June 17, 2008
The government recognizes the dire financial circumstances of numerous undergraduate students, and slowly, steps are being taken to change things for the better. Three new federal grants have been created within the past two years, the maximum Pell Grant award has risen and interest rates on undergraduate Federal Stafford Loans will begin their gradual descent this fall. But…where does that leave graduate school students?
According the Council of Graduate Schools, the number of students seeking master’s and doctoral degrees is expected to rise by 12% between 2006 and 2014, and many of these students will need financial aid. While certain aid does not apply to graduate school students, plenty of assistance is available to those who know where to look. Here are just a few options:
Federal Aid Unfortunately, graduate school students are not eligible to receive federal grants, but federal aid in the form of federal work study and low-rate student loans (Stafford and PLUS) are still an option. And while the recently passed College Cost Reduction and Access Act will not lower loan interest rates for graduate school students, those who borrowed before July 1, 2006 will see a substantial drop in their bill. Variable interest rates on federal loans will decrease from 7.22%to 4.21 % this year.
Scholarships and Grants Numerous scholarships and non-federal grants are not just available to graduate school students, they are restricted to them. Companies and organizations frequently offer aid to graduate school students who display an interest in work that aligns with their goals. After all, these scholars can be the future innovators of their industry. To find scholarships you may be eligible to receive based on your year in school or major of interest, try conducting a free college scholarship search.
Employer Assistance Students who commit to working for a certain employer may be lucky enough to receive full or partial compensation for an additional degree. This is often the case with hospital staff, educators and employees who could help their companies profit through new skills and certifications.
June 26, 2008
On Tuesday, a Senate panel approved a budget that would increase, among other things, the Pell Grant funding for the 2009 school year. Currently, students who demonstrate financial need—as determined by a Department of Education's FAFSA calculation—can receive no more than $4,300 in Pell Grant money, but not all eligible students receive the full sum. For the upcoming year, the Pell Grant cap will be $4,731. If the Senate panel’s budget is approved by the Senate Appropriations Committee and by the Senate, students could be eligible for up to $4,800.
According to The Chronicle of Higher Education, the Senate panel’s bill would also provide new funding for the TRIO program, a seven-part financial aid initiative created to aid students from disadvantaged backgrounds and those facing circumstances that might hinder their academic pursuits. Additionally, it would provide colleges and universities with more money to pay for the Perkins Loan forgiveness program, one wherein colleges cancel the loans of students who enter select public service fields.
Today, the new initiative will move from the Senate panel to the Senate Appropriations Committee, and, if approved, it will be voted on by the Senate. Any differences between the Senate and House versions will have to be ironed out, and, only then, will President Bush have the option of signing.
June 27, 2008
Kathy L. Hardy, her two daughters and two other associates are being charged for having allegedly taken out numerous fraudulent private student loans since 2005. The five women were accused of having received a combined sum of more than $690,000 by filling out over 70 student loan applications, reported U.S. News.
Though many of the loan applications were denied, a number of lenders, including Sallie Mae, the biggest student lender in the business, lent tens of thousands to the applicants. By using stolen Social Security numbers and the information of victims whose names resembled their own, the five women were able to slip by lender verifications.
The FBI's investigation into the matter began when one of the victims complained that someone had taken out a loan under her name. Upon further investigation, it was found that the women alleged to have been at fault had stolen numerous identities—including one that belong to a deceased person—to collect money.
The case raised concerns that the stealing of identities to obtain private student loans may be too simple. Because private student loans are easier to obtain than Federal Stafford and Perkins Loans, and because private student loans are not sent directly to colleges and universities, the potential for fraud may be considerable.
To minimize the chance that similar problems will arise in the future, a congressional provision that would force student lenders to forward loans directly to schools is being considered. The suggestion has received mixed reviews from lenders who, one hand, would like to eliminate the possibility of fraud, and, on the other, want to facilitate the borrowing process for potential customers.
July 1, 2008
Despite an initial House split over some of the bill’s provisions—an incident which nearly doomed approval by the House—an agreement on the veteran college aid bill was reached by both Congress and the President. On June 30, President Bush signed into law the bill which would, among other things, provide veterans of the Iraq and Afghanistan wars additional assistance in affording a college education.
The new law—similar in content to the WWII GI Bill—will call for an increase in the college financial aid awarded to troops who have served in either war for a minimum of three years. Sufficient assistance to pay for the most expensive public college or university in their respective states will be available to the veterans. Those who are eligible will also receive a monthly stipend to offset housing costs and other college-related expenditures.
The legislation will more than double the federal funding veterans previously received for a postsecondary education. Even those who are not currently planning for college can benefit as the money may be transferred to a veteran's child or spouse.
Perhaps the more controversial part of the bill was that which allocated $162 billion to the wars in Iraq and Afghanistan. According to ABC News, the new funds would bring the total amount approved for war expenditures to about $850 billion over the last five years. In reference to the bill, President Bush stated that, "Our nation has no greater responsibility than to support our men in women in uniform - especially because we're at war."
November 30, 2007
During the November 28th Republican Debate, presidential candidates addressed an illegal immigration issue affecting numerous students. Currently, students who are illegal immigrants may attend college. However, many are unable to do so because financial aid, both federal and private, is not readily accessible to them. While scholarships without citizenship requirements do exist, they are not common.
The Free Application For Student Aid (FAFSA) states that only students who are U.S. citizens, permanent residents or eligible non-citizens are eligible to receive federal aid. To assist these students, some states have passed laws permitting illegal immigrants to pay in-state tuition fees. This has caused a great deal of controversy among people who feel that illegal immigrants should not be benefiting from the tax dollars of legal citizens.
The issue is a sticky one. Some illegal immigrants do pay taxes (the IRS does not discriminate when it comes to accepting tax dollars), but that does not apply to all. Also in question is whether the U.S. should be making it difficult for those who want to go to college to do so, especially when, in the end, it can benefit the nation.
During the debate, former Arkansas governor Mike Huckabee was criticized by former Massachusetts governor Mitt Romney for having supported a bill that would provide merit-based aid to illegal students within the state (the bill was not passed). Romney stated that the bill was in essence supportive of using taxpayer money to assist those who had broken the law and that such money should be used to pay for scholarships available to students whose families did pay taxes.
Huckabee responded by saying that students should not be punished for the actions of their parents and that preventing students from attending college would just leave more of them on the streets. In reference to the importance of an education he stated, “ If I hadn't had the education, I wouldn't be standing on this stage." He also added, " I might be picking lettuce."
Lettuce? Nothing about his life as the son of a fireman points to lettuce picking, but the point was made. Thwarting student talents is the alternative to helping them get through school. This is especially the case when the bill in question is directed at academically accomplished students (which it is).
The debate over illegal immigration rages on without a solution in sight. In is not arguable that many students depend on financial aid to finish an education. The method for distributing this aid is.
December 19, 2007
The whole “college graduates earn $1 million more than non graduates over their lifetime” stat is getting a bit trite. I’ll give you a few more if you’re not convinced that college is a worthwhile investment.
College graduates enjoy greater career security
College graduates can offer their children a more secure financial future
College graduates are healthier
College graduates are more likely to contribute to society
Anyway, you get the picture. The problem isn’t that the whole “follow your dreams” thing makes no sense. The problem is affording those dreams and affording the time and preparation it takes to follow them. Most of us don’t make enough money to loll around devoting our days to perfecting our sculpting skills and sharpening our 3 point shots. Even those with less risky dreams can’t always afford to test the waters, especially if the schooling required to get those jobs is too expensive and time consuming. That’s why so many students find themselves having to compromise their initial career goals after realizing their dream jobs won’t allow them to pay off student loans. Let’s just say that the need for qualified teachers isn’t caused by a disinterested public.
Sorry, I didn’t mean to be gloomy. I swear there’s a silver lining. Financial aid in the form of government grants and outside scholarships is readily available to students in difficult situations. Without a cloud of college debt hanging over your head, “The Road Not Taken” may suddenly become an option. The financial aid information found at Scholarships.com will help you familiarize yourself with the FAFSA, government grants, corporate scholarships, private scholarships, the ins and outs of student loans and myriad other financial aid opportunities. Whether you’re interested in preliminary information or ready to get down to business by finding scholarships, we can help you do it.
If you’re not convinced, you can take a tour of our site. Visit our homepage, and take a sort of “Tour de Scholarships.com” if you will. We can help you see how conducting a free college scholarship search will help you find scholarships and grants that, based on the information you provide, you're eligible to receive. Find New York scholarships, scholarships for graduate students, scholarships for minorities, poetry scholarships, music scholarships—you name it, we’ve got it. With information about more than 2.7 million scholarships and grants, Scholarships.com offers more than you’ll know what to do with. If you’re not convinced yet, just take the tour. Like the search, it’s free. You’ve got nothing to lose, and a world of financial aid opportunities to gain.
April 30, 2008
After an appeal by the Students for Sensible Drug Policy (SSDP), an international grassroots network of students concerned about the impact drug abuse has had on communities, the court has once again rejected the claim that withholding federal student aid from drug offenders is unconstitutional.
According to the 1998 Higher Education Act, students who have been convicted for having, for the first time, used drugs are to be denied federal college funding, including free aid in the form of Pell Grants, from the government for one year. The length increases to two years for a second conviction and becomes permanent after the third. For those convicted of selling drugs, the punishment is a two-year federal aid loss or, for two offenses, the permanent withholding of federal aid.
The SSDPF has complained that the double jeopardy law, one which prevents an individual from being tried twice for the same offense, makes such procedures illegal. According to The Chronicle of Higher Education, Judge Kornmann disagreed with the claim stating that the law served legitimate federal interests by minimizing college drug use and preventing taxpayers from having to fund the education of drug users or sellers.
April 3, 2008
The credit crunch and its negative impact on student borrowers is no longer news. Both FFEL and private lenders have been responsible for financial tensions, and now there’s more to gripe about. Numerous colleges have been complaining that they are not receiving sufficient funding to cover their students' Perkins Loan needs.
Perkins Loans are awarded to students by colleges and universities, but the government provides much of the funding. Because these loans are restricted to students who show particular financial need, shortages will affect students whose families have the lowest incomes most. Perkins Loans have the cheapest interest rates and the most lenient payment options as far as government loans go, as far as most student loans go. Students are asked to pay a 5 percent interest rate on Perkins Loans as opposed to 6.8-7.22 percent on federal Stafford Loans and 7.9-8.5 percent on federal PLUS Loans. Those who turn to private lenders can expect even higher rates.
Due to a poor loan market and a lack of government subsidies, many schools have been forced to cut back on both the number and the size of their Perkins Loans. According to U.S. News & World Report estimates, about 50,000 students who would have qualified for Perkins Loans last year will not qualify for them this year. Those who do qualify may still see their loan limits diminish. Technically, students can borrow up to $4,000 in Perkins Loans (though the number may be lower for those deemed less needy), but certain colleges will be decreasing the maximum funds available to students.
This has left families worried that they may be forced to rely on private student loans after reaching their federal loan limits. After dealing with increasing default rates, both Federal Family Education Loan (FFEL) lenders and private lenders have been forced to make loans more difficult to receive and less appealing to borrowers. Major lenders are becoming sticklers about eligibility criteria and have been cutting back on the benefits offered to students with good paying records.
Students who are no longer eligible for Perkins Loans still have financial aid opportunities. By applying for college scholarships and grants, students may find college funding they do not have to repay. Before considering loans, students should conduct a free college scholarship search to find awards they may be eligible to receive. It is also important to fill out a FAFSA each year. Just because an individual is not eligible for Perkins Loans does not mean they will not be awarded free money in the form of Pell, FSEOG, SMART or TEACH grants.
April 4, 2008
Deciphering the rewards one receives after filling out a FAFSA may be just as difficult as filling out the form itself. Students who plan to take advantage of government loans must pay particular attention to Award Letters detailing their financial aid options.
One of the difficulties associated with taking out government Stafford or PLUS Loans is understanding the differences between the two programs that administer them, the Direct Student Loan Program and the Federal Family Education Loan (FFEL) Program. Students should be aware that although federal Stafford and PLUS Loans may be taken out through either program, the interest rates and conditions may differ based on which is used.
If the college or university participates in the Direct Loan Program, students will borrow money directly from the government at rates that, if the loan is a PLUS Loan, may be slightly lower than those offered through the FFEL program. If the school participates in the FFEL Program, students will be borrowing from a lender they have chosen to work with.
While certain schools participate in both of these programs, about 80 percent of the time, a student will be borrowing through the FFEL program. If a student is taking out only Stafford Loans, the differences are slim. Because lenders participating in the FFEL Program are subsidized by the government, they have to abide by a rule that states all Stafford Loans taken out on or after July 1, 2006 will have interest rates fixed at 6.8 percent.
However, students who also take out a PLUS Loan (a loan offered to parents and graduate students), the interest rates and repayment plans may differ based on program and lender. Students whose parents have borrowed through the Direct Loan Program on or after July 1, 2006 will have their PLUS Loan interest rates fixed at 7.9 percent. If the PLUS Loan is borrowed through the FFEL program, the interest rate may be no greater than 8.5 percent. Individual lenders will choose whether they will set their interest rates at this or a lower number.
It is important that students who borrow through the FFEL Program take more than interest rates into consideration when choosing a lender. Details such as the length or repayment and the penalties for late payments should be considered. Some lenders also offer financial perks to students who have good payment histories, and these should also be taken into account. Usually, schools will provide students with a list of preferred lenders to help them sift through their options, but students should also take other lenders into consideration. While students can trust most financial aid offices to provide them with the most affordable and best-rated lender suggestions, incidences of financial relationships between schools and lenders suggest that students should also conduct some research of their own.
For more information about federal aid, students can take a look at the Scholarships.com Resources section. To find information about scholarships opportunities, students can complete a free college scholarship search.
April 8, 2008
The Free Application for Federal Student Aid (FAFSA) is an excellent opportunity for students in need of college funding. It may be tedious to fill out, but those who receive financial aid will be glad they did. Before submitting, students should review their applications for completeness, accuracy and, of course, deadlines. The June 30th federal cutoff may be months away, but often overlooked state and college deadlines are not.
In addition to federal aid such as Pell Grants, Federal Work Study and loans, students may receive state and college aid based on the information provided in their FAFSA. To be eligible for assistance from one's state and school, students must meet federal, state and college deadlines.
Many states set closing dates between the months of March and May, so students should act quickly. The FAFSA deadlines for individual states are listed below, and college ones can be found by contacting the financial aid office at one's college or university of choice.
Alabama Check with your financial aid administrator Alaska April 15, 2008 American Samoa Check with your financial aid administrator Arizona June 30, 2009 Arkansas For Academic Challenge - June 1, 2008; For Workforce Grant, check with your financial aid administrator;For Higher Education Opportunity Grant - June 1, 2008 (fall term); November 1, 2008 (spring term) California For initial awards - March 2, 2008; For additional community college awards - September 2, 2008 - date postmarked Colorado Check with your financial aid administrator Connecticut February 15, 2008 Delaware April 15, 2008 District of Columbia June 30, 2008 Federated States of Micronesia Check with your financial aid administrator Florida May 15, 2008 Georgia Check with your financial aid administrator Guam Check with your financial aid administrator Hawaii Check with you financial aid administrator Idaho March 1, 2008 Illinois First-time applicants - September 30, 2008 Continuing applicants - August 15, 2008 Indiana March 10, 2008 Iowa July 1, 2008 Kansas April 1, 2008 Kentucky March 15, 2008 Louisiana July 1, 2008 Maine May 1, 2008 Marshall Islands Check with your financial aid administrator Maryland March 1, 2008 Massachusetts May 1, 2008 Michigan March 1, 2008 Minnesota 30 days after term starts Mississippi MTAG and MESG Grants - September 15, 2008 HELP Scholarship - March 31, 2008 Missouri April 1, 2008 Montana March 1, 2008 Nebraska Check with your financial aid administrator Nevada Check with your financial aid administrator New Hampshire May 1, 2008 New Jersey June 1, 2008 if you received a Tuition Aid Grant in 2007-2008 All other applications - October 1, 2008, for fall and spring terms; March 1, 2009, for spring term only New Mexico Check with your financial aid administrator New York May 1, 2009 North Carolina March 15, 2008 North Dakota March 15, 2008 Northern Mariana Islands Check with your financial aid administrator Ohio October 1, 2008 Oklahoma April 15, 2008 for best consideration Oregon Check with your financial aid administrator Palau Check with your financial aid administrator Pennsylvania All 2007-2008 State Grant and non State Grant recipients in degree programs- May 1, 2008; All other applicants - August 1, 2008 Puerto Rico Check with your financial aid administrator Rhode Island March 1, 2008 South Carolina Tuition Grants - June 30, 2008 South Dakota Check with your financial aid administrator Tennessee For State Grant - March 1, 2008; For State Lottery - September 1, 2008 Texas Check with your financial aid administrator U.S. Virgin Islands Check with your financial aid administrator Utah Check with your financial aid administrator Vermont Check with your financial aid administrator Virginia Check with your financial aid administrator Washington Check with your financial aid administrator West Virginia March 1, 2008 Wisconsin Check with your financial aid administrator Wyoming Check with your financial aid administrator
(State deadlines provided by the Department of Education)
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