FAP602: Understanding the PLUS loan, study abroad, David Usher

Student Financial Aid News
+ Inside Higher Ed: Many colleges have arrangements with companies and nonprofit groups that financially reward colleges, but not students, when students enroll in certain study abroad programs — and many students are unaware of these ties when they pick their study abroad programs, The New York Times reported. The article noted similarities between these arrangements and relationships between colleges and student loan providers that have come under fire in the last year.
+ A group of borrowers of student loans has filed a class action challenging a plan in Missouri to use profits and funds from the state student loan agency to finance construction projects at public colleges and universities, the Associated Press reported. Missouri officials have hailed the plan as a creative way to finance improvements in public higher education, but the suit charges that the funds are being misused and should be directed toward getting better repayment terms for borrowers.

Scholarship Update
+ National Presbyterian College Scholarship
+ For young students preparing to enter as full-time incoming freshmen in one of the participating colleges related to the Presbyterian Church (U.S.A.). Criteria Students must:
+ maintain 3.0 grade point average;
+ be members of the Presbyterian Church (U.S.A.);
+ be U.S. citizens or permanent residents of the United States;
+ demonstrate financial need;
+ be high school seniors;
+ take the SAT/ACT exam no later than December 15 of their senior year in high school;
+ have a recommendation from church pastor;
+ have a recommendation from high school guidance counselor;
+ have high school transcript; and
+ complete a biographical questionnaire.
+ January 31 deadline
+ Details at our free college scholarship search site

Focus on Financial Aid
+ The PLUS Loan
+ Graduate PLUS loan
+ Fixed rate government guaranteed federal education loan
+ 7.9% – 8.5%
+ No limit except cost of attendance
+ Credit-based, but not score based
+ Parents or graduate students
+ Repayment begins within 60 days of disbursement
+ Can be deferred
+ Can be consolidated – PLUS loan consolidation
+ Great alternative to home equity or mortgages

Podsafe Music
+ David Usher, The Music
+ Hat tip to Neil Bearse

Reminders

+ Private student loans
+ Stafford loans | Other federal student loans
+ Student loan consolidation at StudentLoanConsolidator.com
+ FAFSA tutorials and free help
+ Financial Aid Podcast Show Notes at FinancialAidNews.com.
+ The Financial Aid Podcast is a publication of the Student Loan Network.

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