When preparing to go to college, one thing can help you more than anything else – get started early. If you think you might want to go to college or are sure of it, you should get the process started as soon as you can. One thing that many students will fill out in preparation for college is the Free Application for Federal Student Aid or the FAFSA.

Filling out the FAFSA will help give you access to government funds to pay for your education. The information you provide will determine what type of funds you are eligible for and whether you qualify for grants, which do not have to be paid back. Students seeking access to these government funds must fill out a FAFSA for each school year.

Now the FAFSA for the 2011-2012 school year is available for students to complete online. The sooner you fill out your online FAFSA and get it filed, the sooner you will know what funds you can receive to help fund your education. Read the rest of this entry »

Most students cringe when it comes time to fill out their Free Application for Federal Student Aid, better known by its dreaded acronym, FAFSA. Some students even avoid the whole situation by simply not applying for FAFSA and just hope to have enough money saved up by the time tuition is due, while others assume that they or their parents make too much money to qualify.

No matter what your situation is, it is always in your best interest to apply for FAFSA, especially if you’re having trouble making those tuition payments.

The financial aid application isn’t the easiest thing to complete, but students miss out on thousands of dollars in grants and low-interest student loans just because they didn’t have the necessary items to fill out the form. Sorry guys, but you’re in college now. If you want to make your tuition manageable, suck it up and gather every thing you need to complete the form.

Here are 5 things you will need to complete the FAFSA: Read the rest of this entry »

Student loan debt is something that can haunt you literally for the rest of your life- especially if you allow yourself to take out multiple loans for more money than you actually need.

Since student loans have to be paid back whether you graduate or not, many people find themselves unable to pay back the debt after spending it. There are no guarantees that even with a college degree you will receive a job that pays you enough to afford the loan payments plus the interest. With the current state of the economy in the U.S. and people without jobs, many people are unable to pay back their student loans which sends them into default. Read the rest of this entry »

The rate of borrowers who will default on student loans is higher than short-term government estimates indicate, reports the The Chronicle of Higher Education. According to their data, 20 percent of government loans that started repayment in 1995 have gone into default. The rate is even higher for students attending two-year colleges.

Defaulting on student loans leads to serious personal and financial burdens. Borrowers become ineligible for additional federal aid and can have their wages and tax refunds seized by the government. It also ruins future credit ratings, making it difficult to obtain mortgages, car loans or credit cards.

Loan money that is not recovered by the government must come from taxes. At the end of the 2009 fiscal year, $50.8 billion of student loans were in default.
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We could all use some good news when it comes to money these days. And even if it’s not your own money, the federal government is taking steps to make borrowing money for student loans cheaper and easier to get and much simpler to pay off.

Here’s why:

On July 1, the federal government lowered the interest rates on many student and parent loans, and took out the middle-man by awarding loans directly through the government itself rather than through a bank.

The only downside is that there will be a bit of a learning and processing curve on the shoulder’s of the schools’ financial aid offices as they learn about the new rules and spend more time answering parents’ questions. So expect longer phone times and maybe mixed messages from school administrators during the first few months of the academic school year. Read the rest of this entry »

We have all been writing blog after blog about how to save for rising tuition and prepare for the costs of college, but here is a way to save your money while spending money on everyday items.

Upromise is a free service that allocates money towards college bills and student loans when you purchase groceries, shop online or buy gas. Students can also use the money for 529 investment programs.

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It’s no secret that most graduates are in debt. By the time you walk across the stage in cap in gown you have likely built up several thousands in student loans. According to the Project on Student Debt, students, on average, are $23,200 in the hole by the time they get their degree. So instead of cringing when you get your first letter from Sallie Mae, you should educate yourself. Here are some tips on how to manage your student debt:

1. Know what you owe: Go to the National Student Loan Data System at to find out how much you owe. The website will be able to keep you up to speed on all the loans you have taken out so far. You should also know the different federal student loans you have, the lenders on each of the loans and the interest rates one each of them.

2. Never default on a student loan: There’s never a good reason to default on a loan. No matter what your financial situation is, lenders have several repayment plans, including a 36-month economic hardship deferment plan. Keep in mind that once your loans become delinquent, you lose the right to deferment and have to deal with those pesky collection fees. Read the rest of this entry »

According to new published reports, students and graduates born between 1980-2000 are probably going to be financially screwed for the rest of their lives.

This report comes from financial advisor Lee Jenkins of Lee Jenkins on Money. He asserts that “They have high, unrealistic expectations and many don’t manage money very well.”

Even prior to the December 2007 recession the students were destined for doom. Their parents had the G.I. Bill and pension plans while they have expensive high-tech gadgets necessary for scholastic success along with an average of $23,200 in student loan debt come graduation.

Additionally, the entire generation faces economic struggles come graduation where they will encounter a decline in health benefits, chronic job insecurity, stagnant wages, and a soaring increase in basic living expenses while having minimal savings. Read the rest of this entry »

College Board® recently found in a recent study that the average student debt from a private school for bachelor’s degree was around $22,380.

In another study, according to the research and advocacy organization Project on Student Debt, in Oakland, California, 10 percent of 2007 and 2008 graduates had accumulated over $40,000 worth of student loan debt. They gathered this data per calculated Federal statistics.

While the students are burdened with the debt, in my opinion, the responsibility also falls upon the financial loan providers and the colleges who connect the students with their loan sharks.

In reality though, prestigious universities are not likely to discourage student loans to afford their hefty tuition rates.

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It is no secret that a college education is expensive.

In fact, the average price for tuition at a private college according to the College Board for the 2009-2010 was $26,273, a 4.4 percent increase from 2008 and public school was an average of $7,020, up 6.5 percent. Over the next 18 years, the cost of a college degree is expected to increase to a couple hundred thousand dollars.

There is hope however for families who will need to start planning now for those expensive four years.

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