Student Loan Help

If your enrollment status changes, there are a few steps that you, as a borrower, must take care of.

	Withdraw from School	Drop enrollment to less than half-time	Return to school at least half-time after a period of less than half-time or non enrollment	Transfer to a another School	Graduate	Go to Graduate School
Contact your FAO	x	x
Complete Exit Counseling	x	x			x
Notify Your Lender	x	x
Begin Loan Repayment After Grace	x	x				x
Apply for financial aid by completing the FAFSA			x	x		x
Request from your lender an in-school deferment			x	x		x

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With students scrambling for ways to pay for college one option does exist, although it may not be your first choice. Uncle Sam is still looking for recruits for the military and willing to pay you money toward your education to boot. I actually tried this route when I was 17, but was medically discharged before I even boarded my flight to the Great Lakes due to the discovery of a circulation problem I have called Raynaud’s.

So how does the Post-9/11 GI Bill work exactly? I’ve outlined the specifics for you below.

The Post-9/11 GI Bill is for individuals with at least 90 days of aggregate service on or after September 11, 2001, or individuals discharged with a service-connected disability after 30 days. You must have received an honorable discharge to be eligible for the Post-9/11 GI Bill. The Post-9/11 GI Bill will become effective for training on or after August 1, 2009. This program will pay eligible individuals:

• tuition & fees directly to the school not to exceed the maximum in-state tuition & fees at a public Institution of Higher Learning. see chart listing 2008 - 2009 maximum rates.
• a monthly housing allowance based on the Basic Allowance for Housing for an E-5 with dependents at the location of the school.
• an annual books & supplies stipend of $1,000 paid proportionately based on enrollment
• a one-time rural benefit payment for eligible individuals.

This benefit is payable only for training at an Institution of Higher Learning (IHL). If you are enrolled exclusively in online training you will not receive the housing allowance. If you are on active duty you will not receive the housing allowance or books & supplies stipend. This benefit provides up to 36 months of education benefits, generally benefits are payable for 15 years following your release from active duty.

For more information you can visit the United States Department of Veterans Affairs.

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What do you do with your tax return money, unexpected bonus, or $20 bucks Nana kicks you when you come to visit? Do you catch up on bills? Do you buy clothes? Do you go on an eating safari and hit all your favorite bakeries? My buddy Brian joked with me recently that he’d be getting back just barely enough from his government stimulus check to fill his gas tank once. I actually heard this week the national average may hit $4 per gallon by the summer, yikes! My southern friends have it right; saddle up and take your horse to work. I wish I could do that. In Boston that’s not a realistic option unfortunately. Although I suppose if I had to pick up after them like dog owners with a scoop and bag that would be an unpleasant “Jurassic like” experience.

What I do when I have a surplus of money is sock 60% of it away. I start a car payment fund, rainy day fund, or vacation fund. It’s amazing how fast that adds up. You can do the same thing with loose change too. It all adds up so quickly.

The other 40% I spend on me. I buy that golf shirt, take the Mrs. to dinner, or just buy an ice cream cone. Ah, life’s simple pleasures.

It’s really a balancing act of sorts. You’re living for today but planning for tomorrow. Spend too much money and you may end up on the streets if you lose your job. Spend too little and you’ll think you’re missing out while your friends get to have all the fun.

Once you find that healthy balance you’ll feel a lot better. Saving is nice, but you have to live too people. To quote Ferris Bueller, “Life move’s pretty fast. If you don’t stop and look around once and a while, you could miss it.”

People say to me Dave, because that’s my name, they say Dave can I have a portion of my federal Stafford or Plus loans forgiven? That’s when I hit high gear and impress them with my ready knowledge and quick wit.

I figured since I’ve been fielding this question a lot recently it might be a good idea to publish the bible you see below for your benefit. Bathe in my knowledge.

Stafford and PLUS Loan Discharge and Cancellation Summary Chart

Information provided by the Department of Education.

One of the most common questions I receive is, “Am I eligible for a federal loan?” The following eligibility criteria comes directly from the Department of Education.

U.S. Citizen

U.S. national (includes natives of American Samona or Swain’s Island)

U.S. Permanent resident who has an I-151, I-551, or I-551C (Permanent Resident Card)

If you’re not in one of these categories, you must have an Arrival-Departure Record (I-94) from U.S. Citizenship and Immigration Services (USCIS) showing one of the following designations:

“Refugee”

“Asylum Granted”

“Cuban-Haitian Entrant, Status Pending”

“Conditional Entrant” (valid only if issued before April 1, 1980)

Victims of human trafficking, T-visa (T-2, T-3, or T-4, etc) holder

“Parolee” (You must be paroled into the United States for at least one year and you must be able to provide evidence from the USCIS that you are in the United States for other than a temporary purpose and that you intend to become a U.S. citizen or permanent resident).

If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you’re not eligible for federal student financial aid.

If you’re in the United States on certain visas, including an F1 or F2 student visa, or a J1 or J2 exchange visitor visa, you’re not eligible for federal student financial aid.

Also, people with G series visas (pertaining to international organization) are not eligible for federal student financial aid.

Two things people do not always realize:

1) You must complete the Free Application for Federal Student Aid (FAFSA) in order to qualify for federal student aid, including the Stafford Loan. There is still time left so get it done online at www.fafsa.ed.gov.

2) You are not done once you complete the FAFSA. You then actually need to apply for a Stafford Loan - and any other aid you are interested in. Talk with your financial aid officer, seek other resources and apply as early as possible.

To find College Scholarships, visit www.StudentScholarshipSearch.com

The Financial Aid Podcast has a special episode today - financial aid and distance learning options for active duty soldiers. If you or someone you know is currently on active duty, even deployed overseas, their education can continue.

Listen to this episode here.

Will I be struck by lightning if I say the “R” word?  Yes people, we are in a recession; a period of economic contraction.  No question about it – these are difficult times for all of us.  The name of the game during such trying times is survival.  The economic landscape will turn around as it always has.  History has a way of repeating itself. 

The current Chairman of the U.S. Federal Reserve, Ben Bernanke, has certainly been doing his part, although some would argue he acted too late, to stimulate the economy by lowering interest rates, but it’s tough to get blood from a stone.  In fact, things have been so tough recently that friend’s of mine have decided to save the gas money on a visit and just text me.  Personally I feel my electric personality is well worth the $4 price of admission, but I can’t blame them for looking at the economics behind a visit south of Boston.

We will each be getting a small check from the government in May or June as part of the $152 billion Economic Stimulus package that President Bush signed into law last week.  It’s small, but significant.  The government wants you to spend it to help resuscitate a stale economy, but depending on your financial situation that may not be the wisest use of your dollar.  Look out for number one. 

Personally I’m going to take the money and run.  This is an expensive world we live in with our devalued U.S. dollars.  Every one of those George Washington’s is precious.  The old mantra, “A dollar saved is a dollar earned,” no longer holds true.  It’s more like two dollars saved is a dollar earned.   We are all doing our best to stay a float with varying degrees of success.  Only you know what is right for you in the end.  So put that pen to the paper and draft up an expense sheet for yourself.  The pen is mightier than the sword for a reason.  Put it to good use.

Are you a betting man? Do you love a good game of chance? Are you an on-line junkie who just can’t get enough? Millions of dollars are wagered and lost each year on this “invisible addition.” It’s been proven that gambling is as addictive as that morning cup o’ Joe that millions of us yearn for.

We know the odds are stacked against us, but yet we press on. We think we will be the one to pull that lever or hit that good run at the tables which will uncover riches beyond our wildest dreams. I guess we all own a pair of rose colored glasses. We see and hear what we want. In the movie Dumb and Dumber there is a scene where Jim Carey’s character is asking a woman (played by Lauren Holly) if there is any chance that a downtrodden guy like him could end up with an uptown girl like her. She responds, “About a one in a million shot.” His reply, so you’re saying there’s a chance! It’s all how you look at it; although there is a distinct difference between being an optimist and being a realist.

Now what if I told you over the course of your adult life (21-65 years of age) you would spend between $65,000 - $70,000 in games of chance. Would that give you pause before placing your next bet? I for one was under the belief that low-risk gambling was harmless, but your wallet can certainly take quite a beating over the long haul. Next time you think about dropping that $5 on a scratch ticket, getting those ten quick pics, or playing on-line poker toss that money into an interest baring savings account or CD. You’ll be amazed how much wealth you can amass.

Knowing when to hold ‘em and when to fold em’ is certainly nice, but if you never take that seat to begin with you will win every time; that’s knowledge you can take to the bank!