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Post by Marnie Winters on May 22, 2017 14:44:26 GMT
This is the place to ask questions about federal loans, grants, and work study positions.
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Post by Marnie Winters on May 22, 2017 18:25:14 GMT
Federal loans and federal grants and state grants are available by completing the Free Application for Federal Student Aid (FAFSA). The preference deadline is around March 1 every year, but it can be completed at any time during the year, to allow for multiple college start dates during the year. Federal work study positions are also awarded by completing the FAFSA and this gives students a job on campus during the year. I wish someone had told me about work study positions when I was a student. They are worth it. You get a professional job that can go on a resume and get a paycheck.
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Post by Marnie Winters on May 23, 2017 11:06:04 GMT
Until a student reaches the age of 24, they are considered a dependent student by the federal government and must provide their parent's financial information on the FAFSA form. This hardly seems fair if parents are no longer supporting the student. A person who is 23 years old, moved out of their parent's house when they were 18, and have been self supporting for 5 years are still considered dependents of their parents and must provide their parent's financial information.
However, their are some circumstances that will make an individual under the age of 27 an independent student. Here is the list, which was taken directly from the FAFSA website (https://studentaid.ed.gov/sa/fafsa/filling-out/dependency#dependent-or-independent):
Will you be 24 or older by Dec. 31 of the school year for which you are applying for financial aid?
Will you be working toward a master’s or doctorate degree (such as M.A., M.B.A., M.D., J.D., Ph.D., Ed.D., etc.)?
Are you married or separated but not divorced?
Do you have children who receive more than half of their support from you?
Do you have dependents (other than children or a spouse) who live with you and receive more than half of their support from you?
At any time since you turned age 13, were both of your parents deceased, were you in foster care, or were you a ward or dependent of the court?
Are you an emancipated minor or are you in a legal guardianship as determined by a court?
Are you an unaccompanied youth who is homeless or self-supporting and at risk of being homeless?
Are you currently serving on active duty in the U.S. armed forces for purposes other than training?
Are you a veteran of the U.S. armed forces?
If none of the criteria listed above apply to you, you may be considered a dependent student and may be required to provide your parents’ financial information when completing the FAFSA. If you answered yes to any of these questions, then you may be an independent student. You may not be required to provide parental information on your FAFSA.
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Post by Marnie Winters on May 30, 2017 14:34:04 GMT
This particular area is a great place to ask questions regarding the Free Application for Federal Student Aid (FAFSA), financial aid packages, federal loans, federal work study positions, or federal or state grants.
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Post by Marnie Winters on Jun 1, 2017 10:03:25 GMT
If you are in college, unemployed, and fill out the Free Application for Federal Student Aid (FAFSA) every year, then consider applying for a work study position. I was unemployed for awhile in college and wish someone had told me about a work study position, because I likely would have applied for one of those positions.
Work study positions are funded through the federal government. If approved, then the student can apply for a job at the college. Typically, students work about 20 hours a week at the college in an office setting. Since these students are classified as work study students, they are not eligible for health insurance, pension plans, paid time off, or any benefits. Work study students do, however, collect a paycheck. And, the work experience can be listed on a resume.
If the federal government approves you for one of these positions, you will still have to apply for the position, just like a regular employee. You will also go through an interview or series of interviews, depending on the employer.
Work study positions are really great opportunities because it gives you a paycheck, work experience, and interview experience.
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Post by Marnie Winters on Jun 6, 2017 13:04:15 GMT
Reduce the amount of money you need to borrow in loans by cutting costs. How do you do that?
One mistake students make is to borrow loans for living expenses. Don't do that. Get a job to cover living expenses. Only borrow loans for tuition, books, and school and technology supplies (such as a backpack, notebooks and folders, and a computer and printer). Students may borrow as much as $5,000 to $7,000 per year for living expenses. By the end of four years, this equals $20,000 to $28,000 for living expenses.
Live at home and commute to a nearby college instead of living in a dorm. The cost of a dorm at a public college is roughly $12,000 to $15,000 per year. And, this is for an academic year, which most schools consider from August through May. By the end of 4 years, students will have spent $48,000 to $60,000 just on living expenses. Yes, a dorm is considered a living expense because students are paying for a place to sleep and for food.
Consider attending a community college for two years and then transferring to a four year institution for the remaining two years. Students attending a community college full-time, year round, may spend about $4,500 to $5,000 in tuition. Students attending a four year institution full-time, year round may spend about $15,000 to $20,000 per year. The savings over a two year period, by attending a community college first, will be about $10,000. Students who attend a community college may even be able to pay out of pocket for classes and avoid loans altogether for the first two years. The tuition at community colleges is generally very cheap.
What ways have you cut costs with your college education? How do you save money?
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Post by Marnie Winters on Jun 13, 2017 10:37:03 GMT
Reasons not to borrow private loans for college:
If you are in a position where you need to borrow loans for college, and many people are in that position, don't borrow private loans from a bank or another type of financial institution. Borrow loans only from the federal government by completing a FAFSA form. One reason students may resort to borrowing money from private lenders and one of those reasons is because the amount of funding the student will receive from the federal government is less than the amount needed for tuition and dorm room/meal plan costs; there are limits on the amounts students can borrow and sometimes it does not always cover the amount students need. If this is the case for you, find another way to pay for your expenses and/or cut your expenses. It may mean you have to choose a different college to attend-one with cheaper tuition, one where you can live at home, one with less fees and expenses, and so forth. You can still have a quality education and excellent student experience by attending a college that does not cost $80,000 a year-maybe better even. Here are reasons not to borrow private loans:
1. The interest rate on federal loans is significantly lower than private loans. You will save yourself thousands and thousands of dollars by not borrowing private loans.
2. Some of the loan money you receive from a federal loan is called a subsidized loan. This means a government subsidy pays the interest on your loan until your repayment officially begins. Then you become responsible for the interest. Some federal loans are unsubsidized loans, which means you are responsible for that interest as soon as you are awarded the money, however, you can choose to have that interest deferred until your repayment schedule officially begins, so you won't have to worry about making those payments. With a private loan, you are responsible for all interest; nothing will be deferred and nothing will be paid for you by anyone else.
3. The interest on a federal student loan is tax deductible. The interest on a private student loan is not tax deductible.
4. While you are actively enrolled in school, your loans will be deferred. You will not be required to start repaying those loans until you have graduated or stopped attending for 6 months. Private loans will not be deferred. You will be expected to start repayment as soon as the lender gives you the money, whether you are in school or not.
5. Borrowing federal loans is not based on your credit history, so when you borrow those loans, a credit check will not be conducted (unless you are getting a PLUS loan). Most private students loans are based on your credit history (you will be hard pressed to find one that isn't), so each time you apply for a private loan, your credit gets checked and this makes your credit score get lower. Apply for multiple private loans, and your credit rating can take a beating.
6. With federal loans, you likely won't need a co-signer. With private student loans, you may need a co-signer.
7. If you have trouble making payments, you may be able to postpone or lower your federal student loan payments and, often, this is not an option for private loans.
8. You won't have a financial penalty for paying off federal loans early. There may be a financial penalty for paying off private loans early.
Of course, try and avoid borrowing money altogether, but if you do need to borrow money for school, definitely stick to federal loans.
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Post by Marnie Winters on Jun 20, 2017 9:13:17 GMT
March 1 is the preference deadline for the Free Application for Federal Student Aid (FAFSA). It is the deadline the government sets for people to turn in their forms to maximize the amount of grants they can receive. However, students can turn the form in at any time of the year. Some of the funds may not be available after the March 1 deadline, but there will still be a lot of options including federal loans and some grants. This is good news for people who decide to go to college after the March 1 deadline has passed, because it means they can still use some financial aid to help pay for their tuition.
The financial aid award year can be confusing because it does not operate on a calendar year, meaning it does not start in January and end in December. Rather, it starts in summer and ends in spring. Here is what that calendar looks like for colleges on semesters and quarters:
Semesters:
Summer semester = semester # 1: this is the period of time from about the end of April/beginning of May to mid-August.
Fall semester = semester # 2: this is the period of time from about the end of August to the end of December.
Winter semester or spring semester = semester # 3: this is the period of time from the beginning of January to the end of April or beginning of May.
Quarters:
Summer semester = quarter # 1: this period of time is generally from middle of June through the beginning of September.
Fall quarter = quarter # 2: this is the period of time from about the end of September through the end of December.
Winter quarter = quarter # 3: this is the period of time from the beginning of January through mid-March.
Spring quarter = quarter # 4: this is the period of time from the end of March through the beginning of June.
So, when your financial aid office sends you an award letter, they will be sending it to you for the upcoming financial aid award year. When you get it, you will know it is for the overall time period beginning in summer and ending in sometimes the following spring--either in winter semester or spring quarter.
For those of you who are still making a decision about whether or not to attend classes this fall, there is still time for you to get financial aid. Once you have decided on a college, just make sure to get those forms filled out.
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Post by Marnie Winters on Jun 27, 2017 10:02:59 GMT
Did you know that there are limits on the amount of federal student loans that individuals can borrow? It is true. The federal government imposes limits. First, there is a yearly limit, based on your class level (freshman, sophomore, etc). You will only be able to borrow a certain amount in a financial aid award year. For example, freshman can borrow $5,500 for a dependent student, or $9,500 for an independent student. Sophomores can borrow $6,500 for a dependent student or $10,500 for an independent student. Next, there is an aggregate limit. This is the maximum amount of loans a student can borrow over the entire duration of their undergraduate student career or graduate career. Here is a link to the FAFSA's website, where you can view the limits on loan borrowing: studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized |
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Post by Marnie Winters on Jul 5, 2017 10:02:16 GMT
If you are planning on going to medical school, dental school, podiatry school, or law school, and are in a position where you may need to borrow money, check out Sallie Mae. They have student loan programs that may help you. Whatever you do, avoid borrowing private loans because they are a bad deal (I previously wrote a post about why they are a bad deal). Sallie Mae is a good deal, as far as student loans go. You can defer payments and interest until after you graduate and the interest rate will be pretty low. You won't get those advantages with a private loan. For more information visit Sallie Mae at www.salliemae.com. I know this sounds like an advertisement for them, but really it isn't. I just know what they have to offer is a significantly better deal than through a bank or private financial institution. Banks and private financial institutions price gouge and take advantage of students who just want an education in order to improve their lives and it shouldn't be permitted. Go through Sallie Mae or the federal government for your loans. That is where the better deals are located. |
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Post by Marnie Winters on Jul 13, 2017 11:56:34 GMT
Every college applies its financial aid at different points during the semester or quarter. Some colleges will apply your financial aid by the first day of the term, and other colleges will apply financial after the beginning of the term, and these dates will just vary from college to college. If you use federal financial aid to pay for college-this means federal loans, federal grants, federal grants and state grants-then it is recommended that you apply possible as possible.
Why do you want your financial aid taken care of as soon as possible? Because it takes awhile for the federal government and your school to process your financial aid and to have it transmitted to your school. If your tuition is due by a certain date and your financial aid hasn't been processed in time, then you may be required to pay out of pocket. If the deadline arrives and the federal government and your college haven't had adequate time to process your financial aid, and you don't pay out of pocket, then the college may drop your classes. You may be restricted from re-adding those classes until the balance has been paid. In some cases, the college may not allow you to re-add the classes at all. So, you'll end up stuck and have to sit out for a term.
Another reason to have the financial aid processed early is to you can make sure that you will have enough money to cover your tuition. If you receive less federal grants and federal and state grants than you need to cover the entire amount of your tuition, then you will again be stuck with having to pay out of pocket. Or, you may feel that you need to drop a class, in order to make your tuition bill go down, but if you drop a class too far into the term, you may still be charged for it, anyway. So, at that point, your plan will backfire and you will still be responsible to pay money out of pocket.
It is definitely worth it to apply for financial aid as soon as possible. Don't wait until the last minute. It can cause you problems.
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Post by Marnie Winters on Jul 20, 2017 13:12:58 GMT
Avoid borrowing loans at all, if you can by finding other options to pay for college.
Tips for high school students:
1. Participate in a program in high school that allows you to take college classes. Your school will pay for them. Also, Advanced Placement (AP) classes. These are paid for by the high school, too. You can earn college credit for free.
2. If your parents work, have them check to see if their employer has a tuition reimbursement program that covers dependents. If so, your tuition (or part of it) will be covered by them.
3. Complete the FAFSA form, anyway. Say no to the loans. The FAFSA form will also tell you if you are eligible for federal grants and state grants. Say yes to this money. Grants are free money that does not need repaid. Also, indicate you are interested in a work study position. If you are, then you can become employed by the college and work up to 20 hours a week. You will get a paycheck. This money does not need repaid because you earned it.
4. Get a job when you are 16. Save at least 80% of your paycheck. Open a savings account specifically for college and don't touch the money you deposit.
5. Attend a community college for the first two years and then transfer to a four year institution. The cost savings will be significant--likely at least $17,000, possibly more.
6. Don't live in a dorm. Dorms cost, on average, about $12,000 per year. Over a four year period, this equals $48,000. If you don't spend money on a dorm, you have just saved an incredible amount of money.
7. Attend a public university, not a private one. By doing this, you can save at least an overall amount of $10,000, possibly more.
8. Attend an in-state school not an out-of-state school. By doing this, you can likely save around $75,000.
9. Apply for every scholarship you can. Very few people get a full ride to college. Everyone else has to work hard to find and apply for scholarships. You may not get every scholarship you apply for, but if you apply for many scholarships then you may end up getting some of them. And, every little bit will help you.
Tips for adult students:
1. Check with your employer to see if they have tuition reimbursement programs. If they do, use it.
2. Get a job at a college. Colleges almost always have programs to pay for tuition and sometimes, they pay for an unlimited amount of tuition, in full.
3. Attend a community college first, then transfer to a four year college. You can save about a minimum of $17,000, possibly more.
4. Attend a college in the state where you live, don't move out of state for college. The cost savings is significant by attending college in the state where you live. You can save around $75,000 by attending college as a resident of the state where you live. If you must attend college in a different state, then move there and wait one year before beginning school. It takes one year to establish residency in a state, and then you will be charged in-state prices, not out-of-state prices. During that one year, work full-time and save as much money as you can.
5. Complete the FAFSA, even if you don't intend to borrow loans. You can say no to them. But, if you are eligible for grants, take them. Grants are free money that don't need repaid and the only way to get them is to fill out the FAFSA.
6. Work the scholarship avenue. Apply for as many as possible. Very few people get that full ride to college. Everyone else has to apply for scholarships. You really can get scholarships. The scholarship companies do want to give their money away. If they aren't giving the money away, then eventually, their scholarship budgets will quit getting funded and they won't have jobs. You may not get every scholarship you apply for, but if you work hard at it, then you may get some scholarships, and every little bit helps.
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Post by Marnie Winters on Aug 1, 2017 23:58:38 GMT
My name is Marnie Winters and I am the administrator for this particular forum. I would love to field your questions. If you have a question, please feel free to ask. If there is a topic you would like to see discussed, please post it. If you want to remain anonymous or don't want to register with the forum to ask a question or request a topic, please e-mail me at FindingMyPath@hotmail.com. I check this e-mail frequently and would be more than happy to address the question or topic for you. I really am receptive to hearing from you and hope to hear from you soon.
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