The Budget Control Act is not the first instance of financing Pell grants with added funds paid by student loan borrowers, and it won't be the last. Does anyone remember how eliminating FFELP loans (many of which provided added benefits to borrowers) in favor of <a href="http://www.collegeloanconsultant.com/federal-direct-student-loans.html">federal Direct student loans</a> was supposed to provide billions that would help make up shortfalls in the Pell program? Now graduate students will pay added interest and student loan borrowers will lose that .25% interest cut that was available to all federal loan recipients.
With Pell grant amounts scheduled to go up in 2013, borrowers should be prepared to see their loan expenses rise even more, perhaps only slightly- these things tend to be done incrementally so that no one objects too much. But they do add up to a less attractive federal loan option than was available to students, just a few years ago.
Parent and student information go on the same FAFSA application (http://www.collegeloanconsultant.com/...) form. The student has to file it, but a parent's information and signature is needed unless the student is independent. However, there is only one form (per student) per year.
Unfortunately, last year one-third of all college students used a credit card to pay for some college expenses- not spring break trips, but books, fees, and even tuition. While the President and Congress have made this law restricting access to credit cards for college student, they haven't made the law that lifts federal student loan limits. So next year when faced with tuition gaps, one-third of all college students will...?
Many private loan interest rates are pegged to the LIBOR rather than the prime rate, so it is not certain that the bailout will help lower those rates.
Not enough students consider their state programs before turning to private loans or deciding that they cannot afford to go to college. In Kansas, for instance, students would be able to make the most informed decision about college financing if they knew in advance what they subject they wanted to major in. The state has a number of scholarship/loan programs for different fields.
Budget deal alters loans for grad students
The Budget Control Act is not the first instance of financing Pell grants with added funds paid by student loan borrowers, and it won't be the last. Does anyone remember how eliminating FFELP loans (many of which provided added benefits to borrowers) in favor of <a href="http://www.collegeloanconsultant.com/federal-direct-student-loans.html">federal Direct student loans</a> was supposed to provide billions that would help make up shortfalls in the Pell program? Now graduate students will pay added interest and student loan borrowers will lose that .25% interest cut that was available to all federal loan recipients.
With Pell grant amounts scheduled to go up in 2013, borrowers should be prepared to see their loan expenses rise even more, perhaps only slightly- these things tend to be done incrementally so that no one objects too much. But they do add up to a less attractive federal loan option than was available to students, just a few years ago.
August 18, 2011 at 9:22 a.m. ( permalink | suggest removal )
KU encourages early FAFSA filing
Parent and student information go on the same FAFSA application (http://www.collegeloanconsultant.com/...) form. The student has to file it, but a parent's information and signature is needed unless the student is independent. However, there is only one form (per student) per year.
March 1, 2010 at 7:20 a.m. ( permalink | suggest removal )
Buser: Law may lift student debt
Unfortunately, last year one-third of all college students used a credit card to pay for some college expenses- not spring break trips, but books, fees, and even tuition. While the President and Congress have made this law restricting access to credit cards for college student, they haven't made the law that lifts federal student loan limits. So next year when faced with tuition gaps, one-third of all college students will...?
September 23, 2009 at 9:20 a.m. ( permalink | suggest removal )
What the bailout means for student loans
Many private loan interest rates are pegged to the LIBOR rather than the prime rate, so it is not certain that the bailout will help lower those rates.
Ed. note: Outside advertising removed.
October 7, 2008 at 8:56 a.m. ( permalink | suggest removal )
Students become more dependant on loans
Not enough students consider their state programs before turning to private loans or deciding that they cannot afford to go to college.
In Kansas, for instance, students would be able to make the most informed decision about college financing if they knew in advance what they subject they wanted to major in. The state has a number of scholarship/loan programs for different fields.
http://www.collegeloanconsultant.com/...
September 18, 2008 at 10:28 a.m. ( permalink | suggest removal )