Student Loan Help

What is an independent student?

The independent student definition created by Congress is VERY strict. It is strict because this status is used by school financial aid administrators in determining student’s eligibility for federal and state aid. Unless you are a returning college student it is unlikely that you are an independent student. If you should qualify for independent student status it means your parents income and assets are not included on the either the paper FAFSA or the FAFSA online.
An independent Student is a student who is considered independent for Federal financial aid purposes is at least one of the following:
-Over 24 years of age
-Married
-Have a dependent child who receives at least 50% of support from student
-Have a dependent person who receives at least 50% of support from student
-A veteran of the armed forces
-An orphan or ward of the court
If you answered yes to any one of the above questions you’re an independent student and you should consider how to maximize your financial aid package for as an adult student.
Otherwise, you must use your parent’s information on the FAFSA and any other financial aid form.

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On May 25, President Bush signed into law an amended section of the Fair Labor Standards increasing the Federal minimum wage in three steps. The current $5.15 minimum wage will be increased to $5.85 effective July 24, 2007, to $6.55 an hour effective July 24, 2008, and to $7.25 an hour effective July 24, 2009. The HEA specifically states that an institution may not pay any wage to students employed under the FWS Program that is less than the current Federal minimum wage. Therefore, effective July 24, an institution must pay FWS Program students at least $5.85 an hour.

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Today the House Education and Labor Committee is scheduled to consider legislation that would dramatically increase student aid by increasing Pell Grants and loan limits, cutting student loan interest rates, providing income-contingent student loan repayment, and offering new loan forgiveness programs.

The College Cost Reduction Act would increase federal spending on student aid by nearly $20 billion and would pay for this increase by cutting federal subsidies to student loan companies and guaranty agencies.

House Education and Labor Committee Chairman George Miller (D-CA) introduced the bill Tuesday claiming that it would “make the single largest investment in college financial aid since the GI Bill” and do so “at no new cost to U.S. taxpayers.”

Among the benefits to students contained in the bill, it would:

-Cut interest rates in half on subsidized student loans over the next five years.
-Increase federal loan limits to provide borrowers with additional assistance in paying for college and to help them rely less on costlier private loans.
-Increase the maximum Pell Grant scholarship by at least $500 over the next five years, ultimately reaching a maximum scholarship of at least $5,200.
-Expand eligibility to include and serve more students with financial need.
-Provide upfront tuition assistance to qualified undergraduate students who commit to teaching in public schools in high-poverty communities or high-need subject areas.
-Provide loan forgiveness for first responders, law enforcement officers, firefighters, nurses, public defenders, prosecutors, early childhood educators, librarians and others.
-Revise policies to allow public servants to have their loans forgiven after 10 years.
-Establish a partnership with federal, state and local government entities, and philanthropic organizations through matching challenge grants aimed at increasing the number of first-generation and low-income college students.

To pay for this aid the bill would:

-Reduce special allowance rates to lenders
-Eliminate the exceptional performer status
-Reduce lender insurance
-Reduce guaranty agencies’ collection retention
-Increase lenders’ loan fees

*The National Association of Student Financial Aid Administrators (NASFAA) is the professional association of the individuals who manage financial aid at the nation’s postsecondary institutions.

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

Student Loan Network

For many students graduating college, the biggest challenge they face is when and how to begin paying back their college loans. About two-thirds of students borrow money to pay for college, so this is no small issue.

In 2007, the median debt of students who graduate from four-year private colleges is about $20,000, and it is about $16,000 for students graduating from public colleges, according to the College Board.

Students graduating with loans to repay are advised to follow these steps:

Due to the way college costs are financed, students typically end up with five to seven loans at graduation. Each loan can be for a different amount and carry a different interest rate. It’s important to take an inventory of all of your loans to know when you must begin repayment. Most loans (federal and private) will be in deferment for the first six months after graduation, which means you do not have to make payments during that time. You will need to know when payments are due, and how much the payment is for each loan. Also, you’ll want to update your contact information with the lenders (you may have moved) and get updated contact information on them, since some of your loans may have been sold to another company, which will now collect the payments. This is important, so you will receive important notices and know where to send payments.

I hope this helps!

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

Student Loan Network