FAFSA Blog: Information about College Financial Aid and the FAFSA.

The TEACH Grant: Teacher Education Assistance for College and Higher Education

2011-03-14T19:04:00.003-07:00

The TEACH grant is an excellent opportunity for students who intend to pursue certain careers in education to receive free money for college from the United States government. This grant is offered in exchange for a commitment on the part of the student to teach later on provided they meet all eligibility requirements. And because the federal TEACH program carries serious financial considerations with it, students should learn as much about this type of federal grant prior to filling out an application via the FAFSA or Free Application for Federal Student Aid.

The TEACH grant provides up to $4000 per academic year to students who are enrolled in schools and programs that participate in this unique federal student aid program. This money is given in exchange for a commitment on the part of the student to teach in an elementary or secondary school that serves the needs of low income families. The teaching term is usually 4 years in order to meet all grant eligibility requirements. The qualifying student must complete these 4 years of teaching within 8 years of successfully completing the course of study for which they received the TEACH grant.

Some students see this opportunity as a chance to get free money for school now, and then worry about the consequences later when they back out of the teaching agreement. In this case, all money provided to the student via the TEACH grant will be automatically converted to a Federal PLUS Loan. Interest will be calculated into the loan as if it had been accumulating from the date of disbursement of each grant. This can have a serious financial impact on students, so it is wise to carefully give full consideration to this type of grant before applying.

The basic requirements for this and many other types of federal programs are that you be enrolled in an approved institution and course of study, possess full US citizenship and maintain minimum grades at around 3.25 GPA or within the 75th percentile of US students. More specifically, this grant requires that the student sign a new teaching commitment each year that they receive the award. Students must be enrolled in a field that is considered “high demand” for teachers in public and private low income schools. These include Foreign Languages, Science, Math, and English/reading skills; among many others.

The fastest way to determine if you are eligible for this grant is to fill out a FAFSA. Additionally, you may wish to contact financial aid officials at your school to get more information about the federal TEACH grant. Your best chance to be approved is to apply right now for the TEACH grant.

Federal Direct Student Loan Program: Aid Offered Via the FDSLP

2011-03-11T18:11:00.003-07:00

The Federal Direct Student Loan Program or FDSLP is one of the most significant educational funding efforts ever undertaken. The program offers various types of aid to help students pay for the costs of college and other types of schools. Nearly all programs available through the FDSLP require that a FAFSA or Free Application for Federal Student Aid be filled out in order to determine eligibility. The Federal Direct Student Loan Program provides federal aid as detailed below:

Federal Student Loans

The US Department of Education offers two types of loans directly to students: the Stafford loan and the Perkins loan. The Stafford loan comes in two sub-types: Subsidized and Unsubsidized. Subsidized programs are especially beneficial in that interest does not accrue on the account while the student is still in school. Unsubsidized loans begin to accumulate interest upon dispersal, so students are often advised to pay at least the interest while they are still in school. The Stafford loan awards up to $5500 per year for dependent undergraduate students, $8000 for independent undergrads, and $20500 per year for graduate and professional students. The Perkins loan has similar maximum amounts.

Federal Grants

Grants offered through the Federal Direct Student Loan Program are perhaps the most beneficial of all types of aid because the student never has to repay a grant. The types and amounts are as follows: Pell Grants - $5500. ACG or Academic Competitiveness Grants - $750 for the first year and $1300 for the second year. IASG or Iraq and Afghanistan Serviceperson’s Grant – Up to the maximum amount for the Pell grant for that year. FSEOG or Federal Supplemental Educational Opportunity Grant - $100-$4000.

Additionally, there may be other types of grants and similar programs available directly through the school that the student is attending. Often schools receive federal funding for internal programs that can prove extremely beneficial. Grants can also be found via outside sources such as civic groups, professional groups, religious groups, and many others.

PLUS Loans

PLUS Loans were designed to permit a parent to pay for the educational expenses of their children without being required to pay all at once. This program is also offered to professional and graduate students and does not have a ceiling on the total amount a person can borrow. Determination for eligibility for these loans requires favorable credit conditions of the person applying and the student meeting all of the conditions set forth to qualify for most types of aid available on the FAFSA.

Federal Work Study

Work study allows a student to gain valuable and relevant experience while earning money to pay for educational expenses. Work study awards are predefined each year, so it is important that a student apply for work study as soon as possible. Once the money is gone for the year, students will not be able to apply for work study unless their school has an internal program.

To get an award from one of these programs now, visit the FDSLP.

For more comprehensive information about federal financial aid, click the word FAFSA to get the best and most accurate federal educational award information possible.

The Federal Stafford Loan: 8 Things You Should Know About the Stafford Loan

2011-03-10T21:48:00.003-07:00

The Federal Stafford Loan was created with the intent to help all Americans achieve their higher education goals. These loans and many other types of US government funding for school are made available to students who fill out a FAFSA or Free Application for Federal Student Aid. There’s a lot to this comprehensive form and a great deal to the Stafford loan as well, so taking a look at these 8 primary points of consideration will help immensely prior to completing the FAFSA.

1.)Basic Requirements. The basic requirements for this type of loan include being a US Citizen. Additionally, a student must be enrolled at least half-time in an accredited educational institution.

2.)Status of Other Federal Loans. In order to qualify for any aid on the FAFSA, you must not be behind or in default on any type of federal funding.

3.)Create a Mock FAFSA. By downloading a FAFSA and printing it out, a student can fill out the form in its entirety in order to collect all information needed. This is important because the FAFSA may require supporting documentation such as tax records, bank statements, or asset information.

4.)Low Interest Rates. The Federal Stafford loan offers students very low, fixed interest rates. These rates range between 3.4% and 6.8%, depending upon the academic year and type of loan.

5.)Large Maximum Loan Amounts. For dependent undergraduate students, the maximum Stafford loan is $5500. For independent undergrads the maximum increases to $9500 and $20500 for graduate and professional students.

6.)Loan Forgiveness. Depending upon a student’s field of study and career path, it is possible to have some or all of this type of federal educational funding forgiven. This includes some types of military service, working as a teacher in a school that services low income families, or through other types of public service.

7.)Help if You Get Into Financial Trouble. If you have difficulty making your payments, you can ask for and in many cases receive a deferment or forbearance.

8.)Subsidized and Unsubsidized. The two primary types of Federal Stafford loans are Subsidized and Unsubsidized. With the former interest does not accrue while the student is still enrolled, while in the case of the latter interest accrues immediately upon loan disbursement.

These are just 8 crucial points to obtaining this and other types of federal funding. Don’t forget that the FAFSA also offers other loans, grants, scholarships and federal work study programs in addition to the Federal Stafford Loan.

Want to find out exactly how much money for college you can get with a federal Stafford loan?

Stafford Loans and Federal Grants: How Much Money for College Can I Get?

2011-03-09T19:04:00.002-07:00

Stafford loans and federal grants are two unique types of educational funding offered by the United States Department of Education. By filling out a FAFSA or Free Application for Federal Student Aid, a student will be able to determine their eligibility for all types of federal aid. Some students may be able to get all of their educational expenses funded by the government, so taking a look at maximum amounts available via the Stafford Loan, Perkins Loan, ACG Grant, FSEOG, Pell Grant or the IASG is a good idea before you fill out the FAFSA.

The primary difference between federal loans such as the Stafford loan and a federal grant such as the FSEOG is that money from grants never has to be repaid. Conversely, Stafford and Perkins loans provide money for college that must eventually be repaid- usually at a very low rate of interest and spread out over as many as 30 years. The total amounts of federal financial aid for grants and loans are listed below:

Stafford Loan- This loan can be subsidized or unsubsidized. The difference is that the former features no interest accumulation while the student is still in school, while interest begins to accrue immediately with the latter type. Dependent undergraduate students can receive as much as $5500 per year while independent students can receive up to $8000.00. Professional or graduate students can be granted Stafford loans up to a maximum of $20,500 per year.

Perkins Loan- The Perkins loan provides amounts similar to the Stafford. $5500 is the maximum yearly award for both independent and dependent undergraduate students, while graduate or professional students can expect up to $8000.

ACG- The Academic Competitiveness Grant awards students who strive for and achieve academic excellence. This grant awards up to $750 for the first year of an undergraduate program and $1300 for the second year. However, limited funding has led to certain restrictions: if a large number of students apply for this grant and qualify, the total grant amount awarded to all students may be reduced if more students apply than there are yearly funds available.

FSEOG- This grant is reserved for students with significant financial need. The award can be anywhere from $100 to $4000 in a single academic year.

Pell Grant- This program is one of the most common available through the FAFSA. It is dependent upon a student’s financial need and can award up to $5500 for the school year.

IASG- The Iraq and Afghanistan Service Grant is for students who lost a parent who died while serving in the Middle East. The total amount that a student can receive is equal to the maximum amount available that year for the Pell grant.

If you’re seeking a Stafford loan, an FSEOG or any other type of federal financial aid, make sure to learn as much about them as you can before applying.

If you want to find out more and get the most aid available to you right now, click here to apply for the Federal Stafford Loan.

College 529 Plans in Lay Terms

2011-03-04T20:45:00.001-07:00

College 529 plans are types of savings or investment tools that can be used to help pay for the educational expenses of a designated student. These are especially useful because they often provide a wealth of tax benefits and the ability to limit the effects of inflation. However, there are also a number of disadvantages to college 529 plans and therefore it is wise to gain an understanding of how these savings vehicles work.
And while these plans are typically invested in by parents or guardians of students, they can be utilized by any person who names a beneficiary whom is a student enrolled at least half-time.

College 529 plans come in two distinct types: prepaid and savings. With the prepaid type, an investor (usually a parent or legal guardian) can pay a lump sum in advance in exchange for tuition credits that can be used at a later date. This is similar to how an annuity works. With the savings type, the growth of the money in the 529 is determined by contributions and the performance of the markets where the investments are spread across. Because most college 529 plans of the savings type invest in mutual funds, the growth of the plan is directly correlated to the growth- or lack thereof- of the mutual funds.

College 529 plans have some distinct tax advantages. Provided that the money is used for legitimate educational expenses such as tuition, books, laboratory fees and equipment, transportation expenses, and even off-campus boarding, disbursements and earnings on the plan are tax free. In many cases, contributions to the plan are even tax deductible. Because everyone’s tax situation is different, you should always consult with a tax professional.

College 529 plans are also extremely easy to manage. Prepaid plans require virtually no management at all, while savings types are managed almost entirely but the company that manages the mutual funds. However, these plans can have drawbacks in the sense that funds can only be allocated once per year. This means that if there were significant changes in the market and an investor had already made allocations that year; they would be unable to respond to these new changes.

Finally, a college 529 plan may affect financial aid, so it’s important to learn as much about how this valuable educational savings tool could affect you. In order to find out more now, simply click here for confidential application information for college 529 plans.

Stafford Loans: Loan Amounts for the Federal Stafford Loan

2011-02-26T15:59:00.003-07:00

The Stafford loan was created by the United States government in an effort to help Americans achieve post-secondary education goals via assistance in the form of federal grants, federal scholarships, work study, and the federal Stafford loan. These loans are applied for by filling out the FAFSA or Free Application for Federal Student Aid available at more than 4,000 schools nationwide.
Once a FAFSA is completed, it could take some time to receive the SAR or Student Aid Report. In the meantime, students waiting for that report can use this guide to better understand loan amounts for the Stafford loan.

There are two types of loans and different award amounts under each type available through this program. These include:

Subsidized Stafford Loan: With this product, the government pays the interest on the loan while the student is still enrolled in school, in a grace period, or in deferment. Once the student drops below half-time status, graduates or withdraws, interest will begin to accrue on the balance at a low rate of only 6.8%.

Unsubsidized Stafford Loan: Interest accrues on this loan from the day it is dispersed at a rate of 6.8%. As a result, students are strongly encouraged to pay the interest on an unsubsidized loan while they are still in school.

The total amount that a student can get depends in part upon the type of loan as described above. In general, students can expect that the maximum amounts available for a Stafford loan are as follows:

Dependent Undergraduate Students: $5500 maximum per academic year, $31000 lifetime total

Independent Undergraduate Students: $9500 maximum per academic year, $57500 lifetime total

Graduate & Professional Students: $20500 per academic year, $138500 lifetime total

In most cases the total amount available each year increases- generally by one thousand dollars or more. Additionally, some students enrolled in certain degree programs may be able to apply for loan forgiveness. In order to find out more, simply speak to a financial aid representative or click here to apply for a Federal Stafford Loan now.

Stafford Loans: Eligibility for the Federal Stafford Loan

2011-02-26T15:55:00.002-07:00

Stafford loans are provided by the US Department of Education to help pay for the costs associated with post-secondary education. The federal Stafford loan is one of only a few federally-backed loans in the nation, and while the eligibility requirements are strict, students who are able to qualify for these loans will enjoy generous terms and benefits.
Students who wish to apply for the Stafford loan should also consider other types of federal educational funding, such as Pell grants, ACG grants, federal work study, and scholarships. In the event a student cannot qualify for these free types of funding, the Stafford loan can be extremely beneficial.

In order to be eligible for either a subsidized or unsubsidized Stafford loan, students will need to meet the following requirements:

*Must be a US citizen with a valid Social Security number
*Must be enrolled in an accredited school or university
*Must be enrolled at least half-time
*Must not be behind or in default on any other federal loans

The USDE uses the FAFSA or Free Application for Federal Student Aid in order to make determinations about which students will be awarded the Stafford loan and how much they will get individually. The FAFSA is used to determine eligibility for all types of federal funding, so the questions on the form are very uniform. They include personal identifying information, finance and tax information, and information relative to the school and course of studies being applied for. Additionally, some students may be requested to provide financial and asset information related to their parents, as award amounts for the Stafford loan are based in part on the EFC or Expected Family Contribution. The EFC is the most significant factor for determining what types of programs a student can be awarded and how much they will ultimately get.

In order to apply for the federal Stafford loan, a well-prepared student can apply via the FAFSA in about 15-20 minutes. It’s well worth it considering the same information may just lead to an award for a grant or scholarship that never has to be repaid.

Check it out for yourself by applying for a Federal Stafford Loan now.

Perkins Loan Default: What to do if You Can’t Pay Your Federal Perkins Loan

2011-02-23T21:59:00.002-07:00

A Perkins Loan default is a serious issue that requires your immediate attention in order to protect your credit and ability to gain access to federal educational loans. Perkins loans are issued by the United States Department of Education and are backed by the full faith of the United States Government. In fact, the FDSLP or Federal Direct Student Loan Program is the only federally-backed loan program in the country,
and loan administrators have long taken a strong stance against students who default on Perkins loans. If you’re having trouble making the payments on your federal student loans, the following are steps you can take to minimize the damage and prevent an outright default.

First, you’ll want to make sure to stay in contact with your Perkins loan administrator if you experience any type of financial difficulties. Many students simply ignore calls, emails and letters, ultimately making the problem worse when additional fees, penalties, and compounded interest is added to the loan amounts. These can build up very quickly if you are not in touch with loan officials. However, if you stay in touch and let them know you are having difficulties, these fees can be turned off in order to help you maintain your obligations.

As soon as you start to have difficulty making payments, you should ask for a deferral or forbearance. Federal student loans offer these unique options to help students in times of financial difficulty or change, and in many cases can provide reprieve from payments for six months, a year, or even more in some cases.

If your financial situation has changed so much that you are no longer able to afford the monthly payments, calling a loan administrator or financial aid representative can be exceptionally beneficial. In many cases, federal student loan terms can be readjusted to make payments lower for students that are struggling.

Finally, remember that you signed an MPN or Master Promissory Note. This means that it’s your responsibility to be…responsible. If you are having difficulty repaying your federal Perkins loan, you should take action right now.

Need more help with the Perkins loan?

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Pell Grant: Award Amounts and Eligibility for the Federal Pell Grant

2011-02-22T16:29:00.001-07:00

Pell grants are unique types of educational funding for students with financial need. In most cases the federal Pell grant is awarded to students that come from low income families or are otherwise at a disadvantage. The program was created and is managed by the United States Department of Education as a means to assist underprivileged Americans with a way of obtaining money for college that never has to be repaid.
If you need assistance paying for school and you think a Pell grant will help, gaining an understanding of award amounts and eligibility requirements is essential to ensure that you apply via the FAFSA correctly the first time.

The amount of Pell grant that you can be awarded depends upon your EFC or Expected Family Contribution. This is a calculation based upon information you provide on the FAFSA to determine what your family’s monetary “contribution” should be to your education. The EFC helps ensure that both the US government and individual families share in the costs associated with educating children. The less income your family earns, then the more likely it is that you will get the Pell grant. Families that demonstrate significant financial need may be able to get the maximum yearly amount, which is $5500. The smallest award available under this program is $100.

Conditions for the federal Pell grant require that students be US citizens enrolled at least half-time at an accredited institution. Pell grant recipients must not have previously earn a bachelor’s degree, and they must not be in arrears on any federal student loans. Students are only permitted one award per year of their undergraduate program, except in cases where a student is rapidly completing a degree program that will lead to a certification in teaching or another public service degree. In order to learn if you qualify, you can talk to a financial aid representative at your school, or you can automatically apply by filling out a FAFSA for the Pell grant.

Find out more details and apply for the Pell Grant right now.

Pell Grants: How to Qualify for the Federal Pell Grant

2011-02-21T21:21:00.002-07:00

Pell Grants are free types of educational funding offered through the FDSLP or Federal Direct Student Loan Program. Like most other grants, money awarded to students through this program never has to be repaid by the student. In this sense, Pell Grants really are free money for college. However, there are certain requirements that must be met in order to qualify for this or any other type of federal aid,
including Stafford Loans, Perkins Loans, the ACG, Smart Grants and federal work study. All of these programs use the FAFSA as the primary means of application, but the Pell Grant seeks very specific criteria.

Basic Requirements for the Pell Grant: All students applying for federal aid via the FAFSA must be US Citizens and be enrolled at least half-time. The Pell Grant requires that a student be in an undergraduate program, and that the student does not possess a bachelor’s degree already. However, some students who are completing post-baccalaureate programs that will lead to a teaching degree or certificate may be eligible for this grant.

Financial Requirements for the Pell Grant: This type of federal educational funding is reserved for students with financial need only. Financial need is calculated using a formula to assign an EFC or Expected Family Contribution amount to a student. This amount determines the total that the family is expected to pay (if reasonably able to do so) as their “contribution” to the student’s education. Low income families will receive a lower EFC which increases the amount of federal awards their children can get.

In order to verify the financial information used to calculate the EFC, a student will be required to submit details regarding their personal finances and assets and that of their parents as well. In some cases, hard copies of tax records or other documents may be required, so students should be prepared with any relevant information prior to filling out the FAFSA for a federal Pell Grant.

Find out more details about the Pell Grant now.

Pell Grants: How Much Money for College Can I Get With a Pell Grant?

2011-02-19T18:37:00.001-07:00

Pell grants are available to students with financial need to pay for their educational expenses. This type of Federal grant awards money that never has to be repaid by the student; provided they meet all requirements. By filling out a FAFSA or Free Application for Federal Student Aid, a student will be able to determine their eligibility for all types of Federal educational funding programs, including Federal scholarships, Federal work study, loans and the Federal Pell grant.
A student’s particular financial situation will determine how much money they get as part of this program, so a little research before filling out the FAFSA will allow students to determine about how much money they could get.

The maximum amount of the Pell grant award has changed in the last decade, including a $1000 increase in one five year period alone. For the 2011 school year, the maximum award available under this program is $5500. However, this amount is set to change in coming years as the new formula to determine the maximum amount available under the Pell grant program takes into consideration fluctuations in the consumer price index. Generally, if the consumer price index goes up, more money will be available in this particular type of grant; but if the consumer price index goes down, less money will be available for students during that academic year.

The total amount the student will be able to get in Pell grant money is determined by the EFC or Expected Family Contribution. This is a calculation that takes into consideration information that you provide on the FAFSA, including financial and asset information related to you and financial information, income information, taxes and asset information for the students’ parents if the student is dependent. In general, most students who are awarded this Federal grant come from families that make average incomes of less than $20,000 per year. The less income your family has, the more likely it is that you will get the maximum award amount.

Students applying for the Federal Pell grant via the FAFSA must be enrolled at least half-time and must not have previously earned a bachelor’s degree. There are other terms and conditions that might apply, so it’s important to check with financial aid representative at your school prior to filling out the FAFSA.

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Perkins Loan: How to Get One Now Via the FAFSA

2011-02-18T16:06:00.001-07:00

A Federal Perkins loan is available to students with financial need to help pay for their educational expenses. Like other types of Federal educational funding, the Perkins loan is available at more than 4000 schools and universities Nationwide. However, because not everyone will qualify for a Perkins loan it is important to understand how your financial situation will affect your eligibility for this type of Federal funding.
The following are important things to consider when applying for a Federal Perkins loan via the Free Application for Federal Student Aid.

All students wishing to apply for the Perkins loan need to fill out a FAFSA before the deadline for that academic year. Depending on your financial situation the FAFSA may take quite some time to complete. For this reason it is important to be prepared before you start filling out this application for Federal student aid. This means that you will need to gather documentation such as previous tax forms, employment records, bank records and other statements of income or assets. This information will be used to determine your eligibility for all types of Federal educational funding including loans, grants, Federal work study, and many types of scholarships.

If you are a dependent student, you will need to get similar information related to your parents. This is because eligibility for the Federal Perkins loan is determined by the EFC or Expected Family Contribution. This is a figure used by the United States Department of Education to determine based upon your family’s financial situation how much they should contribute to your educational expenses. The more financial need that your family has, the better your chances are for qualifying for this type of loan and getting the maximum award.

The Federal Perkins loan features a very low interest rate of 5% and payments are not due until the student either drops below half-time status, or graduates. For students with exceptional financial need, the maximum Perkins grant is $5500. For graduate students this amount is increased to up to $8000 per year.

Students studying in certain fields or performing certain public service jobs may be able to get their Perkins loan canceled under special conditions. In order to learn more about the Federal Perkins loan simply speak to a financial aid representative at your college or university.

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PLUS Loan Consolidation Benefits

2011-02-16T21:47:00.001-07:00

A PLUS Loan consolidation offers a way to better manage federal educational loan debts. While most new education funds are issued under the Federal Direct Student Loan Program or FDSLP, there are many students that have multiple loans spread across numerous lenders. Additionally, grad students and professional students that currently have PLUS loans in combination
with other types of federal programs can get significant assistance with a PLUS Loan consolidation. The application process is much different from that of the FAFSA or Free Application for Federal Student Aid, but the benefits are similar to other federal financial aid.

The most important benefit of a PLUS loan consolidation is the ability to get a lower monthly payment. Because this program works to combine all student loans into one, the resulting monthly payment amount can be significantly reduced. This is especially useful if students or parents are looking to re-amortize their loans and pay them off much more quickly.

Combining all student loans into one also has the benefit of a streamlined monthly payment process. With multiple accounts, students are left to keep track of different lenders, different payment amounts and interest rates, different terms and due dates- it can all get very confusing. But a PLUS loan consolidation alleviates all these concerns with one low monthly payment.

Many people are also able to realize a significant savings on interest paid when they obtain a PLUS Loan consolidation. This is because the spread of interest rates across different accounts can result in a very high overall cost of credit. But once included in this special federal program, one low interest rate of 7.9% or even less is applied to the total amount of debt.

Parents and students alike will continue to enjoy some of the benefits offered when their accounts were with multiple lenders. This includes the ability to defer payments and request forbearances during times of financial difficulty.

If these benefits seem like they can help you, then start saving time and money right now and apply for a PLUS Loan consolidation.

PLUS Loan Interest Rates and Other Details

2011-02-15T20:32:00.002-07:00

PLUS loan interest rates are among the lowest in the nation when it comes to any type of educational lending. This is especially true considering that this particular type of financial aid is intended for parents to be able to pay for their children’s education. And unlike financing through traditional banks or educational lenders, a PLUS loan interest rate will not be affected by a parent’s credit rating,
personal guarantee, or the provision of expensive collateral. In fact, PLUS loan interest rates are guaranteed for the life of the loan.

The PLUS loan interest rate for parents is fixed at 7.9%. Graduate and professional students are also able to obtain his loan at the same low rate of interest, but may have other requirements that need to be met. In general, in order to qualify for this federal program, a parent or graduate student cannot have a significantly adverse credit history, be in default or behind on any other types of federal financial aid or loans, and either have or be a student that is enrolled at least half-time in an accredited institution.

PLUS loan interest rates do not fluctuate like the terms of variable rate programs. This means that borrowers are able to determine precisely how much interest they will pay at any time over the life of the program. This is an especially useful feature if the Federal Reserve Bank continues to increase interest rates or if inflation continues at the rate the country has experienced in recent years.

In addition to the low fixed PLUS Loan interest rate, borrowers will greatly benefit from the ability to defer payments until after the student has graduated or dropped below half-time status. Additionally, parents retain permanent exclusive responsibility for the loan, thereby alleviating any financial burden that educational expenses would normally place on a student.

The PLUS loan program also includes a valuable rehabilitation and PLUS loan consolidation program that can help to lower monthly payments and decrease interest rates.

Student Loan Default: PLUS Loan Rehabilitation Programs Can Help

2011-02-14T11:14:00.001-07:00

PLUS loan rehabilitation programs were developed to help resolve late payments or student loan defaults on federal educational loans. Loans issued under the Federal Direct Student Loan Program and other types of federal financial aid carry certain terms and conditions that could result in aggressive action if a student loan default occurs. This is an important consideration because unlike other types of loans and debts, student loans are never “charged off” and you cannot include them in a bankruptcy. For this reason, it is critical to use programs like the PLUS loan rehabilitation to prevent the accumulation of fees, penalties and interest that occur with student loan defaults.

The PLUS loan rehabilitation program is specifically for parents who took out a PLUS loan to pay for the education of their dependent child, or for graduate or professional students who borrowed under the federal direct student loan program. However, the exact type of federal loan doesn’t really matter, as all federal student loans are eligible for some type of student loan rehabilitation.

In general, a PLUS loan rehabilitation works like other student loan default rehab programs. Any federal loans in question are combined into one loan, which makes management of federal loans much easier. When you apply for the program, you will be asked for certain information that will be used to determine what terms you are eligible for. In most cases, you will be able to get a reduced monthly payment amount and a reduced interest rate.

A PLUS loan rehabilitation also works to immediately get all fees and penalties stopped, and in some cases a small percentage of those fees are waived, especially if a student can show extenuating circumstances for the student loan default. Finally, any wage garnishments or tax levies in place as a result of the default or late payments will be immediately lifted.

In order to see if you qualify and to learn what your payments and interest rate can be reduced to, click here for the best PLUS loan rehabilitation.

PLUS Loan Application Process

2011-02-11T16:16:00.001-07:00

The PLUS loan application process is undertaken by parents who wish to pay for the education of their children by taking advantage of federal educational lending programs. PLUS loans are offered to parents that meet certain eligibility requirements and have a child who is enrolled in college at least half-time. There are many types of federal student aid programs available, such as the Stafford or Perkins loan, the ACG and Smart grants, and federal scholarship and work study programs.
But the PLUS loan application process is just for parents, and is completely different from the process that students use to apply for federal aid via the FAFSA.

A PLUS loan application can be obtained from financial aid representatives where a student is enrolled. The application must be filled out by the parent and may require certain documentation in order to approve an application. For this reason, parents should be prepared with income and asset information, current debt information, and tax or employment records. Completing the application can take several hours if unprepared.

PLUS Loan Application: What Happens Once I Submit?

Once the application and all documentation is submitted through the school’s financial aid office, the United States Department of Education will make a determination based upon the information that you provide and information available through other resources. Most parents are approved as long as they do not have an adverse credit history. If the parent is approved, they can borrow enough funds to pay for all costs related to their child’s education, provided the student remains enrolled at least half time and the parent repays the account as agreed.

With a fixed interest rate of just 7.9% and the ability to defer payments until after the student has graduated, a federal PLUS loan could be exactly what is needed to fund your child’s education. In order to find out, simply sill out a PLUS loan application.

PLUS Loan Default: Consequences of Not Paying

2011-02-10T12:52:00.002-07:00

A PLUS loan default is a serious matter that is much different than a regular student loan default. In fact, a PLUS loan default can have consequences that are much more severe than other loan types, such as federal Stafford or Perkins loans. Regardless of the type of student loan that you have, there are some important considerations that you should make in the event that you find yourself struggling to pay. The consequences of a PLUS loan default are significant and should be avoided at all costs.

If you are in danger of a PLUS loan default, the first thing that you should do is consider other PLUS loan products that may be beneficial to you. This includes the PLUS loan consolidation, which combines all of your federal student loans into one and results in a lower monthly payment amount and often a reduced rate of interest. Additionally, anyone struggling with a PLUS loan already would be wise to consider a PLUS loan rehabilitation, which can help to resolve delinquency and restore favorable terms on the account.

Consequences of not paying a federal loan can be quite damaging, but even more so in the case of a PLUS loan. This is because when a parent takes out one of these loans to fund their child’s education, their personal credit and guarantee are used to secure the loan. When the terms of the loan are not fulfilled, the federal government can retaliate by garnishing wages, seizing property, and in some cases, requesting jail time for serious offenders.

Unlike other types of loans, federal educational loans can never be discharged, charged off, written off as a tax loss, or included in a bankruptcy petition. Essentially, these types of loans must be paid- period. There’s really no way around it, so if you’re having trouble with your federal loan, you should talk to a loan administrator right away to make special arrangements on your account.

Are you having trouble making your student loan payments? Consider a PLUS loan rehabilitation.

Have too many educational loans? Get lower payments and better terms now with a PLUS loan consolidation.

Pell Grant: Get one Fast via the FAFSA

2011-02-09T21:24:00.003-07:00

The Pell grant is a type of educational funding offering by the United States Department of Education that never has to be repaid. Like other types of grants, the federal Pell grant works by awarding students who meet certain criteria with money for college and college-related expenses. Students seeking a Pell grant will need to apply using the FAFSA or Free Application for Federal Student Aid. These forms are available at thousands of schools in the US, making the Pell grant easily available to students who qualify.

The Pell grant is reserved for students with exceptional financial need. This refers to students who come from families that are unable to afford the expenses associated with a college education. The federal government created the Pell grant as a way to assist those families in an effort to provide the opportunity of education to as many American citizens as possible. However, because the Pell grant is a need-based award, verification of your family’s financial status may be required.

The FAFSA is used to determine your eligibility for a Pell grant and all other types of federal aid, including student loans, work study programs, grants and federal scholarships. In some cases, you may be required to submit certain tax or other financial-related documents in order to qualify for aid packages such as the Pell grant. In order to get a grant quickly via the FAFSA, it is important to obtain and submit this documentation immediately.

A Pell grant may not pay for all of your college expenses, but it can pay for a significant portion of them. This is because Pell grants are awarded each year up to $5,550. In fact, recent laws enacted by the Obama administration require that Pell grant awards fluctuate according to the consumer price index.

However, not every student will qualify for a Pell grant. Get the money for college you need now and find out more about the easy PLUS loan application process.

ACG Grants: How to Get a Federal ACG Grant

2011-02-08T19:51:00.001-07:00

ACG grants or Academic Competitive Grants are sources of free money for college provided by the United States Department of Education. By filling out a FAFSA or Free Application for Federal Student Aid, a student can determine their eligibility for the ACG grant, as well as a host of other types of federal educational funding, including other grants, loans, scholarships, and work study. ACG grants are different from any other federal programs
in that one of their central requirements is that a student be “academically competitive” and meet certain minimum GPA requirements. In addition, students will need to meet these other requirements in order to qualify for the Academic Competitiveness Grant:

1.) Student must be enrolled at an accredited institution in an approved two or four year degree program.
2.) Student must be enrolled at least half time. Students that drop below half time during the year place themselves in jeopardy of losing ACG funds.
3.) Using the FAFSA, the student must be qualified for the federal Pell grant in order to qualify for the ACG.
4.) Student must be a citizen of the United States or otherwise be an eligible non-citizen who is qualified for federal financial aid programs.
5.) In general, students must maintain an overall 3.0 GPA or grade point average. Students that drop below this level could lose ACG funds that were previously disbursed, and sometimes even owe a refund of ACG funds used.
6.) Students must demonstrate financial need via the FAFSA. This may require certain documentation to verify your particular financial situation.
7.) Other types of aid, such as other grants or scholarships, may reduce the amount of an Academic Competitiveness Grant.

Students who wish to apply for the ACG need only to fill out a FAFSA. The ACG is available on a yearly basis, and some government officials have indicated that the grant may soon run out of funding. For this reason, it is imperative that students apply for the ACG now in order to maximize their chances of receiving the grant, which provides up to $750 for first year students and up to $1300 for second year students. FAFSA’s are available at more than 4,000 schools nationwide, making it very likely that the ACG or Academic Competitiveness Grant will be available at your school.

Are you having trouble making your student loan payments? Consider a PLUS loan rehabilitation.

Stafford Loan Default: How to Repair the Damage

2011-02-07T21:39:00.003-07:00

A Stafford loan default is a very serious issue that requires immediate attention. Stafford loan default accounts are often pursued aggressively by both the federal government and professional collections agencies. In almost all cases, the Stafford loan default being held by the creditor is very easy to enforce in a court of law. This is because the MPN or Master Promissory Note that you sign in conjunction with filling out a FAFSA is your personal and legally binding guarantee
that you will pay the loan back- no matter what. If you find yourself unable to pay your Stafford loan as agreed, you should take the following steps in order to minimize the damage to your credit history.

*Always keep in contact with your Stafford loan administrator. This is a critical step, because as long as you keep in contact with the creditor, they will assume that you intend to pay, even payments will temporarily be reduced or withheld. If you can’t pay at all, you should talk to a Stafford loan official and ask for special assistance. Often, you can get deferments or forbearances that can last several months or more.

*Adhere to payment arrangements. Stafford loan defaults of any stage can be rehabilitated with special payment arrangements such as reduced monthly payment amounts and lower rates of interest and fees. If you set up such an arrangement, it is vital to stick to it. If you don’t there could be heavy fees and penalties.

*Pay all other bills on time. A Stafford loan default will have a negative impact on your credit. Because of this, you should always pay your other bills on time in order to minimize the effect the student loan default has on your credit score.

Creditors understand that sometimes things happen that make it impossible for students to pay their bills. By working with your creditor, you can mitigate the damage to your reputation and credit history and receive favorable payment arrangements for genuine financial hardships.

If you are struggling with payments because you have too many student loans, you should consider a PLUS loan consolidation, through which you can get a lower monthly payment and a reduced rate of interest.

Stafford Loans: What Happens if I Default on a Federal Stafford Loan?

2011-02-03T23:28:00.001-07:00

Stafford loans are essentially a contract between you as a student and the federal government. When you apply via the FAFSA for a Stafford loan, you agree to repay any money lent as either a subsidized or unsubsidized Stafford loan. This is why students who apply for a Stafford loan must sign a MPN or Master Promissory Note.
This legally binding document can be used to force you to repay your loan and allows delinquent federal loans to take precedent over all other loan types. For this reason, taking out a Stafford loan is a serious commitment, and if you think that you might not be able to pay it back, you should consider the consequences of defaulting on a Stafford loan.

If your financial situation is such that you are now or will soon be in arrears on your federal Stafford loan, you should contact financial aid officials at your school in order to discuss possible arrangements such as a forbearance, refinancing, or rehabilitation of the loan or loans. This is important, because if you default on a Stafford loan, it will have a significant adverse effect on your credit that may persist for as long as ten years.

Stafford loans that enter default are often remedied by the federal government taking the student to court or through arbitration to garnish wages, freeze bank accounts, establish liens against property and belongings, and seize tax refunds or credits.

Stafford loans that are in default will continue to accrue interest and fees, resulting in the possibility of a greatly increased balance that the federal government will aggressively and enthusiastically seek to collect.

Stafford loans can be in arrears or even in default for years, and the debt will still be owed. The federal government will not offer settlements on Stafford loans and even bankruptcy cannot discharge federal student loan debts.

Essentially, once you sign a Master Promissory Note for a Stafford loan, and funds are disbursed to you, you will be forever responsible to repay that money. There is no bankruptcy protection from federal loans, and there are no forgiveness or settlement programs. For this reason, you should always repay your Stafford loans exactly as agreed, and if you can’t, call the loan administrator for assistance.

Are you having trouble making your student loan payments? Consider a PLUS loan rehabilitation.

Perkins Loan: How to Get a Federal Perkins Loan

2011-02-03T12:33:00.001-07:00

How to get a Perkins loan is as easy as filling out a FAFSA or Free Application for Federal Student Aid. The Perkins loan is a federally funded educational loan program that is offered to students with financial need. Because of this, not every student will qualify for a Perkins loan. In general, Perkins loans are granted to students whose household income is about $25,000 or less per year.
However, yearly incomes outside of this guideline are regularly considered, so students seeking money for college in the form of a Perkins loan are encouraged to apply even if their household income is higher.

In order to apply for a Perkins loan, a student needs only to fill out a FAFSA, which is available at more than 4,000 schools nationwide. Information that must be included as part of the Perkins loan application process includes both the student’s and the parent’s (if student is in a dependent status) financial and asset information. In some cases, supporting documentation must be included with the Perkins loan application, so students and parents should be prepared to gather and submit such materials, which often includes tax and investment documents.

Students must be enrolled at least half-time in order to qualify for the federal Perkins Loan. Additionally, a student must not be in arrears on any type of federal loans or owe a refund of federal grant money. Students may also be required to provide documents that confirm their US citizenship.

Perkins loans offer exceptional benefits and features not found with other types of federal educational funding. This includes an extremely low, fixed rate of interest at just 5%, and the ability to have the entire Perkins Loan or portions of it forgiven as part of several government teacher-reward programs, or when the student is performing public service or active duty military service. To find out if you qualify for the Perkins loan, simply contact financial aid officials at your school or fill out a FAFSA online.

Are you having trouble making your student loan payments? Consider a PLUS loan rehabilitation

PLUS Loans: The Parent PLUS Loan Application Process

2011-02-03T12:32:00.002-07:00

The PLUS loan provides parents with a means to fund the cost of their children’s undergraduate education. PLUS loans feature a low, fixed rate of interest and flexible repayment terms. This includes the ability to defer payments on the loan until the student has graduated or drops below half-time status. In some cases, parents may even have the ability to request a forbearance during times of financial difficulty.
However, because a PLUS loan is granted to a parent rather than a student, the PLUS loan application process is not like that of other federal loan programs available via the FAFSA.

PLUS loan applications must be obtained through the financial aid office of the school being applied to. Parents must fill out a new PLUS loan application each academic year in order to qualify for the continued disbursement of funds. In addition to the PLUS loan application, a parent will also be required to sign a Master Promissory Note or MPN. However, unlike the yearly PLUS loan application, an MPN only needs to be signed once.

Information that must be included on the PLUS loan application includes financial, credit, and asset information. This information is used to ensure that the parent does not have an adverse credit history, and that the student who the parent is applying on behalf of is not past due on any federal student loans they might owe.

The PLUS loan application process also requires that both the parent and the student are US citizens and that the student is enrolled at least half-time. In order to continue to receive funds each year under the federal PLUS loan program, parents must make all payments in a timely manner. Parents whose PLUS loans are in a deferment status are strongly encouraged to pay at least the interest on their loan, as interest is compounded and accrues from the time the loan is disbursed.

The PLUS loan application process only takes a few minutes, and there is no obligation until you start withdrawing funds.

Have too many educational loans? Get lower payments and better terms now with a PLUS loan consolidation

PLUS Loans: Terms and Conditions of the Parent PLUS Loan

2011-02-01T19:27:00.001-07:00

PLUS loans are the best option available to parents who wish to pay for their children’s college education. In fact, the federal government created the PLUS loans program specifically for this purpose. It can be difficult or impossible for some parents to pay for a child’s education out of their pocket- college is expensive and money is tight for many people.
PLUS loans give a parent the ability to fund the costs of college at a low, fixed rate of interest with easy repayment terms, placing a college education within the reach of many families, where otherwise the student would be forced to pay for all of these costs themselves. In order to find out if your parents can get a PLUS loan, an understanding of the basic terms and conditions is essential.

PLUS loans can be used to pay for any part of costs associated with college. This includes standard tuition, but also all other costs that many other loans will not fund, such as books and lab expenses, transportation and living expenses, and even insurance and utility expenses. This allows parents the incredible ability to provide a low-stress environment where their child does not have to concern themselves with the burden of funding their own education. Additionally, PLUS loans feature the following terms and conditions:

*A fixed interest rate of just 7.9%
*Ability to defer payments until six months after the student drops below half time status or graduate
*Ability to request forbearances and deferments in times of financial hardship
*Entire loan responsibility is that of the parent- not the student
*Can be written for any amount
*PLUS loans are offered pending a check to ensure that the parent doesn’t have an adverse credit history
*Can be written with unique repayment terms to suit particular situations

In some cases, families will share the cost of pay for college. Parents can apply for the amount of PLUS loan that they can reasonably afford, and students can apply for federal aid to cover the difference simply by filling out a FAFSA. Whatever your situation is, a PLUS loan is an excellent way to pay for college with terms and rates far better than those offered via traditional loans.

Find out more information now about the PLUS loan application process.

PLUS Loans: How Much Money for College Can I get with a PLUS loan?

2011-01-31T19:00:00.005-07:00

PLUS loans offer parents the ability to pay for their children’s education even when they do not have enough capital to pay out-of-pocket. PLUS loans for parents provide families with a way to enable a student to concentrate on what matters most- their studies. By not having to worry about paying for education on their own via taking out student loans or other forms of financial aid, students experience much less stress and in theory will perform better overall in their academic studies. However, most parents and even students are not aware of federal PLUS loans, so finding out as much about them as possible- including how much total money you can get- is essential to properly explaining a PLUS loan to your parents.

PLUS loans are obtained by your parents pending a credit application. While credit requirements are much less strict than those of traditional loans, it is important that your parent’s credit situation be in decent standing. For this reason, one of the first steps to obtaining a PLUS loan is to have your parents check their credit reports in order to catch any mistakes or inaccuracies and arm themselves with valuable information. After this is accomplished, you’ll have a better idea of how much money you can get with a PLUS loan.

How Much Money is Available Through a PLUS Loan?

PLUS loans are relatively easy to get, and the best part is that unlike regular student loans issued by the United States Department of Education, PLUS loans can be for any amount. In fact, your parents can use a PLUS loan to pay for your entire education- tuition, books, lab fees, transportation, living expenses, and health insurance can all be paid for with the PLUS loan.

The total amount of money for college that you can get with a PLUS loan depends upon your parent’s credit standing and how much expenses you have for college. Some parents might opt to simply pay for tuition, while others will pay for much more. For this reason, it is vital to have a candid conversation with your parents about how much your education will really cost and what part of that your parents can afford to fund using a PLUS loan.

Need to know more about PLUS loans? Follow this link to find out how much interest PLUS loans charge.