Student Loans : News, Updates and Blog Posts

With all of the recent changes made by the Department of Education, the FAFSA has gotten easier for families to file. Having said that, there are still some questions that remain difficult to answer for many students.

One question I see a lot from dependent students is “whose information do I use for the FAFSA?” With all of the different family situations out there, it can be difficult to tell who the FAFSA considers a parent, and unfortunately, it’s not always who claims you as a dependent on taxes! If you’re not sure whose financial information to enter on your FAFSA, take a look at this flow chart to help you determine the answer!
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Happy February! While we still have to wait one more day to find out if Punxsutawney Phil sees his shadow, you do not have to wait any longer to use FAFSA’s IRS Data Retrieval option! Starting today, February 1, students and parents who have filed their taxes can pull this information directly into their FAFSA.

In the past, filling out the financial information on the FAFSA has been a hassle since parents and students had to manually enter all of the information. Plus, this information would then need to be cross-referenced with the IRS by the financial aid office. This new IRS data retrieval option takes the some of the burden off of the families, allowing for an easy way to fill out the FAFSA.

If you haven’t filed your taxes yet for the year, no worries. You can select the “Will File” option, then when your taxes have been filed, log back into your FAFSA and update using the IRS Data Retrieval tool. To learn more about the IRS Data Retrieval option read, “IRS Data Retrieval Tool for FAFSA”

Remember, if you haven’t filed your FAFSA yet, get started! The earlier you apply the more likely you are to receive certain types of aid! If you need help, make sure to download our free FAFSA Guide ebook, or head on over to FAFSAOnline.com for step by step instructions to this year’s form!

Misty makes some excellent points in this video, especially for families who are applying for financial aid for the first time. She mentions that the FAFSA is free, and we can’t stress this enough! For families who have questions about the FAFSA, feel free to pose a question to the financial aid experts at FinancialAidForum.com, or check out some of the other common questions from families.
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It’s FAFSA season again, and thanks to FAFSAOnline.com, we’re providing students and families with a downloadable FAFSA Help Guide to the online form. This detailed guide will answer the most common questions about filing the FAFSA, as well as provide some useful tips to help you get the most financial aid. Best of all, it’s free!

What information can you find in the FAFSA guide?

• Filing your FAFSA before taxes
• Tax credit information
• Determining a student’s dependency status
• Defining a parent
• Using IRS Data Retrieval

And much more!
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The Department of Education has been making great strides in streamlining the often-confusing online FAFSA form. This year, students and parents should find it much easier to navigate through the process, as well as collect the information necessary to file the form.

Here’s what you can expect to find in the improved 2012-2013 FAFSA:

• Easier online navigation- The sections and questions have been reordered to make it easier to navigate. This best part of this is that the system now knows where you left off, so if you fill out the form over a few sessions, there’s no more searching for your next steps. Plus, it’s “skip logic” has been improved. This means that the system will eliminate unnecessary questions based on what you’ve already answered, making less work for you!

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The IRS data Retrieval tool is a helpful resource for many parents and students filing the FAFSA. The tool allows first-time and returning applicants to pull their tax data directly from the Internal Revenue Service in order to auto-fill the tax portion of the form.

Who can use the tool

The tool works for about 80% of all filers, but in some special cases, tax information should still be inputted manually. If you meet the criteria below, then feel free to use the tool!

Filers need:

• A valid SSN
• A filed tax return for the previous year
• An unchanged marital status as of December 31 of the prior year

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January is quickly approaching, and you know what that means? FAFSA season. Filing your FAFSA is a critical step in the financial aid process. However, if you have never applied for financial aid before, everything can get overwhelming, and fast! This is why you should know your options beforehand. You can then apply directly to a loan lender.

Major types of financial aid:

• Private scholarships and grants
• Federal grants (Pell, Academic Competitiveness Grant, SMART, FSEOG)
• Federal student loans (Stafford, Parent PLUS, Graduate PLUS, Perkins Loans)
• Federal work study
• Private Student Loans

How to apply:

Scholarships and grants
Private scholarships and grants have individual applications and deadlines. While the application process can be time-consuming, every little bit helps!

Federal aid
The FAFSA is your application for all of the federal types of financial aid listed above. Students need to submit it starting January 1st of each year, and the sooner you file, the better!

Private loans
If you’ve exhausted your scholarship and federal aid resources, then it’s time to apply for a private loan. Each lender will have different interest rates and benefits, so it helps to compare your loan options to find what’s best for you.

For more information on the different types of financial aid and for a helpful financial aid calendar, check out our Financial Aid 101 eBook.

As you head back to school, some back to school financial aid tips…

1. Make a budget BEFORE the semester begins. Figure out what kind of money you’ll be able to earn and what you’ll be spending and stick to it.
2. Team up with a roommate, hallmate, or friends to enforce each others budgets. The power of the group works. Social financial apps like Wesabe, Mint.com, and Geezeo can help with this, too. Set a goal that you publish among your friends and stick to it. Set rewards for achieving those goals.
3. Take a class online while everyone is out partying – or during a break.  If you take one class during one spring break and one class each summer – you can graduate a semester early!
4. Go for a lot of walks on campus. You’ll meet a ton of new people, and you won’t have to spend money to do it. Being visible is the easiest way to meet new people. Want to meet lots of new people really, really fast? Volunteer at any kind of event, work at the help desk, etc. Be helpful and you’ll make amazing, fast connections that often endure long past college.
5. Everything marked free isn’t. Beware of any free offer that requires you to sign up for anything. Not saying it’s bad, just know what you’re signing for like a stealth student credit card application.
6. Some of the best conversations you’ll have are on playgrounds. Hang out at places like that vs. cafes or other money-spending venues. Want to make your own game socially? Go off campus, wander around (with safety in mind) and find the best hangout spots in the town, then share them with friends. Museums, galleries or the city gardens as examples.
7. Check your campus email every day. Financial aid offices often send notices to campus email addresses. Don’t miss a bill. If you’re technically savvy, just forward it to your other webmail account.
8. Buy and bring to campus an indoor dryer rack. You’ll cut your laundry bill in half and the rack will pay for itself in weeks, especially if it’s around $18. You can find magnetic and closet-based systems for as little as $10 online.
9. Bring resealable containers. I’m not saying bring them into the dining hall or anything but, you know.. Make sure you don’t skip meals if you’ve paid for them. That’s just throwing money away.
10. Have a small lockbox in your dorm room. Keep your checks, debit card, etc. in there and locked up. Make it a combo lock so that if you lose your keys, you’re not out of luck. And it’ll make you think twice about reaching for the good stuff when you have an impulsive thought.
11. If you have a student ID card that’s tied to any kind of financial account, punch a hole in it, stick it on your keychain, and put your keychain on a lanyard.
12. Opt out of as many fees and unnecessary bills as possible, such as campus phone and TV service. Seriously, you have the Internet. What else do you need? Use free applications like Skype, change your mobile plan to unlimited calling if you call home a lot (and you probably will if you’re a first year student), use Hulu.com for television, and avoid those extra, unnecessary expenses.
13. Shop around online for better textbook prices.
14. If you’re living off campus and on a partial or no meal plan, sign up for the supermarket loyalty card plans, coupon hunt online, and get a decent meal plan together. Planning ahead a little will save you hundreds, if not thousands of dollars on food.
15. Set up an affiliate program during college and get your personal professional web presence going as soon as you can. You’ll have more free time in college than you will after college, so take the time to set up your blog, web site, LinkedIn profile etc. and develop professional contacts early. By the time you graduate, you’ll be way ahead of everyone else playing the resume cannon game. Get known for something in your field of study or focus early on.
16. Keep hunting for scholarships! Pick a time each week, 1 hour per week, and apply for a new scholarship each week. I guarantee after a year you’ll be happy you did. Better yet, get some friends together and make it a social thing.

There are a lot of different types of student loans out there, so sorting through all of them can be tough, especially when there can be many names for the same thing. You might be surprised to find that Title IV loans and federal loans are one in the same! However, the term Title IV is applied to more than simply loans. Keep reading to learn more.
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Perkins loans are great options for those students who are eligible. They have low interest rates and can be used for both undergraduate and graduate studies. But before you accept the loan, make sure you get all of the facts.

So, here’s what you can expect from a Perkins Loan. These loans are federally funded and only available to the students in highest need. They differ from other federal government loans in that they are dispersed through different lenders. While other federal loans are dispersed through the government, Perkins Loans are the only ones to come directly from your college.

For each year of school, students are allowed to take out up to $4,000 ($8,000 for graduate students). Typically, the loans are dispersed to you in two installments, one for each semester. The funds either get sent directly to you via check or applied directly to your school account.

Learn more about Perkins loans borrowing limits, interest rates and repayment at the StudentLoanNetwork.com.

Unfortunately, not all students will qualify for Perkins loans. So for these students, here are some other options.

Scholarships

One such option is searching for scholarships. While the the payout for scholarships is usually minimal when compared to the time spent applying, any little bit can help. Plus, unlike loans, scholarships never need to be repaid. To make it easy to keep track of scholarships and their deadlines, try keeping a spreadsheet so that you know which you’ve applied to and when to apply next. StudentScholarshipSearch.com is a great resource and makes it easy to help you find relevant scholarships; plus, there are new ones posted daily, because let’s face it, you’re busy enough being students.

Private Student Loans

If scholarships don’t pan out, then consider getting private student loans. While we typically tell students to exhaust all of their federal loan options first, getting a private loan can be a great option to cover the remainder of your expenses. Just like any other big financial decisions, it’s best to shop around before making your final choice, so make sure to compare your loan options as this can be incredibly beneficial.

So if your Perkins loans did not cover enough of your school expenses, then no worries, these other options can really help bridge the gap in your financial aid.