July 30, 2008
The new version of the Higher Education Act (HEA) is at last moving to the floors of the House and Senate for a vote. After seven years of waiting and debating, Congressional reauthorization of the HEA could finally happen in the next week, setting the stage for a number of changes in federal student financial aid for college students.
Among other things, the reauthorized HEA would:
Many other changes appear in the 1,158 pages of the bill, which has been a long time coming. The Higher Education Act is supposed to be reauthorized every 5 years, but it has been 10 years since the previous version passed. The new HEA should help financial aid programs adapt to the present situation students face, and should help students better assess and plan for the costs of a college education.
August 1, 2008
August 5, 2008
August 8, 2008
Earlier this week, Massachusetts Governor Deval L. Patrick asked his state's wealthiest universities (such as Harvard University and the Massachusetts Institute of Technology) to help bail out the Massachusetts Education Financing Authority (MEFA), which announced last week that it would not be able to provide loans to over 40,000 students this fall. However, as an article published today in The Chronicle of Higher Education explains, many parties regard this request as well-intentioned but highly problematic, mainly due to recent lawsuits and legislation regarding potential conflicts of interest in relationships between colleges and student loan providers. The Massachusetts state treasurer, who vetoed the governor's request to invest money in MEFA, stated that bailing out MEFA was not a good investment and could set a dangerous precedent for use of state funds. While several colleges said they would consider investing in MEFA to help them provide enough loans to be able to receive assistance from the federal government, none have yet said yes, and many express concerns about what people will think of their relationship with the lending agency once the economy recovers. When viewed in light of last year's preferred lender list scandal, such hesitation is understandable.
However, while both sides of this issue have adopted positions based on sound principles and the belief in doing what will ultimately be best for students, thousands of students are still left in a lurch when it comes to finding money for college. With the new Higher Education Act still sitting on President Bush's desk, and the school year fast approaching, many families, and not just ones in Massachusetts, may be struggling to find ways to pay for school. It's never too late to start applying for financial aid, though! Students who haven't yet done so should complete a FAFSA on the Web, which could potentially qualify you for federal grant programs. Once you've received your financial aid award letter, be sure to talk to your school's financial aid office, especially if you plan on receiving loans. Finally, students of all ages should also check out our free scholarship search, as there are scholarships being awarded year-round, and scholarship awards can be one of the best means of funding your education.
August 11, 2008
The Scholarship of the Week for this week is the Fleet Reserve Assocation Americanism Essay Contest, a scholarship essay contest for students in high school and junior high. Contestants need to write a scholarship-worthy essay of 350 words or less on the theme "what the United States flag stands for." Applicants should submit their completed scholarship application packet to their nearest FRA branch, which does not necessarily need to be in their home state. Essays are first judged at the local level, with winners progressing to regional and national finals.Prize:
The Grand National Prize is $15,000 U.S. Savings Bond, with $5,000, $3,000 and $2,000 Savings Bonds awarded to the first, second and third place winners in each grade category. Certificates and other prizes are awarded at the branch and regional levels, as well.
All students entering grades 7-12 in the fall, as well as home schooled students at an equivalent grade level, are eligible for this scholarship.
Entries must be postmarked by December 1, 2008.
August 12, 2008
Nearly 17% more students completed a Free Application for Federal Student Aid (FAFSA) between January and June 2008 compared to the same period in 2007 according to a report released last month by the Department of Education. Several states, including California and North Carolina, have seen an even more marked increase, with at least 20% more students applying for federal student financial aid for college this calendar year.
This increase in applications for financial aid is largely attributed to the rising cost of a college education, the recent loan crunch, and the general economic downturn, which are all making it more difficult for families to completely cover the cost of tuition. More people may also be applying for financial aid due to increased awareness of its existence, thanks to recent news coverage of financial aid issues.
Aside from longer lines at the financial aid office in the fall, this news is likely to have little impact on students attending college this year (although you may want to apply early for a work-study job lest you discover that the only available job is on the receiving end of that financial aid line). Aid programs with limited funds, such as state grants and campus-based programs like Perkins Loans and work-study jobs, could potentially be exhausted a bit earlier this year, but students still procrastinating on applying for financial aid should still fill out a FAFSA if they haven't missed their school's deadline. Federal aid, such as Stafford Loans and Pell Grants, is still available to late applicants, and as long as they haven't missed any deadlines, students could still manage to receive awards given on a first come, first serve basis.
For students considering financial aid for the 2009-2010 academic year, we recommend deciding early whether you intend to apply for federal aid (not sure? Use a college cost worksheet to estimate your actual cost of attendance), researching your school's financial aid and scholarship application deadlines (especially since some institutional scholarships are need-based), doing your taxes as soon as possible, and completing the FAFSA on the Web in January or February (or as far in advance of the deadline as possible) to ensure that you're considered for all the aid for which you're qualified (to get an idea, you can use the Department of Education's FAFSA4caster). Also, continue to conduct regular scholarship searches and to apply for scholarships, since scholarships continue to be the best way to make up the difference between what college costs and what you can afford to pay for school.
August 15, 2008
Yesterday, President Bush signed the Higher Education Opportunity Act, the official reauthorization of the Higher Education Act (HEA) which governs federal student financial aid for college, as well as other federal programs and regulations that pertain to higher education.
Under the new version of the HEA students can expect a number of benefits when it comes to finding money for college. Some of the changes include:
The National Association of Student Financial Aid Administrators also offers a point-by-point breakdown of the Higher Education Opportunity Act on their website.
August 20, 2008
The results of a poll conducted by Sallie Mae and Gallup were released today, painting a picture of where Americans across income levels find money for college. The study found that sources of funding varied, with parent borrowing (16%), student borrowing (23%), and parent income and savings (32%) taking care of the majority of college costs. Scholarships and grants followed closely behind, making up 15 percent of college funding.
The average grant and scholarship awards and student loan amounts were roughly the same for low income families (families making below $50,000 a year), while middle income families relied most heavily on parent income and student loans, and high income families (families making above $100,000 a year) predominantly used parent income and savings to pay for school.
While more students than parents were likely to rule out a school at some point in their college search based on cost (63% vs. 54%), two in five families said that cost was not a consideration in choosing the right college for them, and 70 percent of students and parents said that future income was not a factor when determining how much to borrow.
Additionally, 20 percent of families reported using either a second mortgage or a credit card to pay some portion of tuition, while only 9 percent of families reported using a college savings plan, such as a 529 plan, to pay for part of tuition (though those who did were able to cover nearly $8,000 of the cost of college with one). The study also found that only 76 percent of students whose families made between $35,000 and $50,000 per year, many of whom may be eligible for state and federal grant programs, did not complete the FAFSA. Only 73 percent of familes making between $50,000 and $100,000 per year completed a FAFSA, despite many families' reliance on loans to pay for college.
The full text of the report is available on the Sallie Mae website.
August 27, 2008
The city of Akron, Ohio plans to introduce a scholarship fund to encourage its high school graduates to stay in the city for college. Akron's plan follows in the footsteps of other cities with similar programs, such as Kalamazoo, Michigan, which gained national attention with the launch of the Kalamazoo Promise scholarship in 2005. An anonymous donor contributes to the Kalamazoo Promise fund, which offers free tuition to graduates of Kalamazoo high school attending college at local schools, such as Western Michigan University. At least 19 cities have followed suit in the last three years, according to the Associated Press, with many relying on private donors to provide scholarship awards.
But no donors have come forth in Akron, so the city is trying something new: leasing its sewage system to a private company, then using the money to establish a scholarship fund. The measure, which has earned the somewhat derisive nickname "stools for schools," is up for a vote in November. While any additional scholarships for high school students are welcome, this measure does come with some drawbacks. Up to 100 city employees in Akron may find themselves without jobs in an already tough economic climate and many residents have issues with the city choosing to privatize public works.
Additionally, students may not be interested in the scholarship anyway. Presently, only 600 Akron high school graduates attend the University of Akron, and the proposed tuition plan will only subsidize what's left of tuition after students' other scholarships are taken out, leaving them with the guaranteed responsibility of room and board. The scholarship committee is also throwing around the idea of attaching a thirty-year residency requirement to the scholarship money, converting the scholarships to student loans for all students who choose to leave Akron before retirement.
While local scholarships are usually a great idea for students, they can stop being appealing if too many requirements are attached. My guess is that few students will want to have their entire lives planned out for them in high school, especially if a change in plans carries a financial penalty of tens of thousands of dollars. Whether or not this measure passes in November, many students from Akron will undoubtedly want to continue their scholarship search. And Scholarships.com is a great place to start, with our database of 2.7 million college scholarships and grants worth over $19 billion, without a 30-year residency requirement in sight.
September 8, 2008
As a means of promoting diversity and developing talent, Scholarships.com has created a new set of scholarship awards for high school students and undergraduate students. The Scholarships.com “Fund Your Future” Area of Study College Scholarship consists of thirteen $1,000 prizes to be granted to students who pursue a postsecondary education in one of thirteen designated fields and 185 related majors.
Among them is the Scholarships.com College English Scholarship, an award for students who are pursuing or planning to pursue a degree in English or Literature. To ensure that current and future English majors receive the funds they need to afford a quality education, we have created a scholarship opportunity especially for them.
If you’re interested in applying for the Scholarships.com College English Scholarship, write a 250 to 350 word scholarship application essay in response to the following question (entries that fall outside of this word range will be disqualified): “What has influenced your decision to pursue a career in English?”
Deadline: October 31, 2008
Required Material: A 250 to 350 word response to the following question: “What has influenced your decision to pursue a career in English?”
Further details about the application process can be found by conducting a free college scholarship search. Once the search is completed, students eligible for the award will find it in their scholarship list.
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