Jane J. Kim, Staff Reporter of The Wall Street Journal, provides some direction on student loans in her article “Navigating the Maze Of Student-Loan Options.”

In hunting for a student loan, who are you going to trust?
College financial-aid officers are in hot water for conflicts of interest for steering students to “preferred lenders.” Other lenders are jumping into the fray with loans marketed directly to students. But their terms can be notoriously tough to decipher.

Here’s how to find the best deal: First, check what the school has to offer, since it may have negotiated discounts with lenders. Then, compare those terms with what you can find on your own.

Before turning to private loans, take advantage of Uncle Sam’s federal student loans, such as Perkins, Stafford and PLUS loans, which have lower, fixed interest rates, more flexible repayment terms and don’t require a credit check.

If you still come up short for your tuition bill, you may be hunting for private student loans, which are generally more expensive than federal loans. But limit your inquiries to no more than a handful. That’s because applying for too many could hurt your credit score …

View the rest of this article in its original context on CollegeJournal.

Just because you aren’t the class valedictorian, newspaper editor or high school quarterback doesn’t mean you won’t be a sought-after candidate for colleges and universities. You, too, can receive some financial assistance through scholarships. Just find the ones to match your unique skills.

“There’s this notion that you need to be a well-rounded students [to get scholarships] — that’s just wrong. Colleges want a well-rounded student body, not well-rounded students. Variety makes things interesting. If you excel in one area, it can make up for deficiencies in other areas,” says Mark Kantrowitz, director of advanced projects at FastWeb.com, one of the leading scholarship search engines on the Web.

In fact, FastWeb has just released its list of the “Top 10 Most Unusual Scholarships” and it includes an award for duck calling, a scholarship for vegetarians and even an award for students with the last name Van Valkenburg. Check out the site.

In the article Where you can find unusual scholarships on CollegeJournal, writer Marshall Loeb discusses scholarship opportunities for the rest of the student body and ways to set yourself apart. View this article in its original context and start showcasing your inimitable skills.

The cost of a college education will continue to rise, so for most students, paying for school outright is just not possible. However, financial aid and student loans can be daunting and confusing. Consider this advice from Citibank to keep your education loan habits responsible.

“Even with savings, gifts from family, and scholarships and grants, you may find that you need additional funding to pay for your higher education. Student loans can make up the difference between what you have and what you need to make your college dream a reality. Unlike scholarships and grants, however, borrowed money must be repaid, most often with interest, regardless of whether you complete your education or not.

Borrow Only What You Need
While you may qualify for more, borrow only the amount you need. Loans are your responsibility and you are expected to repay them. When you repay your loan on time, you create and build an excellent credit history. This will help you in your future when making purchases such as a car or a home.

Here are some helpful points to consider:

• Estimate the amount of debt you can afford - don’t get in over your head.
• Understand your borrowing agreement fully - including all interest calculations.
• Stay on schedule - remember your excellent credit history is at stake.

(more…)

Will colleges continue to award merit-based aid in the years to come? Some schools believe the increasing numbers of low-income students will spur a shift in the use of institutional dollars. USA TODAY’s article “Colleges taking another look at value of merit-based aid,” discusses the potential change in scholarship recipients, as well as how some schools are only rewarding need-based aid already.

By Mary Beth Marklein, USA TODAY

Good grades and high test scores still matter a lot to many colleges as they award financial aid.

But with low-income students projected to make up an ever-larger share of the college-bound population in coming years, some schools are re-examining whether that aid, typically known as merit aid, is the most effective use of precious institutional dollars. (more…)

If you are concerned about financing your college education, read on. Kiplinger’s article ‘Last Minute Ways to Ease the Pain‘ outlines five ways to quickly build up the funds for school:

• Search for scholarships. Even if your child is neither a star athlete nor a straight-A student, the research could pay off. Sallie Mae, FastWeb and FinAid offer online access to free scholarship-search databases.

• Apply to schools that offer merit awards. “In order to compete with public schools, second-tier private schools need to be aggressive with financial aid,” says Philip Johnson, a financial planner in Clifton Park, N.Y. In a 1997 Kiplinger’s survey, 50 of 120 schools we canvassed reported awarding non-need scholarships to more than 20% of their freshman class — and the average award reduced total expenses by at least 15%.

• Cut housing costs. Depending on the location, living in an off-campus apartment and cooking your own meals can cost much less than dormitory housing with a meal plan. Or consider becoming a resident adviser: Most get free room and board, and occasionally the school offers a tuition break.

• Consider a community college. After two years, your child could transfer to a more-expensive, four-year school. Along the way, you might get a tax write-off. You might be able to claim a Hope Credit of up to $1,500 of qualified tuition and related exenses. The credit is equal to 100% of the first $1,000 you pay in tuition and fees and 50% of the second $1,000. You’re fully eligible for the credit if you’re a married couple filing jointly with an adjusted gross income of $85,000 or less.

• Graduate early. Taking advanced-placement courses in high school — and scoring well on the advanced-placement exams — may reduce the number of credits your students need in college. That could help you slash a semester or even a year’s worth of bills.

According to Liz Pulliam Weston in her article How to find free money for college, Federal and state grants serve as the biggest source of direct student aid. Here’s where to find funds for college and how to get them:

The best money is free money, especially when it comes to paying for a college education. And the biggest sources of free money these days are federal and state grants.

While scholarships make up less than 2% of student aid, grants make up nearly 40%, with loans filling in the rest. (more…)

According to an article in Kiplinger’s Personal Finance magazine, “If you have submitted financial-aid forms to the schools your child picked, the package of grants and loans you will soon receive may not be the last word.”

Kiplinger’s writer Sean O’Neill offers parents six suggestions on the financial aid application process in his article What You Need to Know About College Aid. (more…)

If you are looking for a way to excel as a student and still manage your expenses, you might benefit from work programs offered through your college. Many schools offer part-time student hourly positions, as well as work-study programs for full- and part-time students.

Work study vs. student hourly positions
There is a key difference between student hourly jobs and federal work-study jobs. Student hourly positions are available for both those who qualify for financial aid and those who do not. Federal work-study programs are provided for students with demonstrated financial need. If you receive any form of federal financial aid, you may qualify for federal work-study programs. These work-study programs provide students with part-time employment opportunities to meet college costs.

Working can enhance your education
Whether employed on-campus in a federal work-study program or off-campus, students can benefit from working while in school. Many schools offer positions ranging from administrative or office assistant to lab or research technician. These jobs are designed to accommodate the busy student’s hectic schedule.

It is possible to find a job that is geared toward your major that will add an impressive line to your resume. Or you could work as a computer lab monitor or receptionist where you are encouraged to do homework in your downtime. Imagine getting paid to do your schoolwork! Many work-study positions make it possible.

Not all positions offered to college students are run-of-the-mill. Students can find work as personal trainers or lifeguards at the school fitness center; game monitors for the physical education department; or tutors in the creative writing, math or science labs.

Working can help you pay for school
Most student jobs pay an hourly wage, which is at least the federal minimum wage. However, many positions held by college students offer starting pay upwards of $8 per hour. The wage often varies according to your experience level and skill set. Check and see what positions your school offers. It might be smart for your budget, your grades and your schedule!

The following article was written by Andy Schiller courtesy of Search4careercolleges.com.

The Planning Stage

Most families pay for college using a combination of savings, current earnings and financial aid. How do you reduce financial worries and save money?
Start saving early!

• Saving early and regularly gives compound interest time to accumulate to your benefit.
• By starting early, you can save smaller amounts over a longer period of time.
• Early planning allows you to save for both education and retirement.
• Early investing helps students complete college with less debt.
• Having a larger college fund gives students a broader range of college choices.

When searching for scholarships, contact:
• Clubs
• Businesses
• Churches
• Social organizations

Usually, the above types of scholarships are not widely publicized. This means they have fewer applicants, which equals higher odds of winning for you! Don’t forget to ask your local high school counselor, librarian and college financial aid office for direction. Remember – helping students locate financial aid is part of their job, and they help people like you every day. They can be your best source of help! (more…)

The U.S. Department of Education told colleges on Friday that they could exclude credits from Advanced Placement and International Baccalaureate courses when calculating a student’s eligibility for the new Academic Competitiveness and National Science and Mathematics Access to Retain Talent (Smart) Grants. The guidance answered some questions financial-aid directors had raised about students’ eligibility for the grants. Other aspects of the programs have spurred criticism from college officials (The Chronicle, August 18).

Under the Academic Competitiveness Grant program, financially needy first-time freshmen and sophomores are eligible to receive additional awards of $750 and $1,300, respectively, if they have completed “a rigorous secondary-school program of study” and maintain a 3.0 grade-point average in college. The Smart Grant program provides awards of up to $4,000 a year to juniors and seniors who are eligible for Pell Grants and who major in mathematics, science, or certain foreign languages, such as Arabic, Chinese, and Russian.