The cost of attending college is through the roof these days, and it’s only going to get more expensive. Short of running for office, there’s not much you can do to change the current trend. Instead of simply giving up and signing away your financial future, though, there are plenty of steps you can take to reduce your costs and get the most out of that essential four-year degree.

1. Use Your Financial Aid Office as a Starting Point
One of the first places to go to reduce the overall cost of college is your financial aid office. You can get guidance and information on the many forms of assistance available. Next, research the Internet for scholarships, grants, and any other financial aid options that might apply to you based on your gender, ethnicity, race, professional aspirations, religion, and more. This may take a little investigating, but it’s definitely time well spent. Additionally, be aware that your eligibility for financial aid can change year to year based on personal and household income. If your family has been hit by unemployment, make sure to review the facts with your financial aid office to determine if you are eligible for increased funding.

2. Be Careful What You Sign Up For
Whenever you sign a document – whether it’s with your adviser or just during orientation – be sure to pay attention to exactly what you’re committing yourself to. Colleges and universities have become very adept at sneaking in unneeded and costly items like extra large meal plans and campus health insurance – which you have to actually opt-out of or you’re automatically signed up – and you may also find some outrageous fees for extra-curricular activities like joining a fraternity. These costs are significant, so it’s worth it to be circumspect.

3. Piggyback Your Parents’ Health Insurance
Thanks to the Affordable Care Act, students up to age 26 are eligible to remain on their parents’ health insurance plan. This negates your need for separate campus health insurance and allows you to save a bundle on premiums. Just make sure you’ve got a good selection of in-network doctors on or around campus and you’re good to go.

4. Skip the Extras
Besides the unnecessary extras already discussed, you’re going to be inundated with programs and services you may think you need, but that more than likely aren’t worth the expense. Laundry pickup, errand services, and campus bookstore supplies are expensive and can all be found nearby for less money. Manage your time so you can do your own laundry and run your own errands, and buy supplies and books from off-campus retailers and Internet outlets like Amazon.

5. Scale Back the Partying
Put simply, every dollar you spend on a keg party is one dollar less you can put toward your debts. By no means should you eliminate entertainment from your college years, just do your celebrating in moderation. You can have just as much fun attending an on-campus sporting event, concert, or free movie screening as you can polishing off a six-pack in your dorm room. You can have fun in college without going broke!

6. Get a Job and Start Paying Back Loans Now
It’s a common misconception that you have to wait until you graduate to start paying back your student loans. Find a part-time job on campus and begin the payback process immediately. Even if you work only 10 hours per week at a job paying $12 per hour, after four years you’d have more than $15,000 to devote to your student loan balance. That’s going to take a lot of pressure off you once you graduate and assume the additional expenses of financial independence.

Final Thoughts
The average college student graduates with $25,000 in student loan debt. That responsibility is going to pose a challenge to paying your monthly bills, saving for retirement, and establishing an emergency fund – and this is all assuming you can actually find a job quickly after graduation. It’s never too early to start saving, so take the reins on your financial independence today and reduce the impact of the high cost of college.

What ways can you think of to reduce college costs?

Progress update: Inside Higher Ed reported that the House of Representatives Committee on Education and the Workforce approved legislation Thursday (5/16/13) that would create a variable interest rate for student loans. The committee voted 24 to 15 to send the measure to the full House of Representatives for consideration.

It’s deja-vu all over again, because in 2012 the federal loan rates were set to double but last minute deals locked in the 3.4% rate on subsidized Direct loans, and 6.8% on unsubsidized direct loans and 7.9% on all Parent Plus and Grad Plus programs were maintained. However, that extension of locked rates will soon end, and without further legislation, subsidized rates will double to 6.8%. It cost an estimated $6 billion to sustain the locked in subsidized rate for the past year.

If nothing is done, the rate on subsidized Direct loans will go back up to 6.8% on July 1 2013.

Here are details from the proposal:

H.R. 1911: The Smarter Solutions for Students Act: This proposal is similar to a plan put forth in President Obama’s Fiscal Year 2014 budget request, and includes the following.

• Calculates subsidized and unsubsidized Stafford loans using a formula based on the 10-year Treasury Note plus 2.5 percent.
• Calculates graduate and parent PLUS loans using a formula based on the 10-year Treasury Note plus 4.5 percent.
• Resets student loan interest rates once a year, allowing rates to move with the free market and ensuring borrowers can take advantage of lower interest rates when available.
• Protects borrowers in high interest rate environments by including a 8.5 percent cap on Stafford Loan interest rates and a 10.5 percent cap on PLUS loans.
• Provides stability for low- and middle-income students working to finance their postsecondary education, and prevents future uncertainty about whether Congress is going to act in time to change the interest rate.

Points and counter points: However, this plan faces concerns over increased rate variability in the future that may lead to more costly repayment. Bill proponents counter that a market based rate is more fair and predictable than congressional politics, and students should not be held hostage to legislated rates, as demonstrated by the low market rates but high federal loan rates (6.8 unsubsidized and 7.9% Plus) available now.

What about consolidation? Will the federal Direct loan consolidation also be adjusted to accommodate these changes in loans? As it stands now, the Direct loans consolidation program uses the weighted average of interest rates from all applications to establish the new fixed rate going forward. Would consolidations for federal loans move to a variable rate as well? This proposal indicates that may also happen in the future.

What’s next? As explained by Libby Nelson “Congressional Democrats have said they’d want to tackle an interest rate overhaul when they rewrite the Higher Education Act, the law governing student aid programs, which expires at the end of next year, and not under the gun of a July 1 deadline.” However, this deadline was already established a year ago in response to the same problem, and it was kicked down the road during an election season where no politician wanted to potentially alienate younger, college aged voters. It remains to be seen what will actually happen to federal direct loan rates until congress decides again.

That’s great to hear, especially since the cuGrad program has already assisted thousands of borrowers in private student loan consolidation and refinancing to help reduce interest rates, organize repayment plans, modify terms, flex payments and provide a cosigner release option. This program is ready now!

cuGrad is ready for your private student loan refinance / consolidation

This question was posed to USA Today’s resident Money Watch reporter Christine Dugas, here’s some quotes from Christine, with some additional notes from me.

Compare student loan options before committing to home equity for college costs

A reader submits the following scenario and question. Sounds like this family has their financial house in order….

• “Q: My wife and I have no debt. Our home, cars and credit cards are paid off. We make the maximum contributions into our 401(k) plans, although we don’t take advantage of catch-up contributions. But because our kids will be going to college in four years, should we take out a home mortgage now to lock in a low rate and deduct the interest payment? This way we will have some money to pay for college without borrowing from our 401(k) plans.”

1. Do not Tap the 401k or other retirement savings to pay for college: This family already gets it, but many others have been using money normally reserved for long term savings to pay for current college expenses. As I mentioned in a prior article, there has been a spike in early withdrawals creating unnecessary financial liabilities. Rule of thumb: You CAN borrow for college with student loans but you CAN’T borrow for retirement.

2. Risks and benefits of borrowing from home equity: This family has their home fully paid for. Before pulling money from the equity they should know the tax benefit may not outweigh the risks, as Christine explains:

• 
  “I am not sure taking out a home loan to pay for your kids college education is the best decision, either. You would be putting your home at risk, which isn’t a good idea. And never let the tax benefits influence your financial decision. You can only deduct the interest on your mortgage if you are itemizing your deductions, and even then you would only benefit from the amount of deductions that are greater than the standard deduction ($11,900 for 2013). This means if you take out a mortgage and then have $13,000 of itemized deductions, you really only benefit from a $1,100 deduction. Multiply this deduction by your tax rate to get the actual tax benefit, and you will find that it really isn’t all that much.”

3. If you borrow from the home, use the home equity loan: “The interest is still deductible, the upfront costs are typically lower, however the interest rate will probably be higher so you will need to ask your mortgage lender about your options.”

4. If you own “investment property” borrow from there first: The FAFSA requires disclosure of family income and assets. To clarify, a primary family residence is not considered an investment property. Investment property would be separate from the primary domicile, so a summer house or a condo would count if a primary home is already owned. Financial aid calculations will consider the value of the investment property minus any outstanding debt on the investment property. Take money from the equity in the investment property to reduce the value on the FAFSA, and this may be favorable to financial aid eligibility. However, if current income and other assets are already of high value, this may not make a difference. (Also, consider a re-evaluation of your real estate investments to correctly file your FAFSA)

5. Compare to private loan and plus loan options: The Parent Plus loan offers the predictability of a fixed interest rate at the expense of 7.9% and 4% in origination/guarantee fees taken out of the disbursed loan amount. They are approved in the parent name only as long as there are no 90+ day delinquencies on the parent credit report. Regardless of how high or low the parent’s credit score is, everyone gets the same 7.9% fixed interest rate. Private loans may offer fixed rates, but variable rate private loans are most commonly issued. The variable rate private loan can sport low rates in the 3% range for qualified applicants, but also have the ability to deny loans if minimum credit requirements are not met. The private loan can be issued in the student’s name, and have a parent as cosigner.

6. Financial flexibility acknowledging risk: Before taking any loan, think forward into the necessary debt elimination strategy to pay it back, and options to shift liabilities if necessary. As previously mentioned, borrowing from the home presents it’s own risks given the real estate values, and the parent’s ability to repay. Borrowing in the Parent Plus loan locks in a high guaranteed rate, with no option to cut the interest rate in the future. (Some parents later use home equity at a low rate to pay back their 7.9% Parent Plus loan!) Private loans can offer a low rate, but are subject to rate variability in LIBOR or Prime rate indexes. However, of all these options, the private loan uses the student as the primary borrower, and the parent as a cosigner. The parent should look into cosigner release options that may be available on the private loan or private loan consolidation to have this debt safely removed from their credit at a future date. If no cosigner release options are available, the private loan stays on parent credit until otherwise repaid. Additionally, because the private loan is in the student’s name, they can build a positive credit history as soon as they begin repayment, preferably while they are in school to reduce the cost of interest as well. Also, student loans are not eligible for discharge in the event of bankruptcy.

Conclusion: Borrowing from home equity may be a sensible choice, but student loan options may provide better features and flexibility to meet college financing needs.

But as Adam Levin of Credit.com highlights in a new essay “5 Things Every Commencement Speaker Should Say”, speakers regularly fall back on famous quotes to carry the speech like Emerson’s “Hitch your wagon to a star” or the Dr. Seuss classic, “Be who you are and say what you feel, because those who mind don’t matter and those who matter don’t mind.” However, an opportunity is missed to make an impact on this audience with a topic more necessary now than ever.

Financial literacy and social media savvy

Without it, many of these graduates will face greater challenges and failures than necessary, but with it, they are positioned for greater prosperity in the future.

Here are the highlights:

1. Learn how to manage your student loans.

Get a federal student loan consolidation to help predictably manage federal student loan repayment. This is a no-brainer, and only requires time to complete the online application. Direct loans federal consolidation uses the weighted average interest of each debt, and combines all the old loans into one new application.

Then sign up for automatic payments from your checking account to put repayment on cruise control, and see if you qualify for an interest rate reduction too.

If financial struggles hit, look into income based repayment or pay as you earn programs with federal student loans to extend the term and reduce the minimum payments. Private loans may offer a forbearance while you get back on your feet.

Finally, look for consolidation on any private loans outstanding as interest rates are at record lows and could help save a bundle.

2. Use your debt to increase your credit score.

Experience is the toughest teacher because it gives the test first and the lesson last. Many college students learn about their credit through the experience of running up credit card debt and struggling to pay it back. Same thing goes for students that over borrowed student loans, suddenly responsible for large payments after graduation. After exiting college, the rules are officially upgraded to real-world status. Every payment made towards debt becomes a credit building opportunity, and not all debts are created the same. As Adam explains “It’s a popular misconception that large student loan debt hurts your credit because it represents such a big chunk of your available debt. Credit utilization (balance/limit ratio) that amounts to about 30 percent of your credit score applies almost entirely to “revolving” credit, such as credit cards, which come with defined credit limits. Student loans, on the other hand, are considered “installment” accounts — just like auto loans and mortgages — and carry no penalty for big balances. But the key is paying on time. ”

3. Manage your credit portfolio.

The power of leverage is real. Manage your debt portfolio to help protect yourself and maintain financial security. As Adam notes, “Check your credit reports; review your bank and credit card account activity daily to protect against fraudulent activity; sign up for programs offered by financial institutions that notify you when transactions post; don’t provide personal information to people you don’t know; and don’t needlessly apply for credit but always be looking for the best deals, rates and rewards. Check your credit reports for free each year at AnnualCreditReport.com, and there are plenty of free tools out there, like Credit.com’s Credit Report Card, that provide you with an easy-to-understand overview of your credit standing.

4. Do a hygiene check on your Facebook and Twitter accounts.

In an interesting addition to this list, Adam makes points about risks of personal identity on the internet. The basic point; anything provided on your Facebook page is no longer your private information, and the future will be dominated by businesses and agencies that make best use of this personal data. “In a world where every word we write, and every picture and video we post becomes another tile in our undeletable digital life mosaic, it is imperative to act appropriately in all social media environments. It’s not just your friends and Twitter followers who are interacting with and scrutinizing you. It’s also future employers, financial institutions, insurance companies, divorce lawyers, identity thieves, debt collectors — even government agencies and intelligence services. ”

5. Manage your identity portfolio.

“Our identity, like your credit, is a huge asset. It has many components. And like credit, it can be your best friend or your worst enemy (an enhancer or destroyer), depending upon how effectively and responsibly you manage it.” Just ask this guy……

“Limit the amount of private information you share with people who you don’t (or even do) know, or institutions you think you know, and make sure that when you share, the data you provide is properly protected.”

As we enter college graduation season, let’s hope common sense advice remains common for everyone.

In the world of financial aid, most students coming out of high school and living with their parents are considered a dependent and any student that is 24 years of age or older is independent. If a student is a dependent they must include their parent income as part of household income on the FAFSA. An independent student no longer includes parent income, but would include the income of their spouse if married.

There are other qualifying questions on the FAFSA that can determine if a student can be classified independent, leading some inquisitive students to try and figure out ways to qualify for increased financial aid as a result of their answers. They realize that financial aid could be greatly increased if parent income were removed, but are unhappy when they realize that they will not qualify unless they meet the requirements. I had a lot of experience in dealing with this issue while working at a financial aid office.

“But my parents don’t help me with school!” is what I would hear from some students when I would explain financial aid methodology and why family income had to be counted. They had a point really. How fair is it to count the income of parents for financial aid eligibility if the parents do not offer any support?

While my sympathies were with the student, the policies of the Federal Department of Education offer no wiggle room. A student will have to answer Yes to one of the following questions in order to be considered an independent student.

• 1. Are you at least 24 years old?
• 2. As of today, are you married?
• 3. At the beginning of the 2013-2014 school year, will you be working on a master’s or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)?
• 4. Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
• 5. Are you a veteran of the U.S. Armed Forces?
• 6. Do you have children who will receive more than half of their support from you between July 1, 2013, and June 30, 2014?
• 7. Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2014?
• 8. At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court?
• 9. Are you, or were you an emancipated minor as determined by a court in your state of legal residence?
• 10. Are you, or were you in legal guardianship as determined by a court in your state of legal residence?
• 11. At any time on or after July 1, 2012, were you homeless or were you at risk of being homeless.

Furthermore, if you do answer yes to any of these questions you will probably have to document the circumstances. For example, if declared an emancipated minor there will be court documentation confirming this. It will need to be submitted to your financial aid office if you are selected for verification review.

Generally, students that are young and declared independent qualify for more financial aid because parent income is no longer counted. There are a number of students that have persevered through harsh circumstances leading to federal aid entitlements. The federal aid program was designed to create college accessibility for exactly these students, whose parents were perhaps incarcerated or otherwise separated from their children by court order. This is a far cry from the circumstances of students who have had a stable and safe home life, but are suddenly thrust into a college choice conundrum.

Students: You should be aware of your circumstances and what options are available. If including parent income as part of your FAFSA puts you out of eligibility for financial aid, this is the reality you will have to deal with. As always, be prepared to decide on what school you will attend, accounting for what the costs are and what the benefits are. Consider other funding options, like getting a job and working your way through school with some elbow grease. It could teach you an even bigger and better lesson about life.

Parents: In my experience, the wisest path is through the middle ground between two extremes. On one side, parents who do everything and pay for everything “college”, leaving the student only responsible for showing up. On the other side, parents that are neglectful and careless, assuming that telling the kid to figure it out themselves is the best option. Neither extreme is the best way to handle such circumstances. Parents should recognize that a student must assume as much responsibility as possible over college selection and funding process within reason. Parents should play a supportive role to assist the student in this process, stepping in much like a life guard when trouble arises. The effort towards independence is valuable for a young person to harness lest it be wasted by parents that are no-shows or helicopters.

As Lynn O’Shaughnessy from “The College Solution” puts it, “If you’re a parent contemplating making your child pay for college on his or her own, please give it more thought.”

Here at The College Resource Center we are constantly reading and researching to make it easier for you the reader to get the knowledge you need.

So here you have it as organized by CollegeScholarships.org: The Top 100 Education Advice Blogs.

However, 100 blogs is a lot. Here are some “Top 5″ highlights.

Hackcollege offers a range of modern college advice

Hack College : Ranked 14 on this list, but many students would list this site as number one. Hack College is a potpourri of cutting edge technology, college social life, and pod casts. This website has something for every student that wants to improve their college experience. Articles like “How to Digitize your Text Books” and “Solutions for Frustrating Cord Problems”, the bane of any crowded dorm room full of technology. “How to Build the Ultimate Dorm Friendly Beer Pong Table” is critical reading for college students around the nation.

CollegeCandy: This site offers more for and from the ladies, with a slew of writers from around the country taking on trendy, edgy topics. Fresh content is always produced, mostly focused on lifestyle, beauty and relationships making for fun reads. But there is much more than make-up tips, and the blog pushes some boundaries to raise topics they know are on the minds of many students.

ParentsCountDowntoCollegeCoach.com: Parents often play a huge role in the college planning and payment process. This site has parent oriented articles like “A College-Parent Partnership”, “Is student safety at the top of your list?” and “Substance Abuse in College” for a balance of important and at times sobering material. Parents are well advised to work together with their children through the college selection process. Since college costs are high and the job market is tough, many parents would do well to assist in their child’s transition, or face the prospect of a “boomerang” moving back in after graduation.

THE BIGGEST

Huffington Post’s College Blog: From the world’s most popular collection of blogs comes this gem of college knowledge. Be prepared for big ideas and scathing political commentary as well. They also offer some great slide shows on topics like “7 Reasons Why Your College Room Mate Hates You” so it is a good mix of serious national politics and college colloquialisms.

Study Hacks: Take an even deeper dive into your learning. Study Hacks gives insight into a variety of educational based topics from how to be a better writer, to what it takes to be a world class engineer. This website offers articles that can help any student improve their academic ability. But it does not stop there. Articles like “The Danger of the Dream Job Delusion” and “Passion Must Be Actively Pursued, Not Passively Waited On — Welcome Zen Habits Readers” take knowledge and apply it outside the classroom.

Regardless of how one is feeling right now due to acceptance or rejection from a preferred school, life must go on. Now is the time to envision some of the important life goals that are achievable while attending college, whether it Harvard or the local state U.

How much will you accomplish before you graduate? The bare minimum will not be enough. Students need to maximize the quality of time spent outside the classroom towards meaningful activities, but there are many fun distractions while at college. Along the way many new friends are met, some of whom remain close for life while others are instantly forgettable. Then, suddenly you are dressed up for graduation and everyone is so proud for one day, but then what’s next?

WOOOOOOOOOO!

THE REST OF YOUR LIFE. Except now, your college experience or lack of worthwhile experience will either help or hinder progress towards true independence.

Stop chasing a college dream and start working on yourself: If your long term life strategy is predicated on your choice of college to either make you or break you, then you allow shortsighted vision to dominate your existence. Why? Probably because of the overwhelming pressure put on students to achieve near impossible feats for teenagers (let alone adults) to gain admission to elite institutions. What is rarely spoken of is failure, perseverance, and overcoming obstacles beyond those faced in a classroom because these challenges are not easily assessed a grade, and take a lifetime of work to pursue. Some students just need more time to demonstrate their ability and proficiency for successful living.

If you are a prospective college student and find yourself unhappy with the college choices available, stop beating yourself up and start looking for opportunities to improve your life. College remains an important stepping stone, but there are many developmental projects a young person can undertake to improve their life regardless of the prestige their institution offers. Get to work on improving yourself with some of these fundamentals….

Someone let this student know about the internet and e-books, please!

Read More: College has traditionally been the place where students maximize their intake of reading, but it’s noticed that more young people simply avoid reading all together. There are so many more impulsively gratifying activities available that make reading a dry and boring task by comparison. Instead, treat your reading like a habit for success. Demonstrate discipline by dedicating at least 30 minutes a day to reading something outside of what is required by school. Consider topics that are relevant to the world today, like economics, international relations and business but also human interest topics like interpersonal communications, entertainment and relationship advice. Just let your mind open up through reading 30 minutes a day and observe how you can connect ideas from inside and outside the classroom.

Learn more about technology: Today, young people take for granted the skills and knowledge they have with technology since they are part of a generation that has grown with constant advancements in computers, smart phones and tablets. Growing up around ever changing technology infused many with adaptability and the ability to quickly learn and apply a new gadget to productive (or non-productive but very fun) goals. Technology is the unique generational edge that young people have over their more mature counterparts with years of working experience, but often unrealized because within youthful social scenes it feels like everyone is “technologically savvy”. Just being familiar with Facebook advertising, Smart Phone applications, and popular blog outlets puts one in a more knowledgeable position over many grown-ups that may now need to hire a young person for their expertise.

No more time to waste, get busy with self improvement

Diet and Exercise: Healthy living, nutritious food and exercise will never go out of style even long after graduation. Include healthy eating choices and an exercise plan as part of your personal goals, and watch as your energy to pursue an active life grows. The key is consistency. Adopting a workout plan is always easy to start, but hard to maintain as the weeks of the semester grind on. It’s up to you to hold yourself accountable to a schedule that makes sense. Avoid excuses like “I’m not an athlete” or “I don’t have time” by dedicating at least 60 minutes 3 or 4 times a week to exercise. It does not need to be in the gym, since playing basketball, running, biking and hiking are all vigorous substitutes. The simplest way to kick start healthy eating is to wake up in the morning and eat breakfast! It’s surprising how often breakfast is skipped by college students since it is available and already paid for if using a meal plan. Eating a healthy breakfast can spike the metabolic rate up in the morning, and reduce sudden urge to binge eat for lunch and dinner due to an empty stomach.

Meet your first boss!

Work while in school: The mantra used to be “Go to college and get a good job” but those days are in the past like reliable lifetime employment and defined benefit pensions. The only way to compete is by going above and beyond the challenges of the classroom to be ready for the world after graduation. Today, the pressure is on students to start producing at an early age, and this usually begins at an internship or entry level job. There are many angles of advice for work while in college. Some advise avoiding certain jobs to prevent being pigeonholed on a resume, like always working retail for example. However, the simple act of being on time, working with a team, and getting things done is the essence of a productive job, and any job worth doing is worth doing well. So give work your best shot, whatever form it makes it self available. If you are worried that employment could hurt financial aid eligibility due to income, read this article to get the facts straight. Income earned in the students name can hurt financial aid eligibility, but it probably needs to be over $6,000 for the year before it can really reduce any grants. Bottom line is, go and work to earn income and real world perspective outside the classroom. Ideally, where you work blends well with the major being pursued and offers opportunities to identify learning moments from the job as well as the classroom.

Stick with the fundamentals. Expand your mind, stay healthy and active, and get to work. Your time in college is temporary, but the habits developed there can last a lifetime.

This original list was posted on Alwaysprepped.com and is geared mostly towards high-school teachers, but it can be easily adapted to college professors, as the modern campus is a hot-bed of technological buzz. If you are a college student interested in technology, look for professors that demonstrate these qualities.

1) They always start with the why: Technology for technology’s sake is dangerous. Highly effective teachers who use technology always have a reason for using new technology tools. Whether it saves them time, improves learning outcomes, or helps with lesson planning, highly effective teachers always start with the why.

2) They are malleable and can easily adapt: Technology is constantly changing, and the classroom environment will be drastically different in 2 years. Understanding the big picture is key.

3) They embrace change: Most teachers who use technology today are innovators or early adopters. Embracing (not fighting) change is key. The world hates change yet it is the only thing that has brought progress.

4) They share, share, and then share some more: Technology has opened the door for collaboration beyond the school walls. A teacher in Romania can now collaborate with a teacher in the UK. Knowledge is power, but it is also free (and it should be). Technology lovers share best practices, which benefits everyone (which is the point!)

5) They think win-win-win-win: Technology cannot work properly if there is not buy-in from the administration, parents, teachers, and the student. First and foremost, there is nothing worse than having an administrator not embrace technology. Secondly, it is imperative that you show parents the value of technology. Thirdly, as a teacher, you have to truly believe that it can impact learning outcomes. Lastly (and most importantly), students must see the value!

6) They are extremely thorough and think two steps ahead: How are you going to present new technology at the professional development meeting, especially if you know some teachers don’t embrace change? Highly effective teachers who use technology already know the answers to any question, and they have concrete examples showing its effectiveness.

7) They actively care: Teachers who use technology typically are the ones who can’t sleep at night because they are so excited about

a lesson plan idea, are thinking of ways to engage their classroom, and pinch themselves at night, wondering how they get paid to inspire students. They don’t just care; they actively care, and they embrace technology, not because it makes their job easier, but because it allows them to make a greater impact.

Sequestration; it’s a word of worry for many citizens across the country concerned that budget cuts will hurt them financially. But for many, this is a new vocabulary word being thrown around and it’s hard to relate to given all the other catch-phrases used by techno-crats today. So I looked up a definition, and here is what Google shared:

Ok, now this word has my attention and it is scaring me! Considering how much debt needs to be paid, will all government programs be shut down so that all tax dollars are re-routed to paying off the incredible national debt? Well not quite. Some budgetary expenses will be maintained, while others are cut.

How did we get here, what are we going to do? On August 2, 2011, Congress passed the Budget Control Act (BCA) of 2011, which put into place an automatic process of “across-the-board” Federal budget cuts. Since these cuts were scheduled, no agreement in congress has been brokered to prevent the sequestration from beginning, and so here we are today. But what will be removed and what will be spared? Some media pundits are describing this like budgetary “Thunderdome”, but is it really going to be scorched earth? How bad can this be? Students and parents are understandably concerned that they will be squeezed first.

The latest update from the Department of Education about federal student aid funding offers some relief, as certain budgetary items are guaranteed to be maintained, like the Pell grant. But other widely used programs are facing cuts like the TEACH Grant Program and the Iraq – Afghanistan Service Grant Program.

From the report by David A. Bergeron, Acting Assistant Secretary:

Pell Grants Spared: The Balanced Budget and Emergency Deficit Control Act of 1985, as amended (BBEDCA), specifically exempts the Pell Grant Program from the effects of the sequester. Therefore, both the 2012-2013 Award Year Pell Grant Payment Schedules, as well as the 2013-2014 Award Year Payment Schedules that were released on January 30, 2013 in “Dear Colleague Letter” GEN-13-06, will be unchanged under the sequester.

Federal Work Study (FWS) and Federal Supplemental Education Opportunity Grant (FSEOG) are scheduled for cuts next academic year: The campus-based programs are fully funded at the start of the award year. Therefore, the Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs for Award Year 2012-2013 were fully funded in Federal fiscal year 2012 and are unaffected by the sequester.

However, under the sequester, Award Year 2013-2014 funding for FWS and FSEOG would be reduced by a total of approximately $86 million. The Department will include the reduction when it uses the expected reduced final full-year appropriation in the institutional allocation formula, which will result in final FWS and FSEOG institutional allocations that are expected to be released later this Spring.

Federal Direct Loans Program will have increased fees: The sequester does not change the annual or aggregate loan limits for Direct Loan Program loans, or the rules governing a student’s (or parent’s) Direct Loan eligibility. However, the BBEDCA did specify that certain loan fees paid by borrowers be increased during the time the sequester is in effect, as follows:

• For Direct Subsidized and Direct Unsubsidized Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 1 percent of the principal amount of a loan will increase. We presently anticipate that the rate will increase to approximately 1.05 percent. With such an increase, for example, the fee on a loan for $5,500 would increase from $55.00 to $57.75, an increase of $2.75. We will provide the actual increased percentage when it becomes available.
• For Direct PLUS Loans for both parent and graduate and professional student borrowers where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 4 percent will increase. We presently anticipate that the rate will increase to approximately 4.20 percent. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase from $400.00 to $420.00, an increase of $20.00. We will provide the actual increased percentage when it becomes available

The Department’s Federal Student Aid (FSA) office is taking steps to inform all borrowers of this adjustment, although it is doubtful that many will cancel their federal loans due to these adjustments.

Cuts for Iraq – Afghanistan Service Grants: The Iraq – Afghanistan Service Grant (IASG) Program is also subject to the across-the-board budget cuts under the sequester law. The IASG is provided to certain students whose parent or guardian was a member of the U.S. Armed Forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11.

Under sequestration any reduction in the amount of an Iraq – Afghanistan Service Grant would only apply to awards where the first disbursement was made during the time the sequester is in effect. Until we are able to provide further guidance on the timing and amount of the sequester required reductions, we recommend that institutions not make a first disbursement of an Iraq – Afghanistan Service Grant to a student.

Cuts for TEACH grants: The Teacher Education Assistance for College and Higher Education (TEACH) Grant program is also subject to the across-the-board budget cuts under the sequester law. The TEACH Grant program provides grants to students

who are completing, or plan to complete, coursework needed to begin a career in teaching and who agree to teach for at least four complete academic years in a high-need field at an elementary school, secondary school, or educational service agency that serves students from low-income families.

Any reduction in the amount of a TEACH Grant would only apply to awards where the first disbursement was made during the time the sequester is in effect. Until we are able to provide further guidance on the timing and amount of the sequester required reductions, we recommend that institutions not make a first disbursement of a TEACH Grant to a student.

Any questions?

Please don't sequester my lunch!

Avoid long lines at college by being prepared to handle billing issues

Tuition Payment Plans: A tuition payment plan allows families to split their balance due into monthly payment amounts and are usually administered by a third party billing servicer requiring a small registration fee. Payment plans make a great option since no additional interest is charged as long as each monthly payment is made on time. By utilizing careful budgeting, families with the means to handle monthly payments can minimize usage of student loans. However, many families can only afford a partial payment plan, and will need additional funding sources for the remainder of the bill. Talk to your school’s billing office to confirm their payment plan options.

Financial Aid: Schools normally provide financial aid packages each academic year for Fall and Spring semesters, and may include scholarships, grants and federal student loans. If you are starting at a new school for the spring semester, the financial aid awarded will be processed considering your eligibility for that one single semester only. You would not be able to shift any “unused” money from the prior fall semester into the new spring semester.

A high percentage of students end up transferring at least once during college completion

Additional issues for transfer students: If you are a transfer student you should have forwarded your 2012-2013 FAFSA information to your new school, and a financial aid package should have been processed by now. If you are still without funding due to issues with the FAFSA, contact your school’s financial aid office for an update. If they have not yet received your FAFSA information, and you processed it weeks ago, show your school the Data Release Number or DRN from the final confirmation page of your FAFSA. If there was an electronic processing error, the school may be able to locate your FAFSA quickly by using your confirmation and DRN.

Also, bear in mind that transfer students sometimes have to deal with reduced funding and a lot of follow up to make sure financial aid can be processed. That is because there is a very small turn around time for colleges to process financial aid for spring semester transfer students, since it all must be completed during the time when schools close for winter break. Additionally, much of the school’s institutional based scholarships and grants were already awarded to currently enrolled students, and there may be little funding left over to award to new transfer students. Also, remember to file the new 2013-2014 FAFSA in preparation for next years funding and work with the financial aid office to see if any additional funding can be made available to you.

Pending appeal: If you fell short on a GPA requirement to keep a scholarship, you may need to submit an appeal to keep it in the Spring Semester. Cases of mid-year scholarship cancellations are rare, but it does not hurt to confirm your continued scholarship eligibility. If your parents have been hit with unemployment, you may qualify for increased grant funding through a financial hardship appeal. Know your situation, and consult with your financial aid office to see if any appeal is necessary to increase your funding.

Know your student loan options: Students in need of additional funding can look into options like the Parent Plus loan or a private student loan. Both have different options to consider before applying, but the basic difference is that the Parent Plus loan is only in the name of a Parent, and a private loan can be in the student’s name, but they often need a cosigner (like the parent) to get the loan approved.

Changing dorms could change your bill.....

Change of schedule or living arrangements: Being a full time or part time student can change financial aid eligibility and your billing statement. Before dropping or adding a class, be aware of your status. Changing your dorm to a different building or a single residence may cost a lot more. Most grants and scholarships require full time registration to stay eligible. Make sure to clarify what has changed, and how much you will owe the school as a result.

Refund Checks: If the financial aid awarded to the student exceeds the total bill and there is extra money left over, the student is entitled to a refund check. This extra money is to be used for educational expenses, like technology, books, equipment and supplies, but also for living expenses like food and transportation. However, a refund check may tempt students to spend the extra cash on a fancy new bag or sneakers, but those are costly luxuries not necessary for education. Since refund checks are often a result of extra student loan funding, it makes financial sense to minimize necessary expenses, and send money back to the lender in the form of a pre-payment.

This article was contributed by Naureen Khan. Follow her on Twitter: @nsk3010

For roughly 12% – 25% of a college population, the new spring semester marks the final grading period before graduation. With that comes the inevitable row of symptoms associated with senioritis. If you are approaching the end of your academic career, and find it hard to stay motivated then you may be afflicted by this condition. Know the signs, get treatment and graduate on time using these tips.

1. Know the signs: Senioritis has many of the following symptoms;

• Lateness
• Absenteeism
• Incomplete homework
• Missed assignments
• Lack of interest in class
• Not giving a darn.

However, these symptoms may be common in college students well before their final semester. Any of the symptoms becoming apparent prior to the final semester cannot be classified as part of senioritis. In such cases the student is just “lazy”, or may be stuck in classes that they hate.

2. Negative consequences: Senioritis can have minor and major affects depending on the case.
Minor issues can range from annoying the professor to getting a lower grade for the class. Major issues include incomplete projects, large reduction in GPA, multiple class failures and postponement of graduation. In cases of postponement of graduation there could be a loss of financial aid or scholarship awards. Graduating behind schedule can slow down the job search process and employment opportunities.

Stay motivated for your final semester!

3. Get treatment: Stop senioritis before it stops you.
Senioritis strikes with a de-motivational blast leaving students unable to perform even the most basic of academic endeavors. In can strike suddenly and without warning, but coincides with the student’s realization that this is in fact the final semester. Psychologically, a shift in priorities occurs in even the most stalwart of students, where once they could not be kept away from assignments, they now throw their books from moving vehicles. Don’t let this happen to you. Here are some ways to stop senioritis from ruining what should be your final semester.

• Establish after graduation goals: Establishing goals for after graduation implies the key requirement of “graduating.” For example planning an awesome summer trip after graduation is a motivator for students to stay focused for one more semester before it is done.
• Line up work prospects: Look for work and get some job interviews during the final semester. This will encourage you to stay in step with planned graduation. Your job options depend on timely completion of college.
• Look at your student loan debt: The bigger your debt, the more motivation you should have to complete college and get gainfully employed. If you had to stay in college any longer, your debts would probably increase.
• Plan for good times: There is plenty of fun to be had during the last semester. Just make a plan to enjoy yourself AND get the last of schoolwork done with.
• Catch yourself when slipping: Give no more than 1 unexcused absences to yourself per class. If you are willing to skip classes too early in the semester, stop and focus on what is most important. Communicate with the teacher early in the semester. Studies show that positive student engagement leads to more class completion. This will make the final semester more enjoyable for everyone involved.

With the cost of education rising every year, it is more important than ever that young students learn how to handle their money and avoid making mistakes that could negatively affect their future. Here are 7 of the worst student money mistakes experienced by college students every year.

1. Credit card debt

Pick any card, but be responsible when using it

One of the worst money mistakes college students make is over-relying on credit cards. Credit cards are still relatively easy for college students to acquire, even after the CARD act was passed, putting students in possession of large lines of credit beyond what current income can support. Debit cards have become much more popular, but credit cards are a tempting option when cash is running low. When used responsibly, a credit card can offer a credit building opportunity when incurred balances are paid in full each month. However, if a student falls behind, the late payments and a high amount of debt will negatively affect credit scores and will remain on credit history for seven years. This can affect students years after graduation like when applying for home or car loans.

2. Failure to budget

Most college students are living on a limited income and paying bills for the first time in their lives. Failing to create and stick to a budget is one of the most common money mistakes made by young students. Many students try to copy their parents’ lifestyle and end up living way beyond their means.

Start creating a simple budget by listing all of sources of monthly income and subtracting your monthly bills. This includes rent, groceries, car payments, tuition and extra spending money. Creating a budget is a financial basic that you should learn along with answering these five financial fitness questions. Get some digital assistance with your budgeting routine with some help from Mint or Budgetpulse, as they offer free budgeting software that can help balance your personal finances.

3. Wasting “extra” financial aid money

Most students rely on some form of financial aid to help pay for college expenses. Scholarships, grants and student loans help many students fund their degrees. Sometimes students find they have some amount of financial aid money left over after paying for a semester of tuition, fees and other expenses.

Is this how you feel when you get a student refund check?

Scholarships and grants are free money, but loans must be repaid – usually with interest. While Federal direct loans to students can defer repayment until after graduation, the unsubsidized Direct loan begins to accrue interest immediately at 6.8%, increasing the debt on the way to graduation (Interest accrued on Subsidized direct loans is paid by the government while a student is in school). Too often students waste this surplus and then carry the debt into the future costing more to repay. After a student receives a refund check from financial aid they can just send the money to their lender in the form of a pre-payment and reduce their debt load by graduation.

4. Failing classes

A college education is not free. Failing a class is like throwing away money. If the course is required for graduation, you will have to pay to repeat the class. Why waste the money if you are not going to put the time and effort into passing?

5. Avoiding community college

Many young people jump directly into a four-year university instead of reaping the financial benefits of attending a community college. Besides the possibility of living at home, community colleges usually charge less fees and tuition. Community college could be a great transition from high school to a four-year university, as the student can complete required general electives at a reduced cost and earn the strong grades required to transfer to a larger institution in order to complete a Bachelor’s degree.

6. Not using university resources

Tap into school resources, since your tuition already subsidizes it

Part of every student’s tuition and fees goes to fund university resources, such as health services and meal plans. Most of these services are offered to students at a free or reduced charge. Instead of going to the hospital or a doctor’s office off-campus, college students would be wise to take advantage of the health services provided on-campus. There are many services and amenities provided by your school, and since you have already paid for them you might as well gain benefit.

7. Not applying for scholarships and grants

Most schools require the FAFSA to be filed before any funding is considered

Before taking out student loans, all students should apply for scholarships and grants before and during college. Begin the process by completing the Free Application for Federal Student Aid (FAFSA). Continue applying for financial aid each year you attend college, and make sure to file the request before any school or state deadlines (As early as February 15 in some places). Just remember that scholarships are awarded to students based on merit like GPA, sports, community leadership and extra-curricular activities, and grants are awarded to students based on financial need.

This article was contributed by Jon Haver from Paymystudentloans.com. Follow him on Twitter @paystudentdebt

1. Technology: I cannot stress enough how important it is for a university to integrate useful and productive technologies on campus and in classrooms. Key areas where technology makes a major impact include:

A technologically advanced classroom courtesy of Educause

• A) Administration: How easy is it to get financial aid processed, billing issues settled and registration cleared? The answer is proportional to how well information technology works at a school. An environment of thousands of students is naturally a state of chaos creating a physical mess of paperwork for departments to deal with, unless those departments utilize technology. Where once there was stacks of paper miles high, well integrated schools now have scanners to manage paperwork flow and save data in a lower cost and more efficient manner. To investigate this question while on a college visit go to the billing office and find out how their online payment and registration systems work. Go to financial aid and find out how they process all the forms required. Compare what you see to all the schools you visit and observe which schools handle their processes the best.
• B) Classrooms: Will classes require that you buy a lot of paper printed books or are electronic books becoming more popular? As noted in earlier articles, technology in the classroom is a major issue. Students are now able to learn useful knowledge through many digital formats beyond the standard book. The challenge is that many professors and institutions of higher learning have been slow to adopt these methods, leaving college students technologically stunted in their education while paying more money for antiquated ways. Some colleges, like those in the state of Washington, are meeting this challenge by offering online book resources through an open source collaboration of professors and librarians. Not only does this lower book costs for students, but it brings educators together to produce a customized, up-to-date knowledge resource to develop better learning.

2. The real student/professor ratio: This much ballyhooed statistic is traditionally where an expensive college can demonstrate value. It follows the line of thinking that smaller classroom enrollment creates a more close knit and immersive learning experience where professors can interact with students point by point. The magic classroom student/professor ratio most students look for is 20/1 to as low as 12/1. However, the published statistics from schools do not regularly match up to the experience most students actually have. You have to look beyond the ratios to find out what really happens in class.

Do you have a preferred class size?

• A) Does the school rely heavily on adjuncts, part time professors and teaching assistants to handle the majority of undergraduate teaching? Is this justified by the cost of tuition? Part time faculty can provide great value in their own right, but if paying top dollar for tuition than you deserve more. Visiting a campus for a spot check can confirm what really goes on.
• B) Does the ratio include undergraduate, graduate and PHD programs? If so the numbers do not reflect your freshman experience as an undergraduate. Graduate and PHD programs always have better teacher to student ratios than undergraduate. These ratios should not be co-mingled
• C) Are research faculty counted in the ratio? Research faculty almost never teach undergraduates, so they should not be included in the ratio either.

3. The real campus vibe: Much of your college career will be spent socializing with campus life. You need to know what you are jumping into before you go. Do not assume every college is the same socially, as you will find there is great variation between location and makeup of student body.

How much tuition should you pay for this?

• A) Are most of the students commuters or residents? This is probably the largest determining factor to the “feel” of campus. Schools with lots of students on campus tend to be full of activities, intramural sports can be very competitive and Frats/Sororities can be very popular. Colleges with lots of commuters still carry many of the same activities, but they are not the dominant center of college life for the majority of students. Commuter colleges tend to have more professionals on campus going to school after work. With that comes a focused and career oriented student body that is well aware of life outside of school. If you have a desire to live on campus and participate in all the activities offered, then go to a school with lots of other residents to share this experience. If you want to attend a school to focus on education and career goals and could care less about the Football team, then a commuter school is a better choice.
• B) Does it feel spacious, cozy or somewhere in between? Colleges come in all shapes and sizes to meet the needs of many students. Look for things like the number of students that share a single dorm room, or the amount of people in the cafeteria at lunch time. Is it a bustling rush of people? Is it mostly quiet and peaceful? What do you prefer?
• C) How is the food, really? The quality of cafeteria food available has been an issue of ongoing contention with students. If the old adage “You are what you eat” is true than in many ways the University is what it serves for lunch. Today many students have special dietary needs making their eating arrangements at times complicated. There is gluten free, dairy free, vegetarian, vegan, kosher and halal dietary needs just to name a few. Beyond those examples, all students should have access to fresh fruits and vegetables on a daily basis if they are to have a complete diet. Does the cafeteria at the school you visit promote healthy diet and eating habits by offering nutritional food? When
  comprar viagra

  considering the cost of a meal plan, does it offer the nutrition you need?

New year's resolutions can fade faster than the fireworks. Get back on track ASAP!

Already three days into the New Year, and many are breaking down on resolutions they were so sure of on December 31. Every year people fail to meet their own resolution expectations mostly for two major reasons.

• The resolution did not really involve any commitment and was only superficial.
• The amount of work involved to achieve the resolution was far greater than realized.

Setting big goals is a good thing, until the goals are so big they become insurmountable and one gives up. There is no shame in setting a goal and failing, but one should acknowledge the amount of work necessary to make a resolution succeed before setting the intention, or again it’s a set-up for failure. This is especially a sticking point for the young and ambitious because the imagination of achievement outpaces life experiences in dealing with these types of challenges.

After a few days of reconsideration and reflection on positive life changes one can make, let’s revisit some viable financial resolutions that college students can implement and follow through with for a prosperous new year. These five resolutions are simple and direct while carrying long term benefits.

1. File the FAFSA on time: Take action with this very achievable short term resolution. The new 2013 – 2014 Free Application for Federal Student Aid (FAFSA) is now available for new and continuing college students. Don’t delay, get this important form completed ahead of your state or school deadline to ensure maximum financial aid funding eligibility. Maximizing grants and minimizing loans can reduce the cost of interest during repayment for years to come.

2. Time to “Plug In” your budget: Electrify your budget with some digital tools available to help keep you aware of your money on a monthly basis. Now more than ever there are handy programs that can help you track spending and savings to paint a clear financial self-portrait. Keeping a disciplined budget is nothing new, but the technology to help do it has made it easier. The problem for many is just staying motivated to even track a budget consistently, especially if income is limited. Instead of being discouraged, decide to utilize a budgeting tool to increase personal financial management ability. Gain this skill while working with a small budget so that you are more prepared with a larger budget in the future. There are plenty of options available to help in this endeavor, so look for no or low cost alternatives like Mint or Budgetpulse and take control of your budget.

3. Always pay your friends back quickly: Have you ever loaned money and not been repaid? Or perhaps you are out with friends but short on cash so someone covered your bill in exchange of your IOU only to forget about it shortly after. (Whooops!) Well, the digital wallet is taking the excuses out of repaying friends. Just connect your checking account to a digital wallet service provider, and anytime you owe some money to a friend, you can forward it to them electronically instead of using cash. Check out Dwolla, an already popular digital wallet alternative that can allow payments to be processed right from your phone, or Venmo a similar digital wallet program that taps into your social media account to help forward any payments to your friends. Demonstrate responsibility with money by always paying people back, while simultaneity harnessing the power of technology to improve your financial know-how.

4. Debt management now: Resolve to handle your debt before it handles you. If you are currently in college, and have any outstanding student loans, start making at least a partial payment each month to help build credit history and reduce interest costs. If you are recently graduated, look into a consolidation for federal loans, as well as a consolidation for any outstanding private student loans to help organize and manage repayment.

A good habit can ultimately pay for itself. A bad habit costs more than you realize.

5. Replace a bad habit with a good habit and “profit”: New Year’s resolutions commonly include quitting cigarettes or giving up certain non-nutritious foods, and it’s important to identify these unhealthy habits before they can be eliminated. But this is only half the battle carrying half the motivation to complete it. That’s because when a bad habit gets wired into the mind it will remain a sensitive focus point that will require constant handling until something else more enjoyable or important becomes the motivational focus point. For example, the person that wants to quit cigarettes may find it stressful to see others casually light up in front of them because they so badly want to partake in the same activity. However, if the smoker is more concerned with healing their lungs so they can improve their cardio and more actively play with their young relatives then a new and more enjoyable motivation takes control of the person. No longer do they dwell on the loss of cigarettes, rather they focus on what is gained through increased health! So if you are trying to quit a bad habit first stop doing it. Second, pick up a new healthy habit like always exercising 3-4 times a week. It may feel magical, but it’s just a simple rearrangement from bad habits to good habits for positive benefits. An added motivational factor is money! Unhealthy habits are often a costly excess, and eliminating them in favor of positive habits usually yields a financial gain both immediate and long term. A person spending lots on junk food would do well to reduce that cost and save the money. A reduction in bad foods should lead to increased health and reduced long term health care costs and/or time spent away from work to see Doctors. Instead of fighting the bad habits all the time, move to good habits and gain benefits along the way.

year. Get it done early to maximize financial aid eligibility.

2013 - 2014 FAFSA is now available

1. How do I get a lower interest rate? Having a strong personal credit history and/or a cosigner with strong credit history is a surefire way to earn a reduced interest rate on a private student loan consolidation. An applicant with several active years of positive payment history demonstrates to lenders that they are a reduced credit risk, allowing for a reduced rate on consolidation to be issued. Many former students may be holding private student loan debt at very high rates because their credit rating (or credit of their available cosigner) was limited when they originally applied. But after graduation, the borrower is hopefully employed and has enhanced their credit rating through consistent on-time payments towards any debt and a longer credit history on file. Basically, the better the credit of the applicant and/or cosigner, the lower the interest rate can be.

2. Can I consolidate federal and private loans together? The short answer is “No” since private student loan consolidation programs typically only accept private loans as part of the application and will not include any federal student loans (Always confirm with your consolidation provider, as policies may change). Federal student loans like the Stafford loan, Direct Loans, Plus loans and Perkins loans are consolidated through the Federal Direct Loans consolidation program, from the Government. This government consolidation will not accept any private loans as part of the application. Basically, federal loans get consolidated in the government program, and private loans get consolidated in a different private loan program.

I want a low Oompa-Loompa rate, please

3. Should I get a fixed rate or variable rate? There is a trade-off for either, and the applicant must decide based on their own preferences. Today, a variable rate loan can provide a very low rate especially for borrowers with strong credit. The variable rate will adjust over time to reflect the underlying rate index the loan is based on like Prime or LIBOR. This works very well for the borrower while rates remain low, but if rates were to increase in the future, more interest could be generated from the application. With a fixed rate loan, the rate stays the same throughout the loan term, creating a very predictable repayment schedule regardless of general market interest rates. Lenders generally provide a higher interest rate on a fixed loan than what would be offered on a variable rate loan. This program can work very well for a borrower if general market interest rates were to increase above the fixed rate on the loan application, however, if interest rates remain lower than the fixed rate loan it would probably cost more to repay. Compare options based on which program creates the best debt elimination scenario for you. If a very low rate on a variable interest consolidation is available, look into paying more than the minimum payment due each month to eliminate debt faster. If it’s a fixed rate loan, try to secure as low a rate as possible to make it less costly to

repay now.

4. Can I extend my term? The loan term is the number of years of payments required to repay a loan. Many, but not all private student loans have 10 year repayment terms. A private loan consolidation may offer a longer term, reducing the minimum monthly payment but ultimately costing more interest to repay in full. Extending a loan term is a simple way to reduce the loan payment each month, and may provide a cash flow management solution that fits the budget. Make sure to compare the number of term years in the consolidation with the individual loan applications to know the difference.

Accelerate debt elimination. You know you want to

5. How can I accelerate debt elimination? The fastest way to debt elimination is through making extra loan payments. Just confirm if the consolidation has any pre-payment penalties that would add on costs for making all the extra payments. Pre-payment penalties could offset the interest savings that extra payments are supposed to achieve. If your consolidation is pre-payment penalty free, the easiest way to manage a month-to-month budget is to have the standard monthly payment automatically withdrawn from a checking account, and send an additional extra payment for an amount that makes sense for the budget. This way the borrower never misses a monthly payment, and can send in extra payments they can afford.

1. What is your estimated graduation date? It’s generally accepted that an undergraduate degree is to be completed in four years, but it ends up taking a bit longer if the student does not take enough credits each semester along the way. Consider a Bachelor’s degree earned at 128 credits would require an average of sixteen credits every Fall and Spring for eight total semesters. If you are registering for just twelve credits each semester, it would take about five and a half years to finish an undergraduate degree. Many grants and scholarships have an eight semester limitation for funding a student, so taking too long to graduate could end up driving your college costs to even greater heights than they already are. Try registering for extra classes next semester if you are falling behind, and get back on track for a timely graduation.

2. Is your GPA maintaining your scholarship? A scholarship typically has a minimum GPA requirement for eligibility. Make sure to zero in on that GPA requirement goal with every class by getting A’s in areas you excel in, and getting extra help in classes that are a struggle. The school’s financial aid office typically reviews scholarship eligibility at the end of the Spring semester and will take action to cancel or reduce scholarships where applicable. If you find yourself with a GPA below the minimum, at least you are aware of the situation and can now take action to improve grades and maintain this important funding.

Seriously

3. Are you ready to renew your FAFSA? On January 1, the new Free Application for Federal Student Aid (FAFSA) will be available for the 2013-2014 academic year. Do not waste any time in preparing to complete this, as it will determine financial aid eligibility for next year. Your school has a deadline for new incoming freshman, as well as for continuing students for completing the FAFSA, and if filed late it can reduce eligibility for need based funding. Get ready by making sure parent and student tax returns are filed in a timely manner so that FAFSA questions can be easily answered. FAFSA renewal can be a very efficient

process since the online application can now digitally pre-populate answers to many financial questions from an electronically filed tax return. It’s more easy now than ever to complete a FAFSA, but every year people forget to complete by their school’s deadline and it costs them funding. Make sure to remember!

4. Has all of your financial aid paid to your account? If you are having problems getting cleared for next semester’s registration, you may already be aware of this issue. Sometimes certain grants, scholarships or loans do not pay to an account due to an unforeseen error. It may be a mistake on the student’s behalf, for example not completing a master promissory note and entrance interview preventing the Stafford loan from paying out. It may be a mistake on the school’s part if there is an electronic processing error on the financial aid and billing system. Review your account to make sure all of your funding is paid, and at the correct amounts.

5. What is your student loan debt? Review your student loan debt to be fully aware of what is outstanding. Know what you owe by confirming what types of loans have been used, what types of interest rates they carry and how much total debt there is. Estimate how much more debt would be required to complete your program. Then use a loan calculator to estimate what your monthly payments will be after graduation, and how much interest it will cost to repay the loans. Look at loan repayment options available, like the new Federal “Pay As You Earn” program, or private student loan consolidations if necessary. Being aware of debt allows for more decisive planning about debt elimination strategies and the required income to enable it. Also, this is a time to consider job and income prospects for the future, and if the degree track you are following is viable considering the amount of debt necessary to achieve it.

For many former students, November marks the end of the 6-month grace period on Stafford loans since graduating from college in May, and December is when first payments are due. This is normally a time to begin spreading holiday cheer, but when a big payment is due spirits can deflate.

All subsidized and unsubsidized Stafford loans begin repayment after the 6-month grace period is over. This is also true for many private loans as well. While cuStudentloans offers a private loan consolidation to assist in the repayment of private loans, this does not include the federal loans that are handled separately.

Federal student loans offer a wide variety of repayment options that can help reduce minimum payments due, providing a boost to a monthly budget that may be limited post-college. Through government backed subsidy, a loan period can be stretched beyond the normal 10 year repayment term and can modify (reduce) the minimum payment to reflect income.

The new “Pay as you earn” loan repayment plan has been recently made available to help borrowers manage a budget with a more reasonable payment amount. Here are some highlights from the Government website.

How do I qualify for Pay As You Earn? The applicant must demonstrate they have a partial financial hardship. A partial financial hardship is present if the monthly amount the borrower is required to pay on eligible federal student loans under a 10-year Standard Repayment Plan is higher than the monthly amount required under the Pay As You Earn program.

What loans are eligible for this program? Only certain federal Student loans can be eligible for this program. They include…

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans made to graduate or professional students
• Direct Consolidation Loans without underlying PLUS loans made to parents

This program is for more recent loan disbursements: The applicant “…must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.”

The applicant must be defined as a new borrower as of Oct. 1, 2007: The Department of Education defines a new borrower as an individual having “…no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new loan on or after Oct. 1, 2007.

What loans are NOT eligible?

• Direct PLUS Loans made to parents
• Direct Consolidation Loans that repaid PLUS loans (Direct or FFEL) made to parents
• FFEL Program loans
• Private education loans

How are monthly payments modified? The following are considered when modifying monthly payment amount under the “Pay As You Earn” program:

• Total income and family size
• Subject to adjustment each year based on changes to your annual income and family size
• Payments under “Pay As You Earn” should be lower than payments under other plans
• Payments under “Pay As You Earn” should not be greater than the 10-year standard repayment amount
• Payments under “Pay As You Earn” can be made over a period of 20 years.

Features of the “Pay As You Earn” program:

• The monthly payment amount is reduced to 10 percent of discretionary income: This payment amount is less than the minimum payment under the 10-year Standard Repayment Plan, and may be less than other repayment plans.
• An interest payment benefit is available: If the monthly Pay As You Earn payment amount doesn’t cover the interest that accrues (accumulates) on outstanding loans each month, the government will pay the unpaid accrued interest on any Direct Subsidized Loans (and on the subsidized portion of your Direct Consolidation Loans) for up to three consecutive years from the date that loan repayment began under “Pay As You Earn.”
• Capitalization of interest is limited: If the borrower is determined to be under a “partial financial hardship”, any interest that accrues but is not covered by loan payments will not be capitalized, even if interest accrues during a deferment or forbearance. Unpaid interest capitalizes if the borrower is determined to no longer have a partial financial hardship, but the total amount of interest that capitalizes during repayment under the Pay As You Earn plan is limited to 10% of the original principal balance when beginning paying under Pay As You Earn.
• 20-year forgiveness: If you repay under “Pay As You Earn” and meet certain other requirements, any remaining balance will be forgiven after 20 years of qualifying repayment.
• 10-year public service loan forgiveness: If, while you are employed full-time for a public service organization, you make 120 on-time, full monthly payments under Pay As You Earn (or certain other repayment plans), you may be eligible to receive forgiveness of the remaining balance of your Direct Loans through the Public Service Loan Forgiveness Program.

Potential program disadvantages:

• Potential increase in interest costs: A reduced monthly payment under Pay As You Earn generally means you’ll be repaying your loan for a longer period of time, so you may pay more total interest over the life of the loan than you would under other repayment plans.
• Annual review of income documentation: Each year, the loan servicer will need to review your financial information. This will be done most likely through submitting a copy of a recent tax return. The servicer would then calculate the monthly loan payment due to 10 percent of discretionary income considering total income and family size. If this documentation is not submitted, the loan servicer will adjust the payment to reflect standard 10-year repayment, a much larger payment. If you do not provide the required income documentation, unpaid interest will also capitalize normally.
• Only Direct Loans are eligible for the Pay As You Earn repayment plan: FFEL Program loans are taken into account when determining whether you have a partial financial hardship, but are not included for a reduced monthly payment under Pay As You Earn. Loans in FFEL may select another repayment plan, such as Income-Based Repayment.
• Tax liability at the end of term: You may have to pay taxes on any loan amount that is forgiven after 20 years.

Want to find out what your payment would be if qualified for this program?

Since this program is very new, a very small number could have possibly registered for it. However, as more students graduate from college, this plan will become more widely recognized.

Check out the “Pay As You Earn” calculator on the federal student aid website. Compare total cialis online pharmacy loan amount outstanding versus income to get an idea of what’s available.

Areas of concern: This new program is meant to help provide relief to federal student loan borrowers that are carrying lots of debt with lower income. However, a person that has relatively high income can still qualify if their debts are that much higher. Consider high-debt, high income occupations like Medical Doctor as an example. During early years, this program may provide a monthly cash flow management solution, but as income increases the applicant would eventually lose eligibility and revert to standard repayment. This may cost more in total interest over the loan term.

Commentators on this program have pointed out that this does not really solve the issue of debt; rather it restructures debt to make it more affordable to repay on a monthly basis. Some have called this a form of “soft-default” on federal loans, as approved applicants cannot afford to repay the loan under standard terms. The more sensible alternative is to find ways to reduce college costs, and reduce the total need for loans in the first place.

Others have added that this loan repayment subsidy renders the already available Subsidized Stafford loan obsolete. In the subsidized Stafford loan, the government already pays all the interest that accrues on the loan while the student maintains at least half time registration status or greater. Now an additional subsidy is added to the repayment of the loan on the back-end, a duplication of subsidy efforts. Some in Congress have proposed that subsidized Stafford loans be terminated, with the savings moved to Pell grants to help pay for a college education instead.

borrower to greatly reduce the payment due, or to suspend any payment on a loan until a future date.

Forbearance is typically requested when a borrower is facing financial difficulty. Most commonly this is a result of lack of employment, a decrease in income, or illness or disability that prevents the borrower from working.

Important points about forbearance:

1. When a loan goes into forbearance, any accrued and unpaid interest is capitalized and added back into the total outstanding loan. A loan balance will continue to increase as long as the payments are suspended. In this way a forbearance does not make the loan “go away”, it’s just a temporary relief from having to make payments, but the loan will need to resume normal repayment at a future date. This can increase the total cost of loan repayment once normal payments resume.

2. Forbearance is provided as an alternative to regular monthly payments. A borrower may be able to make a partial payment on their loan each month that is lower than the minimum payment. For example, a borrower may be responsible for a $400 monthly payment, but can only afford $100 while they are searching for a new job. Making a $100 payment is better than making no payment at all, as some of the interest can be covered each month. The forbearance request will specify if you can make a partial payment or no payment on your loans.

3. Under forbearance, a lender agrees to halt required loan payments for a specific amount of time. Typically a single forbearance request can extend for 6 months, with an option to reapply and extend forbearance further. Most lenders can extend forbearance up to 18 months if continually approved for each 6 month segment. Confirm your forbearance time frame directly with your lender.

4. Can forbearance affect credit score? Forbearance is a better alternative to just missing payments. Because forbearance is not recorded as a missed payment due to an official arrangement made with your creditor, the information is not reported negatively on the credit score. However, a loan in forbearance will continue to grow by accumulating interest over time, and can have in impact on an individuals debt-to-income ratio.

5. What should I do to apply? Every lender/creditor may follow different application requirements to process a forbearance. The application may ask for detailed information about employment history, alternative income sources, and living expenses and must be fully completed before formal review. If incomplete, a forbearance can be rejected. Be advised that a request for forbearance may take several business days to process before being approved or denied.

6. Avoid the last minute, but late is better than never. If a payment is due within just a few days, there is no guarantee a forbearance request will be processed in time to avoid that payment. A forbearance request should be submitted well in advance of an upcoming payment due to give enough time to be approved, or if denied it can be determined what additional information is required to move to approval. A forbearance request may be activated retroactively, so if a borrower has already missed some payments, they should submit the request ASAP so the lender can update repayment status. A retroactive approval can help to avoid a negative impact on the borrowers credit report.

7. Forbearance is basically a short term cash flow solution for borrowers under financial distress. The temporary relief is only offered to help the borrower get back on their feet, and is not meant to be a permanent solution.