Posts Tagged ‘loans’
Posted by admin on June 18th, 2009
The U.S. Department of Education said it awarded contracts to SLM Corp (SLM.N) and three other companies to service its $550 billion student loan portfolio, as the government prepares to shift much of the nation’s student lending into a direct loan program.
The government said it also awarded servicing business to Nelnet Inc (NNI.N), American Education Services/PHEAA and Great Lakes Education Loan Services Inc. It said the contracts run for five years, and can be extended for five more.
Eligibility for the servicing program became more important to student loan companies after President Barack Obama in February submitted a fiscal 2010 budget calling for the end of the Federal Family Education Loan Program by July 2010.
The president proposed to shift most of the nation’s $90 billion of student lending into a direct loan program, possibly saving taxpayers more than $4 billion a year.
Education Secretary Arne Duncan on Wednesday said the servicing contracts will help ensure that “all eligible students” will have access to federal student loans.
The department did not say how it plans initially to allocate the servicing business.
SLM, which better known as Sallie Mae, said it has the scale to add more than $100 billion of new volume under its servicing platform. Smaller rival Nelnet said it expects its participation to add to earnings, excluding start-up costs.
Posted by Jeff Davis on December 12th, 2008
Since I worked full-time and have a family, I really did not have the free time available that I would have liked to have had in order to pursue the various avenues regarding financing options for school. Therefore, for my financial aid options, I chose to go the route of student loans and to pay any out of pocket expenses that the student loans would not cover. This worked well for me but may not be the right fit for everyone. Overall, I think it really depends on each individual’s needs for financial aid and how that person wants to address them.
There are many ways to obtain financing for college and an online school is no different. Among these are: student loans, private loans, employer tuition assistance, and scholarships. From what I discovered, there are more financial aid options available than ever for students pursuing online programs. If you are unsure of how to get started with obtaining the correct information, then consider your university’s financial aid department. They will have plenty of information on the university’s financial aid policies.
However, one advantage that online schools have over more traditional schools is that they can save you money. If you attend college on a traditional campus, you will have more expenses involved than you originally anticipated. Think about it. You will have to pay for not only tuition, but also you may have housing, food, books, supplies, and gas for commuting. With an online school, these costs are greatly reduced because you are attending class from home. Therefore, your only costs should be tuition and books. You also have no commuting costs since you do not have to drive to class.
Overall, you need to understand all of your options when it comes to paying for college. I would recommend that you take the time to do some careful research and be sure to apply for everything you can including federal and state aid as well as private scholarships.
Posted by Jen Zeman on December 8th, 2008
When considering financing options for school, I compared loans from private financial institutions and the U.S. Department of Education. I decided on the Department of Education and completed a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov. I knew my husband and I made too much money to be eligible for grants, so I secured subsidized and unsubsidized loans. Loans through the Department of Education appealed to me more than a private financial institution loan because the Department of Education offered a better loan rate, better repayment options, and deferral of repayment until I graduated from school. The deferral option is great! Not immediately coming up with the additional funds to pay for school was one less thing to stress about.
The world of scholarships is vast and the amount of money available via scholarships is astronomical. The website www.scholarships.com indicates their database consists of over 2.7 million free scholarships and grants worth over $19 billion. The problem I found with scholarships is that it takes time, a lot of time, to search through them to find ones you are eligible to apply for. During the searches I did conduct, I wasn’t eligible for most of the scholarships offered. I simply didn’t have the time to continue, but if you do have the time, scholarships and grants can be extremely beneficial in reducing your total tuition bill. With enough persistence, you may even accumulate enough to pay all of your expenses! The financial aid office at the institution you will be attending can help you get started in the process. The financial aid office can help you apply for financial aid, advise you of funding available directly through the school, and assist you essentially through the entire process.
At the same time I was taking online classes, my husband and I were exploring financing for our two children’s college education. Both of us work full time in K-12 public education and wanted to pay at least half of the expenses for both children. My husband’s education was paid for by his father, and I was able to secure grants, loans and work study to pay for my four-year degree. My mother was a widow and I was able to tap into sources for low income students. Both of us obtained master’s degrees and paid for them ourselves, working full time and going to school at night.
We both thought our children would appreciate their education if they contributed towards their degree. We balanced this appreciation against having them pay for college entirely on their own, or perhaps graduating with a debt the size of a mortgage. The first FAFSA (Free Application for Federal Student Aid ) we filled out revealed that at our income level, we were “on our own.” We didn’t bother to fill out any more FAFSA forms.
As it turned out, my son spent four years in the Marines and is now able to attend college on the GI Bill. My daughter lived at home greatly decreasing her costs and we were able to fund her education using our savings and paying as she went. They are both seniors in college and soon the expenses will be over. My son wants to go to law school and estimates he will need $50,000 dollars to get this degree. He has asked us for help and points out that we did not have to contribute anything to his bachelor’s degree (siblings always keep score!) I’m mulling over how, so close to my own retirement I can appreciably help him.
I either paid cash for my online courses and took free courses paid for by a large urban school district. Many courses were underwritten by organizations who want to improve the education of inner-city children.
In the back of my mind, I would like to get an E-learning certificate from an online university based in Wisconsin. It would provide more knowledge to teach online. I can’t afford tuition if my son needs help with law school. Graduate tuition has skyrocketed in Wisconsin and is out of reach for me. Yet, my son’s dream of law school looms upon the horizon.
Posted by Jen Zeman on October 11th, 2008
Unless you have been living under a rock or in the remote regions of the Appalachians, you realize the United States is in a serious credit crisis. This crisis is affecting all markets, including higher education. If you are contemplating going back to school, you may be worried with the economy in its current state it doesn’t make much fiscal sense to attempt financing college. While it’s true that because of the credit crisis the cost of student loans, especially private loans (i.e. loans by such companies as Sally Mae or your local bank), are more expensive because of an increase in interest charged, college still remains a sound investment in your future. Federal loans are still reasonable and are always an option. According to www.education.yahoo.net, those who obtain a bachelor’s degree earn an average of 88 percent more a year than high school graduates! It is true that there are infinitely more opportunities for individuals with a college degree than just a high school diploma, so invest in yourself. If you are still uncertain if you can afford to back to school, I strongly encourage you to make an appointment with a financial aid counselor at your school of choice. They will be more than willing to explain the financial aid process and how educational loans can fit into your budget.
Posted by admin on September 15th, 2008
It was announced recently that 8 of the top student loan organizations would adopt a code of conduct when qualifying and funding college students for student loans.
Seven direct-to-student lenders, Nelnet Inc., Campus Door Inc., GMAC Bank, NextStudent Inc., Xanthus Financial Services Inc., EduCap Inc. and Graduate Loan Associates are donating an estimated $1.4mm to help educate students and their families on loan practices helping to eliminate the bait-and-switch tactics, higher-interest private loans and marketed products that appear to be federal loans.
The new code of conduct bans practices including:
* Using logos that make mailings appear to be from the federal government.
* Paying students to get their friends to take out loans.
* Offering prizes such as iPods and gift cards to induce students to take out loans with a particular lender.
* Advertising interest rates that are not available to a majority of borrowers.
We hope that these codes of conduct will be adopted across the board at all student loan providers and help college students and their parents understand and make good student loan decisions.
