Here are some of today’s financial aid news stories:
Students in race for state’s college financial aid funds
The Chicago Sun Times reports that financial aid applications are being filled out quickly, since students are afraid of being shut out from state aid. More than 180,000 Illinois students filled out financial aid forms in January and February, which is 21 percent more than those two months last year. Last year, Illinois ended up denying financial aid applications that were submitted after May 15, which was the earliest cutoff date in history. Because of this, more than120,000 eligible students didn’t get a dime of financial aid for the fall semester.
College acts to disregard fiscal needs in admissions
The New York Times reports that Hamilton College (a small liberal arts college in Clinton, NY) is adopting a need-blind admissions policy. This means that they will consider applicants regardless of their ability to pay. Previously, some students were admitted to Hamilton College partly because they required no financial aid, and others were rejected from the college because they did. Over the next four years, Hamilton expects to add about $2 million to its annual financial aid budget. Full tuition, room and board, and other fees to attend Hamilton total nearly $50,000 per year, where the average financial aid award is about $32,500.
Don’t put off applying for college financial aid
Buffalo News reports that financial aid will be in high demand again this year, so students need to fill out their financial aid applications quickly. Financial aid applications for the The University of Maryland-College Park are up 12 percent from last year, although federal funding for work-study and certain education grants has been cut down.
Don’t wait till the last minute to fill out your FAFSA! Fore more financial aid information, check out:
Do you need help filling out the FAFSA, or have questions regarding the financial aid application process? Here are 4 financial aid resources which should help make filling out the FAFSA easier for you!
FAFSA on the Web
- The U.S. Department of Education’s FAFSA on the Web site has live online representatives who are available to help when you’re filling out the FAFSA, by hitting the “Live Help” button. Also, you have the option of speaking to a customer service representative by calling the FAFSA phone number: (800)-433-3243.
FAFSA on the Web Worksheet
- By downloading the FAFSA on the Web Worksheet, you will be able to gather all the required financial and tax documents ahead of time. It allows you to take a practice run at filling out the FAFSA, before you sign online to officially fill it out and apply. Also, by filling out the practice worksheet beforehand, you’ll have less of a chance of making errors on the real FAFSA.
College Goal Sunday
- College Goal Sunday is a non-profit program (sponsored in part by the YMCA) that offers personal FAFSA counseling at certain events throughout the country. Representatives are available at these functions to speak with you in person about your FAFSA or financial aid questions. Check out College Goal Sunday’s website to find a financial aid event near you.
TuitionCoach
- This financial aid website offers free financial aid webinars, and has step-by-step instructions on how to complete the FAFSA, as well as a Q&A session.
Source: CBS MoneyWatch.com
If you are in the healthcare field, then you know what it is like to take care of people – now is your chance to be taken care of!
In its 18th year, the Tylenol Scholarship program will give students in the healthcare field scholarship money towards their education. Tylenol is giving out $250,000 in scholarships to forty students, based on their leadership qualities and performance.
- Ten students will be awarded $10K scholarships
- Thirty students will receive $5K grants
Applications must be received by May 14, 2010 – so apply today! Visit Tylenol’s website for more details and to apply.
- Deadline is May 14, 2010
- Winners will be selected by July 15, 2010
- Funds will be delivered by September 2010
If you are in the healthcare field, check out more information on healthcare scholarships.
The following 10 factors can and will affect an individual student’s chances at receiving financial aid, based on their specific school. It is important to find out how your school stands on determining financial aid offers. If you have questions or need clarification, ask your school’s financial aid office.
1. Your school’s policy on student loans
• Some colleges provide enough federal grants and work-study jobs to meet a student’s need
• Others schools will provide enough grants so that low-income students don’t have to borrow, while others students will have to take out modest loans
• Some schools even offer aid packages that include federal student loans of up to $7,500 a year
2. How your school calculates a family’s need
• Some schools are promising to provide enough grants to make sure families earning less than $180,000 pay not more than 10 percent of their income
• Some schools are promising enough aid so that the families only have to pay the expected family contribution (EFC) – which the school calculates based off the family’s income
3. How your school counts home equity
• Some colleges consider the equity parents have in their homes as a resource that should be tapped to help pay for college
• Other schools don’t consider equity of the parents’ home
4. The effect of the financial aid application on your chances for admission
• Some colleges reserve spots for students who can pay full price
• Other schools will meet the financial needs of their admitted students, and don’t consider a student’s financial aid application or their ability to pay when deciding about admission
5. Does the school offer merit scholarships?
• Some schools offer top students merit scholarships no matter what their expected family contribution is, or how rich their parents are
• Other schools do not offer merit scholarships
6. The school’s financial aid policy for international students
• Some schools will commit to meet the financial aid of noncitizens
• Other schools do not guarantee full aid for international students
7. The cutoff date for the meet-full-needs promise
• Some schools will only meet the needs of students who complete their aid applications on time
• Other schools commit to meet the need of those students admitted during the early or regular admission seasons and may run out of aid by the time they start admitting students off their waiting list
• There are some schools that say the timing of the application doesn’t affect the aid award at all
8. How the schools considers divorced parents
• Some schools analyze the incomes of both stepparents and birth parents to make their own judgments about which set of parents should be responsible for each student’s college costs
• Other schools only consider the incomes of the birth parents
• Schools that only use the Free Application for Federal Student Aid (FAFSA) consider only the custodial parents’ income when determining financial aid
9. The college’s expectation for student contribution
• Some schools provide enough aid so that students aren’t required to pitch in summer earnings
• Other schools reduce the student’s need and aid package by at least $1,000, saying that the student is expected to contribute that much each year from their summer earnings
10. What the college considers as its cost
• Some schools keep their cost low by providing small allowances for books or miscellaneous expenses
• Legally a college’s total cost of attendance is supposed to include tuition, fees, room, board, books, travel, and miscellaneous expenses for other necessities
Source: U.S.News, http://www.usnews.com/articles/education/paying-for-college/2010/02/18/will-you-get-enough-financial-aid-ask-your-college-about-these-10-factors.html
An additional one million students will be eligible for the Pell Grant this year, thanks to the federal government’s expansion of the program. While we know that there is no “one size fits all” Pell Grant recipient, it doesn’t mean there’s nothing you can do to make yourself a little bit more attractive to the formula that determines whether or not you receive one. The amount of your Pell Grant award is based on a number of factors, including your Expected Family Contribution (EFC), which is the amount that the federal government determines your family can pay toward college costs, as well as the Cost of Attendance (COA) for your school of choice and whether you enroll in school full-time or part-time.
This week, we shared a press release that outlined four tips on increasing your eligibility to receive a Pell Grant award. Here’s a peek:
- Demonstrate a substantial financial need for aid to attend college be having as little money as possible on hand in your checking or savings accounts the day you file your FAFSA.
- File your tax return before completing your FAFSA, even if you have no income.
- If possible, opt to live on-campus.
- Avoid errors by completing the online version of the FAFSA.
To read the full release: EducationGrant.com Offers Tips on Increasing Eligibility for the Pell Grant
If you haven’t already, you should get a head start on filling out your FAFSA application. Each year, more than 16 million students apply for more than $100 million in student aid using the FAFSA, or Free Application for Federal Student Aid.
Vangent, a information management and strategic business solution company, announced that the “FAFSA on the Web” web portal received the highest citizen satisfaction score on the latest American Customer Satisfaction (ACSI) survey of U.S Federal Government 2009 news and information sites, according to a recent press release. Vangent co-designed, built, and helped operate the FAFSA web portal on the behalf of the U.S. Department of Education.
Vangent has been working with the Department of Education’s Office of Federal Student Aid (FSA) for more than 25 years, and in January 2010, they launched a new simplified form that includes text pop-ups, skip logic, and a IRS Data Match – a feature that automatically transfers and verifies application tax data with the IRA in real-time. Approximately 99% of all financial aid applications are submitted electronically via the FAFSA on the Web portal, which has greatly improved efficiencies.
The new and improved FAFSA on the Web portal has increased user satisfaction, as well as meeting the Obama Administration’s objectives to simplify the financial aid application process.
Don’t miss FAFSA deadlines!
- For the 2009-2010 year, all FAFSA applications must be turned in by midnight Central Daylight time, on September 21, 2010.
- For the 2010-2011 year, all FAFSA applications must be turned in by midnight Central Daylight time, on June 30, 2011.
More information on the FAFSA:
The Key to Filling out the FAFSA in 3 Steps
FAFSA
There are scholarship scams, diploma mills, fake schools, and other fraudulent organizations and people who try to scam others out of their money these days. You must be careful when applying to online schools, for scholarships and financial aid, and when making transactions online – make sure your information is safe!
Here are 5 of the Biggest College Scams:
5. University of Missouri Email Harvesting Scam
Between 2001 and 2004, two former University of Missouri students operated a national email scam that included over 2,000 colleges and universities, where they illegally collected over 8 million student email addresses. The spammers used these to send targeted spam emails to sell products and services, earning them $4.1 million. They used the University of Missouri computer network to send out the massive amounts of emails, and even after they were discovered the spammers continued to email students at other schools. Four people were charged in the incident under the CAN-SPAM Act of 2003, which says email fraud is a federal crime.
4. Purdue Textbook Scam
A student at Purdue University created 568 fake seller accounts on Half.com. He advertised that textbooks were on sale for all of the fake Half.com seller accounts, so buyers sent in over $5.3 million dollars, thinking they were receiving textbooks for cheap. The student wired the illegally obtained funds back to his bank accounts in Malaysia. The scam was discovered once none of the buyers received any of their textbooks.
3. Las Vegas Woman Scams $1 million in Student Aid
From January 2000 to March 2004, a Las Vegas woman (along with her 4 children and 3 grandchildren) obtained personal information from over 65 people, and used it to apply for federal student loans and grants for distance learning schools in several states. The financial aid checks were sent through the mail, and the funds were obtained with false identification documents. A financial aid officer noticed that many students were applying for financial aid using the same addresses and phone numbers, so the scam was discovered.
2. Terrorists Enroll in Fake Colleges to gain Student Visas into the UK
A Pakistani gang set up fake colleges in the UK, which allowed men from al-Qaida to enroll and gain entry on student visas. The students were able to stay in Britain longer, and the gang made almost £2m in less than two years from fake diplomas and fake tuition fees. 8 terrorist suspects were arrested in April 2009 for a bomb plot in Manchester and Liverpool. The suspects all came from the same “college”. All of the fake colleges that the authorities investigated in the UK were controlled by 3 young Pakistani businessmen, all of which entered the UK on a student visa.
1. Student Loan Scandal:
In 2007, New York Attorney General Andrew Cuomo uncovered illegal practices and conflicts of interest between colleges and student loan lenders. Revenue-sharing agreements with multiple colleges, as well as perks for the financial aid officials in exchange for placement on preferred lender lists were discovered. Some financial aid officials also owned financial stake in the loan companies they were promoting to their students. In 2007, the Student Loan Sunshine Act was passed which included provisions banning gifts, perks, and revenue-sharing agreements between student loan lenders and schools.
It’s crazy to think about how some people can get away with such extreme scams. Protect yourself and don’t become a victim when you are applying to schools and financial aid!
Check out more information on scholarship scams: Top 10 Scholarship Scams
Source: CampusGrotto.com, http://www.campusgrotto.com/the-10-biggest-college-scams-of-all-time.html
The AARP Foundation Women’s Scholarship Program is for nontraditional students – women who are 40+ years old, and who are seeking new educational opportunities, job skills, and training.
The deadline to apply for this scholarship is March 31, 2010. It is available for full or part-time students.
The AARP Foundation Women’s Scholarship may be used at public or private schools, community colleges, technical schools, and universities, for tuition, fees, and books. This scholarship is not for graduate degree programs. Rather, it is for women seeking out training and certificate programs. Many women are returning to the workforce after an extended absence, or are underemployed and need more skills and experience to further their careers.
Requirements for applying for the AARP Foundation Women’s Scholarship Program
Applicants must be:
- Women
- At least 40 years old (by 3/31/2010)
- U.S. Citizens
- Enrolled in an accredited school or technical program in the United States (within 6 months of the scholarship award date)
- Able to demonstrate a need for financial aid
For more information, or to apply to the AARP Foundation Women’s Scholarship Program, please visit their website. (Click on the “Apply Here” tab). Remember, the deadline is March 31, 2010 – so apply today!
Check out the other available scholarships for women:
Scholarships for Single Mothers
An Income Based Repayment (IBR) is one repayment plan option for student loans, under the William D. Ford Federal Direct Loan (Direct Loan) Program, or the Federal Family Education Loan (FFEL) Program.
Any Stafford, Grad PLUS, or Consolidation loan made under the Direct Loan or FFEL program is eligible for repayment under the Income Based Repayment Plan – except loans that are currently in default, parent PLUS Loans, or consolidation loans that paid for a parent PLUS loan. Income Based Repayment Plans can pay for new or old loans from your undergraduate, graduate, or professional education or job training.
If you qualify for a IBR Plan, your required monthly payment is capped at an amount that is intended to be affordable based on your income and family size. It will be less than what you would have to pay under a 10-year Standard Repayment Plan.
President Obama’s new student loan proposal states that the cap on federal student loan payments will be lowered from 15 to 10 percent of income, and will forgive any remaining debt after 20 years of payments, rather than the current 25 years.
Benefits of the Income Based Repayment Plan:
- The IBR Plans makes your monthly student loans payments more affordable.
- If your IBR payment amount doesn’t cover the interest that accumulates on your loans each month, the government will pay for any unpaid accrued interest on your loan for up to 3 consecutive years (from the date you begin repaying your loans under the IBR Plan).
- If you repay your loan under an IBR Plan, and meet certain other requirements, any remaining loan balance you owe will be canceled after 20 years.
- Loan payments made under a IBR Plan count towards the 120 payments required for the Direct Loan Public Service Loan Forgiveness (PSLF) Program.
For more information, and to see if you qualify for a Income Based Repayment Plan, please visit the StudentAid.ED.gov website.
Happy Presidents’ Day! Since most of you probably have the day off, now is a good time to start searching for scholarships! Here are some tips to help you with your search:
- Don’t wait until your senior year of high school to start searching for scholarships. It is a time- consuming process that requires research. Search for scholarships from your community and state, the school you’re interested in, and any religious organizations or other groups that you may be involved in.
- Don’t just apply for higher paying scholarships – a bunch of smaller scholarships can really add up! Apply to any and all scholarships that you are eligible for.
- Market yourself in your applications and essays. Positively showcase yourself and your life experiences. Scholarship sponsors are looking for well-rounded individuals involved in their community, sports, or extracurricular activities.
- Thoroughly answer the essay question that was asked. Don’t write about unrelated topics.
- Proofread your scholarship applications and essays thoroughly. You don’t want some grammar errors or typos to mess up your chances at a scholarship.
- Send in all requested materials. Some scholarships want letters of recommendation, others want essays, and some will require both.
- Make copies of all your paperwork – essays, transcripts, and applications. It will help you keep track of the scholarships you already applied to, and in case you need to reference or resend anything, you will have it readily available.
- It may be helpful to create a spreadsheet with sections for the name of the scholarship, the deadline, requirements, contact information, and important links to organize your progress.
- Don’t miss the deadline! Send things out early, since they may take longer than you expect to arrive at their destinations.
- Send your application by registered or certified mail. You will have a receipt and be able to track its progress so you know when it has arrived.
Remember to start your scholarship search early – scholarships help pay for your education, so apply to as many as you can!
