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05.29.07 | Immigration Adjustment/Dream Act

Posted in Student Loan Industry News by Student Loan Help

Now that election season is upon us, there will be a lot of focus on political issues and education is always at the forefront of any good political debate. Over the last few months there has been much talk about protecting our borders and immigration rights. Amongst these debates is the issue of giving in state tuition to the children of illegal immigrants. Lately there has been some discussion about the DREAM ACT and whether it should be revised. Below I have attached an article that address this issue along with a link with the DREAM ACT Bill.

DREAM Act reintroduced in Senate
Immigrants’ Rights Update, Vol. 17, No. 5, September 4, 2003

[See also "Dream Act Reintroduced in Senate," Nov. 21, 2005.]

[See also "DREAM Act Passes Senate Judiciary Committee," Mar. 28, 2006.]

A new version of the bipartisan DREAM Act, which addresses the tragedy of young people who grew up in the United States and have graduated from U.S. high schools but whose future is circumscribed by current immigration laws, has been introduced in the Senate by Senators Orrin Hatch (R-UT) and Richard Durbin (D-IL). Under current law, these young people generally derive their immigration status solely from their parents, and when the parents are undocumented or in immigration limbo, their children have no mechanism to obtain legal residency. The Development, Relief, and Education for Alien Minors (DREAM) Act (S. 1545), introduced on July 31, 2003, provides such a mechanism for those who are able to meet certain conditions.

The leading bill in the House addressing the same issue is HR 1684 (Cannon, R-UT), known as the Student Adjustment Act. HR 1684 was introduced this spring and currently has 66 cosponsors from both parties.

Like last year’s version of the DREAM Act, which was also sponsored by Sen. Hatch, S. 1545 would enact two major changes in current law:

  • Eliminate the federal provision that discourages states from providing in-state tuition without regard to immigration status; and
  • Permit some immigrant students who have grown up in the U.S. to apply for legal status.

But S. 1545 differs in some important respects from its predecessor.

Unlike last year’s bill, DREAM 2003 sets up a two-stage process for applying for legal status. Immigrant students who have grown up in the U.S., graduated from high school here, and can demonstrate good moral character would initially qualify for “conditional lawful permanent resident” status, which would normally last for six years. During the conditional period, the immigrant would be required to go to college, join the military, or work a significant number of hours of community service. At the end of the conditional period, those who meet at least one of these requirements would be eligible for regular lawful permanent resident status.

If enacted, DREAM 2003 would have a life-changing impact on the students who qualify, dramatically increasing their average future earnings-and, consequently, the amount of taxes they would pay-while significantly reducing criminal justice and social services costs to taxpayers.

Advocates believe that S. 1545 has a reasonable chance of passage in this session of Congress, in large part because Senators Hatch and Durbin were willing to bridge the bitter partisan divisions that have plagued the Senate this year. The bill already has 15 cosponsors representing a wide swath of the political spectrum; others are expected to announce their support now that Congress has reconvened after its summer break.

The following are some of the key features of DREAM 2003:

Restore State Option to Provide In-State Tuition Benefit. DREAM 2003 would repeal section 505 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA), which discourages states from providing in-state tuition or other higher education benefits without regard to immigration status.

Who Qualifies for Legal Residency. Under DREAM 2003, most students of good moral character who came to the U.S. before they were sixteen years old and at least five years before the date of the bill’s enactment would qualify for conditional permanent resident status upon acceptance to college, graduation from high school, or being awarded a general equivalency diploma (GED). Students would not qualify for this relief if they had committed crimes, were a security risk, or were inadmissible or removable on certain other grounds.

Conditional Permanent Resident Status. Qualifying students would be granted conditional permanent resident status, which would be similar to lawful permanent resident status, except that it would be awarded for a limited period of time-6 years, under normal circumstances-instead of for an indefinite one. Students with conditional permanent resident status would be able to work, drive, go to school, and otherwise participate normally in day-to-day activities on the same terms as other Americans, except that they would not be able to travel abroad for lengthy periods. Time spent by young people in conditional permanent resident status would count towards the residency requirements for naturalization to U.S. citizenship.

Requirements to Lift the Condition and Obtain Regular Lawful Permanent Resident Status. At the end of the conditional period, regular lawful permanent resident status would be granted if, during the conditional period, the immigrant had maintained good moral character, avoided lengthy trips abroad, and met at least one of the following three criteria:

1. Graduated from a 2-year college or a vocational college that meets certain criteria, or studied for at least 2 years towards a bachelor’s or a higher degree; or
2. Served in the U.S. armed forces for at least 2 years; or
3. Performed at least 910 hours of volunteer community service.

The 6-year time period for meeting these requirements would be extendable upon a showing of good cause, and the Dept. of Homeland Security would be empowered to waive the requirements altogether if compelling reasons such as disability prevented their completion and if removal of the student would result in exceptional and extremely unusual hardship to the student, or to the student’s spouse, parent or child.

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05.18.07 | Stafford FAQ’s

Posted in College, FAFSA, Stafford Loan by brickard1979

As a Customer Service Representative at the Student Loan Network the questions I most often here is, “How do I get the Stafford Loan?” and “What is the difference between subsidized and unsubsidized’ and finally “How do I get my Stafford loan money?’
All questions are great and important questions to ask. Listed below are my answers to the commonly asked questions”¦.

How do I apply for the Stafford loan?
You must fill out a FAFSA application to see if you are eligible for the Stafford loan. Virtually everyone is awarded this loan however you need to fill out the FAFSA paperwork for the school to review and determine your eligibility for Federal Aid (i.e. Stafford loans, Pell grant, Perkins loan, etc.) Once you are awarded the Stafford Loan money you can go to www.StaffordLoan.com and get your Master Promissory Note to agree to the terms and conditions of the loan. Depending on your school’s process you may need to print out the MPN or do an electronic signature.

My award letter lists subsidized and unsubsidized Stafford loans. What is the difference?
Subsidized Stafford loans are need based and interest free while you are in school. Unsubsidized Stafford loans are non-need based and interest accrues on the loans while the student is in school.

How do I get my Stafford loan money?
The funds for the Stafford loan get disbursed directly to the schools financial aid office. The money is put into your student account, applied to any outstanding tuition or fees and the amount left is then issued to you via check. If you are interested in receiving a refund check you need to coordinate it with the school’s financial aid office and not the lender.

If anyone has any questions on financial aid I’ll be glad to try to help or answer any question you may have. Thanks for reading.

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

05.11.07 | Lenders Under Fire!

If you haven’t heard or read it in the paper, there has been much going on in the Education industry lately. Over the past few months there have been law suits filed, investigations into certain lenders, Sallie Mae got bought out, and now the shut down of lender access to the Government website NSLDS. This all comes because certain lenders (Federal as well as Private) chose to abuse their privileges. What this means in the world of banks and lenders is still up in the air. What this means for the borrower is a different story. It is going to require that the borrower/student be a little more careful when looking at thier statements. They are going to have to keep better records of who their lenders are, what loans they have taken out, and have the correct information provided to them to obtain this information.

Given the fact that most borrowers/students think Stafford is their lender, we at the Student Loan Network have provided students with a link to look up thier loans and find out who their lender are. All you need is your Pin number. If you have misplaced your pin you would have to apply for it again. You can do all of this at www.studentloanform.com. Just follow the prompts and it will connect you to the NSLDS government website. Students and financial aid officers are the only people left with access for now. Also, If you are looking to consolidate your student laons then you will need to have all your loan data on hand so the representative on the other end can better help you.

However, with the above being stated this is not to say that all lenders are bad. There is always that one or two bad apples that spoils it for the bunch. For the most part all existing lenders are still in practice and offer good services. If you have any further questions regarding this issue please feel free to contact the Student loan Network.

05.11.07 | Comparing the Federal Parent PLUS Loan to an Alternative Loan

Posted in Student Loans by brickard1979

Many students and families need to borrow educational loans to help finance their education. The decision then becomes do I borrow a Federal Parent Plus Loan or a private alternative loan. Listed below is a chart to further evaluate Plus and alternative loan options.

Facts PLUS Alternative
Borrow up to Cost of Attendance, minus other aid received Yes Sometimes
Interest rates Fixed rate at 8.5% Variable monthly or quarterly interest rate
Most do not have an interest rate cap
Capitalization of unpaid interest Once at repayment Can be monthly or annually or once at repayment
Loan discharge upon death or permanent total disability of borrower Yes No
Generous repayment options with deferments and forbearances Yes Limited options available
Credit check required Yes - minimal requirements Yes - typically more stringent than PLUS
Debt-to-income qualification No May be required
Income verification No May be required
Parent responsible for repayment of loan Yes Most require parent cosignature, impacting the parent’s credit report (similar to PLUS)

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