Student Loans : News, Updates and Blog Posts

Hello my scholarship friends!

I just wanted to remind you that we will be drawing the big $10,000 scholarship winner on October 31, but will not be officially announcing who the lucky winner is until Monday, November 2.

We’ll be posting the winner to the winners page on Monday and sending a winners email alert to all members.  Both the winners page and email will also contain the $1,000 and $500 scholarship winners as well!

Enjoy your costume parties this weekend and be safe!

One of the biggest shows for college students this fall is the new Melrose Place series. On the show actress Stephanie Jacobsen plays Lauren Yung, a medical student who is forced to come up with some unconventional ways to pay her tuition. Early in the season Yung finds out that her father has lost his job and will no longer be able to help her pay for school. To start making money quickly, Yung becomes a high-end call girl. She finds out that spending time with wealthy men is an extremely lucrative business and an easy way to pay off her medical school debt.

In my opinion, this plot line sends a horrible message to the show’s key demographic of young college women.  I have to admit that I do watch the show but I always find myself wanting to scream “student loans” and “scholarships” every time the story turns to Yung’s problems. Most college students are familiar with the hardships of making college payments; however there are ways to quickly get tuition money that are far less humiliating.  Private Student Loans are a simple, flexible way to get the exact amount of money that you need when you need it. Since circumstances can change quickly, private student loans can be borrowed at any time during the semester. As long as you and your co-signer have a healthy credit score you should be able to borrow up to the true cost of your education. The best part is that you can use private loan money for more than just tuition. The Student Loan Network can connect you with private lenders and even help you apply.

If you are frustrated with your financial situation know that there are plenty of resources out there can help you pay for your education. Do not put yourself in danger or disrespect yourself to make money quickly.  If you are just starting to explore your financial options visit the Student Loan Network for information on federal student loans, private student loans and scholarships. Finally, will someone please tell Miss Yung the same thing!

Below is a list of the average MBA starting salaries at the top business schools according to Admissions Consultants.  The University of Pennsylvania (Wharton) has the highest average median total pay package with Columbia University a very close second.

When it comes to free money for college most students will take what they can get, but how would you feel about accepting a scholarship from a chewing tobacco company? Scholarships are often given out by companies to improve their corporate image, but if a tobacco company shells out scholarship money is that sending the wrong message to college students?

This issue has recently been brought to the forefront at Cal Poly. The school is taking a lot of heat for allowing students to accept scholarships from the smokeless tobacco industry as prize awards in collegiate rodeo events. Doctors are upset that the tobacco companies are promoting their products to students so aggressively, but is it a problem if a student takes the money and is not swayed to become a consumer?

Many students do not receive enough federal financial aid to be able to afford college on their own. Scholarships are the ideal option for these students because unlike federal student loans and alternative student loans they do not have to be repaid. Most people would probably argue that college students are mature enough to make responsible life decisions and that they should accept whatever scholarship money they can get.  However, in this age of student activism, some students really do worry about where their scholarship money is coming from and what message it is sending.

If you are weary about where your scholarship money comes from we promise that Student Scholarship Search will only connect you with scholarships that we would be proud to represent. Also do not forget that Scholarship Points gives out scholarships (some as big as $10,000) to students every month.

When used as a multi-year document, the Stafford loan MPN enables student borrowers to get additional loans without signing a new MPN.  However, there are still several circumstances that require a borrower to complete a new MPN.

A new MPN is required if the borrower’s FFEL lender changes, unless the change is a result of a merger or acquisition.  Below are some other instances that would require the borrower to complete a new Stafford loan MPN.

• the borrower transfers to a school that is not eligible to use, or chooses not to use, the multi-year feature of the MPN.

• the borrower transfers from an FFEL school to a Direct Loan school, and there’s no valid Direct Loan MPN on file with ED.  Similarly, a borrower needs a new MPN if transferring from a Direct Loan to an FFEL school, unless there is a valid MPN on file with the lender that the borrower uses. (New MPNs are also required if the school itself changes from using DL to FFEL or vice versa.)

• a school’s lender requests that a school no longer use the multi-year feature of the MPN.

Also, borrowers may request an annual MPN, or may request that no additional loans be made using their current multi-year MPN.  Requests that no additional loans are made using current multi-year MPNs must be in writing.  In some cases, a new MPN has to be executed because the maximum period for use of the MPN has expired.

You can not take out any amount you want in private student loans unfortunately, though that would be great if you could.  Imagine being able to pull out $25,000 when you only need $10,000 and then buying a car.  How cool would that be?

Here is how the school certified private student loan works.  The financial aid officer determines the total financial aid package for each student and calculates the student’s unmet financial need by using the Cost of Attendance (COA) and deducting from this figure the Expected Family Contribution (EFC) and any grants, scholarships, and federal loans the student will be receiving for the current enrollment period.

The lender contacts the financial aid officer for certification of the loan amount requested, the financial aid officer can then increase or decrease the loan amount based on the COA calculation.

The next $10,000 Scholarshippoints winner, along with the $1,000 and $500 scholarship winners for October will be drawn in just four days! Can you feel the excitement in the air? Is your heart pounding with anticipation? I can tell you that I haven’t been this pumped since my Mom brought home a tub of Oreo cookie ice cream from work in 1986!

Be sure to enter all the point earning activities you can to maximize your chances of winning some mucho dinero!

Good luck my friends!

Current Point Activities

Try saying that five times fast!

Do you know what happens when you do not make your student loan payments? Ideally you should take repayment into consideration before you sign off on a loan, however most people do not really think about it until the bills start coming in. The worst thing you can do is miss payments. Missing payments kills your credit score. A bad credit score makes it impossible to obtain a mortgage, buy a car, and take out any other loans in the future. If you miss payments you will also end up getting slammed with interest in the long run. Paying at least the minimum amount every month is key to staying on top of your debt.

If you are in a position where you really cannot make your payments there are steps you can take to avoid being severely penalized. One option is to apply for income-based repayment. This is a new payment option for federal student loans. With this option your monthly payment is calculated based on your income and family size. The IBR loan payments will usually be less than 10% of your income.

Loan consolidation is another option that will help you minimize your monthly payments. When you consolidate your federal student loans your loan term is extended and you end up with one smaller monthly payment. The new interest rate is a weighted average of all of your previous loans. Before considering consolidation you should know that does not necessarily cut down your interest and you will be paying off your loans for a longer period of time.

Loan deferment options are also available in certain situations. Deferment does not excuse you from ever paying off your loans, rather it temporarily suspends payments. You may be eligible for deferment if you are in school at least half time, unemployed or have experienced an extreme economic hardship.

Finally, in rare situations a person might be eligible for student loan forgiveness. Forgiveness means that all or part of a person’s student loans are cancelled. You would qualify for loan forgiveness if you enter into public service, perform volunteer work, perform military service, or if you become permanently disabled.

If you are a parent of a prospective college student, or a prospective college student yourself, you should be starting to think about financial aid. You have probably heard people around you talking about FAFSA, Stafford loans, Pell Grants, scholarships, and alternative student loans. It might seem like you are the only one who does not know what is going on, but trust me you are not alone in your confusion. Applying for financial aid can be very stressful for families and filing the FAFSA is a task that most people dread.

In order to be eligible for any kind of Federal student loans or grants you must file the FAFSA. Many people play down the importance of the FAFSA, but it should not be taken lightly.  Mistakes on this form can end up costing you thousands of dollars in aid. Luckily there are people out there who know a lot about financial aid and might even be able to help you with the application process.

Many high schools and communities host financial aid and FAFSA workshops. These are usually free sessions run by the high school guidance department, a local college or outside consulting group. These workshops usually go over a general look at financial aid, applying for student aid, why you should file the FAFSA, determining financial need, and tips and techniques for filling out the FAFSA.

If you are perplexed by the financial aid process make sure you find out if your town is holding a workshop. If they are not planning one it may be beneficial to suggest it to the high school principal or guidance department. The U.S. department of education even provides resources and presentation materials that make hosting a financial aid night more manageable. After attending a financial aid or FAFSA session you will probably find out that you are not the only one who feels lost, but you will also probably feel more confident and ready to tackle the application process.

Did you know when you consolidate your loans early, meaning right after you graduate, you do not necessarily need to begin the repayment process immediately? You can elect to do a “Hold for Grace.”

A hold for grace option allows you to file your consolidation application right after you graduate college while allowing you to still enjoy your full six month grace period. The other option, assuming you would like to fully utilize your six months, is to just file your consolidation application near the end of your grace. The consolidation process generally takes 30-60 days.