What's New in College Financial Aid?

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Get a Blue collar JOB, you will make more money and have less stress without school!!

Derrek of OH 8:57AM October 20, 2009

what are you doing for the people who already have LOANS! i'm sick of this crap to help people go to school, help the ones who are already out, its cool I went to school I pay for school, why do you have to take interest in excess of 18%, and no WE dont think everything should be free its called we dont want to pay for the interest. and as for Loan Repayer of MA, yea you use your inschool deferment and your hardship now and say this but wait till there all gone! do you even know what a 60.000 loan at 10 years with 13% interest looks like? yea try 800.00 a month and interest only is 341.00 and I make 30.000k a year. so guess what it wont get any easier. but when you come at people like your so high and mighty and you think the lord will save you take that stuff else where because WE dont want to hear it.
oh and PS you also need to get your information correct as to you refer to the forbearance for 6 months. Sallie mae only does 3 now and it cost 150.00 and yes the interest is capitolized, you seriously need to do more research!!, oh wait why dont u go back to school and defer your payments that way and rack up more money in school debit. but back to my point, The so called government needs to do something or us loan payers wont pay it back. Seriously my credit can only get so bad? so something will need to change or the PEOPLE will need to. Oh and PS i work for the largest bank in America sorry that wasnt Relevant but wanted to throw that out there. And as for helping people is the most Stupid thing you ever heard of?? wow I hope you go to H E double Hockey Sticks!

Derrek of OH 8:55AM October 20, 2009

One may want to consider, when filling out FAFSA, if going to a four year college or university is actually what they truly want.
Our society pushes the persona of attending a four year institution as much as it glorifies high school homecoming and prom, much like a "right of passage". But what they do not let on is that it is not for everyone! You do not have to go to a four year institution to be 'successful'. With the US economy being what it is today, it is very difficult to find a professional career in any area of study, even medical! As a recent graduate from a top ranked private institution, I relied on the universities prestige along with the 'glory' of a BA and now I question my decision. I am over 50,000 in debt and cannot find a job to pay on those loans. I am registered with 5 temp agencies and have been diligently searching career sites, news papers, the internet, and my Alma Maters' career center for over six months and have found absolutely nothing. The story is the same with everyone I've spoken with who has graduated from a variety of schools 2007 and after. Unlike a previous entrant has implied, it is not due to our unwillingness that we cannot pay back our loans, it is solely because we CANNOT, we have no income.
I am not trying to discourage those who wish to attend, but those who are wavering (and those who aren't) may want to do/ think about a few things:
1. Attend the lowest tuition college that they are interested in. Despite what they will have you believe, government aid is concrete and there is a ceiling on it, they rest will ultimately be private loans.
2. Rethink what you want out of a career, it may be possible for you to obtain the job another way.
3. This is in addition to #2, it's who you know not what you know!!! you can have your masters and have a difficult time finding a job (I know quite a few people who have). Most people obtain their careers through networking, if you can find an entry level position before college, do it!! You will move up fast, get training and experience that college does not give you, and more often than not they will offer tuition reimbursement which will also reduce your debt! Who cares if you don't graduate by the time you're 23... at least you'll have an established career that allows you to live freely; and isn't that the point anyway?

College Graduate of MN 1:29AM September 17, 2009

We will be completing the FAFSA form for financial aid in January and we'll see what happens.
We are applying for scholarships as well but wonder whether or not we will be considered for the ones that say they are looking for "financial need". Not sure what they are considering financial need. A family income of lets say $50,000 might be the limit, but people making under 100,000 aren't necessarily in need?
Thats the sad part.

Name Withhelod of FL 5:15PM September 12, 2009

Many students take out loans to help them achieve their goal of attending an institution of higher education. For middle class students, there is often no other source of assistance to pay the bulk of the costs. That is not going to change folks. Lower income students will get more assistance but middle class families are going to have to have the resources available or borrow loans. They system is not changing in that sense.
The media is making everyone think that lenders are these big evil beings and no one can pay back their loan. I mean really, who are lenders to make a profit in their business, geesh! For the record, I work in financial aid and work with many borrowers who successfully pay back their loans and there will always be a few who have problems doing so but the majority have the ability to pay IF THEY CHOOSE TO DO SO. There are many "cushions" available for borrowers who can not afford to repay such as deferment/forbearance. I wish I could call my mortgage holder and tell them to put my payment on hold for a few months as I can't afford it because that is the option that borrowers have with student loans -- a phone call, not even a request in writing will get your loan payments put in forbearance for 6 months. Yes, interest is accruing but it's borrowed money so this is not hard to believe is it?
People need to stop thinking that everything should be free and pay back their obligations. Pretty soon we're going to see this same mentality with the mortgages that they should not have to pay back because they can't afford them -- wait, we ARE seeing this. Forgiving student loans is the most stupid idea - I have them, I pay them back. Loans are loans and people need to pay back when they sign on the dotted line. There's always the option of working and saving money, going to school at a CC part time and working, or putting off going to school but stop looking for a handout at the taxpayers expense!

Loan repayer of MA 9:04AM September 08, 2009

In addition to the post above, I recommend students and parents (for their children when needed), fill out the FAFSA student financial aid form at www.fafsa.ed.gov as immediately after 12 AM on January 1st as the FAFSA in their time-zone opens. Make sure you process an electronic signing code in advance. I learned the hard way a few years ago when I thought waiting a couple of days would not make any difference. That is very wrong! When I went to financial aid I was told that the state grants are given out in order of FAFSA filing date and time and that the state grants for my school were all gone! There was nothing for me but student loans and a small Pell grant. For the last several years I stay up on New Years Eve and file my FAFSA as soon as www.fafsa.ed.gov becomes active for filing (usually around 12:30 AM). For income tax filing I use the option that says "will file" since I have not yet filed my IRS return on January 1st. Additionally, the FAFSA government website has a tab/link at the top of the page called STUDENT AID ON THE WEB at http://studentaid.ed.gov/PORTALSWebApp/students/english/index.jsp - On that page is MyFSA with a link for Financial Aid and Scholarship Wizard. It takes you to https://studentaid2.ed.gov/getmoney/scholarship/scholarship_search_select.asp?13817/ - Where you can set up your student account and process a scholarship search. On that page there are other useful tools there as well, including the Tools and Resources on the left side. There are a number of legitimate websites for student scholarships that do not charge any money for scholarship searches. I chose to open a separate email account for scholarships since they often send me junk mail. You can check with the financial aid office at the college and at the high school to see which sites they recommend. Most will say fastweb.com You can also find other sites with a careful search. I strongly recommend that you not sign-up for any of the many scam websites or those that charge for information. It is time consuming and burdensome to apply for scholarships and most require essays. So it will take time to get the money and the ones I found are competitive so there is no guarantee the hours you spend will gain you any funds. Lastly, for now, you can find loan forgiveness programs depending on your major through the federal government. That would reduce or eliminate federal student loans payback if you agree to the terms of the loan forgiveness program. You can find that information at www.fafsa.ed.gov on federal loan forgiveness programs, or at a diligent search online. Some loan forgiveness programs involve degrees that will allow you to work in underprivileged areas providing needed community services, such as the medical, nursing, social work, teaching or legal fields. Pursue your dream loan free if possible!

Nursing student of MI 10:52PM September 05, 2009

I strongly urge everyone never to borrow student loan money unless critically necessary. My parents have great financial limitations, I had to make a choice to go to school on loans or not to go at all. I worked trying to save money but the increasing cost of school, my increasing age, and increasing payroll taxes never allowed me to save what I needed. After many years I chose to go to school on loans. I started at a 4-year university because they sang the siren song of student loans in addition to a small Pell grant. Of course the Pell grant and subsidized and unsubsidized Stafford student loans covered the cost of attendance with a little left for housing, food, car gas, and some books, but there were expenses left over. At that time I was not willing to be homeless and I had just had major surgery so I desperately sought private student loans. Big, big mistake! I should have lived in my car. After two years at the 4-year university I found out the nursing program was a disaster. I left with no degree and about $75,000 in debt! I transferred to a 2-year community college that has a better nursing program. I have already used up all of my lifetime eligibility for subsidized student loans, and I only have a small amount of unsubsidized student loans eligibility left. The Stafford loans and two of the private loans will be due 6 months after I am not attending school at least 1/2 time. The other private loans will be due soon. I have no job and I have 2 years left to go for my nursing degree. Many students are in default on their government and private student loans because they did not graduate or could not find jobs. Their credit is ruined, many for life, and they are not eligible for new government loans when in default on old government student loans. Some of them will not be hired for jobs in their fields because a good credit rating is often required by employers as a sign of maturity, responsibility, and ability to make appropriate life decisions. If you cannot go to school without loan money I strongly urge you to go to a 2-year community college and get an associate degree in your major. You can do a bachelor degree completion program afterward. Use the Pell grant and any other scholarships you can obtain. Then only if absolutely necessary try to take only the subsidized student loans, and only if critically needed then take the unsubsidized student loans. I urge you not to take out any private student loans, and not to ask anyone to co-sign any loans for you. If you default at any time the credit of the co-signor will be ruined along with your own. This happened to a father who needed a house mortgage and had his daughter defaulted on her student loan and his perfect credit was ruined. Try to find a few hours of part-time work close to home/campus around study time. More in my next post on scholarships.

Nursing student of MI 10:03PM September 05, 2009

I am truly sorry that some people still believe everything they hear negative in the media.
Borrowing through the Stafford Loan process to fulfill your dreams for a college education is still a great bargain. Subsidized and unsubsidized loans are a bit of a problem if you allow them to get too large but undergraduates are limited by regulations/rule to under $25,000. That is not a house payment unless you are lucky enough to find a decent foreclosed house which most are not.
Graduate students have a much higher limit and they must apply financial planning to ther pursuit of the gradaute degrees. It is similar to determining if you can afford to buy a car or have to settle for a lease. Remember leasing does not provide ownership - it is renting a car on a long term basis.
You are not renting your education - that is a life changing event that will forever affect your life. You buy the education!
Yes, I hae student loans. Yes I am paying them off. Yes I consolodated them and will probably pay more in the long run. But my life and my goals are being fulfilled as a high school counselor assisting others in their pursuit of their dreams and life's future events.
As with everything in life it is about choices - what do you want - what are you willing ot give up in order to accomplish your goals - you make choices - you makde decisions and then you must live with the outcomes.

J B Jones, Counselor of TX 1:27PM September 04, 2009

i want to tell to US govt that if they dont have funds for Financial AID (for students) just make a call to finance minister of INDIA and then he will try to arrenge the funds for USA Govt according to their rest value after recession.
But for this,just USA govt have to promise with india "from that amount they have to give some grant for INDIAN students .
I am 100% sure will get success.
Hope for the best.

andy of CA 1:25PM September 04, 2009

You claim: "Borrowing for college is sensible."
At this juncture, that is flat wrong. Borrowing for college has been a death sentence for many people. I'm the one reading their stories. Recently, TICAS.org also asked people to share their student debt stories - they put out that request just a week ago. So far, they have received over 600 messages!
Moreover, Lauren Asher, the President of TICAS, has concerns about the the cost of community colleges. Many people think that attending community college is a "sensible" first step towards a degree.
Well, recently, Asher stated, "people think of community college as affordable," however "[students] are having a harder time covering their living costs without borrowing."
On top of the rise in tuition, and Sandy Baum refuses to ever acknowledge these real facts of life, living costs have gone up dramatically. Moreover, middle class salaries have remained stagnant for well over 20 years. You know what makes that ridiculous? It used to be that one person was the wage earner (the traditional family -that was true for the most part), but now it is two! And yet middle class salaries remain stagnant.
I was pursuing my Ph.D. and had planned on becoming a professor. I believe in higher education, but if things do not change in terms of the student lending crisis, I would advise people NOT to go to college. We must change this corrupted system and help those who need it most - students.
Ms. C. Cryn Johannsen
Promotional Writer and Marketer, Robert Applebaum's Forgive Student Loan Debt Movement

Ms. C. Cryn Johannsen of VA 11:18AM September 04, 2009