Skip Navigation Links

More Colleges Turn To Direct Loans

September 30, 2008

by Scholarships.com Staff

The U.S. Department of Education released a series of new statistical reports last week showing a dramatic increase in participation in the federal direct lending student loan program.  Motivated largely by the economic downturn and the credit crunch of the last year, 400 new colleges joined the federal direct lending program.  Overall, student borrowing through the program has increased by 50 percent in the last year.

The federal direct lending program provides students at participating schools with Stafford Loans directly, instead of going through the intermediary of a bank, as is done in the Federal Family Education Loan Program (FFELP).  In previous years, borrowing through FFELP could land students with lower interest rates, as well as significant repayment incentives, but that has changed significantly since 2007 as a result of subsidy cuts and economic difficulties faced by FFELP lenders.  Since direct loans are serviced directly by the Education Department, they are largely exempt from the fallout of the credit crunch and are currently more appealing to many colleges.

There is good news for students at schools that continue to participate in FFELP, though.  Lenders are participating in the loan buyback program enacted as part of the Ensuring Continued Access to Student Loans Act passed earlier this year.  About 40 percent of the student loans in the bank system have been sold to the Education Department, with paperwork being completed on much of the remaining balance.  This move appears to have worked to allow lenders to fund loans for students, as the Education Department also reports that not a single student has had to participate in the federal "lender of last resort" program.

In other financial aid news, Congress recently approved $2.5 billion in Pell Grant funding, to help tide the program over through March 2009, at which point most spring semester grant awards should have been disbursed.  All of this news suggests that students are highly likely to be able to continue to find federal student financial aid for college, at least for the forseeable future.  Of course, finding scholarships and avoiding student loans is still a smart plan, but this news suggests that despite growing fears about the economy, federal financial aid will still be available to students who need it.

Comments

Spellings Announces Shorter FAFSA

October 2, 2008

by Scholarships.com Staff

In a speech delivered yesterday at Harvard University, U. S. Secretary of Education Margaret Spellings announced that her department had managed to whittle the Free Application for Federal Student Aid (FAFSA) down to 27 questions.  The FAFSA is currently 120 questions long and described as Spellings as more complicated than an income tax form. A shorter FAFSA has been called for by Congress and advocated by virtually everyone aware of the form's existence.

Spellings stated in her speech that the length of the FAFSA may be preventing many families from filling it out, despite the fact that they might qualify for federal student financial aid. While part of this phenomenon is likely due to the prevalence of financial aid myths, the complicated nature of the FAFSA likely does play a role.  Although fafsa.ed.gov states that the form should take less than an hour to complete, even for first-time filers, the assessment has always seemed a bit overly optimistic to me. I remember my first encounter with the FAFSA taking hours, and while I ultimately submitted it, I definitely did so under duress and only after repeatedly begging my parents to fill it out for me.  An effort by the Education Department to make it simpler and less stressful to pay for school is definitely welcome.

While Spellings' speech didn't address whether this was the final incarnation of the FAFSA or when changes would debut (let's all cross our fingers for January), a shorter financial aid application is undoubtedly good news for students.  In the meantime, if you're struggling with applying for financial aid, check out some of the resources offered by Scholarships.com.  We have a breakdown of FAFSA and other daunting financial aid acronyms, some tips for completing the FAFSA, and detailed instructions for filling out the FAFSA on the Web.
Comments

Despite Eligibility, Many Community College Students Don't Apply for Aid

October 7, 2008

by Scholarships.com Staff

Many community college students who appear to be eligible for federal student financial aid don't apply, according to a report released Monday by the federal Advisory Committee on Student Financial Assistance.

The report indicated three major reasons for not applying for aid, with 20 percent of students reporting other reasons.  The main reasons students didn't apply for aid were:\r\n
    \r\n
  • They thought they were not eligible (39 percent)
  • \r\n
  • They had sufficient funds to pay for college expenses (35 percent)
  • \r\n
  • They found the FAFSA too complicated (6 percent)
  • \r\n
\r\nAdditionally, many community college students, including 28 percent of students with family incomes below $10,000 worked more than 30 hours a week.  The report cites previous research that has indicated that students who work more than 15-20 hours a week while attending college full-time see a negative impact on their academic performance.  This stresses the importance of these students learning of their financial aid eligibility, namely their increased Federal Pell Grant eligibility under the College Cost Reduction and Access Act of 2007.

This is just the latest report stressing the need for students attending community colleges, especially those planning to transfer to four-year schools to complete a bachelor's degree, to investigate financial aid options thoroughly.  With lower rates of degree completion, higher rates of student loan defaults, and lower likelihood of applying for college scholarships and grants, community college students can easily find themselves in an unnecessarily difficult financial situation.

Hard work, perseverence, and a commitment to exploring all options for financial aid can keep community college students on the path to success.  If you're attending or planning to attend a community college, start by completing the FAFSA on the web, conducting a scholarship search, and meeting with a financial aid advisor to minimize student loans, avoid working yourself to death, and find money for college.
Comments

Financial Aid Expands at Three More Colleges

October 15, 2008

by Scholarships.com Staff

Texas A&M, Boston University, and Vanderbilt University have all recently announced expanded financial aid programs to help lower-and-middle-class students deal with the rising cost of college education and the tough economic situation the country currently faces. 

This news comes as many other colleges are announcing budget cuts and tuition hikes in order to break even in the face of declining state funding. Proposed cuts to higher education funding currently range from a one percent cut in Maryland to a reduction of funding by more than 14 percent in Nevada, according to a recent write-up in The Chronicle of Higher Education

Despite financial concerns, though, more and more schools are digging into their pockets to find additional scholarship and grant money for their students.  Texas A&M will provide free tuition to all freshmen with a family income below $60,000 and a GPA above 2.5.  Boston University plans to meet all financial need for every Boston public school graduate admitted to the university.  Vanderbilt will replace all need-based student loans with grants for its students starting next fall, though it still needs to raise an additional $100 million to fully fund the program.

U.S. News and World Report provides more information on these new financial aid programs.  You can find out more about these and other generous institutions by conducting a college search on Scholarships.com.

Comments

Financial Assistance for Public Service

November 18, 2008

by Scholarships.com Staff

Are you considering a career in public service, such as working for the government or a non-profit organization, but more than slightly overwhelmed by the thought of repaying your student loans with an often minuscule salary?  Realizing that you may actually be taking a pay cut to transition from your summer job to your "grown up" career can be demoralizing, and dealing with debt on top of that certainly doesn't help.  While many noble individuals certainly make this sacrifice, perhaps you were hoping to forget where the grocery store kept its "manager's special" items after you graduated.  And who can blame you?  The college budget diet, and the accompanying lifestyle of cramming half a dozen people into one run-down apartment, eventually does get old.  Luckily, there are forms of financial aid out there to minimize or relieve your debt and help you stretch that public servant salary a little further.

Some of the most well-known career-based assistance programs are designed for teachers.  The TEACH grant contributes $4000 a year towards the tuition of students who agree to teach a high-need subject at a low-income school for four years. Other programs such as Teach for America offer teaching certification, a stipend, and assistance with student loan repayment to individuals agreeing to teach in certain schools.

Teachers and other public servants can also qualify to have their Federal Perkins Loans canceled, saving up to $16,000.  Nursing students and other medical students can get in on this program, as well.  The federal government also launched a public service loan repayment program a year ago that will forgive qualifying federal student loan debt for those who commit ten years to public service.  In addition, a variety of government scholarships provide incentives for students in various majors to consider federal work.

An article appearing in USA Today this week also mentions some university-specific programs to help steer students towards public service careers.  Harvard Law School will waive tuition for one year for students who commit to five years in government or non-profit fields, and Princeton University will provide free master's degrees to eight 2008 graduates who first put in two years in federal jobs.  Tufts University is also helping its undergraduate students pay down debt or pursue graduate degrees if they commit a few years to public service work.

If you're leaning towards a career with a government agency or non-profit organization, be aware of the scholarships, grants, fellowships, internships, and loan repayment programs out there.  Include a free college scholarship search in your research to find out about many of your options for funding your education and minimizing your debt.

Comments

49 States Receive Failing Grades in College Affordability

December 3, 2008

by Scholarships.com Staff

Every two years, the National Center for Public Policy and Higher Education releases a report entitled "Measuring Up," which grades states in six categories related to higher education.  This year's results were published today and many states are probably wishing they had been graded on a curve.  Out of 50 states, only California received a passing grade in terms of affordability, squeaking by with a C-.  Grades were higher in terms of preparation, participation, completion, and benefits, and all states received an incomplete in learning due to insufficient data.

A state's higher education affordability grade was arrived at by considering the following: family ability to pay at community colleges, state universities, and 4-year private colleges (based on percentage of income after financial aid is taken into account); the level of investment in need-based state financial aid programs (as compared to federal investment in Pell Grants); the presence of low-cost college options; and the average amount students borrowed per year in student loans.  Failing grades suggest that states are not doing enough to make college affordable for their students, especially those from poor and working class families.

If you're a student, you might be wondering what this means for you.  The answer?  Many students in most states may find it difficult to pay for college using their family income and state and federal student financial aid.  And since affordability grades are actually lower this year than two years ago, it may be even tougher now to attend college debt-free.  Be sure to explore student financial aid options beyond state and federal programs early, rather than waiting for your award letter and finding you've come up short.  You can start by doing a free college scholarship search right here at Scholarships.com.

Scores in other categories were not nearly as bleak as in affordability.  However, even though the majority of states received passing scores in four of the five categories in which grades were given, the distribution looks more like a required high school course than, say, a graduate seminar.  Statements that accompany the report further stress that in the center's opinion, states need to improve their contributions to higher education.  You can view the report card for your state on the National Center for Public Policy and Higher Education's website.  The Chronicle of Higher Education also provides a chart listing each state's grade in each category.
Comments

Website Lets College Students Get Paid for Good Grades

December 4, 2008

by Scholarships.com Staff

Providing incentives for good grades is an increasingly common policy for parents of elementary and high school students.  In my household, report card day meant personal pan pizzas and a reprieve from the topping battle among my sister who didn't eat cheese, my sister who only ate cheese, and my own vote for a supreme pizza with extra cheese.  After pizza ceased to be a point of contention, my parents switched to the popular plan of offering financial incentives for good grades.  I don't remember the pay scale exactly, but I do remember missing it once I hit college.  Many undergraduate students are probably in the same boat, thinking about how even $10 or $20 per A could mean fewer trips to the plasma bank or even an extra textbook or two next semester.

Two brothers, who also happen to hold economics degrees from Harvard and Princeton, had a similar idea.  Michael and Matthew Kopko launched the website GradeFund last month to apply a model similar to fundraising for a marathon, where sponsors pledge to donate a certain amount per mile completed, to finding money for college.  College students' friends and family members, as well as corporate sponsors and others interested in donating money to help deserving students fund their educations, sign up on the site to give a certain dollar amount per grade earned to a particular student.

Students create profiles donors can search, and are matched up with people interested in helping them finance their educations.  Rather than agreeing to provide student loans or cover tuition in exchange for work, like in other peer-to-peer financial aid programs we've mentioned on our blog, donors on GradeFund, like scholarship providers, don't require anything in return for their donations.  While it's unlikely that a student will pay for their entire university education this way (according to The Chronicle of Higher Education, the current highest pledge per A is $400), they could easily pay for their books and possibly even a good part of other expenses that college scholarships or student financial aid might not cover.  Plus, since these payments are linked to concrete achievements by students already attending college, donors may feel less apprehensive about the recipients of their philanthropy floundering once they face the academic challenges of their undergraduate studies.

Comments

Free Tuition for the Unemployed

December 5, 2008

by Scholarships.com Staff

While a change in or loss of employment can be a powerful motivator for many people to go to college to learn new skills and gain new credentials, funding your education can seem impossible with no steady source of income.  At the same time, with a deepening recession and a still-growing unemployment rate, the job market is not favorable for many who have been laid off, especially those who lack a college degree.  Luckily, campus-based aid programs can help make attending college possible for the unemployed.  Several community colleges and at least one private college are now offering tuition discounts for members of their communities who were recently laid off.  Northampton Community College in Bethlehem, PA has been making headlines recently by announcing the revival of its program that waives tuition for prospective students who have recently lost their jobs.  The college has rolled out this tuition waiver in past recessions, allowing displaced workers to attend full-time or part-time and pay only student fees, which are currently $28 per credit.  Student financial aid is available to help especially cash-strapped students cover the cost of fees, as well.  Students are able to take 12 credits tuition-free each term, but must register after students paying full price.  A similar program is being offered at Bergen Community College in Paramus, NJ.  Reading Area Community College in Reading, PA also offers recently unemployed students a one-semester-only tuition waiver covering the cost of up to 13 credits.  All of these community college tuition waivers, as well as one offered by Lawrence Technological University in Southfield, MI are profiled in an article in Inside Higher Ed.  Other schools may offer discounted tuition or additional college scholarships or grants for students who have lost a major source of income due to the recession.  Nearly all colleges are able to offer some additional assistance if students or their parents are facing financial hardships, though, so don't assume college is out of reach just because you don't live in Southfield, MI or Paramus, NJ.  Talk to your financial aid office and see what they can do to help.  And taking some time to conduct a free college scholarship search couldn't hurt, either.
Comments

Gates Foundations Announces Grants to Improve College Completion

December 10, 2008

by Scholarships.com Staff

Last month, the Bill and Melinda Gates Foundation revealed plans for a new grant program that would focus on improving rates of college completion for low-income students.  The first recipients of the grants were announced Tuesday, primarily consisting of organizations that either study or promote college preparedness and completion among the foundation's target groups.  While few of the grants awarded will translate directly into college scholarships for first-generation, low-income, or minority students, many of the programs receiving funding are intended to help these students go to college and create success.  Currently, only 25 percent of low-income students finish college, and each year high schools produce over 560,000 college-eligible graduates (most whose parents make less than $85,000 a year) who will fail to earn a college degree within 8 years, according to research cited by the New York Times.  The Gates Foundation's stated goal for this grant program is to eventually double the percentage of low-income students completing a college degree or certificate program by the age of 26.  The Chronicle of Higher Education explains that the grant initiative will have a three-pronged approach: "making the case to policy makers, educators, and business leaders about the need for increasing college-completion rates; accelerating success in remedial education; and ensuring that young people have the financial, social, and academic support to succeed in college."  Coupled with the existing Gates Millenium Scholarship Program, which helps disadvantaged and minority students pay for school, these Gates Foundation grants have the potential to ultimately make not only attending college, but earning a degree and achieving college goals possible for the majority of American high school graduates.

Comments

Despite Economy, Many Colleges Still Give Generous Aid

December 17, 2008

by Scholarships.com Staff

Amid all the bleak news about college affordability, family finances, and the economy in general, it's nice to hear something good every now and then.  And there is good news out there.  Despite financial hardships, many colleges are not only continuing to offer generous financial aid packages, but are actually expanding scholarships, grants, and tuition waivers for needy and deserving students.  As a taste of what's out there for students across the country, we're presenting a roundup of campus-based aid programs announced this week.  Conduct a college search on Scholarships.com to learn more about these and other schools committed to helping students enroll and stay enrolled.  While you're at it, be sure to start a free college scholarship search to find more ways to fund your education.

A number of cities, states, and universities offer promises, guarantees, or other commitments to cover four years' full tuition for financially needy or academically gifted students.  While a wave of these scholarship and grant programs were launched in financially better times, more are still being unveiled in the current economic climate.

Manchester College in Indiana has rolled out a "Triple Guarantee" that promises to make college more affordable and less stressful for its students.  Qualifying students are guaranteed a combination of federal, state, and institutional aid up to the total cost of tuition and mandatory fees for four years.  Students with a 3.3 GPA or higher who qualify for the Pell Grant are guaranteed full-tuition grant aid.  On top of paying tuition for four years for needy students, the college also guarantees four-year graduation for everyone who meets progress requirements, and will allow qualified students who need a fifth year to attend for free until they graduate.  Finally, the school also guarantees a year of free tuition for additional coursework or certifications for students who fail to find a job placement or a spot in graduate school within six months of graduation.

In a similar vein, St. John's University in New York is also offering a substantial tuition discount to unemployed alumni.  Graduates of St. John's who were laid off in the economic downturn can return to college to pursue a graduate degree for half-price.  Alumni will also receive free career counseling services and see their application fees waived for graduate programs.

Finally, Texans get multiple pieces of good news.  More students at Rice University will be able to graduate debt-free, as the university has expanded its no loan program to families making up to $80,000 per year.  Students with family incomes over the $80,000 threshhold who still qualify for need-based aid will not be asked to borrow more than $10,000 in student loans for four years.  Lamar University is also making college more affordable for Texans by unveiling the Lamar Promise, which will cover tuition and fees for all freshmen and transfer students who qualify as "dependent" students for federal aid whose families make less than $25,000 a year.  Students who make more are likely to also receive substantial financial aid packages.  Tuition assistance will come in the form of state, federal, and institutional financial aid.

Comments

Recent Posts

Tags

ACT (19)
Advanced Placement (24)
Alumni (17)
Applications (80)
Athletics (17)
Back To School (73)
Books (66)
Campus Life (454)
Career (115)
Choosing A College (51)
College (990)
College Admissions (238)
College And Society (297)
College And The Economy (371)
College Applications (144)
College Benefits (289)
College Budgets (214)
College Classes (444)
College Costs (488)
College Culture (589)
College Goals (386)
College Grants (53)
College In Congress (88)
College Life (555)
College Majors (220)
College News (577)
College Prep (166)
College Savings Accounts (19)
College Scholarships (157)
College Search (115)
College Students (442)
College Tips (113)
Community College (59)
Community Service (40)
Community Service Scholarships (26)
Course Enrollment (19)
Economy (119)
Education (26)
Education Study (29)
Employment (41)
Essay Scholarship (38)
FAFSA (55)
Federal Aid (99)
Finances (70)
Financial Aid (413)
Financial Aid Information (57)
Financial Aid News (56)
Financial Tips (40)
Food (44)
Food/Cooking (27)
GPA (80)
Grades (91)
Graduate School (56)
Graduate Student Scholarships (20)
Graduate Students (65)
Graduation Rates (38)
Grants (62)
Health (38)
High School (130)
High School News (71)
High School Student Scholarships (182)
High School Students (307)
Higher Education (110)
Internships (526)
Job Search (177)
Just For Fun (114)
Loan Repayment (39)
Loans (47)
Military (16)
Money Management (134)
Online College (20)
Pell Grant (28)
President Obama (24)
Private Colleges (34)
Private Loans (19)
Roommates (100)
SAT (22)
Scholarship Applications (162)
Scholarship Information (178)
Scholarship Of The Week (269)
Scholarship Search (217)
Scholarship Tips (86)
Scholarships (402)
Sports (62)
Sports Scholarships (21)
Stafford Loans (24)
Standardized Testing (45)
State Colleges (42)
State News (33)
Student Debt (83)
Student Life (510)
Student Loans (139)
Study Abroad (67)
Study Skills (215)
Teachers (94)
Technology (111)
Tips (505)
Transfer Scholarship (16)
Tuition (93)
Undergraduate Scholarships (35)
Undergraduate Students (154)
Volunteer (45)
Work And College (83)
Work Study (20)
Writing Scholarship (18)

Categories

529 Plan (2)
Back To School (357)
College And The Economy (510)
College Applications (249)
College Budgets (341)
College Classes (564)
College Costs (746)
College Culture (926)
College Grants (133)
College In Congress (132)
College Life (946)
College Majors (330)
College News (904)
College Savings Accounts (57)
College Search (389)
Coverdell (1)
FAFSA (116)
Federal Aid (132)
Fellowships (23)
Financial Aid (703)
Food/Cooking (76)
GPA (277)
Graduate School (107)
Grants (72)
High School (536)
High School News (256)
Housing (172)
Internships (565)
Just For Fun (222)
Press Releases (1)
Roommates (138)
Scholarship Applications (221)
Scholarship Of The Week (345)
Scholarships (594)
Sports (74)
Standardized Testing (58)
Student Loans (225)
Study Abroad (61)
Tips (828)
Uncategorized (7)
Virtual Intern (532)

Archives

< Mar April 2015 May >
SunMonTueWedThuFriSat
2930311234
567891011
12131415161718
19202122232425
262728293012
3456789

<< < 5 6 7 8 9 10 11 12 13 14 > >>
Page 9 of 14