Young adults often join the army hoping that their contributions will serve the nation’s good and aid them in affording a quality education. Army.com admits that, “Ninety percent of servicemembers enter the armed forces for the educational benefits.” Unfortunately, an increasing number of veterans are finding their promised aid insufficient in paying for tuition and other costs.

In an interview with MTV, veteran Evan Aanerud expressed his surprise upon finding that, even with financial assistance, he would have to work full time to cover college expenses. When Evan returned from Iraq and enrolled in the California Polytechnic State University, he received only $430 each month. “That’s about the cost of one-quarter of the books, and that’s about all that I got,” he said.

Even servicemen who receive the maximum $1,100 per month as determined by the GI Bill—a law made to cover each veteran’s college expenses—often find the assistance lacking. With College Board estimating the four-year cost of a public, four-year, in-state university at $54,356 and the private one at $129,228, the maximum $39,636 veteran budget just doesn’t cut it.

But there is hope. If a revised version of the current Montgomery GI Bill is passed, veteran students may soon receive a federal student aid boost. According to the proposal, the new GI Bill would pay the full cost of in-state tuition (up to the cost of the most expensive in-state public university) in addition to a housing and book stipend. With bipartisan support, the bill has a chance at passage if opposing congressmen can be convinced that costs are manageable. Having put their lives on the line to serve the nation, many veterans feel that it’s the least they deserve.

Bookmark to:

As expected, President Bush signed into law the Ensuring Continued Access to Student Loans Act of 2008. After receiving bipartisan support from the House and the Senate, the bill aimed at ensuring student loan availability was approved by the president.

Worried that the departure of student lenders from the FFEL Program could make student loans more difficult to obtain, legislators hurried to secure a backup plan. According to House Representative George Miller, “The bill carries no new cost for taxpayers.”

The Ensuring Continued Access to Student Loans Act of 2008 indicates that:

o The limit on federal loans will soon increase. Students will be able to borrow $2,000 more to cover tuition and other costs.

o Parents will have more time to save for PLUS Loans. Rather than having to pay as soon as money is disbursed, they will have until six months after the child graduates before initial payments are due.

o Families slightly behind on their mortgages or medical bills may still be eligible for PLUS Loans.

o The Secretary of Education has the authority to advance federal funds to student lenders and guaranty agencies acting as lenders of last resort if the lenders run out of capital.

o Shall a lender of last resort plan be put into practice, guaranty agencies acting as lenders will have to abide by rules and restrictions similar to those governing FFEL lenders.

o Congress may call on the Federal Financing Bank to consider injecting money into the student loan market at no cost to the taxpayers.

Bookmark to:

Complicated student loan legal jargon is an unfortunate component of the borrowing process. Two words  all students should be familiar with before borrowing are “subsidized” and “unsubsidized”. Let’s break these down.

Subsidized Loans

Students who borrow subsidized loans through the Federal Direct or the Federal Family Education Loan (FFEL) programs will receive government-backed college money. Because the government agrees to compensate FFEL lenders for loan defaults, student lenders agree to offer low-interest loans. They do not charge students for the interest that accumulates during the college years and post-graduation six-month grace period as the government takes care of these costs.

Unfortunately, not all students are eligible for federal subsidized loans because finances are among the eligibility criteria.  Students whose FAFSA results suggest financial need and those whose parents applied for but were denied a PLUS Loan may take out subsidized loans.

Unsubsidized Loans

While federally unsubsidized loans boast fewer benefits than subsidized ones, their interest rates still tend to be lower than those offered by private lenders.  Students are responsible for all interest that accrues during their years in school, deferment, and grace periods. As long as students don’t exceed their annual loan borrowing limits, they may take out both subsidized and unsubsidized loans.

Because unsubsidized loans are not based on financial need, students who are not deemed needy by the government may still take out these loans. The borrowing limit on these loans will vary based on year in school and dependency status, but the sum may not exceed the estimated cost of attendance for each school minus other financial aid a student receives. Students may borrow both subsidized and unsubsidized loans during the same period as long as the limits for each are not surpassed.

Bookmark to:

The rising cost of college rates has been a headache for families across the nation. However, college tuition is not the only expense expected to increase. Due in part to the high costs of gas, the price of food transportation—and therefore food—has been on the rise. Like consumers, campuses have to deal with the effects that food costs have had on meal plans.

If you’re one of the many dorm-residing students subscribing to an on-campus cafeteria plan, especially one with a buffet-style layout,  you can imagine how quickly prices could escalate. Numerous students make it a habit to fill their trays with one of everything…just in case. The quantity of wasted, expensive food has college representatives worried that a  hike in cafeteria prices is inevitable.

Colleges are doing what they can to minimize expected charges, but pricing continues to be a problem. According to The Chronicle of Higher Education, some schools have taken to skimping on the amount of ingredients used in each dish while others have managed to save by eliminated cafeteria trays. In an interview with Mr. Simon of Western Washington University, it was reported that, “Western Washington dining halls observed a 34-percent reduction in waste during one week last month when the institution went trayless.”

For students who aren’t fond of dorm food as is, the idea of having to save money to afford it is extremely frustrating. Unfortunately, many students see few alternatives. Unless they can stuff all groceries into a portable, shared fridge, it’s just one more pain to deal with. 

Bookmark to:

As a means of promoting diversity and developing talent, Scholarships.com has created a new set of scholarships for high school and undergraduate students. The “Fund Your Future” competition consists of thirteen $1,000 awards to be granted to students who pursue a postsecondary education in one of thirteen designated fields and 185 related majors. Included is the Scholarships.com Business Scholarship, an award for students who plan to or are already majoring in business and related studies.

Scholarships.com understands that writing a 2,000 word paper on trickle-down economics can be a turnoff to students who lack both money and time. That’s why we’ve simplified things, and cut the requirements down to a 250 to 350 word scholarship essay. Students interested in applying for the award will have to submit an online response to the following question: “What has influenced your decision to pursue a career in business?”

Prize:

$1,000

Eligibility:

1. Applicant must be a registered Scholarships.com user. Creating an account is simple and free of charge.
2. Applicant must be a US citizen
3. Applicant must be undergraduate student or a high school senior who plans to enroll in a college or university in the coming fall
4. Applicant must have indicated an interest in one of the following majors:

o Business
o Accounting
o Actuarial Science
o Business Administration
o Advertising
o Economics
o Finance
o International Business
o Management
o Marketing/Distribution
o Hotel/Restaurant Management
o Human Resources
o International Affairs
o Real Estate/Development
o Sports Administration
o Manufacturing
o Engineering Management
o Retail

Deadline:

May 31, 2008

Required Material:

A 250 to 350 word response to the following question: “What has influenced your decision to pursue a career in business?”

Further details about the application process and about contacting the scholarship provider can be found by conducting a free college scholarship search. Once the search is completed, students eligible for the award will find it in their scholarship list.

Bookmark to:

After passing the Senate and the House in varying formats, a compromise was reached on legislation that would help lenders stay afloat in a troublesome student loan market. The Ensuring Continued Access to Student Loans Act of 2008 was sent to the President yesterday, and rapid approval is expected.

If signed into law, the bill would give the Secretary of Education the right to buy loans from struggling lenders, thus providing them the capital needed to offer new student loans. Worried that lenders may continue to depart from the Federal Family Education Loan (FFEL) program—as fifty have already done—legislators have been scurrying to provide financial assistance before the school year begins. Though the law would only serve as a backup plan, the hope is that knowledge of a federal cushion would make both lenders and students more willing to engage in business.

To decrease student dependence on private lenders, ones generally offering loans options that are more expensive and less flexible than those offered by FFEL lenders, the maximum sum a student could borrow from the government was also increased. According to The Christian Science Monitor, the caps on unsubsidized loans available to students of any income level would increase by $2,000 for each school year. Dependent students would now be able to borrow up to $31,000 for their undergraduate education.

Bookmark to:

When doors to the new University of Central Florida College of Medicine open in 2009, they will open with a bang. In the hope of attracting the best and the brightest, medical practitioners and college representatives from the University of Central Florida have raised enough money to reimburse the first class for all four years of medical school. They will cover not only the tuition but also the fees and living expenses. With the Association of American Medical Colleges estimating the average debt of medical school graduates to be at about $139,000, the deal is sweet enough to cause a toothache.

“I think setting the bar high for the quality of the first class will set the stage for the caliber of every class that follows,” said Tavistock Group director and donor Rasesh Thakkar. Fundraisers have been in place since 2007 to make that happen. After tapping all possible resources, the school is expecting to admit a class of about 120 students which, based on a four-year plan, will receive a grant worth approximately $160,000.

Students interested in attending the school may begin applying in June of 2008. If accepted, they will automatically receive the award—no lengthy essay competitions, no laborious commitments, just money. “UCF stands for opportunity,” states the university website. When studies and internships leave little time for outside work, a full tuition scholarship is the epitome of such opportunity. 

Bookmark to: