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FAP831: Need based financial aid, Free Stuff Thursday

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Student Financial Aid News
+ Inside Higher Ed: A shift back to need-based aid isn’t hurting at least two colleges. In the last few years, some colleges have pulled back from the policies everyone else says they’d like to pull back from. Notably the sky hasn’t fallen (and neither have their admissions numbers). Consider the cases of Hamilton College, which completely eliminated merit aid to spend more on need-based aid, and of Tufts University, which imposed a limit on its use of early decision. Both colleges are competitive in admissions, with excellent academic reputations – but neither has even close to the endowment or admissions clout of Harvard or the other institutions at the top of the admissions pecking order.
+ IHE: Many University of Chicago graduate students will need to find new loans — quite likely under terms less favorable than they are used to receiving. The Chicago Tribune reported that the university has had to end its use of the “school as lender” program for graduate students because of the inability of the Illinois Student Assistance Commission to renew its line of credit. Chicago officials believe that the graduate students who have used the program will be able to find loans elsewhere, but will likely not find some key benefits of the old program, such as the lack of origination fees and a reduction in interest rates after four years of on-time repayment.
+ In some ways, what people were talking about legislating last year, the market has corrected this year
+ Prudence and caution are back in style
+ Had an interesting case yesterday when the computers would have said yes, I said no - and with good reason

Scholarship Update
+ Scholarship Idol SLN Scholarship
+ A Scholarship Points Contest
+ Watch the embarrassingly poor quality YouTube video

Free Stuff Thursday
+ Free cotton shopping bag
+ Free Snuggle fabric softener
+ Rhapsody free album with signup
+ Astroglide… uh, yeah.
+ Swurl is pointless fun
+ Make your Mac sing in Terminal
+ Joys of Summer Gift Pack - 50 ziploc bags
+ Free pretzel from Auntie Anne’s
+ Get lost a lot? Free Atlas
+ Sell Back Books - they pay you, including shipping

Free Song of the Week
+ David Usher, Kill the Lights
+ See the YouTube video

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Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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I told them no.

They wanted to borrow over $50,000 for a photography certificate program from a reasonably prestigious college here in New England. Not a bachelor’s degree. Not even an associate’s degree. Just a certificate.

After a heartfelt conversation, I suggested finding a less expensive school and finding an apprenticeship with a master photographer to learn the inside trade of photography from a master, rather than from an overpriced certificate program. Photography is one of those professions where it doesn’t matter what your academic credentials are as long as you can take damn good photos.

Over the lifetime of the loan, they’d end up paying close to $120,000 in principal and interest for the certificate; upon graduation from the photography program, they’d immediately owe about $500 a month for the next 20 years - if interest rates remained relatively low.

Ultimately, approving our private student loan would probably have been disastrous for the borrower. Chances are, with just a photography certificate, they’d probably default on the loan down the road, and of course, except under exceptional circumstances, you can’t discharge student loans in bankruptcy, so it’s a debt they’d be saddled with for a long time.

This is where the system breaks down. Had they applied for the loan online, the computers would have done the math and probably calculated that with their current FICO score and financial background that the loan was okay and would have issued it.

The computers are wrong.

Yes, the surface details appear okay, but the loan has long term consequences that a credit approval algorithm can’t predict, and my listener would have put themselves in a terrible financial position, thinking everything would be all right because they were approved.

While I’m sorry that this cost the Student Loan Network some money in the short term, I know that it’s absolutely the right choice for the borrower and their family. Profitability is vitally important to my business, but so is not screwing over my friends for a buck.

This is also why it’s so important to have a good relationship with your financial aid administrator. The people who work in your school’s financial aid office can foresee things that the computers simply can’t. Ignore the sensationalism in the press about financial aid officers and go talk to yours if you need to borrow for school.

If you’re considering taking out a lot of money for school, stop and ask someone first. Ask your financial aid administrator, ask a trustworthy lender, but ask a human being, because once you sign on the dotted line, there’s no going back.

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Expert Interview
+ Today we discuss credit unions, personal finance, and living within your means with Larry Wilson, CEO of Coastal Federal Credit Union in North Carolina.

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
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Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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Student Financial Aid News
+ Chronicle: College students are increasingly downloading illegal copies of textbooks online, employing the same file-trading technologies used to steal music and movies. Feeling threatened, book publishers are stepping up efforts to stop the online piracy.
+ One Web site, called Textbook Torrents, promises more than 5,000 textbooks for download in PDF format, complete with the original textbook layout and full-color illustrations. Users must simply set up a free account and download a free software program that uses a popular peer-to-peer system called BitTorrent. Other textbook-download sites are even easier to use, offering digital books at the click of a mouse.
+ Inside Higher Ed: President Bush signed a supplemental war spending bill Monday that includes a dramatic expansion of GI Bill benefits for veterans who have served on active duty since September 11, 2001. The new GI Bill, championed by Sen. Jim Webb (D-Va.) would provide up to the cost of in-state tuition at the most expensive public college in a veteran’s state, a monthly housing stipend based on a college’s location, and an extra $1,000 annually for books. Currently, GI Bill benefits are worth just $1,101 monthly, and many are wonder how the infusion of new funds for veterans might impact where they choose to attend college. The GI Bill expansion is estimated to cost $62 billion over 10 years.
+ Be sure to check in with the Veterans Administration to learn how to take advantage of your new benefits

Scholarship Update
+ If you could send a message on a science, technology, or health issue to the next U.S. president and Congress, what would it be?
+ Voice your vision for science and society to win cash and other prizes!
GRAND PRIZE: $2,000
+ Energy security. Nuclear weapons. Genetic engineering. Climate change. Stem cells. Space militarization.
+ Science and technology issues have enormous implications for society at large. The next U.S. president, Congress, and local leaders will confront topics that matter to young people, such as climate change, affordable health care, nuclear weapons buildup, and U.S. economic competitiveness in science and engineering.
+ Here’s how to deliver your message:
+ YouTube Video/Flash Video 5-minute limit or
+ Digital Audio/Podcast 5-minute limit or
+ Written Essay/Editorial 750-word limit
+ Prizes:
+ Grand Pug-Prize: $2,000
+ Second Pug-Prize: $1,000
+ Third Pug-Prize: $500
+ Best Video Pug-Prize: $100+
+ Pug Perks! Contestants who submitted their entries before June 3 will receive a free t-shirt, Frisbee, or mug just for participating. We regret to inform you that as June 2, Pug Perks have run out. Enter the contest today for your chance at the cash prizes listed above!
+ DEADLINE: July 15, 2008
+ Details at our free college scholarship search site

Mail Bag
+ Brittney writes in: What if a student’s marital status changes during a school year they have already been awarded money for? Do they just need to wait and change it the next time they file their FAFSA? Or do they need to notify FAFSA in some way?
+ Brittney - if the money’s been awarded, then you just file differently the following year.
+ Linda writes in: What if you were in a foster home and was adopted by the forster parent who received money from the state for you. Are you considered independent?
+ Linda - if you’ve been adopted, then you’re no longer a ward of the state and are now a dependent student.
+ David writes in: I’m David, greencard holder, 22, both of my parents passed away years ago, living alone with a partner and a child that’s hers. I filled out my FAFSA already as independent, claiming my partner as a dependent, receiving more than half of her support from me. In my taxes I had no dependents since she has no SS#. I’m getting more money for school by claiming myself as independent?
+ David - if the child in the house is deriving its support from you, and you claimed the child as a dependent on your taxes, then you would be an independent. Your partner would need to be your spouse to make the claim for her.
+ See this blog post on who is a dependent vs. independent student
+ M Reyes writes in: I’m confused as of what to borrow : parent plus loan or Alternate student loan. I understand that there is not deferrement on Parent plus loan. Is it true? I will appreciate much if could answer. thank you.
+ There is deferment on PLUS loans, but there are other key differences
+ See lots of student loan options at StudentLoanNetwork.com

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
+
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Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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Bad, Overzealous Banks and Lenders

One thing that has plagued people is bad companies who are letting you borrow money. There are banks and lenders out there who will help you secure loans, but they will be bad loans. These people will give you false information on the amount that you can handle, and they will make it seem like you can get a certain loan and truly afford it. They will also tell you that you will have no problem affording a house. Their thought process is that they are helping you now, and you can just sort the rest out later on your own. They do not view it as their problem once it has left their desk. Now, not all banks are like this, but you have to watch out for the ones who are. Some lenders may even skim some money right off the top of every mortgage. This is something that is illegal for them to do. Make sure that you are not aligning yourself with an overzealous bank or lender.

Bad Borrowers

Do not just believe that banks and lenders are the only people who are to blame in this process. Some of the blame falls on the borrowers as well. Some borrowers were so excited about the possibility of getting some money to use on a home that they rushed into a situation that had a negative result. They did not look at the terms and they did not take the time to figure out whether or not this was something that they could actually handle. They just took the money and ran, hoping that everything would turn out correctly. They should not have been shocked that they got scammed because they really did not manage their money or see how they would be affected. This is why whenever you enter into a situation like borrowing money you need to see how this will positively and negatively affect you. In the end you need to do what is right for you. The only way you can know what is right is by taking your time and not rushing into anything without paying attention.

Additional Resources:

• Bush: Higher Oil Prices Endanger Economy
• Danger Signs in Economy

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Student Financial Aid News
+ Chronicle: Here’s a frightening thought for every college administrator planning for a big disaster: What if the sort of extreme weather that has left the University of Iowa inundated in floodwaters is not a freak event? What if it is a sign of things to come?
+ In June the U.S Climate Change Science Program, which is sponsored by 13 government agencies, released a report saying that extreme weather like heat waves, heavy downpours, and superpowered hurricanes would be more common in the future. The timing of the report — coming just as officials in Iowa were surveying the damage from the swollen Iowa River — could not have been better. The news media jumped all over it, saying that the world could expect “Iowa-like floods,” as Bloomberg put it.
+ Prepare for disaster - put important documents in a zip-top plastic bag
+ Chronicle: Tuition has become a populist cause in Washington. And underneath that big tent is a collection of issues that appeal to various political persuasions. Conservatives delight in going after the tax-exempt status of the ivory tower, while even liberal-leaning professors get steamed about the money universities spend on sports and presidents’ salaries. And almost everyone can find a reason to be upset about Harvard University’s $35-billion endowment.

Scholarship Update
+ Coach Design a Tote Scholarship
+ Coach is searching for one truly inspired and unique design to adorn their classic chic tote. Start from scratch, one of your favorite sketches, or incorporate some of Coach’s iconic design elements. Just download the provided silhouette, create and submit a graphic, and enter to win a $2,500 shopping spree and party in your hometown Coach store — plus have your design created into a special limited edition item and sold in select locations! This is your opportunity to put your artful stamp on the perfect Coach tote!
+ Grand Prize: One winner, selected by Coach experts from all entries, will have his or her Coach tote manufactured as a special limited edition item to be sold in select Coach stores and/or online at Coach.com. Plus, a celebratory event for the winner will be held at a local, full-price Coach store along with a $2,500 shopping spree, and a $500 scholarship or cash! If the winner is not within a 50-mile radius of a full-price, retail store location they will receive a $2,500 online shopping spree and a $500 scholarship or cash plus Coach “swag bags” for the winner and 4 friends to have their own Coach style party!
+ Most Viral: One winner, selected by Coach experts from the top 100 most viral entries, will win a $1,500 Coach online shopping spree and a $250 scholarship or cash. Learn about Most Viral.
+ High Score: One winner, selected by Coach experts from the top 100 highest scoring entries, will win a $1,500 Coach online shopping spree and a $250 scholarship or cash.
+ Deadline August 4
+ Details at our free college scholarship search site

Financial Aid 101
+ 10 pieces of data that largely influence how much financial aid you’ll receive
+ Based on the EFC
+ These are all part of the FAFSA form
+ Get FAFSA help at FAFSAonline.com
+ When you look at this, you can get an idea of what things you have influence over and what things you don’t
+ Age of older parent
+ How many people live in your household
+ Parents’ marital status
+ Parents’ non-retirement assets
+ Parents’ total income
+ Parents’ U.S. income tax paid
+ Parents’ untaxed income
+ Parents’ value of home equity
+ Student’s assets
+ Student’s total income

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
+
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+

Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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First, every college student and every college-bound student should get a copy. If you’re an admissions director, if you’re an English professor, if you’re a parent - get a copy of this book and give it to your kid(s). It’s terrific, well-written, with clear explanations of why certain forms of usage are appropriate and not appropriate. Call it the 21st century style guide for the busy student.

A couple of things I wish were better (maybe for the next edition?):

First, I wish the index was in the front of the book. While it defies convention, it would make the book instantly more usable. When someone goes to write a blog post, they can pop open the book and decide whether affect or effect is correct.

Second, the book doesn’t really do a good job of explaining WHY grammar is important, why it’s useful, and why good grammar will make you more effective in whatever you do. Here’s my take on it - perhaps it’ll make it into the second edition, too.

Grammar, and its subset syntax, are the rules of language. If you’ve ever studied a computer language like C++ or PHP, you already know that syntax and grammar require exceptional precision - one misplaced semi-colon, and you’re out of business. It’s a tribute to the human mind that even with terrible grammar and syntax, our languages don’t immediately break down.

That said, grammar and syntax matter even with humans because communicating clearly is no longer optional. Our world is evolving from the Industrial Age to the Information Age, and the bedrock of the Information Age is the ability to communicate clearly. If you have terrible grammar, your writing is at best difficult to read. If you have terrible grammar, you can often end up sticking your foot in your mouth over and over again, forcing you to lose productivity and energy. Grammar matters. Usage matters.

Two examples of how grammar matters: if you apply for a job with the Student Loan Network, and your cover letter & resume are littered with spelling and grammar errors, your resume goes straight in the trash. Bad grammar will have cost you a job at an outstanding company, because as an Information Age company, we value outstanding communication skills above most other skills.

Second example. Back in 1997, I was working at Sony Electronics in Park Ridge, New Jersey. One Thursday afternoon around 2 PM, the Vice President of Digital Imaging came out of his office, red-faced. He called the entire office to attention, shouting, “Tokyo has just sent us the advertising copy for the Mavica’s Stamina Battery!” Typically when the VP made such office-wide announcements, it meant everyone would have to scramble to implement the new marketing campaign.

Instead, he climbed on a nearby desk and read out loud the copy for Sony’s new lithium ion batteries.

“When you are at the climax of your shooting, you need STAMINA!”

The entire office burst into tears of laughter. We pretty much ended up canning work for the rest of the afternoon. The Vice President promptly had his administrative assistant email Sony Tokyo and told them to fire whoever wrote that ad slogan.

Usage of language matters - rolling out that campaign with that slogan could have cost Sony millions of dollars in lost revenue, not to mention the ire of conservative parents and media critics. That’s why you need Grammar Girl’s Quick and Dirty Tips for Better Writing.

Buy a copy of Grammar Girl’s Quick and Dirty Tips for Better Writing at Amazon today.

Disclosure: paid affiliate link earns the Financial Aid Podcast 5% of what you spend.

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FAP827: Student credit cards, coffee scholarship, Free stuff Friday

Listen now:

Student Financial Aid News
+ Chronicle: Attorney General Andrew M. Cuomo of New York hopes to have completed by this fall an investigation into the relationships between credit-card companies and college officials, according to Benjamin Lawsky, deputy counselor to Mr. Cuomo, who previously investigated questionable ties between student loan companies and financial-aid officials.
+ Mr. Lawsky testified at a hearing today of the House consumer-credit subcommittee in which members considered various ways to reduce students’ credit-card debt and misuse. Panelists, including Mr. Lawsky, sketched a scenario in which students are taken advantage of by predatory companies, who offer free gifts and withhold important information about payments and rates to students who apply for credit cards.
+ Check out our student credit card guide at StudentPlatinum.com
+ Inside Higher Ed: It’s that rare story involving a pig, a taser and a happy ending. For weeks now, Colby College officials and Maine authorities have been trying to capture a runaway pot-bellied pig that escaped from its owner, a student, at a picnic. The pig was roaming the campus and managed to elude capture with nets. Local press coverage has been extensive. This week, the pig was enjoying a snack of some French fries offered by an area resident who called the police. The Morning Sentinel reported that the person who shared the fries also called the police, who used a taser to stun the pig, leading to the pig’s capture and ending a month of freedom for the animal. While the pig will not be continuing on at Colby, it will stay in education, and has been adopted by a preschool.

Scholarship Update
+ Maxwell House Minority Scholarship
+ ELIGIBILITY: Applicants must be minority high school students or graduates from New York, Philadelphia, Detroit, Chicago, St. Louis, Baltimore, or Newark. Applicants must be willing to attend one of the black colleges participating in their local black college fairs.
+ AMOUNT: $3,000
+ Details at our free college scholarship search site

Free Stuff Friday
+ CL Desktop - visual Craiglist shopping tool - I’m checking out the free stuff in Boston category by photo - VERY useful!
+ WebKut - application to make a PDF of any web page - also very useful!
+ Fotobooth and iSpy - two other free apps
+ Free Prima J tank top at Wet Seal
+ Free pack of Stride gum
+ Updated info on the free credit reporting from Transunion
+ Google Finance adds NYSE quotes in real-time
+ Evernote has a Mac desktop application now
+ Boxee is a Tivo style interface with social stuff
+ Stupid fun: make a radiation shield from your cell phone out of a Red Bull can

Free Song of the Week
+ Geoff Smith, Bohemian Financial Rhapsody

Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
+
+
+

Direct MP3 file download: Click here to download the MP3

Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Student credit card information at StudentPlatinum.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.

I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.

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