Student Loan Consolidation Assistance

Workforce Competition Requires College

The Department of Education has published numerous studies about the status of higher education. What they all seem to boil down to is the definite need for a college degree to be relatively successful in our country. What they are also saying is that this avenue to gain required skills in our society is becoming more expensive by the day. This fact, combined with the sad comparison ranking US high school students far behind most other 3rd world country students is, to say the least, alarming.

The No Child Left Behind act was meant to fill the cracks within which many students in public schools seem to fall. Somehow, with this effort to establish the required skills for the students that are struggling, the overall achievement of the schools has diminished. The United States has already fallen below its potential for some time now. The effort, seemingly more politically motivated than logically planned, has had a positive effect for a select few that would otherwise have been unnoticed.

However, the reality of the situation is that there are more and more high school students that are looking at college as an unreachable goal, as early as their freshman year. These students are the ones that need the information focused on them. They need to see the true numbers of the amount of federal financial aid, and know that the amount of Pell Grants (which do not have to be repaid) are expected to have increased 76% for the 2009 budget. This increase is consistent with the steady rise in tuition.

Secretary Spelllings of the Department of Education has publicly announced the goal of the promote the positive benefits of federal financial aid, as well as a concerted effort to prevent lending institutions from obtaining borrowers that would otherwise qualify for student aid. This includes other federal agencies that administer funding.

In addition to these clear initiatives, there is a new program of grants that is going to help students with an affinity for math, science, technology, engineering, or a significantly needed foreign language obtain the required skills to fulfill much needed gaps in our country’s workforce. The grants will be geared towards low-income students that are able to maintain good grades within the necessary courses, and therefore the grants become a clear investment in our future for needed areas of employment.

The trend is all to clear for many high school students. A college degree is just as important to their future as a high school diploma. What is not so clear is that the federal government recognizes this, and has established ways to help meet tuition and attendance expenses. If you know someone in high school, or the parent of a student in high school, be sure to mention the negative spin the media seems to be putting on college expenses and student loans. It is not an unreachable goal to pay for college, and there is help available if you take the time to look.

Nursing Education Initiative

Nursing is one of the most noble, and needed careers to be filled. If you enjoy your work, but would like to improve your education, or even switch to a different specialty, there is an easy way to reach your goals. The National Nursing Education Initiative is a program that could help you further your education, and have you working in your ideal nursing position as soon as you have completed coursework.

The Veterans Health Administration prepares nurses for the ever-changing world of health care. When you work for the Veterans Association as a registered nurse, the VA will provide opportunities and funding to expand or specialize in specific field.

The Department of Veterans Affairs has created a specialized Nursing Academy to specifically target areas of need within the VA. There are recruiting programs, as well as devoted departments for retaining students. Many new teaching opportunities will be offered to nurses within the VA through the affiliated schools as well as the VA facility itself.

Part of the problems in the future of the nursing field is the lack of teachers available for nursing schools. The VA plans to counteract this by creating a collaboration with qualified nursing schools to allow their nurses to teach at the school, and allow the school to take on more students.

Promoting the importance of the nursing field, the Veterans Affairs department has increased the amount of funding it is channeling into graduate programs and the Nursing Fellowship Programs. Now VA nurses can get help with the financial burden of higher education, and have a career waiting for them in the VA facility.

Hospitals in the United States need over 118,000 new nurses to fulfill the present demand for RNs. In the next 6 to 7 years, there will be almost 30,000 more positions to be filled. This spells disaster for the field of nursing. An extreme shortage of nurses will affect the care provided at all hospitals, and hitting the VA is almost 22,000 current nurses that will be eligible to retire by 2010. Note information on nursing school loans to help cover the cost of nursing school.

Anyone considering nursing as a career should seriously consider the opportunity to work for the VA. You will have the chance to repay loans, as well as secure a rewarding career caring for the brave men and women who have fought for your right to choose a career. Explore this program today, and be working as soon as possible – without looming school loans to pay off as well.

Campus-Based Aid

Despite the widespread availability of private loans, the best answer to meeting tuition and living expenses for higher education still comes from the federal government programs. There are three in particular that are handled at individual campuses, and may be just what you need to get that degree. Not all campuses will offer each of the three programs, but they are likely to have at least one of the options. Be sure to check your school in particular by inquiring at the financial aid advisor’s office.

The first program to explore that is based on campus is the Federal Supplemental Educational Opportunity Grant program, or FSEOG. This program targets undergrads that provide evidence of extreme financial need. These are determined by the information submitted on a FAFSA, and are just like the Pell Grants that are awarded; they do not need to be paid back.

The FSEOG can award you anywhere from $100 to $4000 a year, and the amount is determined not only by your specific need, but also the amount of money the school has to give, the date you apply, and the individual campus policies. If you qualify, the money is credited directly to your account in most cases. There are schools that will disburse the money to the individual student, but be sure to determine what your school plans to do. The payments will be made at least once each term, so the number of payments will vary based on the learning plan for your school.

Federal Work Study or FWS is the second kind of program that is coordinated on campus. It is a way to provide students with part-time jobs that are related to what they are planning to earn their degree to do. It also gives them a chance to earn money towards tuition and higher education expenses. Generally, the pay will be hourly for undergrads, and they will conform to the federal minimum wage requirement. It could be higher, depending on the position you are filling. The total income you make, however, is limited to the agreed upon Financial Work Study award. The employer will take into consideration your school schedule when making a work schedule.

Many work-study program positions will be located on-campus. Some could be located off-campus, and will generally be with a non-profit company. An extremely limited number of opportunities will be with private employers, but the restrictions are extreme, and the position must relate to your degree as much as possible. Even then, there are further restrictions on the actual position you can hold over the course of your education.

Finally, Federal Perkins Loans are awarded on a campus basis. It is an extremely low-interest loan that is extended to those who demonstrate excessive financial need, and usually directly through the financial aid office. The Perkins Loan is repaid directly to the school rather than a loan servicing company. The limit to a Perkins Loan is $4000 per year for undergrads, and up to $20,000 for the entire course of your college career. There are no application fees, nor any origination fees, so these are certainly the best way to go when funding education at a higher education institute. It will be repaid after you have been out of school for 9 months, and will be paid in amounts that are calculated to be manageable when the lender (the school) has all of your current income obligations.

All told, a federal education program is best in the long term. The ease of quick private student loans will not likely end up as beneficial as it would be to take the time to go through the process for federal funding. Saving money any way possible is the most beneficial!

What Income Do I Have To Report?

Amidst the never-ending questions of the Free Application for Federal Student Aid there are new questions revealed when determining what income needs to be accounted for when calculating the estimated financial contribution of the student and/or their family. In an attempt to answer these spin off questions, there is a publication with complete answers to numerous questions. The following is a brief overview to get you started.

For a student deemed independent, the only income to report is your own. You must fall within the strict guidelines of the independency status put forth by the Federal Education Department. Some of these requirements include being born before January 1, 1984, enrolling in a degree beyond a bachelor’s, being married on the day you apply, having a child that you provide more than half of financial support for, or you have dependents that you provide more than half of the financial support for. If you are an active duty in the United States Military, beyond training, you are considered independent. Veterans of the military also fall into the category of independent.

Dependent students that do not fall into any of the above categories will also have some spin off questions. For example, students that do not actually have contact with their parents will have no way to report their income. In this situation, once a financial administrator receives appropriate documentation, they can decide to change the student’s status to independent. If by chance you are not able to provide documentation, the request can be denied. Be sure to do exactly what is requested of you because the decision is final, and there are no recourses to appeal.

In the case of students with divorced parents, the income needed on the forms is the parent he/she lived with for the majority of the year prior to the date they submit the FAFSA. Students that did not live with a parent for the majority of the year, or were with each parent for the same amount of time, there needs to be a determination of the financial support provided by each to report the one with the greater contribution. If neither one provided financial support, then the most recent time period of parental contribution should be used.

Stepparents income is only considered to be necessary to report if they provided financial support to your parent. This is because their financial contribution to the family, and your parent you depend on, plays a role in your family and its resources available to delegate to your education. No stepparent is ever obligated to proved financial support, but their input to the family as a whole must be represented.

Be sure to keep your financial aid office informed of any changes in your status as they occur. Each year, the financial aid application must be renewed. The renewal application is somewhat shorter than the original, but be sure to check each item included on the original to be sure it is still correct.

Check with the financial aid administrator at your preferred college to get all the information necessary to complete your financial aid award to the best of your ability. Maximize your award by being thorough.

Federal Family Education Loan Program

Families work hard to make ends meet. This is stretched even further when one family member is attending college. Federally funded programs created by Congress work to develop guaranteed education loans for students and their families. Since 1965, the Federal Family Education Loan Program, or FFEL, has provided low-interest loans to the tune of $567 billion.

Loans that can be administered by the FFELP program include Stafford loans, PLUS loans, and Federal Consolidation loans. These loans give assistance to students and parents to further their student’s education and socioeconomic status. It is part of the Free Application for Federal Student Aid, or FAFSA, and can be combined with other grants and awards to cover the total costs of a college education.

In many cases, there is an amount of money leftover when the financial aid package, the estimated family contribution, and the actual cost of attendance. In particular, the FFELP is geared towards filling that gap for families who would not otherwise be able to send their children to college.

Working together, the financial aid office of the school, the guarantor, and the U.S. Department of Education ensure that the student has their needs met in terms of supplies and expenses. Usually, a third party loan servicer will handle the collection of the loan, and send repayment booklets to the borrower.

The Guarantors of the loans will work with families to navigate the confusing world of student loans. The strict regulations placed on federal student loans can be confusing and overwhelming. The successful programs instituted by the guarantors as a whole have significantly lowered the number of loans transgressing into default status.

The loan servicer, though, may still decide to sell your loan to still another company, and transfer the responsibility for your loan to them as well. Be sure to read all mail associated with loans and repayment. Many loan servicing agencies will use the sale of debt to enable them to purchase higher principle balance loans from more likely-to-pay borrowers. Smaller loans will be dismissed to clear the way for larger ones.

In the case of a late payment, or missing payment, contact the lender immediately to explain. With the explanation of the missing payments, often the loan can stay in good standing on with the credit agencies, and the loan can be kept out of default.

Repayment terms for FFELP loans are as lenient as the federal loan guidelines. Students can be out of school for six months before the payments become due. Explanations of financial hardship can give the lender the opportunity to extend payments, reduce payments, or even forgive some. Take the proactive approach to any money borrowed, and reduce the risk of default on your valuable student loans.

The parent’s role on the students’ quest for loan assistance
Part 7

The current economical crisis that is affecting the entire United States’ economy will cause that many student loan companies as well as the loan education funds will be shortening their reach and a lower number of students will be benefited with the financial assistance that they require to be able to complete and finish their education.

In this aspect, many schools have come to accept their students to pay school related expenses such as tuition and boarding with credit cards for students. However, this might not be a good idea particularly if you calculate the interest rate per day that a credit card will charge their customers per dollar consumed.

Therefore, the participation and interaction of the parents is of the utmost importance, it does not matter if the student is an independent one. Once the decision has been made, the parents should consider hiring the services of a lawyer to assist them in the process of application for the financial assistance.

In addition, it will be the responsibility of the parents to be able to provide their child with the guidance necessary to choose the right company to which the child should focus his or her efforts to be hired once he or she finished his or her chosen education.

As viewed, the parent’s interaction in the whole process their children should undergo when seeking the financial assistance necessary to achieve the education level that will turn him or her into a professional in a specific area or field is extremely important.

The wisdom and age related activities that a parent has gone through his or her life up to the moment when the child reaches the age required to become a university or school student just prior to becoming part of the economically active population. Will give their child a boost into the knowledge that he or she will desperately need and that most educational institutions fail to provide or provide with extreme failures.

Yet, it is important that the parents know and keep in mind that this process will require large sums of patience and of resourcefulness; mistakes will be made and they will need to be corrected. Nonetheless, it is vital that when dealing with a mistake, they are perceived like such and dealt with, instead of focusing on the mistake, focus on the solution.

If, at any point the parents believe that they cannot handle the pressure or that they are not dealing correctly with the mistakes; or the same situation happens on the side of the student; a time off should be considered and taken. Therefore, correctly scheduling the process will be of assistance.

The parent’s role on the students’ quest for loan assistance
Part 5

It is important that the parents and the student consider seeking a loan education loan or aid as well as an additional student loan, whether it is private or alternative.

Make a list of the possibilities and then go through it twice, let each member of the family analyze to their full knowledge the pros and cons of seeking financial assistance on that particular source, whether it is loan, private, or alternative. It does not matter if their statements are done in knowledge or in hearsay; the important thing is to rank them in possibility and preference with all the members of the family.

• ASK

Once the list has been done and ranked in accordance to all the members of the family, then the parents and the student should conduct a search to gather all the necessary information that will provide them the elements to conduct a second filter.

In this search, the following issues should be addressed, though this is not to be considered a rule, just a guidance where families should place, add or cross out things that they deem that are not that necessary for them to make a decision.

 Do they offer economical assistance to the students?

Some companies are aware that the financial assistance that they can provide the students is tax deductible and therefore, they are willing to provide sponsorship to those students who are assertive enough to ask. However, there are other companies that knowing that this help is tax deductible are not that eager to get “hands on” therefore, they choose to assist students through private or alternative companies. Finally, there are those who choose to assist the loan education funds.

Therefore, there are companies that will answer with a categorical “no” and give no further explanation. Naturally, there are those companies that are unaware that this can be done. It is important for the student and the family to check if the local legislation in their state provides or prohibits such activities.

If there is no legislation to the point, then there is no harm done in asking. Asking should be done to the company’s CEO, he or she will, then turn the question to the accountant but the possibility will be latent on the CEO’s mind.

It will pay in more ways than one, since at the time that they are forced to investigate and learn to make sure that the money they set aside grows and stays at the expense rate that will be required in the time that the child reaches the high education level; they will learn. And it will translate into their own investments to provide for themselves when they are senior citizens.

• Start researching loan companies in advance

Structure a list of questions that you deem that are important and to which you need answers and go visit each company never forgetting to check loan education offices. Once all the information is gathered, it is important that you sit down with the entire family, including the children (the child that is the student and, in such event, all his or her siblings) and go through the information gathered.

It is important to realize that this sorting through information will not be properly made in a single afternoon and most likely, a week will not suffice either. This is important because if the family believes that a single afternoon ore a couple of hours will suffice the information will not be analyzed in depth and as a result the chosen student loan company or loan education program will not be the adequate one to their needs or the application form will be poorly filled and filed. Giving as a result a turn down on the student’s application for a loan.

However, even if this is the case, there is nothing to be afraid of as there is no reason to believe that this might be the end of the entire possibility of the student to continue and finish his or her studies. There are additional options that a student can do and search to obtain the necessary financial resources to fully complete his or her dreams as well as the dreams of their parents.

Even when there simply is no investing done or if the amount invested is too little.

• Plan on alternative choices

An idea storm will be helpful when parents require to determine what to do and where to turn when seeking for an additional financial resource that will help them obtain the necessary financial resources for the education of their child

The parent’s role on the students’ quest for loan assistance
Part 6

Thus, the chances of getting the financial aid increase.

 What companies participate with a loan education fund?

Sometimes companies that participate in loan education funds keep track of the academic achievements of their sponsored students, they do this with the view of hiring the best candidates even before they finish their schooling.

If the student is looking to achieving an education in a highly-demanded career, then it might be a good idea for the student to approach the company in which he or she would like to work after his or her education has finished. Ask them whether or not they do support students with a financial assistance or if they participate with a loan education fund and if so, if they keep track of their sponsored students.

Even if they do not, this is a good idea because the communication link established by the student can provide him or her with important and valuable relationships that will come in handy when the time to look for a job approaches.

 How does the student needs to apply?

In the chance, that any of the companies listed on the alternative list made by the family members do provide financial assistance for any student it is important to know the logistics that entail such assistance. What documents does the student requires to present or submit. When and to whom At the same time, if the parents choose rather to present the application to a loan education fund the same line of inquiring needs to be presented

If there is an opportunity, regardless if it is a family member or the same student who is conducting the inquiry; it is better to write down all the information gathered.

• Review the results

Once the list has gone through, the entire family should sit down once again and go through the results gathered from the first review made of the companies that the student and the family created.

From this list, a second one should emerge with the companies ranked in a preference order. After this, it is the moment to decide whether or not the student will apply to one or more companies from the list. Once again, it is recommended that the student seeks for the assistance of government aid as well as from a private or alternative student loans company. It is always best to compare student loan lenders before applying and do not apply for loans with multiple companies at a single time.

There are lots of things that you can do when you are working with federal loans, so be sure that you are always going to be exploring all of your options. When it comes to terms for federal loans, they are very important for you to understand for many reasons.

First of all, the terms for federal loans that you have are going to be able to help you make the most out of your schooling, because they will allow you to have the freedom of really being able to go to public or private school and to get it cheaply. You should know that without federal loans and terms for federal loans, you would have to try to find a full time job in order to make ends meet and to be able to really pay for school.

Therefore, finding federal loans are very important because they will allow you to have the freedom of actually not paying for school. You can do so when you graduate, which will be enough for you to be able to get a good job.

Something else that you should know about terms for federal loans is that you will end up having to pay back more than you actually took out. This is because there will be an rate of interest that you have to pay on your federal loans. This is how the banks make their money. However, you will be able to make rate of interest payments on your federal loan, in order to bring down this rate of interest. Also, if you want to, you can consolidate your loans, which will help you get a smaller rate of interest overall. This will end up really being the best for all of your needs and also for your public or private school career. Therefore, you should take advantage of the federal loan office and see if what they can offer you will really be the best for you. Remember, this is the time in your life to get your schooling, and when you are ready to you will actually be able to pay them back because you’ll have the type of job that you need in order to do so. This is very important for you.

Remember, as well, that the federal loan financial aid office is going to be there to make a difference in your life and to give you the answers to the questions that you actually want to ask.