Getting inside the mind of a scholarship winner

I’ve been researching the qualities and attributes of scholarship recipients from scholarship search services such as Fast Web and College Board, and I’ve noticed that there is something different about these students. It’s not that they are home schooled individuals who went to bed dreaming about The Golden Ratio, or didn’t have any friends growing up because they were overly dedicated to their schoolwork. No, that’s a stereotype. What I am talking about are scholarship recipients, who are creative, innovative, out-of-the-box thinkers. These kinds of people will thrive in our culture, because everyone is looking for new ideas so that their business can become bigger, better and more established.

You are a creative, innovative, out-of-the-box thinker

Don’t look over your shoulder, I’m talking to you. Education is one of the ways that shapes us as individuals, shaping an extent of our identity. Be it Math, English, Web Design, Linguistics, or Biology, the ways in which we learn as well as the content we learn expands our mind and teaches us to think differently. A math major will look at the world differently than an English major and a student majoring in Web Design will look at the world differently than a student majoring in Biology. And beyond our education, there is experience which is dense and inevitable. Are you getting my point? We are all unique individuals, just like Mr. Rogers probably said, and we each bring something different to the table. When applying for a scholarship, being set apart is the key. Whether the set-apart-ness is big or small. But we don’t have any excuses if we think we are inept to fulfill this duty. Here’s how to get that free money:

• Answer the question and follow the instructions.
• Be real, and add your own experience to what you decide to write on.
• Be original.
• Be grammatically correct.
• Know that you have a chance.
• Think before you write. Brainstorm some good ideas and create an outline to help you get going.
• Show what you are trying to say through stories and examples, individualizing your essay while demonstrating the point you want to make.
• Know your audience.
• Develop a theme. Don’t simply list all your achievements. Decide on a theme you want to convey that sums up the impression you want to make. Write about experiences that develop that theme.

What the scholarship givers look for:

• A positive and confident attitude
• A clear definition of who you are and who you want to be
• An assessment of your top skills

And here is what NOT to do. And here’s some more of what not to do.

Did tedious just become easier?

That’s what three members of the Department of Education in September 2009 explained to hundreds of high school counselors who gathered in Baltimore to hear the changes being made to the Free Application for Financial Student Aid. Hey, that applies to us! The Obama Administration announced the changes in June and they have been in effect since the beginning of this month.

Some Facts on the 2010 FAFSA

• The online application, which previously asked for more than 150 questions, now asks 22 fewer questions
• The applicant will be led to 17 less web screens than they would have in 2009
• Applications online for the FAFSA must be submitted by midnight Central Daylight time, June 30, 2010
• Corrections made to the application must be submitted online by midnight Central Daylight Time, September 21, 2010
• The online form is now more organized into categories such as, “student demographics,” “parent demographics,” “basic eligibility” and “dependency status”
• Once an applicant has filled out the application online, it will give an estimate of the student’s Pell Grant, giving them a figure of their eligibility for student loans
• Students who are married or are over 23 can skip over a section of parent finance questions that no longer apply to them
• Low income students no longer have to go through questions of assets that are irrelevant to their situation
• Students who are applying for aid in the spring 2010 quarter are able to upload their IRS tax data directly into the online FAFSA forms
• Full summary of changes on the FAFSA

There are several different ways to pay for college…

Deb: Um, hello. Would you like to look like this?
[holds out a photo]
Napoleon Dynamite: [Napoleon takes the photo and looks at it] This is a girl.
Deb: [Deb continues nervously] Because for a limited time only, Glamour Shots by Deb are 75% off.
Napoleon Dynamite: I already get my hair cut at the Cuttin’ Corral.
Deb: Well, maybe you’d be interested in some home-woven handicrafts?
[Scene continues after Rex Kwon Do TV ad Kip's watching]
Deb: … And here we have some boondoggle key chains. A must-have for this season’s fashion.
Napoleon Dynamite: I already made like infinity of those at scout camp.                                   Deb: I’m trying to earn money for college.

Though making home-woven handicrafts would be quite fun, you don’t have to earn money for college the way Deb chose to. There are other options.

1. Join an on campus group that offers free room & board. A great option for anyone with great leadership abilities who wants to be involved. For example, a Residential Advisor. Look into the benefits of positions on campus that are related to residential life and food services.
2. Attend your campus wide Job Fair: Bring a resume, dress well, and pay for college by working it off through an on or off campus job .
3. The Summer Melt is an opportunity few know about. It’s the time right before fall term when students resign their spots in a university, thus resigning their scholarship money. Writing a letter to your financial aid office asking for more money doesn’t hurt, and usually helps.
4. Write a killer scholarship essay, and use it for multiple scholarship entries. Kill multiple birds with just one sweet stone.
5. Join a free scholarship search service such as Fast web, College Board’s Scholarship Search or Sallie Mae and let them find scholarships for you to apply for.
6. Using Advanced Placement credits towards college means super cheap college credit.
7. Have the government cancel all or part of your educational loans by qualifying for loan forgiveness. To qualify for loan forgiveness you must match the criteria specified by the forgiveness program which can include community service, joining the armed services, and teaching or practicing medicine in certain types of communities.
8. Seek out jobs that pay your college tuition. Three national companies that assist employees towards their education are UPS, FedEx and Home Depot.
9. If you’ve got a knack for writing, or just have things to say that would be useful in any way to others, create a blog and make money through advertisement placed on your website.
10. Host an event (more likely if you are living in a house) and organize a house show with the musicians on campus, or host a Scrabble tournament with incentives. The suggested donation for attending should be posted as anywhere from $1 to $1,000,000.

Save Save Save

1. Accelerate your degree by getting yourself into an accelerated degree program, which cram a semester’s worth of content into a shorter amount of time. In an accelerated degree program, tuition is about half the price of a traditional degree program, while encompassing a greater intensity of work.
2. Bulk up on transfer credits! During the summer, enroll in classes at a community college that will transfer to your university and save you a whole lot of money.
3. Consider transferring into your preferred university after two years, if it is more expensive, while going somewhere else at first. Doing this will allow you to still gain the benefits of your chosen university while also taking away a diploma from the college of preference.
4. Create a budget to calculate the money you spend on coffee, late night fast food runs and other things that are unnecessary. Being able to track your money will help you save and spend responsibly.
5. Keep coupons of local grocery stores and follow weekly sales, avoiding expensive grocers.

College is expensive. College is DARN expensive. Beyond scholarships, and grants, and government loans, what if you are still short?

Private Student Loans – Alternatives

The private student loan market has all but died in the past few years. There are however a number of alternatives that are popping up.

#1. Lending Club – Borrow up to $25,000, however good credit is a must and the loan has a 3 year term that begins repayment right away. learn more.

I’d be curious to see the numbers on how the online colleges and universities are doing since the recession began.

I’d bet their numbers are up.

Why? Why not. Taking a MBA program for example online could save you $50,000 easily vs. a traditional brick and mortar program.

Take a look at a 2 year chart of Capella Education, which operates the accredited Capella University.

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As you can see, they are holding up very well during the downturn. As I dig more into the financials, I’ll see if enrollment is up this year.

I am a student at Seattle Pacific University. I have both federal loans and private student loans. I did my FAFSA every year and 2 out of the 4 years I didn’t get enough federal financial aid (loans), so I had to apply for private student loans. I did it through Sallie Mae. Now the time has come for me to consolidate all these loans together. Unfortunately, private student loans cant be consolidated with federal student loans. The interest rates on federal’s are too low to consolidate with private’s. Here is my dilemma. Its ok though you have a lot of options I’ve looked into for refinancing those private loans.

Consolidate my private loan by paying more?

This is probably the route I am going to take. Most private loans don’t compete on price so a private consolidation loan is simply replacing the private loans with one another and combining their total value. Your main goal and its main benefit is to pay a single monthly payment. Additionally, consolidating your private loan resets the term of the loan. So your monthly payment will be lower. You do end up paying more on interest over the lifetime of the loan, then you would have if you did not consolidate, but that is the least of our worries when we have to eat and find a job right? Plus this interest is fixed.

If Brett Favre consolidated

Interest rates on Private loans are based primarily off your credit score. What this means is your score may have improved since graduation. If this is the case then you may be able to get a lower interest rate on your consolidated loan, by talking to the current holder of your loan or a consolidated lender. Here is where Brett Favre comes in. Even if your credit score has not improved, you can talk to your current holder and see if they will lower your interest rates, rather than lose you to another lender. If they do not oblige, go to the Jets and live in NYC. Kapeesh?

Who will consolidate my Private Loan?

Now you have to make a decision. Which lender will consolidate my private student loans? I have made a list that might help your decision. These are private programs that consolidate your loans so the interest rate is not set by the government, it is dictated by the lender. So ask questions like is the rate fixed or variable? and whether there are any fees or prepayment penalties.

Really Important: Don’t consolidate your federal loans with your private loans. The interest rates, and superior benefits of federal loans far outweigh that of a private loan.

They are not listed in any particular order. I found them on FinAid.org

Educated Borrower Private Consolidation Loan
$7,500 minimum. $300,000 maximum. Up to 30-year term. Introductory rate of LIBOR + 1% to LIBOR + 1.75% during the first year. After the first year the rate increases to LIBOR + 5% to LIBOR + 5.75%. Origination fee of 0% to 5%. No prepayment penalty.

MELA Private Consolidation Loan
$10,000 minimum. No aggregate loan limit for MELA loans. $125,000 aggregate loan limit for non-MELA loans. Variable interest rate updated annually based on the MELA tax-exempt bond auction rate plus a spread of 3.5%. The 2007-08 MELA auction rate was 3.85%, yielding a consolidation interest rate of 7.35%. The same interest rate is provided to all borrowers, regardless of credit. The fees vary based on credit score, with 1% for excellent credit, 3% for good credit, and 6% for fair credit. The repayment term is 15-30 years, depending on the amount owed (15 years for up to $20,000, 20 years for up to $40,000, 25 years for up to $60,000 and 30 years for more than $60,000). 0.25% interest rate reduction for auto debit. Borrowers must be a Maine resident, existing MELA borrower or a student who attended a Maine college. There must be a Maine affiliation to apply for this loan.

NextStudent Private Consolidation Loan
$7,500 minimum. $300,000 maximum. Up to 30-year term. No prepayment penalties. Variable rate loan. Interest rates of 3-month LIBOR + 1.00% to 3-month LIBOR + 1.75% during the first year and 3-month LIBOR + 5.00% to 3-month LIBOR + 5.75% after the first year. Interest rates vary quarterly. Origination fees of 0% to 5%. No prepayment penalties.

SC Student Loan – PAL Consolidation Loan
$5,000 minimum. $150,000 maximum. Loans must be in grace period or repayment. Borrowers under age 24 must have a creditworthy cosigner. Borrowers age 24 or older must either be creditworthy or have a creditworthy cosigner. Repayment term of 10 to 30 years depending on the loan balance. No prepayment penalties. Variable rate loan. Interest rates of 3-month LIBOR + 4.50%. Interest rates vary quarterly. No fees. No prepayment penalties.

Student Loan Network Private Loan Consolidation
$10,000 minimum. $300,000 maximum. 20-year term for loans less than $40,000. Up to 30-year loan term for higher amounts. Variable rate loan. Interest rates of 3-month LIBOR + 5.00% to 3-month LIBOR + 8.5%. Origination fees of 1% to 5%. No prepayment penalties. Cosigner release after 48 on-time payments, contingent upon primary borrower credit.

StudentLoans.com Private Consolidation Loan
(A Brazos company.)
There is only minimal information about the loans on the web site. This loan appears to be a private label of the Education Finance Partners Private Consolidation Loan.

Wells Fargo Private Consolidation Loan
$5,000 minimum. $40,000 to $100,000 maximum, depending on credit. Aggregate loan limit of $100,000 (including other education debt). Up to 15-year term. Variable rate loan. Interest ranges from Prime + 0.0% to Prime + 6.75%. No origination fees. Up to 0.50% interest rate reduction for auto-debit. 0.5% interest rate reduction after making 48 initial on-time monthly payments.

It is safe to say that the economy has scared anyone trying to get a loan for school. How will you pay it back if the economy gets worse? How will you get a job once school is over? These are all great questions to ask yourself in the process of college. One great way to make sure your education gets funded is to stick to government programs and lending. have you heard about Stafford Loans and PLUS loans? They are government funded loans for your education. (Stafford for you, and PLUS for parents). The federal direct loan program or FDLP is another great way to get loans that is less common. The FDLP is more often called “direct loans”.

Thank the Department of Education

Direct Loans are the same as Stafford and PLUS loans except they are funded by the department of education or offered through the Federal Family Education Loan Program. (mouthful, so FFELP for short). Your school will choose which program best fits the needs of their students, The FDSLP or the FFELP. Confused yet? All you should know is that there was $509 million dollars budgeted for 2008 and that amount is expected to be higher with Barack Obama as president.

How to get these Student Direct Loans

In the FFELP, Private organizations market and service federally guaranteed loans. These institutions include non-profits and some commercial organizations. Why do they do this? To make money off the interest. In order to qualify for these loans you need to fill out the FAFSA. I have said this in most of my articles, but filling out the FAFSA and filling it out early can make all the difference when it comes to getting the money you need for college. There will be a section on the FAFSA where you can request FFELP or FDSLP. You will only be able to choose one depending on your college and the Student Direct loan they offer.

Consolidating you Direct Loan

Once you graduate you can consolidate Stafford Loans, PLUS loans and Perkins loans into one single debt. This is the definition of consolidation and its smart to do this once you graduate because it reduces monthly repayments and lengthens the term of your loan. Consolidated loans have a fixed interest rate for the entire life of the loan. So your payment won’t change. When I graduate I am definitely signing up for this option. Multiple bills from separate loans can cause headaches. This makes it easy to lower your payment and pay it off gradually.

Where to Consolidate your Direct Loan

There are some great companies out there to consolidate your loan. First place is where you received your direct loan, and that is the FDSLP. The department of education will consolidate your loan with a fixed interest rate and one monthly payment. Other companies that are leaders in consolidation are Sallie Mae, CitiBank and NextStudent. Make sure you do your research when deciding which to consolidate with. Options may very with each company or program.

There you have it. All the Direct Loan information you need. When you decide to get a student direct loan, make sure you know what you are getting into and read the fine print. My education is really important to me, but after college I want to make sure I am not paying huge monthly payments and getting myself into even bigger holes.

Many of us rely on government student loans to fund our education. They usually have low interest rates, are easily available with often no credit checks, and Universities will usually help you find them. When we fill out the FAFSA in search for Federal Aid, government student loans and grants is exactly what we are looking for. They provide great deferment options and long repayment periods that can usually be extended. I want to give you a background and some of the research I’ve found on government student loans and what to expect.

Who funds the Government student loans?

It is actually not the government that provides the finances for these student loans. Private organizations provide the necessary means for your education in accordance with the Department of Education through 2 programs which I have stated in previous articles, the FFELP and the FDLP. There are many different student loan programs. Check with your college or potential college to make sure you are applying for the right ones. Each college is different in the programs they participate in.

The faithful Stafford Loan

Stafford loans are probably the most common government student loans. They are federal loans made directly available to college and university students and supplement resources such as grants, scholarships, and work study. I have done work study all 4 years of college. The experience I gained, while helping to pay for my tuition was one of the best aids I received. The Stafford loan can come subsidized or unsubsidized. Subsidized means the government pays the loans interest while you’re in school, obviously being a better way to go. Unsubsidized student loans requires you to pay all the interest, however you can have these payments deferred after graduation.

In order to receive a subsidized Stafford loan you have to show some sort of financial need. This includes your family. I was able to receive a subsidized student loan last year by claiming myself as an independent on my taxes and FAFSA. This helped the amount I received because I was not under my parents income. If your family makes over $100K then there is only a 10% chance you will receive a subsidized Stafford loan. If it is less than that you have a pretty good shot.

Stafford Loans have limits. It depends on your status in school. If you are a freshman you can receive up to $3500, a sophomore $4500, and $5500 for Juniors and Seniors. Some majors have higher limits like medical school etc…

The other Government student loans

There are other government loans worth looking into and doing your research on. They are not as prevalent as the Stafford loan but can significantly help fund your education. Last year there was $31 billion in unmet financial need. That is a lot of money that was not given out. Don’t be the student that doesn’t get the financial aid they need. Other loans which I have mentioned in other articles is the Parent PLUS loan, which your parents can apply for. This loan differs from the Stafford or Perkins loan. The other loan that is popular among undergraduate students is the Perkins loan. It is a low interest loan (about 5%) for both undergrads and graduate students. With a Perkins loan the school is your lender. The loan is made with federal funds and your school contributes a piece of the pie. You pay back the loan to your school. It is a great loan because it is set at a low interest rate and you conveniently deal directly with your school as opposed to some outside company.

Now go get a Government student loan.

From one student to another, I strongly recommend a government student loan to help fund your education. The interest rates are fixed and the school will urge you toward this. I have subsidized and unsubsidized its OK to have both and you can consolidate them when you graduate. I love going to school and can only imagine if I was unable to pay for it. If you need help there is help out there and lots of money to be had.

If you are in college or planning on going to college, one of the first things that comes to mind is how you will pay for your education. When you are in school its “how will I pay for next quarter” or “mom and dad help!”. Student education loans can be a great way to help pay for college tuition and shouldn’t  be something you avoid. I will map out some of the student education loans I think are best. Most of them are government funded and not private or alternative loans. These are not hand outs either. They need to be paid back with interest. When scholarships are not available this can be the best option open to you.

The categories of Student Education Loans

There are 4 major categories that make up education loans.

Student Loans: Perkins or Stafford loans that are federal loans given by the government for your education. When you fill out the FAFSA these are the first loans to be offered and funded.

Parent Loans: PLUS loans for parents with students in college. They can come at low interest rates depending on your parents credit and income. If your parents cosigned a loan they may have been eligible for this option.

Private Education Loans: also alternative student loans that are privately funded by non-profits and organizations/banks. These loans come at higher interest rates and often come at variable rates. The government does not set the interest for these loans so it is wise to shop around when deciding which one to go with.

Consolidated Loan – This is primarily for after you graduate. You can consolidate all of your loans into one lump sum. A monthly payment with the term extended from your initial loan.

Another type of loan worth mentioning is that of Peer to Peer loans. These loans are referred to as social lending, or person to person lending. Its a non-traditional form of lending and a lot harder to find. The benefits of Peer to Peer lending is that you can defer payments of principal and interest while you’re in school.

Worrying about student education loans?

The federal government sets the maximum interest rate that lenders can charge for federally guaranteed loans. Nothing prevents them from charging lower fees except for competition. So many companies will offer initial deals and low financing to get your feet wet. They are usually great deals for incoming freshman and will help you justify that glorious education of yours. I was pretty stressed out when I was forced to go the private loan route for my education. Now that I am a senior, and have done my research I am pretty relieved at the outcome of my student loan consolidation.

Get a Student Education Loan

Fill out the FAFSA and calculate the interest of your other loans. It is better to be prepared when the time comes for you pay them. There are a lot of tools out there to help you calculate your interest and analyze your payments. Look into it online. Now I have to finish my last paper. 10 pages to be exact. Your Student Education loan is well worth it, to stay in school and get a great job. Stick with it.

In my college years I have learned that there is money out there for my education. Finding it is the hard part. I am sure you have heard your teachers talk about the money that is being given away and all the state and federal grants out there for the taking, and yet we never here about the people who actually got them. I am not saying we shouldn’t fill them out; it is just frustrating when you spend countless hours filling out applications, writing essays, or giving people private info, to get nothing in return. The average cost of a private university is well over 20K dollars. Cut that in half and you have a 4 year public university, and again in half and you have the average for Junior and Community colleges. Any way you look at it, college is expensive and we need grants especially free college grants that can keep you out of the red. Here is my advice for looking for Free college grants.

Grants are only for smart people?

I am so far in the red; my payments will be close to $900 a month when I graduate. To avoid this, the trial and error of looking for grants and scholarships is imperative. A lot of people think grants are for the poor and scholarships are for the smart. This is just not true. Native Americans all over the U.S. can get a substantial amount (if not all) of their college education paid for simply for being Native American. Student financial aid from the government or school usually has nothing to do with academic standing either. I got a few grants this year for having good grades, but also because I claimed myself for the first time as an independent this year on my FAFSA. In another article I wrote I talk about the different places grants come from that is important to note the sources as well, so you can tap into them.

Subject – Specific Grants

Grants such as subject-specific are great if you already know your major or what you want to do. The subjects that pull the most grant money, are art, teaching, nursing, math, engineering, and science. Morris Udall Foundation grants is a resource to look up as they provide grants to both talented and disadvantaged students. If you are a Science, Math or engineering major then Bell Labs and Lucent Technologies are two great companies that constantly poor money into students educations. If you look up subject – student grants and your major, you will find places to apply. Places you wouldn’t normally think of.

Grants for Student Type

The student specific grants are broad and are relatively untapped free college grants you don’t want to miss. Student type is very broad, but can range from gender, ethnicity, religion, etc… The student type does not mean that students are ranked on degree level but rather individualism. Once you find you are more specified in your education and career goals will you then see degree goals. When the farmer has more seeds to plant more trees will grow, and this is what will happen as you progress through your education.

Free grant deadlines

Grant deadlines are important and they are also tricky. In order to qualify for many grants you have to have your information submitted at a certain time. Much like the FAFSA, there is a certain amount of money that can be give away. If you submit late or on the last day of submission, you may miss out on doubling your grant money and being SOL. Make sure to not give up and keep applying and looking up information on free college grants. They are a dime a dozen, just find the right one for you.