248.Unstack the Odds--GO TO COLLEGE:STEP 11

Unstack the Odds: Help All Kids Access College—and Graduate!
by

Joe Rottenborn

Executive Director, Mahoning Valley College Access Program (MVCAP)

18. GO TO COLLEGE: STEP 11

11) Both student and parent undertake the online PIN application process, complete and submit, by priority deadlines for financial aid, the Free Application for Federal Student Aid (FAFSA) on the web (http://www.fafsa.ed.gov/).

73. To be considered for financial aid, including federal and state grants, you must file the Free Application for Federal Student Aid (FAFSA).

74. To start your Free Application for Federal Student Aid (FAFSA), student and parent apply for a PIN at http://www.pin.ed.gov/PINWebApp/pinindex.jsp

75. To see a Draft FAFSA for 2010-2011, click that link under FAFSA in the left margin of our MVCAP blog at http://mvcap.blogspot.com/

76. To see which documents students and parents will need to file the FAFSA, they can check out this link: http://www.fafsa.ed.gov/before003.htm

77. If your goal is to file a FAFSA by February 1 for priority consideration for financial aid, prepare your IRS Form 1040, 1040 EZ, or 1040 A now!

78. To view "The Five Minute FAFSA Video" for an introduction to completing that form, check out a link: http://www.finaid.org/fafsa/video.phtml

79. To search for a Federal School Code before filing your FAFSA online, check out this link: http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet

80. Start completing a 2011-2012 FAFSA on the Web Worksheet from your guidance office--or download one at http://www.fafsa.ed.gov/before012.htm

81. To learn more about financial aid, click this link to our blog: http://mvcap.blogspot.com/2009/11/1-confused-about-college-financial-aid.html

82. To begin understanding the concept of "financial need," click this link to our blog: http://mvcap.blogspot.com/2009/11/2-financial-need.html

83. To get an overview of the Free Application for Federal Student Aid (FAFSA), click this link: http://mvcap.blogspot.com/2009/11/3-fafsa.html

84. To learn about the Student Aid Report (SAR) you'll receive after filing the FAFSA, click here: http://mvcap.blogspot.com/2009/11/4-sar.html

85. To learn about the Expected Family Contribution (EFC) you'll get from filing a FAFSA, click: http://mvcap.blogspot.com/2009/11/5-efc.html

86. To learn about a Financial-Aid Package a college will award you, click here: http://mvcap.blogspot.com/2009/11/6-financial-aid-package.html

87. To learn about Gift-Aid a college may put in your financial-aid package, click this link: http://mvcap.blogspot.com/2009/11/7-gift-aid.html

88. To learn about Self-Help colleges may put in your financial-aid package, click this link: http://mvcap.blogspot.com/2009/11/8-self-help.html

89. See how students with an EFC of $0 can go to college locally: http://mvcap.blogspot.com/2009/11/21-efc-of-0-go-to-college-in-valley-for.html

90. To see an outline of common criteria for merit aid, click this link to our MVCAP blog: http://mvcap.blogspot.com/2009/11/14-merit-aid.html

91. To read an explanation of need-based aid, click this link to our MVCAP blog: http://mvcap.blogspot.com/2009/11/15-need-based-aid.html

92. To calculate how much a college may cost you, check out this link: http://mvcap.blogspot.com/2009/11/16-how-much-will-college-cost-me.html

93. To read an update from Money on college costs, click this link: http://mvcap.blogspot.com/2009/12/22-college-more-expensive-than-ever.html

94. To see a survey on how U.S. families pay for college, click: http://mvcap.blogspot.com/2009/12/23-survey-finds-that-many-families-dont.html

95. To learn about saving for college with a 529 plan, click this link: http://mvcap.blogspot.com/2009/12/24-529-savings-plan-for-college.html

96. To compare the tuition of 168 colleges in Ohio, click:
http://www.collegeview.com/SearchSchools.do?state=48&location=1500&referLocation=4860

97. To see tax credits for college in the stimulus bill, click: http://mvcap.blogspot.com/2009/12/25-stimulus-bill-offers-tax-credit-for.html

98. Watch an ABC 20/20 video and decide "Is College Worth It?" here: http://mvcap.blogspot.com/2009/12/26-john-stossel-is-college-worth-it.html

99. To read about students choosing colleges in this recession, click: http://mvcap.blogspot.com/2009/12/28-college-applicants-forego-dream.html

100. See factors--including finances--that stress college dropouts: http://mvcap.blogspot.com/2009/12/31-college-dropouts-cite-low-money-and.html

101. Read an article on the average loan-debt of college seniors: http://mvcap.blogspot.com/2009/12/32-average-debt-for-graduating-college.html

102. To access the information on financial aid of FinAid! just click this link: http://mvcap.blogspot.com/2010/02/38-financial-aid-websites.html

103. To find information on financial aid from the College Board, click here: http://mvcap.blogspot.com/2010/02/38-financial-aid-websites.html

104. To find information on financial aid from Peterson's, access this site: http://mvcap.blogspot.com/2010/02/38-financial-aid-websites.html

105. To see information on financial aid from the U.S. Dept. of Ed., click here: http://mvcap.blogspot.com/2010/02/38-financial-aid-websites.html

106. For student accounts of loan-debt from college, hit this from HuffPost College: http://mvcap.blogspot.com/2010/02/39-student-loan-debt.html

107. Lindsay Carroll, 21, Pitt, has $15,000 loan-debt; see why at HuffPost College: http://mvcap.blogspot.com/2010/02/39-student-loan-debt.html

108. To seek scholarship opportunities that may fit you, investigate fastweb at http://mvcap.blogspot.com/2010/02/40-search-for-scholarships.html

223.Unstack the Odds--Cost, Part 5

Unstack the Odds: Help All Kids Access College—and Graduate!

by

Joe Rottenborn

Executive Director, Mahoning Valley College Access Program (MVCAP)

11. Cost, Part 5

“Self help” refers to the kind of financial aid people love to hate--because a student or parent often has to pay it back! We may not like it, but colleges expect both students and parents to "help themselves" pay for their higher education--hence, the term "self-help." The most common variety consists of a loan—for many, the four-letter word in college financial aid! Loans, of course, must be repaid (with interest), which results in students' loan-debt.

Today, many students--and their parents--will likely consider loans to pay for higher education. To learn more about borrowing for college, Lynn O'Shaughnessy has compiled several of her blog-posts on loans, "Best College Loan Advice: 9 Tips for Borrowing for College," at this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/best-college-loan-advice-9-tips-for-borrowing-for-college/1864/?tag=col1;blog-river

Before a student takes out loans to pay for college, he or she and their family should investigate available options (i.e., “shop” for student loans.) Specifically, they need to consider the kinds of loans offered as well as interest rates and repayment obligations. To become aware of these possibilities, read the blog-post by Lynn O'Shaughnessy, entitled "Find the Right Student Loan," at this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/find-the-right-student-loan/371/?tag=col1;blog-river

Students and their parents who need to borrow to pay for college who research their options for loans often wonder whether they are better off taking out federal student loans or private loans. More than simply interest rates and terms of repayment are involved in this consideration. To see some comparisons between government and private loans, read the post by Sandra Block on May 4, 2010, in USA Today at this link: http://www.usatoday.com/money/perfi/columnist/block/2010-05-04-yourmoney04_ST_N.htm?loc=interstitialskip

Both students--and their parents--often have to borrow money to pay for college. Despite taking out all federal student loans for which they qualify, some still consider private student loans. To get the best (lowest) rates of interest on these loans, shop around! In her blog-post from May 14, 2010, Lynn O'Shaughnessy states: "The interest rates that lenders offer on private student loans are wildly different even for borrowers with the same credit scores." To read her entire post, click this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/private-student-loans-the-good-bad-and-ugly/2078/?tag=col1;blog-river

An important question students need to ask in regard to college loans is "How much should I borrow?" With the hazards of loan-debt so well-publicized today, this is an important question to ponder. Lynn O'Shaughnessy addresses this issue in her blog-post "College Debt: Don’t Borrow More Than $27,000" at this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/college-debt-dont-borrow-more-than-27000/1521/?tag=col1;blog-river

Even after considering all elements a student may receive in his/her financial-aid package, they may still need more money to pay for a particular college or university. In that case, parents often consider taking out loans to assist their child. However, how much parents should borrow is often not addressed. Lynn O'Shaughnessy confronts this issue in her blog-post "College Loans: How Much Should Parents Borrow?" at this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/college-loans-how-much-should-parents-borrow/1510/?tag=col1;blog-river

Borrowing to pay college expenses is becoming a necessity for more students. The percentage of students who have college loans is growing, as Lynn O'Shaughnessy discusses in her blog-post "The Soaring Popularity of College Student Loans" at this link: http://moneywatch.bnet.com/saving-money/blog/college-solution/the-soaring-popularity-of-college-student-loans/545/?tag=col1;blog-river

Borrowing for college is an important issue today, as student loan-debt increases--sometimes to scary levels. To read a report by Sandy Baum and Patricia Steele for The College Board entitled "Who Borrows Most? Bachelor's Degree Recipients with High Levels of Student Debt," click this link:http://advocacy.collegeboard.org/sites/default/files/Trends-Who-Borrows-Most-Brief.pdf

To read Lynn O'Shaughnessy's highlights of this report, check out her blog-post: http://moneywatch.bnet.com/saving-money/blog/college-solution/college-debt-12-facts-about-student-loan-borrowers/1961/?tag=col1;blog-river

Despite all the information available, mounting loan debt of college students is a financial crisis affecting many college students today. Indeed, according to a post in The New York Times, average student debt for college graduates is over $23,000—and rising. According to that article by Jacques Steinberg, “Students who graduated from college in 2008 with loans carried an average debt of $23,200 — an increase of nearly 25 percent, or $4,550, when compared with those who graduated just four years earlier. These figures appear in the latest study by the Project on Student Debt, an initiative of the Institute for College Access and Success, a nonprofit organization.” (Jacques Steinberg, "Average Debt for Graduating College Seniors Rises to $23,200," The New York Times--The Choice: Demystifying College Admissions and Aid, December 2, 2009.) http://thechoice.blogs.nytimes.com/2009/12/02/debt/?src=twt&twt=NYTimesCollege

To read first-hand, student accounts of being in debt from college expenses, click on this series from HuffPost College: http://www.huffingtonpost.com/2010/02/22/college-debt_n_471023.html?slidenumber=1mvKlgmw4aI%3D&&&slideshow#slide_image

To read additional articles about the hazards of taking on too much loan-debt for college, click on the following links:

a. re: private loans--http://www.walletpop.com/blog/2010/02/25/money-college-why-one-student-advises-avoiding-private-student/

b. re: community college students-- http://www.usatoday.com/news/education/2008-07-23-comcol-debt_N.htm?csp=usat.me

8. Self-Help

This is the "other" kind of financial aid--because a student or parent has to pay it back! We may not like it but colleges expect both students and parents to "help themselves" pay for their higher education--hence, the term "self-help." The most common variety consists of a loan--the four-letter word in college financial aid! Loans, of course, must be repaid (with interest), which results in students' loan-debt.

Another kind of self-help is federal work-study--a job (usually, on campus) offered a student in their financial-aid package for which they are paid (often, minimum wage); students can use this money they earn to pay for some of their college expenses.

The good news about self-help is it may enable a student to attend college now--even though they or their parents don't have enough money today to pay for it. And make no mistake: the price of a college education may be high--and getting higher each year. Thus, self-help is the type of financial aid we love to hate--but, oftentimes, couldn't afford to finance a university degree without.