Financial Aid News, June 2007 Issue

A Publication of the Student Loan Network

This month, we tackle how to spot scholarship scams, plenty of legitimate scholarships from StudentScholarshipSearch.com, plus late-breaking news on federal student loan interest rates.

If you have comments or questions about the newsletter, please email me at: FinancialAidPodcast@GMail.com and I'll do my best to respond as quickly as I can. Please call our toll-free number at (877) 328-1565 if you have a specific question about how we can help you pay for college.

Christopher Penn, Editor
http://www.FinancialAidNews.com
http://www.FinancialAidPodcast.com

Featured SLN Announcement

Newsletter Exclusive: Enter Promo Code NEWS0607 at ScholarshipPoints.com and you'll receive 15 Scholarship Points - which equals 15 chances to win one of three free scholarships. That's FIVE more points than we've ever awarded in a single instance just for our newsletter readers. To register or learn more, visit:

http://www.ScholarshipPoints.com

Featured Article: How to Spot Scholarship Scams

In many ways, the guide could be summarized in two lines:

• Scholarships which ask you to pay money are likely scams.
• Scholarship opportunities sent to you unsolicited are likely scams.

No matter how good the stationery is, or how convincing the claims may be, these two indicators are the most reliable for determining the likelihood of a scholarship scam. Some other popular signs of scholarship scams, via the FTC:

"The scholarship is guaranteed or your money back."

The reality is that there are no guarantees when it comes to scholarships. Scholarships are evaluated on many criteria, and while there are many, no one can guarantee you an award.

"You can't get this information anywhere else."

In the age of the Internet and search engines, this is simply no longer true. To learn more about finding scholarships with search engines, grab our free 19 page e-Book, Scholarship Search Secrets, completely free at:

http://www.StudentScholarshipSearch.com

"I just need your credit card or bank account number to hold this scholarship."

Giving over any significant personal financial information is a clear sign of a scam. This extends to things like social security numbers as well; identity theft scams masquerading as scholarships are becoming more prevalent.

"You've been selected by a 'national foundation' to receive a scholarship" or "You're a finalist" in a contest you never entered.

Generally speaking, if you receive notification that you've won anything - the lottery, a scholarship, etc. and you did not enter, it's a scam.

Remember that today, a scholarship scam may not just be a solicitation for money. Information such as credit card numbers, social security numbers, and other personal identification information can be used for identity theft as well. The most important thing to remember with any kind of potential scam is to trust your instincts. If something seems too good to be true, it probably is. If something feels wrong or suspicious, trust your gut instincts, pass it by, and keep working on completing legitimate scholarship applications.

For more scholarship advice and tips, make sure you stay subscribed to the Financial Aid Newsletter and tune into the daily free Financial Aid Podcast. For scholarship listings, visit StudentScholarshipSearch.com, and to enter for a quarterly scholarship drawing from the Student Loan Network, visit ScholarshipPoints.com.

http://www.StudentScholarshipSearch.com
http://www.ScholarshipPoints.com
http://www.StudentLoanNetwork.com

Breaking News: Student Loan Interest Rate Updates

The 5/29 U.S. 91-day Treasury Bill auction resulted in an interest rate increase of 7.6 basis points, which will cause interest rates for Stafford and PLUS loans to increase this July. For Stafford Loans disbursed on or after July 1, 1998 and before July 1, 2006, the interest rate for an in-school, grace, or deferment status will change from 6.543% to 6.619% percent. The interest rates on Stafford Loans in a repayment status will change from 7.143% to 7.219% percent. The PLUS loan interest rate will increase from 7.943% to 8.019% percent. The 8 basis point increase should be negligible for most borrowers, but industry experts are saying that a consolidation run-off could still occur when borrowers attempt to consolidate before their grace periods expire.

Today’s rates for federal student loans funded 7/1/1998-7/1/2006:

• Stafford federal student loans in grace: 6.543%
• Stafford federal student loans in repayment: 7.143%
• PLUS parent student loans: 7.943%

Today's rates for federal student loans funded after 7/1/2006:

• Stafford federal student loans: 6.8%
• PLUS parent student loans: 8.5%

To consolidate your federal student loans, visit www.StudentLoanConsolidator.com/consolidation

• For Stafford loans, visit http://www.StaffordLoan.com
• For PLUS loans, visit http://www.ParentPLUSLoan.com

Beware of consolidation marketing from less scrupulous lenders screaming warnings at you that rates are going up - yes they are, but not by much, and consolidating may not save you all that much - do your research before jumping into a student loan consolidation, because once you consolidate, under current law, you cannot change lenders. For a student with $23,000 in Stafford federal student loans, the difference in the interest rate will make an increase in monthly payments of 96 cents - hardly a reason to rush into a loan just because a less scrupulous lender wants you to. Run the numbers yourself - use our calculator at StudentLoanConsolidator.com.

Last Words: Selections from Student Loan Network Experts

This month, to ensure that web addresses don't get messy in the email, we're using a free service called URLtea for subscribers to the text edition of the newsletter. Those subscribed to the HTML version should notice no difference.

• Katie Dexter discusses planning ahead for graduate school funding
• Kathy Brennan helps differentiate who is a dependent or independent student
  
• Kristin Popsie tackles funding for summer session
  
• Monique Leonard answers feedback on Perkins Loans
  
• Brooke Rickard examines additional reader questions
  
• Lee Hannula looks at the pros and cons of consolidation
  
• I end up calling out a competitor

Scholarships

Be sure you've registered for Scholarship Points, our free college scholarship awards site. Every 3 months, we draw 3 winners for $1,000, $500, and $250 scholarships. Visit: http://www.ScholarshipPoints.com

• The Hispanic Scholarship Fund Network
• Mississippi State Promise Program
• Randall D. Ledford Scholarship in Physics at Wake Forest University
• AAA AAA High School Travel Challenge
• Minnie Pearl Scholarship Program
• Toyota Community Scholars program
• Arkansas State University Honors Scholarship
• University of Rhode Island Scholarships Directory
• US Department of Justice Attorney Student Loan Repayment Program
• Framingham State College Scholarships Directory
• Coca Cola Scholars Program Scholarship
• Ramapo College Presidential Scholarship
• National Poultry and Food Distributors Association Scholarship
• RTN Federal Credit Union 2007 James A. Burley Scholarship Essay Contest
• Denver Foundation Scholarships
• The College Prowler-Wachovia Monthly Scholarship
• Washburn College GLBT Scholarship Directory
• Astraea Lesbian Foundation for Justice Lesbian Writers Scholarship
• LPGA Foundation Scholarships
• 2007 AIA/NEI Student Scholarships

Remember, you can get daily scholarship updates by listening to the Financial Aid Podcast and visiting the Student Scholarship Search web site!

http://www.StudentScholarshipSearch.com
http://www.FinancialAidPodcast.com

A Word from our Sponsors

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• Easy payment options: pay up front or with monthly payments

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• Freedom of choice for doctors and hospitals, you are never restricted to certain providers.
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For more information on either of these plans or to quote or purchase
contact us:

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The Very Last Word

Missed an issue? Did you remember a scholarship but can't find the back issue? Want to tell a friend about the newsletter? You can always find back issues of the Financial Aid Newsletter at:

http://www.FinancialAidNews.com

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