Loan Referrals

Showing posts with label Parent Loan. Show all posts
Showing posts with label Parent Loan. Show all posts

4/26/2008

The parent’s role on the students’quest for federal assistance - Part 2

Even though many scholars and other behavioral investigators have “skillfully” determined that this is not a factor, common sense tells us otherwise, so much so, that countries that have strong family structures see the less amount of criminal behavior amongst their young.

When the children are born and until they reach mental and physical maturity, it is the responsibility of the parents to provide them with structure and stability enough for them to form and make their own perception of the importance of family. It most likely will not matter what type of family as long as the moral, ethical and social guidelines are respected. Gay couples must abide just the same as heterosexual ones to the same moral, ethical and social guidelines. However, this is subject of a different discussion.

Parents need to prepare for their child’s need to advance his or her studies. Being caught without any preparation does not mean that is the end of the world but it can make it harder.

• Prepare in advance

It might sound trivial and over used, but setting aside at least a small part of the paycheck to prepare for higher education costs is definitely a good idea. Do not leave your children’s opportunity of a better future in the hands of fortune, whether or not they might qualify for a student loan or federal education assistance.

Tradition says that the best way to go is to put the money on a savings account. This is not such a good idea, though it is far better than having nothing at all. And ideal scenario is to set aside the money and then invest it. There are different investments available and each investing executive can provide sufficient information for even the nonprofessionals to understand and be able to handle their own investments.

However, there are some points to be considered:

o To a longer period, the sum of money stays invested, the bigger that the gains will be.

Most banking and investing institutions provide several investing terms: 28 days, 6 months, 1 year, 5 years and so on. When a person invests in a banking institution, the bank makes the commitment to maintain the interest rate for the investment within a interest rate range, in this manner, if the market crashed or inflation increases, the investor will loose as little as possible of his or her economical capacity on the sum that was invested.

Investments can be on a banking institution or on a investing institution that specializes on the investing of private money. Additionally, parents can invest on real estate.

o Investment on banking institutions

11/20/2007

Not too late for spring semester

Last month we launched our "Ask the Expert" tool — and since then, your questions have been steadily rolling in. At first I was surprised by the number of inquiries we received this way. I thought the Student LoanDown community would use the comments section to ask questions — but I guess you take that section literally and use it for actual comments, not questions!

Nonetheless, I'm glad you're finding "Ask the Expert" useful. It's certainly useful for us bloggers because we learn exactly what kind of information you'd like more of — and then we can share it with the rest of our community.

So here's a question we received from a concerned parent about financial aid timing (certainly appropriate as spring semester is just a few months away):

My daughter is a freshman. We did not take out any loans for the first, fall, semester, but would like to take out one for the spring semester. Is it possible to get a Stafford or Perkins loan for the spring semester, or have we missed this cycle and have to wait for the fall of 2008?

And here's my response:

No, you haven't missed the cycle. (Whew!) If you haven't already completed the FAFSA Click here to learn about third-party website links (Free Application for Federal Student Aid), that's your first step. The 2007 FAFSA covers the 2007-2008 academic year through June 30, 2008, and will determine your daughter's eligibility for financial aid.

I'd suggest that you check with the financial aid office at your daughter's school. Low-interest Federal Perkins Loans Click here to learn about third-party website links are based on financial need and are awarded on a first-come, first-served basis, so those may not be available. But low-interest Federal Stafford Loans have both need-based and non-need-based components (subsidized and unsubsidized loans), and as long as your daughter is attending an eligible school at least half-time, this should still be an option for her.

One last thing: As a parent, if you're interested in borrowing to help your daughter pay for school, check out the Federal PLUS Loan for parents. It's also not based on financial need but does require a minimal credit check.

Warning on Tuition, Shift on Accreditation

If the Higher Education Act bill that House Democrats introduced late last week did not persuade college leaders that the issue of college prices is and will remain front and center on the federal policy agenda, the House education committee’s consideration of the legislation Wednesday should once and for all.

Lawmakers on the Education and Labor Committee did not complete their work on the measure (H.R. 4137) Wednesday, though they did pass several amendments and reject or withdraw numerous others (detailed below). But their hours of mostly bipartisan discussion about the legislation included warnings from members of both political parties that colleges will face continuing scrutiny of their spending and tuition prices and could face more federal intrusion into their operations — beyond the creation of federal “watch lists” that the bill in question would create — if they don’t get the problem under control.

Rep. Michael Castle (R-Del.) proposed an amendment that would have required colleges that appear on the “watch lists” to put in place procedures to cut their costs and slash their federal student aid funds by 10 percent a year if they do not meet certain benchmarks. Castle said he believed the committee’s bill would do “very good things” on the cost issue, but suggested that “more may need to be done.”

Castle ultimately withdrew his amendment, as aides said he had been planning to do all along. But the committee’s chairman, Rep. George Miller (D-Calif.), said he found Castle’s amendment to be “very tempting,” and acknowledged the Republican lawmaker’s point that “we haven’t done everything potentially available” to Congress to crack down on rising college costs.

Miller then issued a warning directly to college officials: “I hope the [higher education] community is listening closely on this,” he said, adding that the committee’s work on this bill “is not the end of the story.”

The issue of college prices and the need for colleges to rein them was raised on and off throughout the hours of debate, offering a rare bit of cohesion to a discussion that was, like the sprawling 747-page bill under consideration, all over the place. (An accounting of what was contained in the original bill can be found here.)

Perhaps the most significant development, which occurred late Wednesday evening after the hearing room had partially cleared out, involved the contentious topic of how student learning outcomes should be assessed in the accreditation process. The bill proposed by committee Democrats last week would give colleges and universities themselves the authority to define how to measure “success with respect to student achievement in relation to the institution’s mission.” That is in contrast to the Education Department’s push during last winter’s negotiated rule making session on accreditation to put that authority much more in the hands of the accrediting agencies. The original language in the House bill largely mirrored that in the Higher Education Act bill passed by the Senate this summer.

Wednesday evening, Rep. Robert Andrews (D-N.J.) — acting at the urging of regional and national accreditors, who reportedly felt that the bill’s language threatened to undermine their authority — introduced an amendment to strip the language that empowered each college to define student learning for itself. (Language in the Higher Education Act as it stands now is noncommittal about who has that authority.) With virtually no discussion, and a promise to bring forward replacement language in the coming days, Miller and the committee’s other leaders adopted Andrews’s amendment without dissent.

College leaders, who had fought the Education Department’s push, said they were blindsided by the Andrews amendment. They were furious, saying the shift would open the door to federal officials renewing their effort to compel to force colleges to measure and report more quantitative data about their success in educating students. The turnabout revealed anew a rift between accreditors and college leaders that surfaced during the accreditation negotiations.

“I’m shocked at the stupidity of the accreditors in opening up an issue that had been settled in a positive way,” said Becky Timmons, assistant vice president for government relations at the American Council on Education. Matt Owens, assistant director of federal relations at the Association of American Universities, said the change — should it stand — could be a deal breaker. “Removal of the provision seriously jeopardizes our ability to support the bill,” Owens said.

The panel considered several other amendments related to accreditation as well. It adopted one amendment that would require accrediting agencies to “respect” the missions of religiously affiliated institutions, which several civil rights groups opposed because they said it would make it easier for such institutions to discriminate on the basis of race or sexual orientation. It also embraced a proposal, offered by Rep. Pete Hoekstra (R-Mich.), that would allow the minority party in Congress to appoint some of the new members of the National Advisory Committee on Institutional Quality and Integrity, the panel that reviews accreditors and that the Higher Education Act renewal bill would reconfigure. (Currently the education secretary appoints all 15 members; the original House bill would give the Senate, the House and the Education Department five appointees each, while Hoekstra’s measure would give the Senate and House six each, with three appointed by each party.)

Rep. Thomas Petri (R-Wisc.) withdrew an amendment that would have allowed colleges, once they had been accredited by a federally recognized agency, to opt out of the re-accreditation process by submitting a slew of information about its performance and fiscal and other health to the federal government. (The Petri amendment was strikingly similar to proposals that have been made by the American Council of Trustees and Alumni, whose president, Anne D. Neal, happens to be married to the Congressman and a member of the Education Department’s accreditation advisory committee.) Another withdrawn amendment related to accreditation would have ended a requirement that accrediting agencies get approval from the U.S. Education Department when they seek to begin reviewing distance learning institutions.

In other areas, the House panel adopted amendments that would:

* Bar the Education Department from developing or implementing a federal “unit records” database, which would track information about students from elementary and secondary school through their entry into the work force. Many states have such systems, but private colleges (and many Republican lawmakers) have opposed the development of a national system, mostly on privacy grounds.
* Create a new assistant secretary position in the U.S. Education Department to oversee international education.
* Ease in several ways the requirements of a federal law that forces for-profit colleges to garner at least 10 percent of their revenues from sources other than the federal student aid programs. One change would allow the institutions to count institutional scholarships, or tuition discounts, in the 10 percent total; another would soften the potential penalties violators can face.
* Change how the Education Department calculates the “cohort” default rate for student loans.

Numerous other amendments were rejected or withdrawn by their authors. Some of those amendments would have:

* Required colleges that participate in the federal direct student loan program to process loans for students through banks or other lenders in the guaranteed loan program.
* Expressed the sense of Congress that students should not have their free speech rights infringed by faculty members or fellow students — a watered-down version, essentially, of David Horowitz’s Academic Bill of Rights.

The House panel will reconvene this morning to vote on a handful of amendments and approval of the overall bill.

— Doug Lederman
The original story and user comments can be viewed online at http://insidehighered.com/news/2007/11/15/hea.

11/14/2007

Lawmakers introduce Higher Education Act reauthorization bill

According to NCHelp.org, House Education and Labor Chairman George Miller (D-CA) and Representative Rubén Hinojosa (D-TX) introduced H.R. 4137 which is a five-year reauthorization bill for the Higher Education Act (HEA). The bill contains many provisions, including:

* Expand college access for low-income and minority students by increasing the maximum Pell Grant award to $9,000, allowing students to receive year-round Pell Grant scholarships, and strengthening college readiness and early awareness programs.
* Increase college aid and support programs for veterans and military families.
* Streamline the federal student financial aid application to make it easier for all eligible students to access financial aid.
o Create two-page EZ FAFSA form for students who qualify for simplified needs and auto-zero-EFC;
o Reduce the number of data elements on the FAFSA by a half;
o Require Education Department to work with the IRS to get income information for the FAFSA in order to simplify process.
* Require greatly increased reporting on how colleges spend their money and create “Higher Education Price Increase Watch Lists” of institutions that increase their tuitions above the average for their peer institutions.
* Make textbook costs more manageable for students.
* Give the Department of Education increased authority to regulate private student loans, increase loan disclosure requirements and increase requirements for lenders and institutions participating in preferred lender arrangements.
o Require schools using preferred lender lists to inform students and parents why they choose each lender on the list and their right to choose lenders no included on the list
o Federal student loan preferred lender lists would need to consist of three unaffiliated lenders and private lender lists would need to consist of two unaffiliated lenders.
* Require lenders, secondary markets, holders or guaranty agencies to provide free of charge and in a timely and effective manner, any student loan information pertaining to federal loans by an institution of higher education for a borrower who had previously attended the institution or by any third-party servicer working on behalf of that institution to prevent student loan defaults
* Call for a study of the feasibility of developing a National Electronic Student Loan Marketplace for federal and private loans.
* Increase Perkins Loan limits from $4,000 to $5,000 for undergraduates and $6,000 to $8,000 for graduate students.
* Provide public service loan forgiveness for service in areas of national need including: early childhood educators; nurses; foreign language specialists; librarians; child welfare workers; and speech-language pathologists.

Please visit NCHelp.org’s PDF file about this to get more details.

11/12/2007

Student loan crackdown bill offered in U.S. House

WASHINGTON, Nov 9 (Reuters) - A bill aimed at cleaning up misconduct in the U.S. student loan industry and encouraging colleges to restrain tuition inflation was introduced in the House of Representatives on Friday.

The legislation comes after a scandal earlier this year that revealed kickbacks and conflicts of interest among lenders and some colleges, embarrassing the $85 billion industry and drawing more attention to rising college costs.

"Today's students face far too many obstacles when trying to go to college: skyrocketing college prices; an absurdly confusing financial aid application; and a student loan industry overrun with conflicts of interest," said Rep. George Miller, chairman of the House Education and Labor Committee.

The bill from Miller, a California Democrat, would require colleges and lenders to adopt loan codes of conduct; give students more loan information; curtail aggressive loan marketing; and force colleges to report reasons for increasing tuition and plans for lowering costs.

In addition, it would shorten and simplify the long and confusing standard application form students must complete when applying for financial aid.

Legislation raising student grant funding and slashing government subsidies to lenders -- such as Sallie Mae (SLM.N: Quote, Profile , Research), Bank of America Corp (BAC.N: Quote, Profile , Research), JPMorgan Chase & Co (JPM.N: Quote, Profile , Research) and many others -- was enacted earlier this year. (Reporting by Kevin Drawbaugh, editing by Mark Porter)

11/11/2007

6 years on, gov’t finally agrees to a Loan Discharge Application for Spouses and Parents of 9/11 Victims

Today, the Department of Education released a Dear Colleague letter regarding “Approval of Loan Discharge Application for Spouses and Parents of September 11, 2001 Victims”

The summary is:
This letter announces the approval of a new loan discharge application for use by borrowers in the Federal Family Education Loan (FFEL), William D. Ford Federal Direct Loan (Direct Loan), and Federal Perkins Loan (Perkins Loan) programs who are the spouses or parents of eligible public servants or other eligible victims of the September 11, 2001 terrorist attacks.

The whole letter is here:

Publication Date: November 9, 2007

DCL ID: GEN-07-08
FP-07-10
CB-07-15

Subject: Approval of Loan Discharge Application for Spouses and Parents of September 11, 2001 Victims

Summary: This letter announces the approval of a new loan discharge application for use by borrowers in the Federal Family Education Loan (FFEL), William D. Ford Federal Direct Loan (Direct Loan), and Federal Perkins Loan (Perkins Loan) programs who are the spouses or parents of eligible public servants or other eligible victims of the September 11, 2001 terrorist attacks.

Posted on 11-09-2007

Dear Colleague:

As we previously announced in DCL GEN-06-21, the Third Higher Education Extension Act of 2006 (the THEEA), Public Law 109-292, authorized the discharge of the outstanding balance of certain FFEL, Direct Loan, and Perkins Loan program loans made to the spouses or parents of eligible public servants and other eligible victims of the September 11, 2001 terrorist attacks. Interim final regulations implementing this new loan discharge provision were published in the Federal Register on December 28, 2006 (71 FR 78075). Final regulations were published on September 28, 2007 (72 FR 55049).

The loan discharge benefit created by the THEEA is available only for FFEL, Direct Loan, and Perkins Loan program loans on which amounts were owed on September 11, 2001, and on which amounts are still owed on the date the discharge is requested. The THEEA does not authorize the refunding of any payments that a borrower made on a loan prior to the loan discharge date.

The Office of Management and Budget (OMB) has approved a new loan discharge application under OMB No. 1845-0079 (Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims) to be used by eligible FFEL, Direct Loan, and Perkins Loan borrowers to apply for the new loan discharge.

Implementation of the New Loan Discharge Application

The attached Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims may be made available to borrowers for immediate use. FFEL Program participants and Perkins Loan schools must make the new loan discharge application available to borrowers no later than January 31, 2008. Requests for the new loan discharge made by borrowers using other means that were in place before January 31, 2008 may continue to be processed after that date.

Printing Instructions and Imaging Technology

The attached form must be printed with black ink on white paper. The typeface, point size, and general presentation of the form may not be changed from the OMB-approved form. No changes to, deletions from, or additions to the approved language on the form are allowed, except that the order of the loan program names that appear throughout the form (Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Federal Perkins Loan Program) may be changed depending on the program for which the form is being used. The blank spaces at the top, bottom, or sides of the form may be used for bar coding.

To accommodate imaging technology, the instructions tell the borrower to complete and sign the form in ink. However, a pencil signature does not invalidate the form.

Obtaining Copies for Reproduction

The Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims is available in PDF and Microsoft Word format as attachments to this letter. In addition, the form is also available on the National Council of Higher Education Loan Programs (NCHELP) web site at www.nchelp.org.

Sincerely,

Jeff Baker, Director
Policy Liaison and Implementation
Federal Student Aid

Attachments/Enclosures:

GEN-07-08: Loan Discharge Application in Microsoft Word, 216KB, 4 pages

GEN-07-08: Loan Discharge Application in PDF Format, 87KB, 4 pages

11/08/2007

Need FAFSA Completed Fast

This morning, I chatted with a young woman who needed to have her FAFSA completed ASAP. She was told by financial aid that she could qualify for Stafford loan but needs this once piece of the puzzle completed in order for her to obtain any sort of financial aid. She called me because she needed advice on how to get the FAFSA completed ASAP. I explained to her that I felt the most efficient way is to complete the FAFSA online at www.fafsaonline.com. I know it’s scary stuff filling out such a lengthy document completely online. But I promise everyone, the Internet is our friend! Do the FAFSA online! Reason why is because the Government needs the FAFSA filled out just right. When you file online, the system will catch a lot of mistakes and send you back to fix them.Your on your own if you fill it out online. If you do certain things incorrectly, you’ll receive a bunch of paperwork that basically means denied!

Also, keep in mind that you have to update this paperwork every year you are in school. When you do it online, all of your forms will be saved from year to year so it can be completed pretty easily.

Trust me folks do it online! Soon enough the paper form will be extinct.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

11/07/2007

Interested in Public Service? You might get a discount on your loans

The Kansas City Star has a good analysis of the provisions buried within the new College Cost Reduction Act. Read the excerpts below:

Students interested in public service jobs can get loan incentives

By STEVE ROSEN

The new federal law that revamps college education financing contains two hidden gems for students interested in civic-minded jobs.

Buried deep in the College Cost Reduction and Access Act — signed by President Bush in September — are incentives that essentially forgive thousands of dollars in federal student loan debt for graduates entering teaching, social work, public health, public interest law and other eligible public service areas.

Here are details:

Sweet forgiveness

Students with an altruistic bent have an added incentive to pursue their passion.

Under the new Public Service Loan Forgiveness Program, borrowers who work for at least 10 years in a qualified job will be eligible to have their remaining loan balance forgiven. In other words, the balance of a student loan — meaning principal and interest — is forgiven after 120 monthly payments, or 10 years. The borrower must be current on payments.

Only students who borrow from the federal government directly qualify for this deal. Students who borrow from banks and other lenders can become eligible by consolidating their loans through the federal Direct Loan program.

According to Department of Education, eligible jobs include “full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education, social work, public interest law services, child care, and public library sciences.”

Teaching incentive

The federal legislation also provides a spark for students who dream of teaching.

Students in education and teacher preparation programs who commit to teaching for at least four years after graduation can apply for annual grants of $4,000 to defray college costs. According to the regulations, grant money generally must be used for tuition and fees and may not exceed $16,000 for undergraduates or $8,000 for graduates.

The following fields are eligible for the grants: math, science, foreign language, bilingual education, special education and reading specialists. The Education Department said other “high need” positions may later be covered.

There’s one catch: If a student ultimately decides not to teach, the grants must be repaid.

PA’s student loan company in trouble for give-aways

This one actually made me chuckle. Read the excerpt below from PennLive.com:

HARRISBURG, Pa. (AP) — Pennsylvania’s student loan agency spent about $2.2 million over five years on promotional giveaways, such as logo-enscribed golf balls, pencils, clothing and reusable glowing ice cubes, a newspaper reported.

The Patriot-News of Harrisburg reported Sunday that in the five years ending June 30, the Pennsylvania Higher Education Assistance Agency purchased, among other items, 150 brass clocks at $22 each, $30 L.L. Bean jackets, 3,000 peppermint candies with its logo on the wrapper and $3,400 worth of gummy brains candy.

“Gummy brains? The officials at PHEAA must have gummy brains if they were willing to waste scholarship money on these types of wasteful expenditures,” said Rep. Josh Shapiro.

Graduate from Colby College debt-free

The Kennebec Journal is reporting on a new program at Colby College for in-state students that will help many of them graduate from school debt-free. They’ll accomplich this by replacing loans in their financial aid packages with grants

This is great news for anyone living in Maine who wants to go to Colby!

7/20/2007

salliemae Finding a loan - Loans for parents

Loans for parents

If you need money to pay for your child's college tuition, Sallie Mae has a variety of student loans for parents to help their children achieve their college dreams.

Sending a child to college can be one of the biggest expenses your family incurs. Whether you will be assuming a portion of or the entire responsibility for financing your child's education, Sallie Mae wants you to have the information you need at your fingertips.

  • Understanding student loan types
  • Comparing student loan options
  • Federal Parent PLUS loans
  • Private student loans
  • Consolidation loans
Is your child studying outside the U.S. and Canada?

Turn the world into a classroom with a Sallie Mae International loan.

7/18/2007

salliemae K-12 Family Education Loan

K-12 Family Education Loan

Looking for a way to pay for private school? The K-12 Family Education Loan is available to parents or other creditworthy family members of children attending private K-12 schools.The application process is easy and provides fast decisions and superior customer service.

You can use our K-12 Family Education Loan to pay for private elementary, middle, or high school, including prep school, military school, Catholic school, Montessori school, boarding school, and more.

Eligibility

  • You must be a U.S. citizen or permanent resident and have an established credit history.
  • The institution your child is attending must be licensed or accredited by the department of education in the states in which they operate, if required by that state, or must be accredited by a recognized national education association.

Features

  • The K-12 Family Education Loan can be used to fund past tuition balances.
  • You may borrow for both tuition and other education-related expenses such as books, computers, and fees.
  • The K-12 Family Education Loan has interest rates and fees that reward good credit.
  • You can manage your account online 24/7.
  • Apply with a cosigner and increase your chances of approval.
  • Easy application process … have a copy of your tuition bill handy!
  • Flexible repayment terms of up to 20 years are available.
  • Borrow as little as $1,000 or up to the total cost of your child's education.
  • You get life-of-loan servicing from Sallie Mae.
  • You get the convenience of combined billing for all of your Sallie Mae-serviced loans.
  • There is no prepayment penalty.

Loan terms

Loan limit

Flexible aggregate loan limits depending upon your situation.

Interest rate

The K-12 Family Education Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

Loan fees are 0%–5%.

Repayment

You can take up to 20 years to repay the loan.

Another way to help pay down your loan

With Upromise Loan LinkSM student and parent borrowers who join Upromise® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans. Visit www.salliemae.com/upromise to learn more and enroll today.

Legal

  • K-12 Family Education Loan is a service mark of SLM Financial Corporation.
  • K-12 Family Education Loans are made by state or federally chartered financial institutions and are sold after full disbursement to a Sallie Mae company.
  • The school and its financial aid office act on their own behalf and do not represent you or Sallie Mae. You should always contact Sallie Mae directly if you have questions about the terms under which K-12 Family Education Loans are made.
  • The K-12 Family Education Loan is a private, credit-based loan and is not federally sponsored or guaranteed.
  • Repayment begins at least 30 days, but no more than 60 days, after disbursement.
  • The APR will increase if the Prime Rate increases.
  • Minimum monthly payment is $30.
  • Up to 60% of the tuition amount may be financed for other expenses, not to exceed $6,000. Terms may vary by school.