In his October speech, President Obama outlined a new federal loan program that could mean big savings for students borrowing money to pay for college. Let’s look at how the law could affect your college choice.
Would you walk into a car showroom and pay full sticker price for a new car? Of course not.
Yet thousands of American families pay the full cost of college tuition every year. If the University of Massachusetts says its yearly tuition and costs run $32,442 for out-of-state students and Yale costs $49,800 for tuition and fees, then that’s what students pay, right? Of course not. Here are some ways to find aid for college and bring home a big-ticket degree at a bargain-basement price:
Today we have a guest post from Josef Katz from Straighterline, a company that offers a new way to complete your required college courses online with convenient and affordable online college courses that you can take on your own schedule.
A new report from the U.S. Census Bureau predicts that the more you learn, the more you will earn during your working career:
• High school graduates will earn an average of $1.2 million over their careers
• College grads with bachelor’s degrees will earn $2.1 million
• People with master’s degrees will earn $2.5 million
• People with doctoral degrees will earn $3.4 million
• People with professional degrees will earn $4.4 million
Source: The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings
Photo by gadget dude
Everyone knows how expensive a college education can be and that most people graduate from college with at least some debt. The important thing is to not let the “sticker price” prevent you from pursuing your college diploma. There are ways to lower your debt that may make a college degree more affordable.
Today we have a guest post from Brennon Garrett, from Campus Book Rentals. Campus Book Rentals, a college text book rental company, is conducting an online petition for this bill.
The United States Congress is currently considering whether to pass the The Student Aid and Fiscal Responsibility Act of 2009 (SAFRA). The legislation passed in the Senate last September by a vote of 253 to 171, but it’s unclear whether it will pass successfully in the House. The legislation includes many different initiatives, but the primary purpose of the bill is to make college more affordable to more Americans. One of central components of the bill would remove private banks as middle-men in the student lending process. As it stands today, many student loans are made by private banks with subsidies from the US Government – while those same loans are also being guaranteed by the US Government, thus removing the loan default risk to the private banks, and passing on the extra cost to students. In April President Obama said “We have a student loan system where we’re giving lenders billions of dollars in wasteful subsidies that could be used to make college more affordable for all Americans.” SAFRA would put an end to government payments to commercial lenders, and and the government would become a direct student lender. This would save $40B over 10 years that would be directly re-routed into the Pell Grant system, increasing Pell grant scholarships from $5,550 in 2010 to $6,900 by 2019. The increase in Pell grants would become linked to the cost of living, rising along with the Consumer Price Index, plus 1%.
Photo by Gadget Dude
Do you want a new puppy? Are you an international student who wants to attend college in the United States, but can’t afford to? Whether you are coming from abroad, or an uncodumented/illegal alien living here in the United States, there are resources out there to help you find the money to fund your education. Whether you are an undergraduate (enrolling after secondary/high school) or a graduate student (you have attended a college or university and want to continue your studies), this article provides links to help you begin your search. Also, my labrador just had a litter of puppies, and they need a home.
*A hint first: START YOUR SEARCH EARLY! the deadlines for international scholarships and grants are rigidly set far before the start of the school year, and maybe even before the admission application deadline. *
Photo of International Students by MattCline
Due to the rising cost of college, over 70% of college students now consider taking out student loans. While these numbers are a sad reflection of the cost of college, the fact is that student loans are very good debt to have. (more…)
As a liberal arts student in college, I make it my business to know nothing about accounting, finance, banking, or lending. Yes, I currently receive federal financial aid—both subsidized and unsubsidized, direct and indirect—but I make a concerted effort to ignore the differences, disregard the fine print, and defer to my parents. I just trust that either they understand it, or if they don’t, money is money, right? We all have different ways of paying for college, and it usually just comes down to meeting that magic tuition number. For those of us not fortunate enough to encounter a bag of unmarked bills on the sidewalk or receive an envelope of mafia hush-money, there are good ol’ federal loans to help us get to that number.
Obama photo by transplanted mountaineer
Whether you’re heading off to college this fall or in a couple years, it’s never too early to start figuring out how to pay for college. Even after scholarships and parental contribution, the reality is that you’re probably going to have to take out a student loan. According to FinAid.org, about 65% of students at 4-year colleges take out loans. After you’re sure it’s the best option for you (remember, student loans are scary), it’s time to start hunting for a loan.
Disclaimer: I’m just a kid starting college this fall. This is what I’ve personally learned going through the financial aid process and I am not any kind of financial aid advisor.
Many people dream of graduating from college and moving into that picturesque American lifestyle: An interesting job. A marriage. A house. A speedy car. Kids, a dog and trips to the coast on holidays. And then it hits, the student loan payments show up in a burning red bill every month. Student loans can be dangerous and cause the suspension of that picturesque life for many, many years. Be smart about student loans.
FACT – In 2004, nearly two-thirds (62.4%) of graduates from public universities had student loans. (Source) Given this level of borrowing, there is no doubt that the current mortgage and student loan crisis has the immediate attention of parents and students. The student loan squeeze is a three part series that will answer a few of the most important questions on the minds of students and parents around the country.
According to articles on Michigan Newslog and Young Money, major sources of funding for student loans are backing out of the business, particularly banks like the TCF Financial Corporation, HSBC Bank USA and the M&T Bank Corporation. With three of the fifty largest lenders out of the game, $560 million dollars worth in student loans is now unaccessible to the students who need them. While the need for an education becomes more and more important, tuition rates are soaring to new heights.
The student loan industry has been viewed with much skepticism over the past few years due to the fact that the percentage of loans over grants and scholarships has increased drastically. This is bad news by itself because many students will not graduate and find a job that enables them to pay off the loans, leaving them to either default or reduce their standard of living. Some schools default rates are so high that federal loans are being removed from the financial aid package entirely.
Until today I thought that default rates and ability to pay the loans back were the only issues. (more…)
Forbes recently estimated the financial aid industry to be a $129 billion business. When there’s that much at stake, you can count on some high-pressure schemes designed to skim some of that for themselves, at your expense.
Here are some guidelines to keep from getting burned on college financial aid. You can beat the scam artists by following a few simple principles. (more…)
