A Muslim called our student loans desk the other day and asked for a loan without interest. We were all very confused by this until we realized that the caller was in fact Muslim, and therefore probably used to dealing with financial services in his home country that did not charge interest. An interesting aspect of this call is that Islam doesn’t – at least from what I’ve read – prohibit the concept of interest, but it does prohibit usury.
There’s two different, distinct terms – fa’eda (interest) and reba (usury). …

Well, we’ve read through the proposed 2006 Student Loan budget. The good news is… well, actually, there isn’t a whole lot of good news for students and graduates, especially for those interested in consolidation. Highlights (so to speak):
* The budget for student loan consolidation has dropped by nearly $10 billion.
* LEAP program cancelled
* Perkins loan program cancelled
* No increase in work study
* Stafford Loan rates to jump to 6.8 percent fixed as of July 1, 2006
* Elimination of fixed rate consolidation
* Initiation of a reconsolidation borrower fee (if you have …

From the Chronicle of Higher Education:
The Bush administration’s budget for 2006, due out on Monday, could mean the end of the Perkins loan program. In that budget, the president will ask Congress to recall the federal share of institutions’ revolving loan funds, according to a top Education Department official. The funds, which are made up of federal “capital contributions,” institutional matches, and repaid Perkins loans, are used to make new loans to students from low-income and middle-income families.
The original article is here:
http://chronicle.com/free/2005/02/2005020407n.htm

Not at all related to financial aid, but still worth mentioning… I have been using Picasa and Photoshop Album side by side for some time now, because each did something the other didn’t; Picasa 2 has come out recently, and I have to say… I’m uninstalling Photoshop Album. Picasa 2 is amazing. It makes decent web pages, it organizes very well, and it makes gift CDs that are outstanding. Simple organization and basic editing tools make it really wonderful, and I couldn’t be happier.
Plus, you have to admit that the …

Just about every new parent gets these really awful mailings touting whole life insurance for kids. Apart from the morbidity of applying for life insurance on kids, these insurance plans tout the returns on their investments as being a great way to save for college. They’re not.
James Hunt, actuary for the Consumer Federation of America, who has analyzed thousands of policies, notes that whole life policies hardly ever yield a reasonable return unless held for 20 years or more. So if you buy one be prepared to pay into it …

The February issue of Student Financial Aid News is now going out. In this issue:
* Why getting financial aid is so hard
* How to get more
* Other options for financial aid Plus information on the Coca Cola Scholarship.
All good stuff, get it now!
http://www.financialaidnews.com/feb2005.php