Yesterday, the House of Representatives formally introduced legislation to reshape federal student loans, federal Pell Grants, and other aspects of student financial aid.  The Student Aid and Fiscal Responsibility Act of 2009 builds on presidential budget recommendations and features several substantial changes to student aid.

A preliminary breakdown of the bill provided by the National Association of Student Financial Aid Administrators lays out the following proposed changes:

• Dividing the Federal Pell Grant into mandatory and appropriated funding, then fixing the mandatory portion to the consumer price index plus 1 percent.  Currently, the mandatory portion of the grant is $490 and the appropriated portion is $4860, so if these proportions remain the same, increases in the Pell Grant would still largely be at the whim of Congress each year.
• Eliminating several questions on the FAFSA related to assets, but preventing anyone with assets of over $150,000 from qualifying for federal student aid.
• Ending the Federal Family Education Loan Program and moving all federal Stafford Loans to Direct Loans.
• Ending subsidized Stafford Loans for graduate and professional students in 2015.
• Reverting to a variable interest rate that would be capped at 6.8 percent for subsidized Stafford Loans.
• Expanding the federal Perkins Loan program, with part of the new funding going specifically to schools that keep tuition low and graduate a high proportion of Pell-eligible students.
• Changing the rules for drug offenses to make students ineligible for aid only if they’ve been arrested for selling a controlled substance.

The Democratic majority in the House has indicated a strong intention to pass this bill quickly, with the Committee on Education and Labor planning to vote on it as early as next week.

Posted: under College Grants, College in Congress, FAFSA, Financial Aid, Student Loans.
Tags: College Grants, College in Congress, Direct Loans, FAFSA, FFEL, Financial Aid, graduate students, Perkins Loans, stafford loans, Student Loans

Comments (0) Jul 16 2009

For most college and high school students, summer is either here or right around the corner.  Summer vacation typically brings with it an increased amount of free time, especially since finding a part-time job has gotten increasingly tough in this economy.  While it’s nice to enjoy a break from studies, enterprising students can still find ways to make the most of their summer, even if they aren’t employed.  Beyond working or landing a summer internship, summer is also an ideal time to search for scholarships, build your résumé and strengthen your scholarship applications.

Though many deadlines have already passed, some scholarship opportunities are still available for fall 2009 (including the Scholarships.com Resolve to Evolve Essay Scholarship).  However, the majority of scholarship contests are annual affairs, meaning that even if you missed a deadline this time around, you may still be eligible to apply next year.  This is especially true for rising high school juniors and seniors.  For most students, their junior and senior years of high school will be their busiest, as classes get more challenging and the college and scholarship application processes begin.  So if you’re going into your junior or senior year of high school, why not get a jump start on scholarships now?

Do a free college scholarship search and make note of the awards for which you’ll qualify next year.  Some scholarships may be right up your alley, but might require extensive reading, writing, research or labor that you may not have time for during the academic year.  Others may be looking for substantial volunteer and leadership experience, and summer is a great time to get involved or more involved in activities that will help you really shine in those categories.  This advice also applies to current and incoming college students. There are enough scholarship opportunities for students of all ages and backgrounds that regardless of your circumstances, it’s a good idea to clear some time in your summer schedule to begin searching and applying.

Posted: under Back to School, High School, Scholarships, Tips.
Tags: applications, college scholarships, graduate students, high school students, Scholarship Search, scholarship tips, Scholarships, undergraduate students

Comments (0) Jun 04 2009

In a bad economy, many recent college grads and laid off workers decide to make the move to go back to school.  A number of current undergraduate students are also hoping to delay entry into the working world until the economy improves.  Many of these prospective students will apply to graduate programs, hoping to land financial aid like a fellowship or assistantship on their way to a master’s or doctorate degree.  However, many programs that traditionally come with stipends attached are cutting enrollment, as their cash-strapped institutions try to find ways to reduce their operating costs.

A recent piece in Inside Higher Ed explains that while terminal master’s degrees and other programs in which students commonly pay full tuition are still admitting large numbers of students, and in some cases even increasing enrollment, programs that typically give out more money than they receive, such as doctoral programs, are reducing admissions due to reduced budgets.  While some master’s programs and professional degrees come with fellowships, assistantships, or scholarship awards, the bulk of graduate financial aid goes to PhD students.  These students typically serve as teaching or research assistants, receiving free tuition and a stipend in exchange.  With university-wide cost cutting measures and rapidly shrinking departmental budgets, many institutions simply can’t afford to offer as many of these generous aid packages as they have in the past.  And rather than admitting and not funding doctoral students, these schools are choosing to admit fewer students in order to maintain their funding commitments to current and future students.

If you applied this year and didn’t get in, at least you can console yourself with the knowledge that it was a particularly bad year for PhD applications.  Whether it’s your first time through the process or your second, if you’re thinking of applying next year, start your college search early and consider sending out extra applications, especially if you’re hoping for university funding.  Competition may be fierce, and if the schools you want to attend decide to admit fewer students, applying to more schools will boost your odds of being admitted and winning scholarships, fellowships, or assistantships.  If you’re seeking a degree that may or may not have funding attached, such as a master’s degree or professional degree, be sure to look into outside aid, such as scholarships for graduate students.

Posted: under Back to School, College News, College and the Economy, Graduate School, Tips.
Tags: college admissions, College and the Economy, college news, college tips, Graduate School, graduate students

Comments (0) Mar 31 2009

While April may be the cruelest month, March can be especially rough for students bound for college or graduate school.  Late March and early April are when admissions decisions and financial aid letters roll out for those not immediately accepted or rejected by their dream schools, and around now, things are getting pretty agonizing.  While a large part of March is consumed by waiting, even those who have already received good news may be consumed by the crushing dread of all the work to be done before September.  After all, if you get into a college or graduate school, you still have to figure out how to pay for it, what classes to take, what forms to complete, what to do with your life between now and then, and for many students, how to graduate on time, as well.  So, while you may still be waiting for a decision, there are things you can do in March to make April through August easier.

First, budget your time.  Figure out the things you’ll need to do, and make a plan to get them done.  While you can’t yet pick your classes or contact an unassigned roommate to figure out who is bringing the fridge or the TV, you can take care of other things.

If you haven’t done so yet, complete the FAFSA.  If you did a FAFSA with your 2007 tax information, do your 2008 taxes and submit a correction.  Check your student aid report to see if you were chosen for verification, a process roughly equivalent to an audit of your FAFSA that is conducted by your college.  Colleges receive a glut of verification forms towards the start of the school year, and a delay in completing it can result in a delay in financial aid.  If you’re not sure you’ve done everything you need to receive aid on time, contact the college to make sure.  It’s better to find out now than to find out on the first day of classes when you need to buy books and find that you can’t.

Keep searching for scholarships and submitting scholarship applications.  Deadlines are approaching rapidly, and available scholarships for the 2009-2010 academic year will only get more sparse as you approach the start of the fall semester.  This doesn’t just go for high schoolers–if you’re a soon-to-be graduate student with an acceptance letter in hand, but no assistantship or fellowship, don’t count on funding emerging later. This can and does happen, but many schools make these awards with their admission decisions.

If you’ve received your financial aid award letter at your college of choice and it’s come up drastically short, look into options for appealing it, especially if your financial circumstances have changed or if you’ve gotten a better offer from a different school.  You may also want to start shopping around for student loans. You might not be able to apply until summer (and you might not want to if you’re currently applying for scholarships), but knowing what’s out there now can help later.

If you take these steps now, then it will be easier to direct your spring and summer towards enjoying (or enduring) school, preparing to graduate, and figuring out your summer plans.  You’ll also be less rushed and less likely to forget to do important things, like signing up to register for classes or mailing in a deposit on time.

Posted: under FAFSA, Financial Aid, Graduate School, High School, Scholarships, Student Loans, Tips.
Tags: college admissions, college tips, FAFSA, Financial Aid, financial tips, graduate students, high school students, Scholarships

Comments (0) Mar 17 2009

This week’s Scholarship of the Week is one of many scholarship opportunities available to students engaged in community service activities that help make the world a better place.  Hunger remains a serious issue in America, especially in times of economic trouble, and the Sodexo Foundation is interested in rewarding students who are engaged in continuing efforts to make difference in this area.  Through the Sodexo Foundation STOP Hunger Scholarship, students have the opportunity to not only win $5,000 in scholarship money, but to also earn a $5,000 grant for the anti-hunger charity to which they’ve dedicated their time.

Prize:

Up to five national scholarship winners will receive a $5,000 college scholarship and a $5,000 grant given in their name to a local charity of their choice.  Regional winners will receive a $1,000 grant for a local charity of their choice.

Eligibility:

Students of any level, kindergarteners through graduate students, currently enrolled in accredited educational institution in the United States are encouraged to apply.  To qualify, applicants must have engaged in a volunteer program combating hunger in the United States in the last 12 months.

Posted: under Graduate School, High School, Scholarship of the Week, Scholarships.
Tags: community service scholarships, graduate student scholarships, graduate students, high school student scholarships, high school students, Scholarship of the Week, Scholarships, undergraduate scholarships

Comments (0) Jan 26 2009