Federal Student Loan Consolidation Could Help Make Recent Graduates’ Student Loan Repayment Easier to Manage

. :~ ALIVE FUN ARTICALS ~: .

If you graduated in May with student loans, you may be facing six-month grace periods that are ending sometime this month. Once your grace periods are over, you’ll be entering repayment on those student loans that were in grace.


If you’re looking at multiple student loans going into repayment, you’ll soon likely have to deal with juggling multiple bills, multiple due dates, and multiple monthly payments. But you could help make your student loan repayment easier to manage by consolidating your eligible federal student loans with a Federal Consolidation Loan from NextStudent, a leading Phoenix-based education funding company.

How Federal Student Loan Consolidation Works

A Federal Consolidation Loan bundles all your eligible federal student loans into one single loan with one monthly bill and one convenient monthly payment. To be eligible for student loan consolidation, you can’t currently be enrolled in school more than half time, and the student loans you want to consolidate must be in repayment, in a grace period, or in an authorized forbearance or deferment period.

If your parents have Federal PLUS Loans that they took out to help you pay for school, they’re also eligible to consolidate. And your parents don’t have to wait for you to graduate in order to consolidate their own PLUS loans: Parents can consolidate the PLUS loans they took out for your education as soon as the loans have been fully disbursed and have entered repayment, even if you’re still in school. Your parents can consolidate their parent PLUS loans, but you won’t be able to consolidate your own student loans together with your parents’ loans.

Benefits of Federal Student Loan Consolidation

1. No fees and no cost to apply
2. No credit checks and no co-signers required
3. No prepayment penalties
4. Fixed interest rate
5. Repayment terms up to 30 years
6. One single monthly payment for all your eligible federal student loans

There’s never any charge to apply for a Federal Consolidation Loan with NextStudent, and there are no credit checks or co-signers required. There are also no prepayment penalties, so you’ll never be charged for paying more than the minimum each month or for paying off your student loan consolidation early.

Student loan consolidation gives you the security of a fixed interest rate: With a fixed rate, you’ll lock in your monthly payments when you consolidate, and you’ll never have to worry about variable interest rates going up, leaving you guessing about your monthly payment amount.

Consolidating your federal student loans could also give you more time to repay—a Federal Consolidation Loan could extend the repayment term on your student loans by up to 20 years. And by extending your payments over a longer repayment term, a student loan consolidation could lower the amount you have to pay each month. By consolidating with NextStudent, you may be able to cut your monthly student loan payments by as much as 50 percent!

Consolidating Your Private Student Loans

If you have private student loans in addition to (or instead of) federal student loans, you won’t be able to consolidate your private loans with the federal student loan consolidation program. But if you’re looking for the same convenience of a single consolidated loan for your private student loans, you may be eligible to consolidate your private loans separately with a NextStudent Private Consolidation Loan.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.

============================ The End =========================

Recent Graduates Having Trouble Making Their Student Loan Payments Should Consider Looking Into Their Deferment and Forbearance Options

. :~ ALIVE FUN ARTICALS ~: .

If you graduated in May with federal Stafford student loans, you may be facing the prospect of adjusting your budget to accommodate new monthly student loan payments as your six-month grace periods end sometime this month. If you’re still doing temp work, looking for a job, or if you just got stuck with a lower-than-expected entry-level salary, it’s entirely possible that you’re not sure how you’re going to come up with the money you’re going to need each month to a meet a new monthly expense from student loans going into repayment.


The main thing is don’t be embarrassed! A lot of student loan borrowers go through periods when they’re having trouble making their student loan payments. Your federal student loans come with deferment and forbearance benefits that can help you through those times when money’s a little short.

If you’re a recent graduate—or any parent or student loan borrower—who’s having trouble making your student loan payments each month, NextStudent, a leading Phoenix-based education funding company, urges you to contact your lenders about your deferment and forbearance options, which allow you to temporarily reduce or postpone your student loan payments without compromising your credit score or defaulting on you student loans.

Deferment

Deferment allows you to temporarily stop making payments on your student loans. If you’re unemployed or experiencing economic hardship, you may be able to request a deferment, for up to a year at a time, up to a total of three years over the life of the student loan. You must contact your lender to request an unemployment or hardship deferment, and you may need to complete a deferment request form.

Forbearance

If you’re unemployed or experiencing economic hardship, you may be able to request a forbearance, which allows you to temporarily reduce or postpone payments on your student loans. You must contact your lender to request a hardship forbearance, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.

Generally, a lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.

Interest Charges on Student Loans in Deferment or Forbearance

Interest charges continue to accrue on your student loans even while they’re in a deferment or forbearance period. The government will pay the interest on any subsidized student loans (such as Perkins or subsidized Stafford loans) that you have in deferment, but you’ll be responsible for the interest on your unsubsidized student loans (such as Grad PLUS or unsubsidized Stafford loans) that are in deferment and on any student loans, whether subsidized or unsubsidized, that are in forbearance.

Any unpaid interest that accrues during a deferment or forbearance period will be capitalized and added to your principal student loan balance for you to repay once repayment resumes. To avoid having accrued interest added to your principal student loan balance, you can always choose to make interest payments during deferment or forbearance periods in which your payments are postponed.

Student Loans Eligible for Deferment or Forbearance

Most federal student loans are eligible for deferment and forbearance benefits. This includes:

1. Perkins loans
2. Stafford loans
3. PLUS loans
4. Grad PLUS loans
5. Federal Consolidation Loans

If you’re already taken advantage of the federal student loan consolidation program to consolidate your Stafford loans or any other federal student loans, you still have deferment and forbearance benefits available to you.

Some private student loans may also offer deferment or forbearance periods—you should contact your private student loan lender.

Make sure you contact your lender if you’re considering an economic hardship deferment or forbearance. Hardship deferments and discretionary forbearances are typically not automatic. You may be required to fill out a deferment or forbearance request form and submit supporting documentation.

More Information on Deferment, Forbearance, and Student Loan Repayment Options

If you’re looking for more in-depth information on deferment and forbearance benefits, or if you have questions about your student loan repayment options, check out our free online guides to deferment and forbearance benefits and to repayment terms and options for federal student loans. If you still have questions, NextStudent’s knowledgeable Education Finance Advisors are always happy to help — just give us a call!

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.

============================ The End =========================

With PLUS Loans From NextStudent Parents Have Access to College Financing Throughout the School Year

. :~ ALIVE FUN ARTICALS ~: .

As the fall semester draws to a close, families who still need money for college for end-of-semester expenses or for the upcoming spring semester may be able to get the help they need with a Federal PLUS Loan from NextStudent, a leading Phoenix-based education funding company. PLUS loans give parents of undergraduates a low-interest financing option that they can apply for throughout the school year (depending on the final deadline set by the school’s financial aid office). And PLUS financing is available even if your student doesn’t qualify for need-based grants or student loans.


PLUS Loan Overview

PLUS loans (Parent Loans for Undergraduate Students) are federal college loans that can help creditworthy parents meet up to 100% of their undergraduate child’s educational expenses. PLUS loans are non–need-based, so eligible parents won’t be disqualified for making too much money.
Features and Benefits

* No application fees
* Fixed interest rate
* Loan limits up to 100% of the cost of attendance
* Mid-year application: Apply even in the middle of the school year. (Contact your school’s financial aid office for their final deadline.)
* Non–need-based: Eligible parents can’t be disqualified for having too much money or assets.
* Co-signers allowed: If you’re a parent who doesn’t meet the PLUS credit requirements, you may apply with an eligible co-signer.
* No prepayment penalties: Pay off your PLUS loan early without incurring any additional charges.
* Forbearance and deferment benefits: If you’re experiencing financial difficulties, you may be able to temporarily postpone or reduce your PLUS loan payments without affecting your credit rating.
* Eligible for federal student loan consolidation

Rates, Fees and Terms

Rates
PLUS loans carry a low, fixed rate of 8.5%.

Fees
There’s no fee to apply for a NextStudent PLUS loan! Once you’re approved, your PLUS loan may be subject to a 3% origination fee and a 1% guarantee fee. These fees would be taken out of the proceeds of your PLUS loan.

Terms
Each year, you may borrow up to your child’s full cost of attendance less any other financial aid (such as student loans, scholarships, or work-study) your child has received. The cost of attendance is determined by the school—besides tuition and room and board, it includes a reasonable allowance for other education-related costs such as student fees, books, transportation, and living expenses.

The standard repayment term for a PLUS loan is 10 years. But you may be able to extend your repayment term with an extended repayment plan or by consolidating your PLUS loan(s).
Eligibility

Parents
PLUS loan borrowers must meet certain eligibility requirements:


* Parent or legal guardian of an eligible undergraduate student
* U.S. citizen or permanent resident
* Creditworthy

To be deemed “creditworthy,” you may not be in default on any federal college loans, and your credit report should be free of derogatory credit items (such as bankruptcies, foreclosures, tax liens, or collections) for the last five years.

Either parent (or legal guardian) may apply for a PLUS loan. A parent who doesn’t meet the PLUS credit requirements may apply with an eligible co-signer.

Students
To be considered an eligible undergraduate student, your child must also meet certain requirements:

* Enrolled at least half time and maintaining satisfactory academic progress, as determined by the school
* Younger than 24
* Single with no dependents
* Not a ward of the court, a military veteran, or in the military
* U.S. citizen or permanent resident
* Not in default on any federal student loans


NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.


============================ The End =========================

Student Loan Consolidation: Turn Your Variable-Rate Student Loans Into One Fixed-Rate Loan

. :~ ALIVE FUN ARTICALS ~: .

Although Federal PLUS Loans and Stafford Loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1.


If you’re a PLUS or Stafford borrower with one of these variable-rate loans, your monthly payment amount could fluctuate from year to year, depending on your adjusted rate. When interest rates go up, the monthly payments on your federal parent and student loans may also go up, putting a bigger dent in your budget than you may have planned.
Lock In Your Monthly Payments With Student Loan Consolidation

If you wish you could do away with the uncertainty of variable interest rates and potentially higher payments, NextStudent’s student loan consolidation program could be the solution you’re looking for.

NextStudent Federal Consolidation Loans give you the security of a fixed interest rate. By consolidating your federal college loans with NextStudent, a leading Phoenix-based education funding company, you’ll replace your variable-rate parent and student loans with a fixed-rate student loan consolidation.

With a federal student loan consolidation, you’ll never have to worry about rising interest rates leaving you guessing about your monthly payment amount and whether you’ll have enough room in your budget.
Cut Your Monthly Payments on Your Student Loans by up to 40%

Besides offering you the stability of a fixed interest rate, NextStudent consolidation loans could also cut your monthly student loan payments almost in half.

The standard repayment term for Stafford and PLUS loans is 10 years. But when you consolidate your parent or student loans with NextStudent, you may be able to extend that 10-year repayment term by up to 20 years to a 30-year repayment term. By extending your payments over a longer repayment term, your student loan consolidation could lower the amount you have to pay each month.

Consolidate your college loans with NextStudent, taking advantage of that longer repayment term, and your monthly student loan payments could go down by up to 40%!
Hassle-Free Repayment for Your Student Loans

If you have several parent or student loans in repayment and you’re juggling multiple bills, multiple due dates, and multiple monthly payments to multiple lenders, a student loan consolidation could help make your student loan repayment easier to manage.

With NextStudent’s student loan consolidation program, you can bundle your entire eligible federal parent or student loans into one single fixed-rate consolidation loan—that means just one monthly bill and only one monthly payment you’ll have to make. And that payment amount is fixed for the life of your student loan consolidation.
Fast, Easy, and FREE: Apply in Minutes to Consolidate Your Student Loans

You can apply for your NextStudent consolidation loan in minutes, either online or with a quick phone call. It’s fast, easy, and free to apply, and there are no credit checks, so you won’t need to worry about finding a co-signer.

1. NO fees
2. NO credit checks
3. NO co-signers required

You don’t need to worry about prepayment penalties either. There are no prepayment penalties on NextStudent Federal Consolidation Loans. When you consolidate your federal parent or student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your consolidation loan early.
Consolidating Your Federal Student Loans

To be eligible to consolidate your own federal student loans, you can’t currently be enrolled in school more than half time. The student loans you’re looking to consolidate must be in repayment, in a grace period, or in an authorized deferment or forbearance period.

If your parents have Federal PLUS Loans that they took out to help you pay for school, they’re also eligible for NextStudent’s student loan consolidation program. And your parents don’t have to wait for you to graduate in order to consolidate their own loans: Your parents can consolidate the PLUS loans they took out for your education as soon as the PLUS loans have been fully disbursed and have entered repayment, even if you’re still in school.

Although your parents can consolidate their federal PLUS loans, you won’t be able to consolidate your own college loans together with your parents’ loans.
Student Loan Consolidation for Your Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private loans with the federal student loan consolidation program. But if you’re looking for the same convenience of a single consolidated loan for your private student loans, you may be eligible to consolidate your private student loans separately with a NextStudent Private Consolidation Loan.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.

============================ The End =========================

Consolidate Your Student Loans and Cut Your Monthly Payments

. :~ ALIVE FUN ARTICALS ~: .

If you’re a graduate or college parent with outstanding federal college loans, you may be able to lower your monthly student loan payments by up to 42% simply by consolidating your federal parent or student loans. Read on to learn more about your options


When you consolidate your eligible federal college loans, you may be able to extend your repayment term from the standard 10 years to up to 30 years. With more time to repay, the amount you have to pay each month will typically be smaller.

Here’s an example: Your estimated monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512.

Compare that $512 to estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years.

That’s a 41.8% reduction in your monthly payment amount — just by consolidating your federal student loans.*

Smart Borrowing With Student Loan Consolidation

When you consolidate your eligible federal parent or student loans with the federal student loan consolidation program, you could qualify for all the borrower benefits that come with a NextStudent Federal student loan consolidation:

* No credit checks or co-signers required
* Fixed interest rates
* Lower monthly payments*
* Longer repayment terms
* One payment for multiple student loans
* Deferred payments†

Lock In Your Student Loan Payments With a Fixed Rate

Although federal PLUS loans and Stafford loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1.

If you’re a PLUS or Stafford borrower with one of these variable-rate student loans, your monthly payment amount could fluctuate from year to year, depending on your adjusted rate. When interest rates rise, your monthly student loan payments may also go up.

Student loan consolidation replaces your variable-rate student loans with a fixed-rate consolidation loan and puts an end to rate increases and rising payments.

Make Your Student Loan Repayment Easier to Manage

If you have multiple college loans in repayment, say goodbye to the hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders.

With the federal student loan consolidation program, you can bundle all your eligible federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your loan.

Apply FREE to Consolidate Your Student Loans

1. NO fees
2. NO credit checks
3. NO co-signers required
4. NO prepayment penalties

NextStudent offers a student loan consolidation program with no application fees, no processing fees, and no credit checks, so you don’t need to worry about having to find a co-signer.

There are also no prepayment penalties. When you consolidate your federal parent or student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your NextStudent consolidation loan early.

You can apply for your NextStudent Federal Consolidation Loan in minutes. Just visit us online or give us a quick phone call. It’s fast, easy, and free.

Consolidating Your Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans with our federal student loan consolidation program. But if you’re looking for the same convenience of a single consolidated loan for your private student loans, you may be eligible to consolidate your private student loans separately with a NextStudent Private Consolidation Loan.

*Your actual payment reduction may vary and will depend on the terms of the loans you’re consolidating.

†You may be able to temporarily postpone making payments on your consolidation loan if you’re unemployed or experiencing financial hardship, if you’re back in school at least half time, if you’re in the military and have been deployed, or if you’re on active duty or serving in the National Guard during war or other national emergency. Most deferments are not automatic. Contact your lender.

============================ The End =========================

Keeping Study Abroad Affordable as Dollar Sags

. :~ ALIVE FUN ARTICALS ~: .

With the U.S. dollar at an all-time low and continuing to lose value to other currencies, many college study-abroad programs are becoming increasingly expensive.


Colleges’ study-abroad costs have gone up 10 to 15 percent in the last few years due to the flagging dollar, reports Karin Fischer in the Chronicle of Higher Education (“Declining Dollar Has Colleges Scrambling to Cover Study-Abroad Costs,” Dec. 6, 2007).

If you’re drawn to the idea of study abroad but concerned about being able to cover the rising costs, you may be able to find lower-cost program options in less popular destinations and in countries where the dollar holds more value. By opting for a lower-cost destination, you may be able to keep your study-abroad program more affordable and minimize your need for student loans.

Study-Abroad Costs on the Rise

Almost 60% of study-abroad students from the United States choose a program in Europe, reports Fischer. According to the Institute of International Education, the top study-abroad destinations are the United Kingdom, Italy, Spain and France.

But with the dollar down 5 percent against the pound and 10 percent against the euro in 2007 alone, students in European programs are finding that their dollar-based budgets don’t stretch as far as they used to. The purchasing power of their U.S. dollars is down from even just a few short months ago: Since the beginning of the fall semester, the dollar has already tumbled 8.5 percent against the euro.

Scrambling to keep up with the rapidly sinking dollar, some schools are cutting back on program offerings and raising program fees to students, even re-setting already-published costs for upcoming programs. Austin College in Texas, for instance, has already adjusted the price of one of its Greece courses four times since May.

Studying Abroad on a Budget

Despite rising costs and a declining dollar, you may still be able to find study-abroad options that are financially feasible and that minimize your need for student loans. As you’re filling out your study-abroad applications, here are some things to keep in mind:

1. Consider programs in South America, Africa or Asia where currency exchange rates are more favorable and your dollar will stretch further.
2. Ask your study-abroad advisor about less mainstream destinations that may have less expensive programs.
3. Select a short-term, instead of a semester- or year-long, study-abroad program.
4. Check whether your study-abroad program qualifies for federal financial aid, so you can use your federal grants and college loans to help pay your program tuition and fees.
5. Make sure your study-abroad program is approved by your school for transfer credit, so you don’t end up taking classes that you can’t count toward your graduation requirements.
6. Budget for higher living costs due to the declining dollar.

Financing Study Abroad

You can usually apply your federal financial aid awards to school-approved study-abroad programs — check with your financial aid office. NextStudent offers a variety of federal parent student loans, graduate student loans, and undergraduate college loans to help you finance your study-abroad program. You can also search the over 5.9 million scholarships in our award-winning Scholarship Search Engine for awards available specifically for foreign study programs.

If your study abroad costs still exceed your available financial aid, even after grants, scholarships, and federal parent and student loans, NextStudent’s Private Student Loans could provide the additional financial assistance you need. Federal student loans generally offer more attractive terms than private student loans, so make sure you take advantage of your federal financing options first.

NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.

============================ The End =========================

Consolidate Your Student Loans and Get up to 20 More Years to Repay

. :~ ALIVE FUN ARTICALS ~: .

If you’re a former student or college parent with outstanding federal grad school or student loans, you may be able to get up to 20 more years to repay simply by consolidating your federal parent or student loans with the federal student loan consolidation program.


Get More Time to Repay Your Parent and Student Loans

Federal PLUS loans (for parents of undergraduates) and Stafford student loans are issued with standard repayment terms of 10 years. When you consolidate these federal parent and student loans into a student loan consolidation, you may be able to get up to 30 years to repay.

The repayment term on your student loan consolidation will depend on the total outstanding balance of your education debt:

Education Debt


Repayment Term

$20,000 – $39,999


20 years

$40,000 – $59,999


25 years

$60,000 +


30 years

So if you have $60,000 or more in outstanding education debt when you consolidate your federal college loans, you’ll have 30 years to pay back the student loans you consolidate.

There are no prepayment penalties with the student loan consolidation program, so even though you can get more time to repay your federal parent and student loans by consolidating, you won’t be assessed any additional fees for choosing to pay more than the minimum each month or for paying off your student loan consolidation early.

Cut Your Monthly Student Loan Payments by up to 42%

With more time to repay, the amount you have to pay each month will typically go down. In fact, when you consolidate, you may be able to cut your monthly student loan payments by up to 42%!

Here’s an example: Your estimated monthly payments on a $100,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $682.

Compare that $682 consolidated monthly payment to estimated monthly payments of $1,172 on $100,000 worth of unconsolidated Federal Stafford Loans issued at 7.22% and repaid over 10 years.

That’s a 42% reduction in your monthly payment amount — just by consolidating your federal student loans.*

Lock In Your Student Loan Payments With a Fixed Rate

Although federal PLUS loans and Stafford loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1, which means that when interest rates go up, your monthly payments on these college loans may also go up.

Student loan consolidation replaces your variable-rate college loans with a fixed-rate consolidation loan. When you consolidate, you won’t ever have to worry about rate increases and rising payments.

Simplify Your Student Loan Repayment

With the federal student loan consolidation program, you can bundle all your eligible federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your consolidation loan.

No more hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders.

Fast, Easy, and FREE

You can apply for your student loan consolidation in minutes. Just visit us online or give us a quick phone call. It’s fast, easy, and free. And there are no credit checks, so you don’t need to worry about finding a co-signer.

1. NO application fees
2. NO processing fees
3. NO credit checks or co-signers required
4. NO prepayment penalties

Consolidate Your Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans with the federal student loan consolidation program. But you may be eligible to consolidate your private student loans separately with the new NextStudent Private Student Loan Consolidation, which offers the same convenience of a single consolidated loan and extended repayment terms for your private student loans.

*Your actual payment reduction may vary and will depend on the terms of the loans you’re consolidating.

============================ The End =========================

College Costs Outpace Inflation, U.S. Falls Behind in Degree Attainment

. :~ ALIVE FUN ARTICALS ~: .

According to a recent series of joint studies released by the National Center for Higher Education Management Systems and Jobs for the Future, the United States continues to fall behind other major industrialized nations in the percentage of its population that holds a college degree.



And as college costs continue to outpace inflation, college affordability is progressively becoming an issue of accessibility, with lower- and middle-class families struggling to handle the rising cost of college and increasingly having to rely on student loans.

What Lies Ahead for the U.S.

For years, the U.S. was leading the rest of the world in the percentage of adults holding a college degree, but the U.S. now only ranks 10th among industrialized nations in the percentage of 25–34-year-olds with an associate’s degree or higher, according to the Organisation for Economic Cooperation and Development.

And the U.S. stands to lose even more ground against competing nations, ranking near the bottom in the percentage of new college students that complete their degree program. Notably, the U.S. is now one of the only countries in the world where older adults are more educated than younger adults.

The College Degree Gap

By 2025, if current college graduation trends hold steady, the U.S. will be 16 million college degrees short of the 64 million it would need to match leading countries Canada, Japan, and South Korea, where an estimated 55 percent of adults will hold a college degree. To make up that 16-million degree gap by 2025, the U.S. would need to produce an additional 781,000 college graduates a year — a 37-percent increase over current levels.

An Evolving Job Market

The reports draw attention to the fact that, as the U.S. continues to shift from manufacturing and farming to a more service- and information-based economy, the number of jobs requiring a bachelor’s degree or higher will outpace jobs requiring less than a bachelor’s degree, with high-skill jobs that require advanced learning already making up almost half of all domestic job growth.

The “degree gap” not only puts the U.S. at a disadvantage against other industrialized countries, but it leaves this country with a workforce that may not be able to meet the emerging demands of the changing job market.

Rising College Costs Affecting Accessibility

In order to expand the percentage of its adult population with college degrees and keep pace with other industrialized nations and the needs of its own job market, say the reports’ authors, the U.S. will need to increase college affordability and accessibility for low-income students, as well as for other groups that have been historically underserved in higher education.

Tuition and fees at four-year public universities have risen 24 percent over the past five years, and 32 percent over the last 10, even when adjusted for inflation, according to the 2006 Trends in College Pricing report by the College Board,

The joint studies, conducted as part of the MakingOpportunityAffordable.org project, contend that rising tuition and college costs have had a measurable effect on lower- and middle-class families, with fewer low-income students enrolling in college and a larger percentage of students graduating in debt.

Two-thirds of college students are now graduating with debt, with the average student borrower at a public college or university owing $17,250 in student loans. Ten years ago, the average borrower attending a public institution graduated owing only $8,000 in student loans, after adjusting for inflation.



Know ALL Your College Financing Options

Even with college costs on the rise, there are financing options, in addition to college loans, that can still help make a college education affordable for you and your family. Some college loans and almost all scholarships are deadline-sensitive, so start planning early to secure the most funding possible.

1. Submit your Free Application for Federal Student Aid (FAFSA.ed.gov).

You’ll need to submit your FAFSA each year in order to qualify for need-based federal financial aid such as Pell Grants, Perkins student loans, and subsidized Stafford student loans.

The U.S. Department of Education will accept your FAFSA until June 30, but some schools and states have earlier deadlines, so make sure you check with your financial aid office. Some schools, particularly those with rolling admissions programs, award their limited need-based federal grants and student loans on a first-come, first-served basis, so the earlier you get your FAFSA in, the better.

1. Search for FREE money in scholarships and grants.

Educational institutions, government groups, for-profit and non-profit organizations offer millions of dollars in scholarships every year, both with and without regard to financial need, and there’s bound to be one that’s right for you.

The more scholarship and grant money you get, the more you may be able to reduce your need for student loans. Start searching early, so you can meet as many scholarship application deadlines as possible.

If you’re not sure where to start looking for scholarships, try NextStudent’s award-winning Scholarship Search Engine. This online database lists more than 5.9 million individually awarded scholarships valued at over $16 billion — and is completely FREE to use.

1. Take advantage of federal financial aid.

Even if you don’t demonstrate enough financial need on your FAFSA to qualify for a Pell grant, work-study, or need-based subsidized student loans, you could still get federal financing with non–need-based federal student loans.

Low-cost unsubsidized Stafford student loans are available to both undergraduate and graduate students without a credit check or demonstration of financial need.

Low-interest, credit-based federal student loans are also available to qualifying parents of undergraduates to help them cover up to 100% of their child’s cost of attendance.

1. Get any additional financial assistance you need with private student loans.

Even after grants, scholarships, and college loans, you may still have education-related costs that exceed your available federal financial aid. If you need additional financial aid, private student loans may be able to give you the financial assistance you’re looking for.

NextStudent Private Student Loans have no application fees or deadlines, so you can apply free, all year-round. Applying online or over the phone is fast and easy, and once you’ve completed your application, you could receive your money in as little as five business days.

Remember, though, that federal student loans generally offer more attractive terms than private student loans, so always look into your federal financing options first.

============================ The End =========================

Financial Aid – Understanding Your Financial Aid Award Letter

. :~ ALIVE FUN ARTICALS ~: .

With several offers on the table, trying to figure out which financial aid package is best for your particular situation can be difficult, especially if this is your first year dealing with the financial aid process. To help you decipher your financial aid award letters, here’s a step-by-step guide to what to look for and what those numbers mean.


How Your Financial Aid Award Is Calculated

The information you provide on the Free Application for Federal Student Aid (FAFSA) each year is used to generate your Student Aid Report, which contains a dollar amount for your Expected Family Contribution. The EFC is the amount you’re expected to pay for college for one year.

The EFC calculation takes into account various factors, including your family’s income, assets, and whether you have any brothers or sisters in college. Schools use your EFC to determine your “financial need” — the difference between the cost of attendance and your EFC.

Some schools use an institutional EFC calculation in addition to, or instead of , your federal EFC, so your EFC and financial need can vary by school.

Your financial need will determine the types and amounts of aid you receive in your financial aid awards. Financial aid may include scholarships, grants, work-study awards, or student loans.

Analyzing Your Offers

Since there’s no such thing as a standardized award letter, with some award letters varying greatly from school to school, be careful to compare apples to apples when you’re crunching the numbers and weighing your offers.

When one school is awarding you tens of thousands in college loans that will eventually need to be paid back, with interest, and another school is giving you a smaller award that’s all in scholarships that won’t ever need to be repaid, what originally looked like the most money may not be the best offer for you and your financial situation.

Digging In: Going Beyond the Bottom Line

Many schools pledge to cover 100 percent of a student’s calculated financial need.

But look closely at the types of financial aid you’ve been awarded, and you may find that these schools are covering part or all of your financial need with student loans that you’ll need to repay.

There are two types of aid that may be included in a financial aid package: gift aid and self-help aid.

Gift aid is money that doesn’t have to be repaid, such as a Federal Pell Grants or institutional scholarships.

Self-help aid refers to financial aid that must be earned, such as work-study awards, or repaid, such as federal student loans.

The “Hidden” Costs of College

Your financial aid award letter may not include expenses like books, transportation, or day-to-day living costs. Make sure your budget for these expenses, if they’re not included in your financial aid award, to get a better idea of what your total college costs will be and how much added expense you may need to cover with additional student loans.

Prioritizing Your Aid Options to Minimize Debt

To help you minimize your student loan debt, prioritize your financial aid options to take advantage of gift aid first, low-cost federal college loans next, and private student loans last.

Private student loans may be able to provide the additional financial assistance you need if you’ve maxed out your scholarships, grants, and federal financial aid, but still have education-related expenses to pay.

Private student loans are credit-based student loans that can cover up to 100% of your education-related expenses. These college loans typically carry variable interest rates and may not offer the same deferment and forbearance benefits you get with federal college loans.

Since federal student loans typically offer more attractive terms than private student loans, you should take always advantage of your available federal financing options first.

============================ The End =========================

Using College Federal Financial Aid Model for Private K–12 Education

. :~ ALIVE FUN ARTICALS ~: .

At the end of January, in his final State of the Union address, President Bush revealed continuing plans for expanding federal funding of private K–12 schooling with the proposal of a $300 million Pell Grant for Kids program. This program, named after the long-running college Pell Grants program, would provide federal grants to low-income families with children in underperforming schools to help send those children to private, faith-based, or higher performing out-of-district public schools.


The president’s call for congressional support immediately raised questions among lawmakers as to whether the proposed funding would be enough for participating low-income parents to avoid having to take on debt from supplemental private student loans or other financial aid resembling student loans.
Pell Grants for Kids vs. College Pell Grants

Presenting the Pell Grants for Kids proposal as a need-based scholarship initiative modeled after the Federal Pell Grant program for college students, the administration uses as one of its selling points the assertion that “the same choice, flexibility, and support now available to students seeking a quality college education should be offered to low-income families with children in chronically low-performing schools.”

College Pell Grants, unlike federal student loans, do not have to be repaid, and are available to low-income undergraduates to apply toward their cost of attendance at any public or private school that participates in the federal student aid programs.

Pell Grants for Kids, like college Pell Grants, would be “gift” money from the government that wouldn’t need to be repaid. In contrast to the college Pell Grant program, however, Pell Grants for Kids would go beyond an evaluation of a student’s financial need to determine eligibility, also taking into account a student’s educational environment.

Students eligible for a Pell Grant for Kids award would be those currently attending a school that has failed to meet the performance standards of the No Child Left Behind Act for five years, or that has a graduation rate of less than 60 percent.
Grants or Vouchers?

The administration seems to be purposefully attempting to associate Pell Grants for Kids with the college Federal Pell Grant program, perhaps in hopes of garnering the broad bipartisan support that college Pell Grants have received.

Detractors, however, argue that the Pell Grants for Kids initiative, unlike the college version, is actually a school voucher program in the guise of a broad-based federal grant program.

Sen. Edward Kennedy of Massachusetts, the Democratic chairman of the Health, Education, and Labor Committee, has been quick to criticize the proposal, suggesting that there will actually be a negative impact on educational opportunities for the country’s most needy children as more funds are diverted from public schools in the form of vouchers for private school tuition.

“The president didn’t commit the resources to expand educational opportunity,” said Sen. Kennedy. “Instead, on top of the $70 billion shortfall in funding for his own education reforms, he again proposed to siphon scarce resources from our public schools to create new voucher programs.”

Sen. Kennedy’s use of the word “voucher” may be a strategic political move, as the word does not poll well — which supporters of the program know, and which may explain the administration’s emphasis on branding Pell Grants for Kids a “scholarship program.”

On the other hand, Republican Sen. Lamar Alexander of Tennessee, who aggressively supports the initiative, doesn’t shy away from the characterization of Pell Grants for Kids as a voucher program. Citing the GI Bill, college Pell Grants, and federal student loans as other federal voucher programs that have been “enormously successful,” Sen. Alexander says there’s “every reason to believe the Pell Grants for Kids would be too.”
Pell Grants for Kids Award Amounts

As part of his commitment to the Pell Grants for Kids initiative, Sen. Alexander has proposed his own budget of $15 billion — a figure 50 times higher than the president’s proposal of $300 million.

But even at that higher budget, the program would only be able to offer each of the country’s 30 million low- and middle-income children enrolled in public K–12 schools a $500 annual voucher. President Bush’s plan would offer each of the 15 million low-income children an annual grant of $20.

To be able to offer students an annual grant amount of $2,500, the Pell Grants for Kids program would have to limit its number of recipients to 6 million students under Sen. Alexander’s plan — 20 percent of the total number of the country’s low- and middle-income children currently enrolled in public schools.

Under the president’s plan, the program would only be able to offer a $2,500 annual award to 120,000 students each year — less than 1 percent of the total number of the country’s low-income children currently enrolled in public schools.
K–12 Private Student Loans

With tuition at the nation’s private K–12 schools averaging $4,689 a year, according to the National Center for Education Statistics, it seems clear that even a $2,500 Pell Grant won’t, on average, cover the full cost of private tuition for low-income families.

In this respect, Pell Grants for Kids would also resemble college Pell Grants: Federal Pell Grants for college students were capped at $4,310 for the 2007–08 academic year, while average in-state tuition and fees at four-year public colleges for 2007–08 were $6,185, exceeding the max Pell Grant award amount.

In the same way that college students awarded postsecondary Pell Grants must often supplement their grant award with other financial aid, such as work-study and federal student loans, the low-and middle-income families who would qualify for a Pell Grant for Kids may need to turn to other financial aid options to help meet the full cost of private K–12 tuition.

Parents of elementary and high-school students in private programs can generally apply for credit-based K–12 private student loans similar to the private student loans available to undergraduate and graduate students.

However, whereas undergraduate and graduate students are encouraged to seek out low-cost federal college loans and graduate student loans before turning to typically higher cost private student loans, there are currently no such K–12 federal student loan programs available as a low-cost alternative to K–12 private loans for families needing to supplement the money they would receive through the Pell Grants for Kids program.

============================ The End =========================

2008 Online College Rankings Spotlight Availability of Financial Aid

. :~ ALIVE FUN ARTICALS ~: .

The Online Education Database recently released its second annual Online College Rankings list, highlighting the top 41 undergraduate online degree programs in the country.


Enrollment in online education programs has grown considerably over the past five years. In 2006 alone, enrollment rose by 10 percent, with nearly 3.5 million students — almost 20 percent of all U.S. higher education students — enrolled in at least one online course, according to The Sloan Consortium.

This upsurge in online enrollments may be at least partly explained by the flexibility online degree programs offer. With their right-at-your-desktop virtual classrooms and classes that can be taken around the clock, online programs are able to accommodate the schedules of non-traditional students who might otherwise be unable to attend a college or university. From stay-at-home parents who can’t make the commute to full-time professionals who can’t attend classes on a typical college schedule, these non-traditional students, in growing numbers, have been able to capitalize on the flexibility of online degree programs, as well as on the availability of financial aid and student loans.
Top 10 Online Schools of 2008

In its rankings, the OEDb measured online programs in eight areas, including acceptance rate, student-faculty ratio, and availability of financial aid. In the financial aid category, the OEDb rated schools on the percentage of their students who are awarded financial aid.

The OEDb’s top 10 online schools of 2008, along with the percentage of their students who receive financial aid, are:

1. Upper Iowa University (100%)
2. LeTourneau University (99%)
3. Liberty University (99%)
4. Nova Southeastern University (94%)
5. California University of Pennsylvania (83%)
6. Grand Canyon University (90%)
7. Regent University (84%)
8. Champlain College (75%)
9. Westwood College (100%)
10. Tiffin University (96%)

Financing Your Online Education

As a student in an accredited online degree program, you generally have the same college loans and financial aid options available to you as brick-and-mortar students. Depending on your financial aid situation, you could qualify to receive need-based federal financial aid, such as Pell Grants, Perkins student loans, and subsidized Stafford student loans. You may also be able to obtain additional funds from non–need-based private student loans and Federal PLUS Loans, Grad PLUS Loans, and unsubsidized Stafford student loans to help pay for your online education.
3 Types of Financial Aid

Like brick-and-mortar college students, as an online degree student, you may have three basic types of financial aid available to you:
1) Federal Financial Aid

Federal financial aid may be either need-based or non–need-based. You’ll need to submit a FAFSA each year to qualify for most types of federal aid. Federal financial aid can come in the form of grants, which never have to be repaid; work-study awards, which you’ll have to earn throughout the semester, but which also won’t have to be repaid; and low-interest parent and student loans.
2) Institutional Financial Aid

Your school may award scholarships, grants, or student loans out of its own endowment. These institutional awards may be merit-based, need-based, or both. For its need-based awards, your school may require its own financial application in addition to or in lieu of the FAFSA. Make sure you check with your financial aid office.
3) Private Student Loans

If the education-related costs of your online degree program exceed your available federal and institutional financial aid, you may be able to get the additional funds you need with NextStudent’s Private Student Loans. Our Private Student Loans have no application deadlines, so you can apply at any point throughout the year, to fit your online class and tuition schedule — even if you missed the deadline to apply for federal financial aid.

In general, though, federal college loans offer more attractive terms than private student loans, so you should always look into your federal financing options first.

Once you graduate, you may even be able to consolidate your private student loans with a NextStudent Private Student Loan Consolidation.

============================ The End =========================

Colleges’ Search for New Student Loan Lenders Becomes Top Priority This Fall

. :~ ALIVE FUN ARTICALS ~: .

As some 17 million students prepare for college in the fall, financial aid offices across the country are scrambling to find new student loan lenders to replace those that are no longer offering federal student loans at their institutions.


Arguing that the College Cost Reduction and Access Act of 2007, which cut $21 billion in federal subsidies to private education lenders, rendered federal college loans unprofitable, more than 100 private lenders to date have suspended their federal student loan programs, leaving many schools without the lenders they’ve worked with for years.

In an effort to help stem the exit of lenders from the Federal Family Education Loan Program and to avoid a crisis in student loan availability, President Bush signed the Ensuring Continued Access to Student Loans Act (H.R. 5715) last month.

While the act may have come just in time to keep some struggling lenders afloat, financial aid administrators are concerned that students may become confused when attempting to switch lenders.
Schools Mobilizing to Notify Students of Lender Changes

Thousands of college students may still not be aware that they’ll need to find new lenders, with colleges and universities still in the midst of the time-consuming process of contacting their students to let them know that a lender they’ve formerly used is no longer available.

At the University of Wisconsin at Madison, administrators have just begun notifying the students who will need to switch FFELP lenders for the 2008–09 academic year — a group of 2,000 among the 17,000 returning students who are on financial aid.

Financial aid administrators at Occidental College in California will be informing all 1,000 returning students who are receiving financial aid that they too will need to find new lenders and sign new master promissory notes for their federal college loans.

Instead of contacting students personally by phone or mail, Luzerne County Community College in Pennsylvania posts an updated lender list on its website to let students know which FFELP lenders are still available.
Schools Consider Direct Lending Alternative

Some schools, wanting to avoid a situation where their students may have to repeatedly switch lenders as lenders continue to exit the FFEL program, have initiated a move from the FFEL program to the Federal Direct Loan Program, which allows students to borrow directly from the U.S. Department of Education. By switching over to the Direct Loan program, college officials also hope to ensure their students have ready access to the federal college loans they need to be able to pay for school.

Of 428 college administrators surveyed by Student Lending Analytics, a data provider for financial aid professionals, almost 40 percent said they were considering the switch to Direct Lending because of the rate at which FFELP lenders are suspending their federal student loan programs.

According to the Department of Education, 4,654 schools currently use the FFEL program, whereas only 1,158 institutions are using the Direct Loan program. But with the recent loss of so many lenders from the FFEL program, 288 colleges and universities have already applied to join the Direct Loan program this year, compared to the 80 schools that applied in all of 2007.
Two-Year Colleges May Be Hardest Hit

As schools contemplate making the move to Direct Lending, community colleges are facing an additional challenge over their four-year public and private counterparts: Some student loan lenders, including two of the nation’s largest, Citibank and JPMorgan Chase, have announced that they will no longer offer student loans at community colleges or other two-year institutions, since student loans at these schools tend to have higher default rates and smaller college loan amounts that are less profitable.

If other lenders follow suit, some of the nation’s neediest students — with lower tuition and flexible class schedules, community colleges often attract lower-income and working students — may end up being affected the most. Unable to get the low-cost federal student loans they need to pay for their classes, community college students may turn to high-interest credit cards, costly private student loans, or may be forced out of college altogether.

============================ The End =========================

Study Reveals Slowdown in Foreign Applications to U.S. Graduate Schools

. :~ ALIVE FUN ARTICALS ~: .

Though the United States continues — at least for now — to be the top destination of choice for prospective international graduate students seeking their postbaccalaureate degree, it can no longer take for granted its ability to attract a growing pool of international applicants, according to a report by the Council of Graduate Schools released this month.

Findings from the 2008 CGS International Graduate Admissions Survey show a falloff in the growth rate of international student applications to U.S. graduate schools: In 2006, the number of applications from foreign graduate students increased 12 percent over the previous year, while in 2007, the increase in applications slipped to nine percent; between 2007 and 2008, growth fell even further, to just three percent.

After years of steady increases in foreign graduate applications, it was inevitable that the rate of growth would slow and then level off, said Kenneth Redd, the director of research and policy analysis at CGS. Still, he told The Chronicle of Higher Education, “what was surprising to us was the pace of the drop-off” (“Growth in Foreign Applications to American Graduate Schools Slows,” April 14, 2008).
Greatest Impact May Be Felt in Decelerating Pace of Applications From Asia

The declining growth rate of international graduate applications has been most dramatic among prospective students from India, Korea, and China — countries whose students account for nearly one-half of all non-U.S. citizens attending U.S. graduate schools, according to the 2007 Open Doors report from the Institute of Higher Education.

After having grown 26 percent in 2006 and 12 percent in 2007, the number of graduate applications from India stayed flat in 2008. Applications from prospective Korean graduate students were also flat both this year and last, after rising 4 percent in 2006. And the number of graduate applications from China was up only 12 percent this year, after a 19 percent increase in 2007.
Asian Government Initiatives Keep Graduate Students at Home

Graduate students from India, Korea, and China who previously might have had their eyes set on a school in the United States are increasingly choosing to continue their studies at home, thanks to aggressive higher-education initiatives in their home countries:

1. The National Knowledge Commission in India has called on the Indian government to add 1,500 new universities by 2015 to keep up with surging student demand.
2. Largely by improving the quality and capacity of its graduate schools, China has more than doubled the number of its in-country graduate students since 1998.
3. South Korea has invested over $1 billion in an effort to transform its universities into globally recognized institutions.

Increased International Competition Lures Graduate Students Away From U.S.

“I think the long-term is pretty clear, that countries around the world are investing a lot in graduate education and that competition is simply going to increase over time,” said William Russel, dean of the graduate school at Princeton University, to Inside Higher Ed (“Growth in International Applicants Slows,” April 14, 2008).

Besides confronting wide-reaching government efforts from Asian countries striving to keep their graduate talent at home, the United States is also facing increased competition from Britain, France, Germany, and Australia, as these countries implement national marketing campaigns targeted at attracting quality graduate students worldwide.

The current socio-political climate has many international students more willing to entertain these non-U.S. options for their graduate studies. In the wake of a heightened U.S. national xenophobia and the stringent national security that followed the terrorist attacks of September 11, 2001, many potential graduate students now view the United States as a dangerous and unwelcoming country.

Students participating in a recent StudentPulse survey conducted by i-graduate, a London-based research firm, rated the United States particularly low in personal safety and identified it as the most difficult country from which to obtain a student visa.
Foreign Graduate Students in U.S. Lack Access to Student Loans and Grants

As part of their stepped-up international recruiting efforts, Australia and Europe are also increasing their offers of financial support to foreign graduate students.

The United States, in contrast, extends few financial inducements to international students. Foreign graduate students who are neither U.S. citizens nor permanent U.S. residents do not qualify for the federal grants and student loans that can help U.S. graduate students at all income levels cover up to 100 percent of their cost of attendance.

International students may also have trouble qualifying for their school’s institutional grants and graduate student loans or for many private student loans, which can also require U.S. citizenship or residency.

With limited access to college loans and other financial aid options, foreign graduate students pursuing their graduate degree in the United States must often finance their studies themselves: Over 60 percent of international graduate students attending a U.S. graduate program use their own personal and family resources to cover their graduate-school costs, according to the IHE Open Doors report

============================ The End =========================