consoling yourself instead, perhaps this will help: you’re in very good company. The number of applicants to America’s Ivy League has reached an all-time high (the rates are double what they were just 10 years ago), and the percentage of students offered admission is scraping the bottom of the award letter barrel. Here are some stats: According to The New York Times, Harvard fielded over 27,000 applicants – and only 7 out of every 100 got in. Yale was a bi...

April 3, 2008 by Mara Strom Did you know that a Stafford or Perkins student loan is one of the only forms of debt that cannot be discharged in a bankruptcy claim? Student loans are with you for life – so you need to be serious about paying them back. If you haven’t paid back your loans for 270 days (and have not arranged for deferment or forbearance), then you’re in default. Three out of four people who default on their loans do so after dropping out of school. In addition to trashing your credit rating and bringing collection agencies to your front door, defaulting on your student loans entitles the government to intercept your tax returns and garner up to 15% of your take-home pay. Convinced that defaulting is serious? Here are 10 steps to prevent it: 1. Don’t bite off more ...

With fixed interest rates hovering around a thirty-year low, loan consolidation is on the tip of every borrower’s tongue. Even if you have not already consolidated your student loans, you’ve probably got a few friends who have and you’re likely considering it for yourself. Before you leap to refinance, though, take a look at this Guide to Loan Consolidation. The Basics of Loan Consolidation A student consolidation loan allows you to combine your existing variable-rate loans into one fixed-rate loan. Consolidating when interest rates are low, as they are now, may offer substantial savings in the lifetime costs of your loans. You can consolidate your loan with any authorized lender – i.e. you are not obligated to stay with the lender who originally made your loan....

For students looking to find funds for their higher education, federal work study should be a consideration. According the the Federal government’s Department of Education, work study “provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient’s course of study.” In short, if your award letter indicates that you have “need” you are most likely eligible for work study. Although work study is a form if financial aid, it is administered like a regular form of employment. In other words, you will not be handed work study funds on disbursement day like your student loans and grants. You will,...

The EFC, or Expected Family Contribution, is the cornerstone of the financial aid awarding process. For federal aid eligibility, your EFC will be determined from your FAFSA application. If you are not aware of the questions that affect your EFC, you may inadvertently make an error on your FAFSA that could have a serious impact on you child’s award package. Briefly, both the parent’s and student’s income and assets impact the EFC. Careful attention to these questions is vital. Two other questions that have a major affect on the EFC are the family size and number in college questions. A family with two children in college will have half the parent contribution of the same family with one child in college. The EFC calculation, which is the result of Congressional action,...

Don’t make any of these five college financial aid mistakes 1. Failing to Apply 2. Missing the Deadlines 3. Starting a College Savings Account in Your Child’s Name 4. Forgetting to Budget for “College Life” 5. Failing to Investigate Lenders Failing to Apply for Scholarships, Grants, and Student Loans: Many families miss out on financial aid simply because they have a pre conceived notion that they won’t qualify. The old saying “you’ll never know unless you try” could not be more true and in this instance it could save you a lot of money. Private schools are so pricey these days that it is not uncommon for families that earn $100,000 or more to be granted financial aid. What many people don’t realize is that financial aid offices will also take into account extra ...