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

Applying for merit based scholarships

2014-02-05T00:14:00.002-07:00

Merit based scholarships are merit based, meaning that you have to do well in school to get them. You can get merit based scholarships for getting good grades, being in certain clubs, and even out of school activities like volunteering.

All of these types of scholarships must be applied for and you usually must apply for the separately. Each organization is going to want an application that specifically answers the questions that they are going to want to know to see if you even qualify for their scholarship. Companies like Coke and the famed Duct Tape scholarship have certain criteria that you must follow to get their money they are giving out for college.

Most high schools have information about all sorts of scholarships that you can apply for but, the best place to find scholarships based on specific activities that you are involved in is online scholarship search engines like Fastweb. These sites have great filters where you can put in all of your activities and it will return scholarship results that are tailored just for you.

Also, another good resource is the financial aid office at the college you wish to attend. They have many scholarships that they give out that you might not even know exist or you might be the only one that applies for it.

In short, yes, you must apply for all merit based scholarships for the college you want to attend.

How to get a CSS Profile Fee Waiver

2013-02-06T12:50:00.003-07:00

The CSS Profile is a financial aid application that is used by some schools and scholarship programs to determine eligibility for certain type of financial aid.
This application is not to be mistaken with the FAFSA, which is the federal application.

The CSS Profile has fees involved with submission and fees depend on how many schools you wish to put on the application. There is a $25 fee for the application and it will cost $16 for each school you wish to send the application to.

If you have serious financial need you can get a CSS Profile Fee Waiver from the college board and possibly a CSS Profile payment code from the schools that you wish to attend if you meet certain eligibility requirements.

At the end of the profile application it will be determined if you are eligible to have your fee waived depending on the financial information you have put into the application. If you are eligible , the cost of the application will be automatically deducted from the total owed at the end.

Some colleges also offer payments codes that you can enter in the application so you do not have to pay the fee involved with that school. You must talk to the college directly to see if they have codes available for you. Most schools will give out codes based on financial need and it is possible that you need to fill out other paperwork with the school to determine eligibility.

FAFSA.com Scam

2012-12-06T12:53:00.001-07:00

If you are reading this article, you probably got here by searching for FAFSA.com scam or something similar. I am here to provide the facts about so called FAFSA scams or paying someone to help you with the FAFSA.

Let's start out by talking about the word scam. A scam is an event that takes place in which a person or company takes money or information from you and gives you nothing in return and will not contact you or has not way for you to contact them.

FAFSA.com and other preparation sites that help you with the FAFSA are NOT scams. They do not take your money and run away or take your money and give you nothing in return. They are legitimate companies that are experts in filling out the FAFSA to make sure that you are getting everything that you are eligible for.

Another way to put it can be that you can get free help when filling out your taxes and it is 100% free to fill out your taxes, however, many people go to and pay a professional to ensure they are done right and submitted with no errors.

College is the second largest expense that you will pay for in your life so why shouldn't you make sure that you are getting everything you possibly can by hiring a FAFSA preparer.

People who are trained in FAFSA preparation will go through your form with a fine toothed comb to make sure it will not be rejected by the government, is submitted with no errors, and everything is correct so you are eligible for more aid.

The consequences of your application being rejected by the government can be devastating. It might take 4-6 weeks for you to hear back letting you know that your application has been rejected and it is possible by that time you have missed an important deadline and left free money on the table.

So if you feel that you can do the application yourself, by all means do it on the government site. If you want to make sure that it is done right and done right the first time, pay someone a small fee to get it done. There are sites that even guarantee that you get offered a certain amount of aid if you use their service. That is money well spent.

IASG Grant

2012-11-30T12:20:00.000-07:00

The Iraq and Afghanistan Service Grants are monies from the federal government set aside to help pay for college and university for students whose parent or guardian was killed in the line of duty while performing military service in Iraq or Afghanistan after the events of 9/11.

The IASG Grant is the same amount as the Pell Grant, which is $5500 a year for students and can be renewed year after year.

There are certain eligibility requirements to receive this grant for college. You must not be already eligible for a federal Pell grant however, you must meet all other Pell grant requirements. Your parent or guardian was a active member of the military and was killed in the line of duty in Iraq or Afghanistan as a result of military events since the events of 9/11 and the student must be under the age of 24 or have been in college at least part time at the time of the parent's or guardian's death.

This grant is just like other financial aid and it follows the same guidelines as regular federal aid so students must make sure they are following the satisfactory academic progress policy and all other federal financial aid guidelines to continue to get this grant.

The IASG Grant application is the FAFSA and you must fill out this form to be eligible for any student aid.

Federal Work Study

2012-10-26T17:06:00.002-07:00

The Federal Work Study Program and Your Education

A number of grants, loans and other programs exist to help you find the financing required for today's colleges and universities. However, one of the best programs is the Work Study program. There are both federal and non-federal works study programs; each offers similar benefits and operates on a similar basis. This program is designed to provide financial aid to students in financial need and can be combined with other options to create a comprehensive financial aid package. In fact, a Work Study program can be used successfully with both loans and grants.

What is a work study program?

The Federal Work Study program (FWS) provides students with jobs in which their wages pay for education. These jobs may be in your course of study (directed towards your interests) or they may be in the service industry. In addition, the jobs may be on campus or off campus, depending on the number of available jobs, as well as the number of eligible applicants. On Campus Positions – On campus jobs can be in almost any field, from office work to grounds keeping and maintenance. All efforts will be made to play applicants in an area similar to their course of study; however, due to large numbers of eligible students, this will not always be possible. Eligible students will be given a list of available jobs and told to indicate which would best match their interests. Once you have made your choices (choose multiple categories), you will be notified when a job becomes available. The more selections you make, the greater the likelihood that you will receive a job offer quickly. After the offer is made, you will have to meet with your supervisor, department head, employer, etc. This interview will give you an in depth look at the position in which you are interested, as well as allowing both you and the employer to get a better feel for the fit you will make.

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How are Funds Allocated?

You will be paid at least minimum wage for every hour worked. These wages will be used to supplement your other funding, including grants and school loans. The amount of your hourly wages will depend on the type of job performed; higher risk and higher pressure jobs will pay commensurate with skill required. However, you will be paid at least the federal minimum wage. In addition, raises are available for many positions, though this is dependent on other factors, such as length of employment, performance and other factors.

What Type of Off-Campus Jobs Can I Find?

You'll find several different options if you must take a job off-campus. All jobs must be in the service sector or through nonprofit organizations. The exact list of organizations and companies will be available from your school and will vary depending on your geographic area, as well as your skill set/course of study.

How Many Hours Can I Work? Can I Make Extra Money?

Most Work Study programs only authorize 10-15 hours of work each week; though this will vary with position, course of study and other conditions. Work Study hours are designed to provide students with the flexibility they need to focus on their studies. Your earnings cannot exceed the amount awarded through the Federal Work Study Program; your school will track the amount you have earned, though it is your responsibility to inform your employer when you can no longer work.

Nonfederal Work Study

If you do not qualify for the Federal Work Study Program, your school may offer other options. These will be provided through the school most of the time, though community organizations can also offer help. Taking an on-campus position offers you more flexibility than other options. It is important to note that any earnings under non-FWS are considered taxable income and, as such, must be counted in your FAFSA, and will play a role in dictating grants and loans. Your exact pay will be determined by the position you choose at your school or offered by an off-campus organization. Remember that your employer will set your hours as they see fit, though they will take your studies into consideration when scheduling your hours. Nonfederal work study is not funded by the federal government as FWS is. Individual participating schools set aside a certain amount of funds for students who wish to work to help pay for tuition and do not qualify for FWS; however, funding is limited and these jobs will go on a first come, first served basis. It is vital to alert your school as soon as possible that you are interested in working to supplement any grants to pay for your education.

The A to Zs of College Adminissions Guiding High School Juniors, Seniors, and Parents Through the Application Process (Google Affiliate Ad)

How Do I Apply for the FWS Program?

Applying for the Federal Work Study Program is very simple. You simply have to note it on your FAFSA form. You will be notified of the amount awarded to you in your awards letter from your school. It is important to understand how much has been awarded to you per enrollment year, as well as how much is available to you on per quarter, semester, trimester, etc. This amount will dictate how much you are able to work, as well as how much additional funding is required to pay for your education. You can obtain a copy of the FAFSA through your high school guidance counselor or through the Internet. Electronic submission of the FAFSA results in faster response times, through email notification. However, for those without Internet access, traditional mail options are available; an awards letter will be mailed by the school after evaluation.

Notes on FWS

The Federal Work Study program is awarded on an "as needed" basis. This means that those in the most financial need will receive awards first, followed by those in lesser need. It is important to provide all financial related material during your FAFSA submission to ensure you are awarded the correct amount of funding through FSEOG, FWS, Pell Grant, ACG and other grant programs.

US Scholarships for Canadian Students

2012-10-21T17:21:00.003-07:00

Many Canadian students come down to the United States to attend school here and many have asked if they are eligible for financial aid.

To be eligible for federal financial aid such as FSEOG, Pell Grant, and Stafford Loans, you must be a United States citizen. There is no way of getting around this rule and if you wish to get federal FAFSA aid, you must become a citizen.

You can apply for private student loans and private or 3rd party scholarships. Private student loans are not backed or endorsed by the US government like other student loans are. You will probably have to start making payments immediately and you would not be eligible for things like deferment or forbearance.

There are private scholarships that are open to students who are not residents of the United States, however these scholarships are not easy to find nor win. The best bet is for you to create a profile on a scholarship search site such as fastweb and see if there are any available.

Arkansas Lottery Scholarships

2012-08-13T23:56:00.000-07:00

The Arkansas Lottery has decided to do something very worthwhile with the lottery proceeds. All net proceeds from lottery sales in the state of Arkansas goes to education scholarships for college students. These scholarships can be used at all public and non-profit colleges in the state. They can be 2 or 4 year institutions of higher learning.

$272 million dollars has been given out to college students so far with the scholarships and much more is to come in the future. This year the scholarships are $4,500 for a four year college and $2,550 for a two year school. You can renew this scholarship as well as long as you are enrolled 12 hours the first semester and 15 hours each semester after that. Arkansas really does care about its college students to be just giving away this money to college student.

So please, if you are an Arkansas resident, please play Arkansas Lottery Games and help contribute to the future leaders of America with the Arkansas Lottery Scholarships.

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 Grant 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.

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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.

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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.