- Introduction
- Featured Article: Financial Aid Formula Changes Leaves More Behind
- Interest Rate Updates
- Scholarship Notes
- A Word from our Sponsors
- Privacy and Subscription Information
- Back Issues
- Sponsor this newsletter!
Welcome to the June 2005 issue of FinancialAidNews.com. This month, we explore rate changes across the board, and what they mean for you. We also have three new scholarship listings. Also, we're pleased to announce the official debut of Act Education Loans at its new home, http://www.ActEducationLoans.com - stop by today!
As always, please share The Student Financial Aid News with your friends, family, and colleagues, by simply forwarding this message, or letting them know to subscribe by visiting www.FinancialAidNews.com today!
Enjoy this month's newsletter!
Christopher S. Penn
Editor in Chief, The Student Financial Aid News
The Student Financial Aid News
A Service of the Student Loan Network
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Featured Article: Financial Aid Formula Changes Leaves More Behind
A recent article in the New York Times highlighted what many students already knew - that not only was college getting more expensive, but the amount of federal aid available to students was decreasing as well.
A revision and update to the EFC, or Expected Family Contribution, formula for the 2005-2006 school year translates into an increase in what families have to pay before federal aid can kick in. In the New York Times study (June 6, 2005), the average amount of additional money that families must come up with is $1,749 per year, with median amounts between $6,000 - $7,000.
Why is the shift of the financial burden moving increasingly towards families? Part of the overal formula for determining federal financial aid is the rate of inflation - as inflation increases, the number of dollars that a family has would be expected to increase. For example, a family with a household income of $50,000 in the year 2000 would be expected, based on a 3% inflation rate year over year, to have an income of $57,964. in 2005. By that assumption, the family would have more money to spend on education, and therefore federal aid could be reduced.
However, there is a flaw in the formula used to compute federal financial aid, and that flaw is this: the projected rate of inflation which the formula is based on does not necessarily reflect the actual rate of inflation. As a result, the formula assumes people make more money - in some cases, much more - than they actually do.
What is the solution for the increased gap between federal aid and actual cost of education? The solution may be in alternative student loans, sometimes called private student loans. Such loans are independent of federal financial aid computations, and are based on the creditworthiness of the borrower, rather than need-based formulas.
For more information about alternative student loans, visit: http://www.AlternativeStudentLoan.com
To read the original New York Times article, visit: http://www.nytimes.com/2005/06/06/education/06aid.html
With the final auction of the 91-day Treasury Bill on May 31, 2005, federal student loan rates have been set for the new academic year beginning July 1, 2005. The new rates for student loan are:
Stafford Loans for students in school: 4.70%
Stafford Loans for graduates in repayment: 5.30%
Parent Loans for Undergraduate Students (PLUS): 6.10%
Perkins Loans: 5.0%
These new loan rates take effect as of July 1, 2005. Students who want to lock in today's rates, which are much lower than the new rates, can consolidate their student loans until July 1 and lock in current, low rates.
The savings are not insignificant, either. On a balance of $30,000 in student loans, a student that consolidates today would have an estimated monthly payment of $212 per month. That same loan payment after July 1 would be approximately $320 per month, a $108 difference each month.
Consolidate today at http://www.TodayISave.com !
This month, three new scholarships including two full-tuition scholarships!
With interest rates rising across the board, it's more important than ever to have the best tools available for your search for interest-free money, and that means scholarships. That includes free solutions like Google and premium solutions like Financial Aid Officer's Scholarship Search. For a nominal fee, you get access to an ever-increasing database of scholarship awards, more than 2.3 million worth $14 billion.
If you can't find the financial aid you're looking for online, try the FinancialAidOfficer.com Scholarship Search Service at http://www.financialaidofficer.com/scholarship_search/ today.
Tuition Scholarship Program
The Kosciuszko Foundation Tuition Scholarship Program provides funding in the range of $1,000 to $7,000 to qualified students for full-time graduate studies in the United States. Applicant must be a United States citizen or a permanent resident of Polish descent and be an undergraduate senior, an entering graduate student or a current graduate student, and have a minimum GPA of 3.0.
Visit: http://www.kosciuszkofoundation.org/
Barnes Full-Tuition Scholarships In Science at Colorado College
Otis and Margaret T. Barnes established two trusts that provide full tuition scholarships to Colorado College, the first to be used for awards in Chemistry (including Biochemistry), and the second for awards in Biology, Environmental Science, Geology, Mathematics, Physics, and Psychology (including Neuroscience). The scholarships are renewable for four years as long as the recipient is making satisfactory progress toward a degree as defined by the department in which the scholarship is granted.
http://www.coloradocollege.edu/dept/CH/BarnesScholarship.html
The Ashley Tamburri Scholarship
The Ashley Tamburri Scholarship is a four-year renewable tuition scholarship administered by The Ashley Foundation, Inc. The scholarship is awarded in memory of Ashley Elizabeth Tamburri. When Ashley received her diagnosis of a brain tumor, she began to redefine her plans and goals for living. Throughout her cancer treatment she actively clarified those goals and engaged all of life. Ashley died on June 24, 1999, at the age of 16. The scholarship program was established to ensure that other teens like Ashley, who have faced or are facing cancer, are encouraged to strive toward achieving their goals.
http://www.theashleyfoundation.org/scholarship.html
And now a word from our sponsors...
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Health insurance for Grad Students! (finally)
We have been waiting for more than a year for a great student health insurance provider for students who need health insurance in their own country of residence/origin. There's a lot of great international student health insurance out there, but until this month, we didn't know of anything for, say, US grad students in the US. Now there is. Visit www.GradInsurance.com today for the Global Citizen health insurance plan!
Study Abroad Loans!
Are you a US student who needs a loan for studying abroad? Look no further than Study Abroad Loans. We provide up to $30,000 per year for all study-abroad education expenses. Visit www.StudyAbroadLoans.com today!
List your school, club, or organization for free!
Do you have a club or organization you want to let the world know about? Is your school a source of pride and you want to help it achieve greater recognition? Submit a free listing to the Edvisors Education Directory today, and help your school, club, or organization be listed in one of the largest education directories online!
Visit http://www.Edvisors.com for more!
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