FastWeb Insider Secrets with Mark Kantrowitz

Mark Kantrowitz discusses financial aid myths in this great video from FastWeb.

Threatened by Debt?

Facing student loan debt? You aren’t alone. According to Consumer Reports’ most recent article on student debt, it’s estimated that Americans owe more than $900 billion in federal and private loans, which could have “potentially crippling ramifications for the U.S. economy.”

But it’s not all doom and gloom for borrowers. Consumer Reports offers these 7 tips for paying off federal student loans:

1. Find out how much you owe and to what lenders.

2. Choose a repayment option.

3. Explore options if you can’t afford payments.

4. Consider jobs or volunteer programs that qualify for deferment or forgiveness.

5. Consider loan consolidation.

6. Think twice about going back to school to avoid unemployment.

7. Contact your lender immediately if you can’t pay.

For more details or for tips on how to avoid borrowing for college, read the full article at www.consumerreports.org/cro/magazine/2012/04/student-debt-grows-to-alarming-levels/index.htm.

What if Your Parents Refuse to Complete the FAFSA?

Failure to fully complete the Free Application for Federal Student Aid (FAFSA) disqualifies students from being considered for federal grants and subsidized loans. So if your parents refuse to fill out the FAFSA, what are your options?

First, we recommend working with your college financial aid office to become eligible for unsubsidized federal student loans. You can also help your parents understand why it is important that they help you complete the FAFSA. For a list of strategies and an explanation of parental responsibilities and risks, visit FinAid.org at www.finaid.org/otheraid/parentsrefuse.phtml.

Another option is to work with financial aid administrators to receive a “dependency override,” which means you meet the definition of a dependent student, but your application will be processed as an independent student instead. If you are under the age of 24, an undergraduate student, not married, not a veteran, not an orphan, not emancipated by the court, not homeless, and do not have a legal dependent of your own, then by federal rules you are considered a dependent student and must include your parent’s information on the federal FAFSA. However, financial aid administrators have the authority to grant a “dependency override” in cases involving unusual circumstances.

Please note that federal rules provide strict guidance on who can be considered an independent student. For example, a student cannot become independent just because his or her parents are unwilling to help pay for the student’s college education. FinAid.org provides more information about how dependency override decisions are made on its website at www.finaid.org/educators/pj/dependencyoverrides.phtml.

Is All Financial Aid Created Equal?

Today is the first day of spring! Flowers are blooming, birds are singing, and financial aid award letters are showing up in the mailboxes (and email inboxes) of college-going seniors. When you get that award letter, it’s easy to jump right to the line that tells you exactly how much aid you are receiving. But don’t be fooled. All financial aid is not equal.

The most important thing to keep in mind is the bottom line: The amount you owe will depend on the cost of attendance (COA) minus the aid you are offered. If College A offers you $2,500 in aid, while University B provides $4,000, College A is still the better deal if its total COA is $1,501 less than University B.

Also be sure you know exactly what types of aid are being offered. Is it a grant (which doesn’t have to be repaid), a work-study offer (which requires time spent at a job), or a loan (which will have to be repaid), or a combination? You should also be on the lookout for aid requirements, such as maintaining a certain GPA or studying a particular subject.

Still confused? Don’t worry, you aren’t alone. Ask your school counselor for help or call the college for clarification. You can also find online articles about how to compare financial aid offers, such as this one from US News & World Report.

Happy Financial Aid Awareness Month

What, you haven’t heard? February is Financial Aid Awareness Month. Celebrate by completing your Free Application for Federal Student Aid (FAFSA)! The www.fafsa.ed.gov website is a good place to start.

Super Saturday to the Rescue!

Feel like you need superpowers to figure out the Free Application for Federal Student Aid (FAFSA)? Never fear, Super Saturday is here!

SCHEV is once again partnering with the Virginia Association of Student Financial Aid Administrators (VASFAA) to help college-bound Virginians receive free one-on-one assistance completing the federal financial aid form during a series of Super Saturday events.

Financial aid specialists will help new and returning college students at 65 locations across Virginia over three consecutive Saturdays: January 28, February 4, and February 11, 2012. For a complete list of Super Saturday locations, as well as a list of materials that students must bring to receive assistance filling out the FAFSA, please visit http://www.vasfaa.org/.

And as an added incentive, a $100 Book Scholarship will be awarded to one student at each Super Saturday location. So what are you waiting for? Get to the Super Saturday location near you faster than a speeding bullet!

Is College Too Expensive?

Three in four Americans now say that college is too expensive for most people to afford, according to remarks made by Education Secretary Arne Duncan at a college financial aid worker conference in Nevada this week.

According to the New York Times, Secretary Duncan “urged higher-education officials Tuesday to ‘think more creatively — and with much greater urgency’ about ways to contain costs and reduce student debt.”

However, some critics say the federal government is in no position to affect change, even as college degree attainment becomes increasingly important for Americans. Read the full article here, or let us know your thoughts on how federal agencies can help make higher education more affordable.