Financial Aid Blog

WHO GETS WHAT: Billions to colleges and students

The stimulus plan emerging in Washington could offer an unprecedented, multibillion-dollar boost in financial help for college students trying to pursue a degree while they ride out the recession.

It could also hand out billions to the states to kick-start idled campus construction projects and help prevent tuition increases at a time when families can least afford them.

But cuts of $40 billion for state and local governments in the Senate version were a big disappointment for college leaders. House-Senate negotiations will determine whether education aid to the states is relatively modest or massive — and how much gets directed to high-need institutions for building projects, versus elite universities that would benefit if the final package spends more of the money on scientific research.

Students are big winners. Both the House and Senate bills call for the largest-ever funding increase for Pell Grants, the government's chief college aid program for low-income students.

It will take much of the proposed $15.6 billion increase in the House version (slightly less in the Senate) just to erase the existing funding shortfall and meet the surging demand as the economy sours and more students enroll.

But the package would also increase next year's maximum award by up to $500, to $5,350, starting July 1. That's the biggest increase in history and would cover three-quarters of the cost of the average public four-year college.

Most Pell recipients come from families earning less than $40,000. And supporters note the new Pell dollars would be spent almost immediately — students can't save them — while also paying off down the road.

Educational grants provide much-needed funds

It’s been said that money doesn’t buy happiness, but it definitely buys textbooks, desks, lockers, computers, supplies, refurnished buildings, tools for special needs children to learn, sports equipment and a college education, to name a few.

President Barack Obama’s recent education stimulus package will pump about $150 billion into elementary schools, high schools and colleges across the country.

This will happen over the course of two years. It will nearly double the current budget, prevent countless teacher layoffs and contribute funding to the country’s 15,000 school districts and thousands of college campuses. The money will support a wide range of projects, including special education programs, school renovation, better technology, and grants for college students.

Finally, it will be money well spent. Maybe we should have an economic meltdown every time we need something done around here.

College financing search

Getting into college? No sweat, compared to paying for college.

And it’s not just freshmen and their parents who are nervously eyeing college costs. Lots of working adults, returning to school for MBAs, job retraining or a midlife career change, also are calculating the price tag.

And no wonder.

According to the College Board, the average annual cost of tuition and fees at a private four-year university in 2008-09 is $25,000. Pile on books, clothes and living expenses - not to mention fun money - and you’re looking at a big chunk of change.

“The economy’s having a definite impact on people’s anxiety levels on how they’re going to pay their tuition bills,” said Craig Carroll, CEO of Student Financial Aid Services Inc., a private Sacramento, Calif.-based company that - for a fee - guides families through the financial-aid process. Carroll said calls to his company this month have jumped 40 percent, compared with a year ago.

Given the economy, “Even families that were feeling very comfortable about their savings are starting to feel very uncomfortable,” he said.

Prospective US College Students Face Greater Financial Burden

Getting a college education is part of the "American Dream." In recent years, many colleges were working to bring about greater racial and economic diversity among their student populations by awarding promising students from low income families substantial grants and sometimes a free ride. But now, as the U.S. recession deepens, and college tuition is at an all time high, more and more students are finding it difficult to get financial aid, and thus to pay for college.

Pell grants get lift

College students see more federal aid in federal stimulus plan ALBANY -- Capital Region students and families struggling to pay for college during hard times are poised to get some relief from a federal stimulus bill that would pump billions into financial aid, state and national education experts said. "As I understand this bill, it will probably be the largest increase in financial aid at least in the last two decades," said Abe Lackman, president of the Albany-based Commission on Independent Colleges and Universities.

The mammoth bill, which President Barack Obama could sign by Monday, would inject some $17 billion into the Pell Grant program, a cornerstone of federal aid that gives grants to low-income students.

To gauge the local impact, look at these numbers: University at Albany has just under 4,000 Pell recipients, with about 30 percent of its undergraduates eligible for the program. At the Sage Colleges in Albany and Troy, 36 percent of undergraduates receive Pell. At Union College in Schenectady, 13.5 percent of students get the grants.

The stimulus bill would increase the maximum Pell grant by $500 to $5,350, said Mark Kantrowitz, publisher of the Web site FinAid. More than 6.2 million current recipients would get a $500 increase in their grants, he said, unless they have hit cost-of-attendance limits. And 800,000 new recipients would get Pell for the first time, he said.

College Is Possible for Students With Intellectual Disabilities

New support programs and federal funds can help students with intellectual disabilities

Unlike students who pull all-nighters and cram before exams, Mount Aloysius College student Katie Apostolides has been working diligently in preparation for midterms since her first day of class. She starts papers and projects the day they are assigned, meets weekly with a different peer tutor for each of her classes, and knows to take short breaks throughout her studying in an effort to stay focused and on task. These and other strategies help Apostolides learn at a collegiate level in spite of her Down syndrome, an intellectual disability.

How will the government stimulus plan affect you?

Higher Education:

The maximum Pell Grant, which helps the lowest-income students attend college, would increase from $4,731 currently to $5,350 starting July 1 and $5,550 in 2010-2011. That would cover three-quarters of the average cost of a four-year college. An extra 800,000 students, or about 7 million, would now get Pell funding.

The stimulus also increases the tuition tax credit to $2,500 and makes it 40 percent refundable, so families who don't earn enough to pay income tax could still get up to $1,000 in extra tuition help.

Computer expenses will now be an allowable expense for 529 college savings plans.

The final package cut $6 billion the House wanted to spend to kick-start building projects on college campuses. But parts of the $54 billion state stabilization fund — with $39 billion set aside for education — can be used for modernizing facilities.

There's also an estimated $15 billion for scientific research, much of which will go to universities. Funding for the National Institutes of Health includes $1.5 billion set aside for university research facilities.

Altogether, the package spends an estimated $32 billion on higher education.

College Scholarships from Federal Sources

One of the best types of college scholarships that you could get would have to be government scholarships. These scholarships probably enable you to move forward and more solidly in a career than just about any other kind. Follow this advice so you can get scholarship money.

Scholarship Announcements

Scholarship Announcements: Hebrew Immigrant Aid Scholarship, STOP Hunger Scholarship, U.S. Bank Internet Scholarship TGIF! Before you shut off your computer and go enjoy your weekend, I’ve got some scholarship announcements for you. As I mentioned last week, February and March are scholarship season. There are tons of great scholarships out there with deadlines in the next few weeks. So, if you are serious about earning free money for college, now is the time!

Today I have three wonderful opportunities: The Hebrew Immigrant Aid Scholarship for refugees and asylum seekers now living in the United States; Sodexo’s STOP HUNGER scholarship for community activists; and US Bank’s Internet Scholarship Program

Finding college financial aid more challenging this year

CHICAGO -- Karen May admits to anxiety spells over coming up with the money to put her daughter, a high school senior, through college.

The stock market's steep dive has knocked 25 percent to 30 percent off the value of the 529 savings plan that May had been contributing to since Brie was born, putting her goal of providing $15,000 a year out of reach.

But the 48-year-old accountant from Vernon, N.Y., hopes to find a way to make some of it back besides cutting spending, skipping vacation and working a second job: She spends hours every week researching financial aid options with her daughter.

"With aid possibilities coming from so many different sources -- federal, state, colleges, local and national scholarships -- the process is time-consuming and somewhat complicated, especially for kids who have little or no preparation in financial areas," said May, a single parent.

Finding financial aid for college this year promises to be tougher than any final exam.

College Planning

College Planning | College planning must begin long before the final year of high school.

Average Student Loan Debt

Average Student Loan Debt | The Practical Guide to Financial Aid

African American Scholarship

African American Scholarship: Access to a college education is vital for all students. It can open boundless possibilities and assists students to realize and cultivate their distinctive talents.

Academic Competitiveness Grant

Academic Competitiveness Grant : Grants For College

Want financial aid for college in this economic downturn? Better do your homework

Sheila Fletcher, who works part time for a foster-home agency, and her husband, Jason, who works in banking, make a good living.

Her daughter, Kiera Cheever, has her heart set on attending the University of Oklahoma, which both mother and daughter describe as a beautiful place with a great program in finance, her intended major. But the cost — more than $26,000 a year — would amount to about a quarter of the couple’s gross income.

"It’s a huge hit," said Sheila Fletcher, of Arlington.

Resigned to make it work, the family is seeking whatever help it can get. But it will likely find fierce competition for financial aid. The economy is lagging, so more adults are returning to college to learn new skills. And a bumper crop of high school seniors will graduate this spring. Adding to the competition:

FAFSA: Free Application for Federal Student Aid

FAFSA: Free Application for Federal Student Aid - The basics for applying for financial aid.

FAFSA Tips

FAFSA Tips: Your first step is to complete The Free Application for Federal Student Aid, widely known as FAFSA.

Diligence, speed will help secure 2009 college aid

Here are eight basics that parents of college-bound students who may not be doing all their financial aid homework should know as a 2009 aid season fraught with economic concerns begins:

Old school: It's never too late to go back

When the markets go berserk and the country slips into recession, you can count on these trends: People scale back their spending, focus on paying off debt and building savings. They also head back to school.

Many of the people who’ve written to me lately were recently laid off. Others are trying to skirt becoming jobless by learning skills that will make them more valuable to their boss. And some are stay-at-home moms or dads who want to earn a degree so they can get a job and add to the family’s income.

All of them ask: What’s the best way to make this transition? How the heck do I pay for it? Luckily, neither issue is as difficult as it seems.

College financial aid system facing stiff test

CHICAGO (AP) — Finding financial aid for college this year promises to be tougher than any final exam.

The quest for money that begins for students and parents every January has taken on new urgency in 2009 amid fears that loans and grants will be scarcer than in the past due to the recession.

"The financing system for college is in real crisis," said Barmak Nassirian, associate executive director of the American Association of College Registrars and Admissions Officers. "Every one of the participants in the system is experiencing hardship — higher education institutions, states, aid donors and families all are cash-strapped."

Federal student loans remain readily available — with some funding even increased recently by Congress. But the prospect that grants and scholarships may be cut at many schools, combined with the shrinking availability of private loans, has fueled widespread angst at a time when more people than ever are seeking help. Applications for federal aid for the current academic year already are running 10 percent above last year's record pace, according to the Department of Education.

College tuition help on the horizon

There could be help on the horizon for families worried about paying for college tuition if Congress passes the American Recovery and Reinvestment Act of 2009. Here is what this bill may do for college students.

College-bound students seek financial aid in tough times

More college-bound seniors are finding themselves in Misty Sellden’s office than in years past hunting for financial aid opportunities.

“Yes, the economy is absolutely affecting a lot of things,” said Sellden, a counselor at Central High School. “Students are more aware of the financial impact of their college choices on their families.”

A spiraling economy can have a trickle-down effect on college-bound students in a number of ways, including slashing the value of investments set aside for college, forcing tuition up in states facing budget shortfalls, or making college all but unattainable for students from families struggling with job cuts or home foreclosure.

Financial doors can open for college applicants that plan ahead

Ripple effects of a dour economy are making this college application season as nerve-wracking for some admissions officers as it is for applicants. But for savvy families, there may be new opportunities. "A lot of schools are going to be concerned about meeting their requisite enrollment thresholds," says Barmak Nassirian of the American Association of College Registrars and Admissions Officers. "They represent a second chance for some applicants who might not have gotten in a year ago but now have a very realistic chance — if they can swing the cash or borrow or somehow finance the package."

College Financial Aid & Scholarships

College Financial Aid & Scholarships

This is the time when scholarship and financial aid forms are due, also the time to scour everything out there to see if you can find some additional money for tuition.

And you'd be surprised at who is offering to give what. Sharon Williams, college counselor at Elgin Academy is known to help her students find a way to pay for college.

It's probably more important than ever to talk about all the different ways to find financial aid. Tuition continues to go up, and there's a really tough economy right now.

In addition to the government loans, you'll want to use the Internet to check what else is available. We have a list of website that Sharon uses with her students:

Financial Aid Tax Strategies

Financial Aid Tax Strategies: Current Key strategies to employ

College Student Taxes

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Improve Credit Score

Improve Credit Score: How to Raise your credit score with these key tips.

Test Prep Services

Test Prep Services: Students may consider taking a test preparation review course in an attempt to improve their performance on the SAT/ACT.

Obama’s plan to simplify Financial Aid

Obama’s plan to simplify Financial Aid

With the number of students seeking funding for their college education increasing year after year, President Obama’s plan to simplify the application process for financial aid is a big relief to both students and educators all over the United States.

President-elect Barack Obama plans to make federal funding conditions and Pell Grants simpler for parents and students. The present economic recession in the country is certainly not helping the education sector. The reduced availability of student loans have made it difficult for incoming college students to pursue the degree they desire.

Obama furthermore proposes the American Opportunity Tax Credit, in addition to making federal funding terms a lot easier. This proposal aims to shoulder the first $4,000 of the tuition of an incoming college student, in return for community service totaling 100 hours. Obama’s plan to simplify the application process for financial aid will no doubt benefit the millions of higher level students in the U.S.

Graduate School Financial Aid

Graduate School Financial Aid: Many students entering graduate school think that there are no sources of financial aid available to them. This is not the case as there is graduate school financial aid

Student Loan Tips

Student Loan Tips

The current economic crisis has prospective college students and their families concerned about whether they will get the loans needed for college. A list of common concerns and options:

I'm not needy enough for government grants or loans: Federal Stafford loans are available regardless of family income.

I don't have good credit: There is no credit requirement to get a Stafford loan.

I need more than the maximum Stafford loan: Ask the college if it has any federal Perkins loans or other types of aid, including grants and scholarships. Consider a federal PLUS loan, which most parents can qualify for. If there is chance you will become a teacher, apply for a federal TEACH grant.

Source: The Project on Student Debt

Financial aid expert: Formulate college funding plan carefully

Financial aid expert: Formulate college funding plan carefully

By BOB ROBBINS Special to the News Journal

The impact of the credit crisis has given home loans and mortgage companies much media attention over the past year or so. However, students may not be aware student loans and student loan companies have been significantly impacted, too. The credit crunch has made it more difficult and more expensive for student loan lenders to generate funds to make new loans.

Credit Score Improvement Tips

How to Improve your Credit Score

Financial Aid Resource Center

Financial Aid Resource Center | The Practical Guide to Financial Aid

Work Study

The Federal Work Study Program is a United States Government subsidy program that provides need-based university students part-time campus jobs.

School Loans

School Loans: After you have completed your search for scholarships and grants ,you will be able to complete your financial aid package with school loans.

College Selection

College Selection

Federal Student Loans

Federal Student Loans are the largest single pool of funds available for college financial aid.

College Scholarships

College Scholarships | Students who win the most scholarship awards may not have more exceptional attributes than you, but they successfully utilize the following strategic plan

Grants for College

Grants for College | The federal grant programs are designed to assist students with the greatest financial need.

Parent Loans

Parent Loans: Parents have the option of borrowing the money to pay for their children’s college education under federally sponsored PLUS Parent Loans.

Pell Grant

Pell Grant | The largest federal grant program.

Student Loans No Cosigner

Student Loans No Cosigner: Even without a qualified cosigner, you may still be able to secure financing for your education.

An Introduction to College Scholarships

An Introduction to College Scholarships The old saying that ‘money makes the world go around’ is as true today as it was all those years ago when it was first coined and that is not always good news for many youngsters who are trying to get the funds together for a college education so that they can reach their potential and get a share of all that lovely money. Many young people today possess considerable skill but do not get the opportunity to develop their skill and reach their true potential. Fortunately, for many youngsters that is where scholarships come in.

Both scholarships and grants are designed principally for individuals who demonstrate particular talent or financial need and, of course many young people fall into both categories.

Arkansans vote to have state lottery

Arkansans vote to have state lottery Anna-Marie Lawrence Issue date: 11/6/08 Section: News PrintEmail Article Tools Page 1 of 1 More scholarship money may soon be available for students after Arkansans voted Tuesday to pass the amendment creating a state lottery.

The lottery is expected to bring in around $100 million in revenue, which will go to fund college scholarships within the state.

According to arkansasbusiness.com, Lt. Gov. Bill Halter said, "I think Arkansans are saying with a very loud voice that they want to improve the affordability and the accessibility of college for our students."

MassMutual Announces New Multicultural Scholarship Program for African-American, Asian/Pacific or Hispanic Students

MassMutual Announces New Multicultural Scholarship Program for African-American, Asian/Pacific or Hispanic Students Company to Offer $60,000 in Scholarships to Students in San Francisco, Atlanta, Houston and Los Angeles

Last update: 4:00 p.m. EST Nov. 6, 2008 WALNUT CREEK, Calif., Nov 06, 2008 (BUSINESS WIRE) -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced the launch of a new national multicultural scholarship program that will offer $60,000 in scholarships and potential internship opportunities in financial services to outstanding college students of color. The San Francisco Bay Area is one of the four metropolitan areas piloting the program. Beginning this month, students of African-American, Asian/Pacific Islander, or Hispanic descent who reside in the San Francisco Bay Area or the Atlanta, Houston, Los Angeles metropolitan areas can apply for one of 12 $5,000 college scholarships. These students must have concentrations in the fields of accounting, business, economics, finance, marketing, math or statistics.

Minority Scholarship

Minority Scholarship: If you are a member of an ethnic minority there are numerous opportunities you can avail of when applying for a minority scholarship.

College Savings Plan

College Savings Plan: College Savings Plans are ways in which parents and grandparents can save for a child’s college education.

Financial Aid Resources

Financial Aid Resources: A wide variety of resources related to your financial aid search and beyond.

College Scholarships for Women

College Scholarships for Women: No matter what program of studies you want to pursue or what college or university you want to enter, there are college scholarships for women available.