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The Student Financial Aid News
A Publication of the Student Loan Network
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Read this issue in color at:
http://www.FinancialAidNews.com/aug2005.php
Tune in to the free podcast at:
http://www.FinancialAidNews.com/financial-aid-podcast.php
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August 2005 Issue : Back to School 2005
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In this issue:
• Introduction
• Featured Article: Financial Aid Goes to Washington
• Scholarship Notes
• A Word from our Sponsors
• Privacy and Subscription Information
• Back Issues
• Sponsor this newsletter!
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Introduction
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Welcome to the August 2005 issue of FinancialAidNews.com. …

No, it’s not a disease. It’s another Podcast directory!

Show notes, July 29, 2005
News
+ Antidrug provisions in HEA Reauthorization continue to prohibit aid for anyone convicted of a drug related misdemeanor or felony
+ If you would like to lobby your elected representatives, contact them via:
++ House.gov
++ Senate.gov
Mail Call
+ Order of financial aid applications
+ Eligibility for financial aid
+ Deferment and forbearance
++ Information on StudentLoanConsolidator.com
+ Alternative student loan minimum income requirements
+ Trivia about interstates
++ Wikipedia.org
Podsafe Music
+ Jim Fidler
++ Website
++ Merrigan’s Reel
++ Flow on Waterford River
++ Lillian

News
+ Colleges react to HEA Reauthorization
+ In Massachusetts, schools like Northeastern could face cuts up to $4M in aid
++ Article on the Daily Item
Interview
+ Nicole Barry, deputy director of the Congressional Advisory Committee on Student Financial Aid
++ Website at ED.gov
Podsafe Music
+ Clumsy
++ “Fruitless”
++ Web site at Clumsy.info
Direct file download: MP3 File

Show notes, July 27, 2005
News
+ UVa adds $4M to instititutional financial aid, totaling $20M
Interview
+ Mark Kantrowitz of MK Consulting, a 20 year financial aid veteran
++ Website: Kantrowitz.com
++ What you MUST do to afford college if you have young children
++ The future of financial aid
Mail Bag
+ Changing lenders?
+ HEA Reauthorization and impact on existing loans?
Podsafe Music
+ Whirl
++ Captivity
++ Site: WhirlMusic.com
Direct file download: MP3 file

Our new promo is out – a 1 minute, 9 second promo for the Financial Aid Podcast. If you have a podcast and would like to help us out, please give our promo a play!
Direct file download: MP3 file
Thanks ever so!

Show notes, July 26, 2005
News
+ Consolidation 1% penalty
+ Conflict of interest in Congressional committees
+ Sallie Mae politicians
+ Find out who owns which politicians at OpenSecrets.org
Mail call
+ Stafford loans
+ No cosigner
+ Scholarships
+ Interest rate computation
Podsafe Music
+ Whirl
++ Website
++ Reborn
++ Stronger than One
Direct file download: MP3 file

Late breaking news on House Bill 609 – an amendment was passed (quietly, I might add) to make consolidation even more expensive and less attractive. What’s in the mix?
If you choose a variable rate consolidation, you’ll get T-bill plus 2.3%.
If you choose a FIXED rate consolidation, you’ll get T-bill plus 3.3% PLUS a 0.5% origination fee.
Obviously, someone clearly wants to make fixed rate consolidation unpalatable. But who? Who benefits from variable rate consolidation and not fixed rate consolidation? Well…
… lenders do. Big lenders, lenders with portfolios of billions of dollars …

Show notes, July 25, 2005:
News
+See our previous entry on the Higher Education Act reauthorization for details
+ $12 billion in savings
++ Where’s the savings going? To the national debt. The savings will reduce the debt by approximately 0.15% per year. By comparison, the current Middle East campaign, valued at $175 billion, would reduce the debt by approximately 2.1% per year.
++ Savings is coming from reduced subsidies
++ That same $12 billion could be used to fund 300,000 full tuition scholarships to Ivy League schools or 1.2 million scholarships to public, state universities
+ …

The House Committee on Education and the Workforce just completed its work on the Higher Education Act reauthorization, which is called the College Access and Opportunity Act of 2005. We’re going to talk about this on the podcast on Monday morning, but here’s the highlights so far:
Changes in the Higher Education Act as proposed and voted in H.609
Stafford Loan Limits
+ Freshman increase from $2,625 to $3,500.
+ Sophomores $3,500 to $4,500.
+ No change for juniors, seniors, and beyond.
Consolidation – variable rate, T-bill + 2.3% for all consolidations after July 1, 2006, …