With the news that MEFA (Massachusetts Education Finance Authority) is not able to make loans this year, (see: http://tinyurl.com/5soc5g) Massachusetts residents will be looking for funding options. We are happy to reassure our customers in Massachusetts that the Student Loan Network has a full suite of federal and private student loan products for funding this coming semester. In addition, we offer a variety of credit tools, student loan resources and educational guides to help you through the financial aid maze. For a list of these resources, visit: http://www.studentloannetwork.com/resources/
Financial Aid Professionals looking for options for their students, please visit:
More than 40,000 students recently discovered they are losing a major loan option. The Massachusetts Educational Financing Authority (MEFA) announced it won’t be giving out ANY loans this fall, ouch!
It had been previously reported that as of July 1 MEFA would not be giving out any Federal loans, but now they are not giving out any private loans either!This news has sent shockwaves through many Bay State households.
Last year MEFA made more than a half a billion dollars in loans available so the impact of this news is substantial. The state run lending authority is suffering from the same credit crunch that has affected the student loan market nationwide.
At this point I’m sure you’re aware your FAFSA is the key to unlocking that federal grant door. The most common grant is probably the Pell Grant, but there are others as well. There are four types of federal student aid grants you may qualify for in fact. Let’s take a look.
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Academic Competitiveness Grant (ACG)
National Science & Mathematics Access to Retain Talent Grant (national SMART Grant)
With the Pell Grant any other financial aid you receive (such as a scholarship) does not affect the amount of your Pell Grant which is great. If you’re eligible you’ll receive the full amount you qualify for. The maximum allotment for 2008-2009 is $4731.
The FSEOG takes into consideration other need which you are receiving. Basically other aid might reduce the amount of your FSEOG award. Due to limited funds, it’s important to apply early to be considered for these funds. Not everyone who qualifies for an FSEOG will get one.
ACG began in 2006-2007 for full-time undergrad students. First year students can get up to $750 while second year students can qualify for up to $1,300. Some requirements include; a student receiving a Pell Grant, being a first or second year full-time undergraduate student in a degree program, and maintaining a 3.0 GPA.
The SMART grant program is for full-time undergraduate students who are enrolled in the third or fourth academic years of undergrad study. The award is for up to $4,000 for each academic year. Some requirements include; a student receiving a Pell Grant, having a major in physical, life, compute sciences, mathematics, technology, engineering, or a critical foreign language , and maintaining a 3.0 GPA.
I just love Grants! Whether it be on a $50 dollar bill or in the form of federal grants! As Britney Spears would say, “Gimme gimme more gimmie more, gimme gimme more.”
In order to have the ability-to-benefit one of the most important criteria pieces, in order to receive Title IV program assistance, is that a student must have earned a High School diploma or its equivalent.
Students who are not high school graduates (or who have not earned a General Educational Development Certificate) can demonstrate that they have the “ability to benefit” from the education or training being offered by passing an approved ability-to-benefit (ATB) test.
Federal Stafford loan interest rates have been on a steady incline since 2003-2004, but that has finally changed. Effective July 1, 2008 subsidized Stafford Loans decreased from 6.8% to 6% fixed. That is the largest interest rate drop federal loans have seen in nearly seven years. And it came not a moment too soon. Interest rates matter.
If you’re like me when I was 18 you may be thinking, “Whatever, 6%, 6.8%, or 10% I don’t really care. I’ll worry about the bill later.” And if that is the misguided logic you operate under than shame on you. I wish I could go back in time and kick my own fanny. I was a complete nitwit! Now clarity of thought and not naivety of youth serves as my ally. That said, the financial ramification of my poor decisions when I was younger still looms heavy over my head today. I want better for you.
Below is a cost comparative between student loans at 6.0% versus student loans at 6.8%. You may be surprised by the amount of money you save over a 10-year period.
As you can see that’s a $2,200 savings over the standard 10-year loan term assigned to federal loans with the lower 6% interest rate. That said most students don’t pay off their loans within 10 years. Many students choose to consolidate after school to lower their monthly payment. Consolidating extends your loan term which does minimize your monthly payment in the short run but you pay back more in the long run.
For example if you have $45,000 in loans you may extend your 10-year loan term to a 25-year term. The cost disparity in that case jumps from $2,200 to over $6,700! It doesn’t take much to get that ball rolling in the wrong direction.
The fact is you are in a better place today than you were one year ago at this time. Take advantage of the lower 6% interest rate! I am the best kind of hypocrite. I did everything wrong so you could everything right.
Apply now for a Stafford Loan and take advantage of the low rate!
“Save me the money!!!!!!!”Can you picture Cuba Gooding Jr’s character from the 1996 hit movie Jerry Maguire screaming that out?Me neither.I guess we all want someone to “show” us the money instead.We bow to the almighty dollar.We salivate like that dog in Pavlov’s theory when the bell rings.We are thirsting for those Benjamin’s.Well, what if I could do both for you?What if I could both show you and save you the money?
As many of you have probably heard, countless nonprofits, major banks, and government agencies stopped offering federal loans, like the Stafford loan.With less lending sources available it doesn’t take a genius to figure out its more difficult and time consuming to get the funds you need these days.So where can you go to get your Federal Stafford Loan? Right here! Your search is over. Here at The Student Loan Network we’ve got you covered. Just click Stafford loan and complete your online application today.It’s fast and easy!
So that answers the first half of our equation, how I can show you the money, but how can I save it for you?
Some educated consumers ask me, “What are the fees on your Stafford loans,” to which I gleefully reply – we have none!Many lenders in the industry charge a 2% fee on Stafford loan applications (1% origination fee and a 1% guarantor fee).It is perfectly understandable too given these difficult times, but I’m pleased to inform you that we have waved the 2% fee for you.What that means is if you get approved for $5,500 than we send all $5,500 to the school on your behalf.Nothing comes off the top. That’s how we can “Save you the money!!!!”
So now I’ve showed you how to get the money for school and how you can save it. Hey Cuba, calm down over there. We’ve got everything under control.
Use the Library: The library is a great place to save money.Most libraries nowadays have internet access (although you have a time limit), periodicals, music catalogs, and obviously books.Library cards are also very inexpensive, if they even charge at all.Libraries are literary treasures and are underused.I go there to look up consumer report information on appliances while my colleague loves taking out books from Oprah’s book club list.My brother Dan loves music and takes out CD’s to listen to.
Hit grocery sales twice.The standard sales at a grocery store last 7 days (they generally run Friday – Thursday in my region).Wouldn’t it make sense for me to make a return trip back on Thursday night and hit that sale one last time?Most people couldn’t be bothered but over the course of the year you could save hundreds of dollars this way.This is like a giant coupon in and of itself, and you don’t need to clip it out of a paper.
Pay cash for gasoline.Did you know a lot of gas stations apply a surcharge when you pay for your gas by credit card?In some places they actually charge as much as 10 cents more per gallon!That is just crazy.It is the classic bait and switch tactic.Some gas stations have now been forced to post two prices at the pumps, but not every station is required to do so.
Get the right phone plan.If you don’t get the right plan it can cost you dearly!I had a 1400 minute plan with Verizon and discovered I only averaged 650 minutes each month (I have become a textaholic).They had a 700 minute plan that I moved to and saved myself about $20 per month.Do the math, that’s $240 more bucks in my pocket at the end of the year.Shame on me for not doing it sooner!
Pre-owned better than new Automobiles.Buying a quality pre-owned vehicle may save you thousands over a new one.Sales tax and excise tax will be considerably less, and of course the sticker price will be greatly reduced as well.Autos are a liability and a depreciating asset already; you might as well minimize the damage if you can.
I have heard recently that if you have previously consolidated your Federal loans, you can switch your loans over the US Dept of Education (Direct Loans). Keep in mind that your rate will not change, and your loan term will most likely start over…so if you have been paying for 5 years already, you may be paying for longer. However, this can be avoided by just paying more than what is due each month, therefore you would be done paying sooner than the time allotted in the consolidation. For more information on this you can call 1800-557-7392 or visit loanconsolidation.ed.gov
Just a quick reminder that the FAFSA deadlines per school year is typically set by the school. You can fill out a FAFSA, up until july 1st, of the past school year, but the school you are going to sets deadlines on when they will stop accepting SARs for the upcoming school year. Most schools set these deadlines in the spring before the upcoming semester. Check with your school to see if it is too late to get Federal aid for the upcoming school year, and remember that even if it is, external scholarships run year round.
This is the time of year when grad students are figuring out how to pay their tuition for the upcoming school year. Here is a list of common FAQ’s I get regarding the Graduate Plus loan…
1. Can I use this loan for living expenses, such as rent, groceries, transportation?
A. YES, you can, however just like the Stafford loan, this loan must be certified by your school officials. So if you are needing these funds for things other than tuition, you must clear that with your financial office, or chances are, they may not certify the loan
2. Does this loan get sent to the school or to me?
A. This loan is sent to your school. If there is money left over after tuition is paid, then you will get a check from the school directly.
3. What is the interest rate on this loan?
A. The interest rate for the 0809 school year is 8.5% fixed. This rate will never change for this particular loan/school year
4. What is the credit criteria in order to get approved for this loan
A. The grad plus loan is easier to get approved for than a private graduate loan. Basically as long as you do not have any openly delinquent accounts showing up on your credit report, then you will most likely be approved for it.
5. Can I apply with a cosigner?
A. You must apply on your own first, and if you are denied, you can then add a cosigner to the application.
6. Do I have to have a FAFSA filed in order to get this loan?
A. YES, you must file a FAFSA. You also must take out the alotted amount in the Stafford loan before you can recieve this loan.
7. When are my payments due?
A. Not until you are finished school, will your payments be due on this loan. You can however make interest payments, if you choose.
