Student Loan Blog : federal student aid

Wyoming’s Largest Student Lender to Stop Making Student Loans

Student Loan Girl — Mon, 02 Nov 2009 15:02:00 GMT

Nonprofit Wyoming Student Loan Corp., the state’s largest student loan lender, has announced that, as of April 1, 2010, it will no longer be issuing any new parent or student loans.

In a statement from president and CEO Phil Van Horn, the company, also known as WyoLoan, said that it will continue to fund any student loans that are already approved for the current 2009–10 academic year and for which all loan proceeds will disburse by March 31, 2010 (WyoLoan announcement of student loan suspension, Oct. 20, 2009).

“WyoLoan is making this announcement at this time so that any student who has applied or who may apply for a loan and for which funds would be released after March 31, 2010, can make other arrangements through their respective school financial aid offices,” the statement reads. “At the present time, we estimate the number of students who will have to resubmit applications to be less than two dozen.”

The company will also continue servicing its current 25,000 customers who already hold student loans, which total $350 million, The Associated Press reported (“WyoLoan to Stop Making Student Loans,” Oct. 30, 2009).

In the lender’s 30-year history, the company website says, WyoLoan has issued over $1 billion in education loans to more than 75,000 students and parents.

Congress Considers the End of the Road for Student Loan Lenders

The company’s decision comes in response to proposed federal legislation moving through Congress that would put an end to the federal student loan program known as FFELP (Federal Family Education Loan Program), which allows private third-party lenders like WyoLoan to issue government-backed student loans.

Currently, the government pays these private FFELP lenders a subsidy for the federal parent and student loans they originate. A second federal student loan program — the Federal Direct Student Loan Program, begun in 1992 — issues federal student loans directly to borrowers through the U.S. Department of Education, with no third-party involvement from a bank or other FFELP lender.

Under the proposed legislation, known as the Student Aid and Fiscal Responsibility Act (H.R. 3221), all federal parent and student loans would become Federal Direct loans, issued directly to borrowers through the government rather than through third-party FFELP lenders — effectively putting most private lenders like WyoLoan out of business.

President Obama has been a vocal backer of the SAFRA bill, maintaining that FFELP subsidies funnel government money to banks and away from students. Supporters claim that the elimination of FFELP subsidies will generate $87 billion in savings to taxpayers over the next decade.

Critics, however, dispute this savings figure and say that the legislation amounts to a government takeover of student loans, stripping students of their right to choose their own lender.

Wyoming’s congressional delegation has come out alongside WyoLoan against the SAFRA bill.

The bill was approved by the House of Representatives on Sept. 17 and now awaits a Senate vote.

Should the measure fail to pass, Van Horn said, WyoLoan will consider lifting the suspension of its student loan program.

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$1M Awarded to Unnamed Whistleblowers in Federal Student Aid Suit

Student Loan Girl — Fri, 24 Apr 2009 21:22:00 GMT

Alta Colleges, operating 17 campuses in six states, recently settled a lawsuit involving student-aid fraud allegations and has agreed to pay the federal government $7 million, The Chronicle of Higher Education reports (“Proprietary College to Pay $7-Million to Settle Federal Student-Aid Charges,” April 20, 2009).

Unnamed whistleblowers filed the suit, which alleges Alta Colleges made false claims to be eligible for federal student aid, under the False Claims Act. The act allows individuals to sue on behalf of the federal government and get a portion of a suit’s monetary settlement, in this case, about $1.19 million.

The suit accuses Denver-based Alta Colleges Inc. of improperly obtaining a state license to operate in Texas under the name Westwood Colleges by lying that its campuses complied with state requirements on job-placement reporting.

To obtain the licensing, Alta claimed that more than 90 percent of its students received jobs after graduation when the actual figure was 54 percent and only about 33 percent of Alta graduates were actually placed in positions by the school, reports The Associated Press.

Alta was also accused of misrepresenting its interior design program, The Chronicle reports, saying that its program complied with professional interior design industry licensing requirements when it did not.

George Burnett, Alta CEO, assured school faculty and staff by letter that the company believes it had acted lawfully, but chose to settle with the government due to the projected cost and time involved in litigation.

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Despite Down Economy, College Student Aid Still Thriving

Student Loan Girl — Tue, 24 Mar 2009 00:18:00 GMT

In economic downturns, colleges and universities become flooded with students of all ages looking to better prepare themselves for an increasingly competitive job market. But these schools haven’t been immune to the effects of today’s recession.

Fortunately, for every recent economic downturn in higher education — tuition hikes, state budget cuts, scholarship and grant cutbacks, and a fluctuating student loan market — there’s also been a tangible upside (“Glimmer of Hope for Student Aid in a Bad Economy,” USA Today, March 19, 2009).

Tuition Assistance

Downside: Public colleges have increased tuition by 4 percent per year over the past 10 years, and many schools are set to bump up tuition even more this year as they face unprecedented state budget cuts.

Upside: Federal stimulus money should help some public colleges to better cope with the loss of state funding and to minimize any increases in tuition. The state of Maryland is hoping to go a fourth-straight year without in-state tuition increases. Other colleges are offering one-time deals to students; Kent State University in Ohio is offering laid-off workers a one-time tuition and application waiver at its Trumbull campus, and Manchester College in Georgia is offering to refund one year of tuition for students who aren’t able to secure a job or admission to grad school within six months after graduation.

Institutional Aid

Downside: Trouble in the stock market has caused colleges’ endowments to drop 25 percent in value this year, which has severely hampered schools’ ability to offer scholarships.

Upside: Despite their endowment losses, more than 90 percent of the nation’s private colleges and universities will be increasing financial aid next year by 9.8 percent to make up for 4-percent tuition increases, according to the National Association of Independent Colleges and Universities.

Government Grants

Downside: Aid for merit scholarships has taken one of the biggest hits this year, primarily due to state budget cuts.

Upside: The federal stimulus package has increased the maximum award for Pell Grants — federal financial aid for low-income students — from $4,731 to $5,350 for the coming academic year and to $5,500 for the 2010–2011 academic year. And, an additional 800,000 students are expected to receive Pell Grant funding this year.

Federal Student Loan Programs

Downside: The $50 billion Federal Family Education Loan Program — the government program that provides federal student loans to more than 10 million students through third-party lenders — has been the larger of the two federal student loan programs. But over the past two years, the FFEL program has lost business to the Direct Loan Program, the government’s other federal student loan program through which the U.S. Department of Education provides federal student loans directly to families, as hundreds of cash-strapped FFELP lenders have been forced to exit the program.

Upside: The FFEL program has still managed to increase its student loan volume this year, and some lenders are returning to the student loan market now that the federal government has bought nearly $25 billion in lenders’ student loan securities, providing them with the capital to make new loans. The Direct Loan Program has picked up the slack, providing an additional $7 billion in lending this year.

Private Student Loans

Downside: The overall supply of capital for private student loans is estimated to have decreased by one-third — a decrease of between $6 billion and $7 billion — due in large part to the fact that lenders have made it harder for families to qualify for private student loans.

Upside: Increased government funding for federal Stafford student loans has helped to reduce students’ reliance on private student loans. And more students are maxing out their federal financial aid before turning to private student loans, which the USA Today suggests has helped students avoid over-borrowing in private student loans.

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Note to Families: Financial Aid More Competitive, But Not Out of Reach

Student Loan Girl — Tue, 27 Jan 2009 00:09:00 GMT

With more families applying for financial aid — applications are already up 10 percent above last year’s record — and lending for private student loans drying up, families’ ability to find available financial aid is becoming more difficult, reports the Associated Press (“College Financial Aid System Facing Stiff Test,” Jan. 25, 2009).

Traditional sources of college funding are no longer available: Home values are dropping, making it difficult for families to get a home equity loan, college savings accounts are dwindling, and private lenders are leaving the student loan market.

Currently, only 21 of the 60 third-party student loan lenders who issued $19 billion in federal and private student loans last year are still lending, and most of the lenders still issuing loans have severely tightened their credit criteria, according to Finaid.org, a college funding resource site.

Families face limited financial aid options at a time when state funding shortages have forced numerous state colleges to cut their financial aid budgets and replace grants and scholarships with student loans in their financial aid offers. Colleges are also increasing tuition, in some cases, by double digits.

“There are no sure answers because we’re in new territory,” said Bruce Hammond, a college admissions consultant based in Washington, D.C. “But students with high need and lesser credentials are going to have to brace themselves for less aid.”

Financially Needy Students Should Know Their College Funding Options

While the financial atmosphere for college students and their families may seem more dismal this year, things “are not as scary as people might think,” says Lauren Asher of the non-profit California-based Institute for College Access and Success.

Students and parents can take advantage of expanded federal financial aid offers. The U.S. Department of Education has already made $95 billion in grants, loans, and work-study assistance available to nearly 11 million students and families and Congress has increased annual borrowing limits for unsubsidized Stafford student loans, which are not tied to financial need, by $2,000. And President Obama’s proposed stimulus package could offer families even more financial aid.

Cash-strapped families and students could consider attending lower-cost public schools and community colleges to avoid taking on large amounts of debt. On average, tuition and fees at a two-year public school cost about $2,300, while tuition and fees at a four-year public school cost about $6,000, according to the College Board.

And while a number of the nation’s top colleges and universities, including Harvard , Yale, and Duke, have seen their endowments take a huge hit this year, none of these schools have gone back on their commitment to offset their high tuition costs by extending financial aid offers to a greater number of low- and middle-income families.

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Univ. of Phoenix Accused of Manipulating Its Default Rate

Student Loan Girl — Wed, 14 Jan 2009 23:39:00 GMT

Three former University of Phoenix students are suing the for-profit higher education giant for using a questionable loan repayment practice that skews the university’s default rate and takes away federal student loan repayment options from students who withdraw from the school, according to The Chronicle of Higher Education (“Lawsuit Accuses U. of Phoenix of Protecting Its Default Rate at Students’ Expense,” Jan. 14, 2009).

The lawsuit, which could soon reach class-action status, alleges that the university’s ”payback” policy is designed to manipulate the school’s default rate — the percentage of a school’s students who stop repaying their loans. Under the current policy, the school “pays off” students’ federal college loans without students’ knowledge or consent after they have withdrawn from the institution. The University of Phoenix then attempts to improperly collect on the paid-off loans directly from the students “under terms more onerous than those of the original federally guaranteed loans.”

By canceling the federal student loan debt of students who withdraw from the school, the University of Phoenix, which has one of the lowest default rates among the nation’s for-profit colleges, effectively prevents those loans from being considered in its default rate.

Statistics suggest that students who withdraw from school are more likely to default on their student loans, and the more borrowers a school has who go into default thereby increasing its default rate, the more likely the school is to lose its ability to participate in the federal student loan program, among other restrictions.

Students Lose Repayment Benefits Under ‘Payback’ Policy

According to the lawsuit, the university’s payback policy harms students by preventing them from being able to take advantage of generous loan repayment terms offered by the federal student loan program, which include below-market interest rates and longer repayment terms and grace periods.

Students who must repay the University of Phoenix directly are “routinely bombarded with calls, letters, and e-mails from [the university] to collect tuition along with threats that refusal to pay will result in referral to collection agencies and negative reports on their credit.”

The lawsuit seeks actual and punitive damages on behalf of thousands of borrowers affected by the university’s repayment practice over the past four years, as well as an injunction barring the university from continuing its current payback practice, which could affect numerous other for-profit colleges that use similar practices, the Chronicle reports.

In a statement, the University of Phoenix said that the students bringing the lawsuit have “misconstrued” the Higher Education Act, and that the U.S. Department of Education had determined in January 2008 that the school’s refund policies were compliant with federal student aid rules.

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For-Profit Colleges Face Expulsion from Federal Student Aid Program for Awarding Too Much Aid

Student Loan Girl — Fri, 25 Jul 2008 18:50:00 GMT

Under new federal legislation, many students at for-profit institutions have seen the amount of their Pell and federal student loan awards increase and a larger number these students have been able to cover all their college costs with just these two types of federal financial aid, according to an article in The Chronicle of Higher Education (“For-Profit Colleges Seek Fix for Student-Loan Problem,” July 25, 2008).

However, school administrators fear that with the growing number of students able to take out larger amounts of federal student aid, these for-profit institutions may run afoul of the federal requirement that at least 10 percent of a school’s revenue come from non-federal sources.

If more than 90 percent of a for-profit institution’s revenue comes from federal sources, these colleges may become ineligible to participate in federal student-aid programs, and students may be required to pay for college with more costly funding sources like private student loans or credit cards.

Lobbyists for these for-profit institutions are working with Congressional leaders to alter and renew the Higher Education Act to resolve this issue so that students may still be able to receive greater amounts of federal aid without jeopardizing the federal student-aid programs in place at for-profit schools.

Though Congress is preparing to break before the 2008 elections, lobbyists are hopeful that their addendum will be added to the final version of the bill, which may be voted on before the end of the current legislative session.

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College Student Aid May Soon Be Disbursed by Debit Cards

Student Loan Girl — Tue, 24 Apr 2007 22:04:00 GMT

According to the April 23, 2007 article by Paul Basken, titled “New Rules Are Designed to Streamline Flow of Federal Student Aid to Colleges and Students” that appeared in The Chronicle of Higher Education:

“Representatives of the U.S. Education Department, colleges, higher-education associations, and business have agreed on a package of rule changes designed to streamline the flow of federal student aid to both colleges and students.

“The package, which a panel of negotiators approved without dissent on Friday, includes provisions to encourage institutions to make greater use of bank debit cards to distribute money to their students.”

Bank Cards to Modernize System, Provide Quicker Service

This is a wonderful development, one which hopefully will be implemented. Soon, we may be able to welcome federal student aid into the 21st century. So far the changes have received support of student advocates and those who are the watchdogs of the federal student aid industry.

The article reported, “Student advocates back the change, even though it might give colleges the ability to hold their funds somewhat longer, said Rebecca Thompson, a member of the negotiating panel who is legislative director of the United States Student Association.

“‘It is so efficient and effective’ to use the bank cards in place of the current system in which many colleges send checks to students, Ms. Thompson said.”

Apparently, the money that the students may receive via debit cards will be used for expenses above and beyond tuition, and will include certain protections for students, as reported in the article:

“The money provided to students represents the difference between the federal grant and loan money they receive and the amount that the college keeps for tuition and fees. That remainder is used for purposes like room and board.

“The proposed new rules include protections for the students such as a requirement that the bank cards be widely usable, without withdrawal fees, said Brian Kerrigan, who led the negotiations for the Education Department.”

According to the article, Basken summarized other approved rule changes that would affect students:

· “The agreement also changes the schedule by which the Education Department will release grant and loan funds to colleges for students who are attending less than full time.”

· “The new rules also reduce the amount of federal money that the colleges can keep on their books without either giving it to eligible students or returning it to the Education Department.”

· “The rules approved Friday also revise the calculation of Pell Grants to help colleges with unusually short terms.”

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Tuesday for my next blog about this week in student loans.

Student Loan Girl

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Adult Students Forgo Federal Aid; Use Cash for College

Student Loan Girl — Fri, 02 Mar 2007 19:15:00 GMT

The raging debate across the nation is college affordability/access and the escalating cost of attending college. With many bills pending approval and yet to become law, the U.S. population is becoming more educated regarding college aid legislation and what actually could happen if these bills become law.

Whatever occurs, it appears that students may not be getting as much federal aid help as originally anticipated. As I recently found out though, not every college student depends so heavily on federal aid. This specifically applies to the adult education market, or those engaging in continuing education and professional programs.

Only 28 Percent of Adult Learners Depend on Federal Aid

According to the Feb. 27, 2007 article by Elyse Ashburn titled “Adult Learners Tend to Rely on Cash and Employer Assistance to Pay for College, Survey Finds” that appeared in The Chronicle of Higher Education:

“Most students in adult, continuing-education, and professional programs at American colleges and universities rely on personal savings and employer-provided tuition assistance to pay for their education, according to a new report based on a survey of 25,000 current and prospective students.

“Of those surveyed, 50 percent said they used or planned to use cash and nearly half (48 percent) said they used or planned to use tuition assistance to pay for at least part of their college courses, while about a quarter identified federal student loans (28 percent) and scholarships (22 percent) as financial resources. Responses in those categories overlap because most of the respondents used at least two financial sources.”

Survey Implications, Suggestions

Obviously, the survey is not conclusive, but what I got out of it was that there is a large segment of the college student population that largely disregards federal funding or student loans. Instead, they opt to use cash savings and tuition assistance from their employers. While this is not the answer for the current college funding problems facing the average college student, it is certainly an interesting twist.

Sean R. Gallagher, a program director and senior analyst at Eduventures Inc., said that “State and federal policy makers also should consider tools, like tax-exempt saving accounts, that would better assist adult learners in saving for lifelong learning,” according to the article.

In an earlier blog, I talked about how beneficial I believe that tuition tax credits and incentives will prove to be down the road. This new idea of tax-exempt savings accounts for college is another fantastic suggestion that, if combined with the other tax incentives, could go a long way in actually helping college students.

Other Survey Points According to the Article:

· “Generally, students’ reliance on cash savings and tuition assistance, rather than federal or private loans, increased along with their income.

· Most students taking courses for personal enrichment or to change careers used cash savings (60 and 57 percent, respectively), while the biggest share (41 percent) of students interested in completing a degree used federal loans.

· Workers in the utilities, manufacturing, and mining industries were the most likely to have employer-provided tuition assistance, while those in retail; arts, entertainment, and recreation; and accommodations and food services were least likely to receive tuition assistance.

· By field of study, students in subjects related to engineering, transportation, or business were the most likely to receive employer assistance.”

The student loan advisers at NextStudent are helpful and knowledgeable about student loans. They are a trusted source in getting you the appropriate information about your student loan consolidation, student loan options and helping students get the college financing they need. Go to www.nextstudent.com for more information.

Be sure to tune in next Thursday for my next blog on student loan advice.

Student Loan Girl

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U.S. Education Department’s Official on Accreditation Leaves Job

Student Loan Girl — Mon, 29 Jan 2007 22:06:00 GMT

According to a Jan. 29, 2007 article titled “U.S. Accreditation Official Out of a Job” written by Doug Lederman that appeared in Inside Higher Ed, John W. Barth, the director of accreditation and state liaison at the Department of Education, has transferred to a position at the Federal Student Aid Ombudsman’s office. The article said, “The department’s official stance, through a spokeswoman, was only this terse statement: ‘John Barth has accepted a new position at FSA.’ Another department official framed Barth’s decision as routine and his choice, but the available evidence overwhelmingly suggests otherwise.”

Although the move looks routine it has raised suspicions because of its timing and its abruptness. Lederman reported, “Barth’s shift comes in the wake of some publicly visible conflict over the department’s approach to accreditation. In the wake of the report of the Secretary of Education’s Commission on the Future of Higher Education, the department’s top officials have pushed aggressively on a range of fronts to carry out its recommendations, particularly those that would require colleges to better measure and report how much their students learn.

Department officials have focused significant attention on accreditation as a wedge for doing that, because changes in accrediting standards — some of which department leaders believe can be accomplished without the need for new laws or rules (and therefore without the approval of Congress) — have the potential to directly influence hundreds or thousands of colleges.”

National Advisory Committee on Institutional Quality and Integrity

The Department of education holds a semiannual meeting “that reviews and regulates accrediting agencies,” the article said. “In the months before each meeting, the Education Department’s staff prepares a report on each accrediting group up for review, and the advisory panel uses those reports as the starting point for its own deliberations about whether to renew the group’s authority to operate. As the top career staff person (which in Washington parlance means not a political appointee) on accreditation issues, Barth oversaw those staff reviews,” Lederman reported.

More interesting, the article said that, “three accrediting agencies discovered that their staff reports had been rewritten to add new issues or significantly change the findings against them, all in ways that left them in hot water. In two cases, involving the Western Association of Schools and Colleges and the American Academy of Liberal Education, the agencies were confronted with heightened requirements about how they measure student learning; in the other, the American Bar Association’s accrediting arm was told that it faced punishment if it did not alter a standard it used to ensure racial and ethnic diversity among law school student bodies.”

Changes in the Political Climate

There really is no hard evidence as to why Barth was transferred to a new position. However, with so many changes in Washington it may be due to new political pressures. Lederman reported, “The suddenness of his departure — and the fact that it came about so quietly — is widely seen as evidence that the department’s political leaders are moving as aggressively as they can, through any and all avenues available to them, to bring about the changes they want in accreditation, and in higher education generally.

‘Any administration has the legal authority to move a senior civil servant from one job to another,’ said Terry W. Hartle, senior vice president for government and public affairs at the American Council on Education. ‘What causes concern in this case is the fear that someone who was tough but fair will be replaced with someone who is tough and unfair.’”

The article reported that Hartle said, “The simultaneity of this change coupled with the initiation of negotiated rulemaking before Congress has acted on reauthorization suggests that the department is very anxious to impose a new agenda on accrediting agencies.”

Accreditation ensures that institutions of higher education meet acceptable levels of quality. There are agencies that oversee accreditation and those agencies are then overseen by the U.S. Department of Education. Changes in accreditation could affect the types of federal loans for which colleges qualify, especially online institutions; therefore it is important to check a college’s accreditation before enrolling.

It is important to keep up to date on all the news regarding student loans and education.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Monday for my next blog on student loan issues in the news.

Student Loan Girl

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U.S. Rep. Ruben E. Hinojosa, D-Texas, to Lead U.S. House’s Higher-Education Panel

Student Loan Girl — Tue, 23 Jan 2007 16:13:00 GMT

According to an article titled “Texas Democrat Will Lead U.S. House’s Higher-Education Panel,” written by Kelly Field that appeared in the Jan. 19, 2006 edition of The Chronicle of Higher Education, “one of the chief Congressional champions of higher-education programs for Hispanic Americans,” U.S. Rep. Ruben E. Hinojosa, D-Texas, “will head the House of Representatives’ subcommittee on higher-education policy in the 110th Congress.”

Hinojosa, according to the article, “is best known for his efforts to expand federal assistance for Hispanic-serving institutions.” He was elected to Congress in 1997 and since that time, spending on Hispanic-serving institutions “has grown from $12-million to nearly $95-million annually.” The subcommittee, formerly known as the “Subcommittee on 21st Century Competitiveness,” recently was renamed “Subcommittee on Higher Education, Lifelong Learning, and Competitiveness.”

As part of his appointment, Hinojosa, according to Field, is “expected to push for passage of legislation that would amend the Higher Education Act to create a new grant program for graduate programs at Hispanic-serving institutions. Mr. Hinojosa is the chief sponsor of that bill, HR 451, which was introduced last Friday.”

Expectations for New Role

Expectations of positive change are high when it comes to Hinojosa’s election to his new post, especially in light of past achievements and accolades. However, in the article Field wrote, “it’s unclear how Mr. Hinojosa might seek to shape the reauthorization of the Higher Education Act, the law that governs most federal student-aid programs. Congress has made halting progress on renewing, or reauthorizing, the law over the past several years. The House approved its latest reauthorization bill in March, but the Senate never completed work on its version of the bill.”

Election Came As a Surprise

Although Hinojosa “has served on the House’s education panel for nine years, he is a newcomer to the higher-education subcommittee” according to Field. In the past he has served on the “Subcommittee on Select Education” and on the “Subcommittee on Education Reform.”

Field also reports about Hinojosa. “His election as chairman of the higher-education subcommittee came as a surprise to some higher-education lobbyists, who had expected the post to go to either Rep. Robert E. Andrews of New Jersey, or Rep. Lynn Woolsey of California, who are more senior on the committee. But both legislators chose to lead other subcommittees, leaving higher education to Rep. Hinojosa, the next in line.”

Check out my blog tomorrow for more information about student loan news and changes in Congress that relate to higher education in the United States. With the 110th Congress not quite halfway through its first 100 hours, daily changes are sure to occur.

It is important to keep up to date on all the news regarding student loans and education.

Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Monday for my next blog on student loan issues in the news.

Student Loan Girl

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Give Yourself the Best Shot at Federal Student Aid: Submit FAFSA Soon After Jan. 1

Student Loan Girl — Mon, 11 Dec 2006 20:36:00 GMT

Students are winding down their winter term and starting to breathe a little easier knowing that finals soon will be out of the way. Early January marks the beginning of a new term as students return to college after the holidays. Jan. 1, 2007 is an extremely important date, but it probably is not what you are thinking. It is not the excuse to find the best New Year’s Eve party and hang with the coolest people. Rather, it is the date after which you may submit your FAFSA (Free Application for Federal Student Aid).

Although the official deadline for submitting a FAFSA varies from state to state, it is a great idea to complete it well ahead of time, say during your winter break. That way, once Jan. 1 rolls around you will be adequately prepared. The reasoning is that the sooner you submit your application, the better your chance of receiving the financial aid you need. Since need-based financial aid is limited and a lot of it is on a first-come, first-serve basis, if you wait until the last minute you may not get what you need.

Get Prepared Early

Here are some things you can do that makes filling out your FAFSA much easier:

1. Complete a pre-application work sheet. Filling out this non-submittable form will help you to complete the FAFSA. Go to: http://www.fafsa.ed.gov/fafsaws78bw.pdf.

2. Get these documents together: Social Security number, driver’s license, W-2s, Federal Income Tax Return (dependent students only), untaxed income records, bank and mortgage statements, business and investment records, and alien registration card (if you are not a U.S. citizen).

3. Apply online: While you still can apply through the mail, it is best to do it online at www.fafsa.ed.gov.

Advantages to Completing Your FAFSA Online

· The answers you input are checked before you submit your application automatically by FAFSA on the Web. That way, it is less likely your application will be rejected because of conflicting or missing information.

· You can complete your application and make all the changes you need online. When you are ready, you hit a button to submit.

· You will get your SAR (Student Aid Report) more quickly than if you submitted through the mail.

What Happens Next

Once you apply online, you then will receive a confirmation that your application has been received. Shortly after that, say March or so, you will receive your SAR. Be careful to take your time reviewing this document, ensuring there are no errors, and make any changes online via FAFSA Corrections on the Web. Around May you will need to apply for specific federal aid, such as Stafford Loans, PLUS Loans for Parents or PLUS Loans for Grads. NextStudent, www.nextstudent.com, makes the application process simple and you can do it all online.

Get the NextStudent Advantage With Your Stafford or PLUS Loan

· Generous cash rebates and interest rate reductions. You can contact NextStudent at 1 (800) 299-4639 to find out the particulars.

· Personal service. You will be assigned a personal Education Finance Advisor (EFA) who will guide you through your college funding experience.

· Private loan solutions. When you have exhausted your federal fund options, your personal EFA can suggest the best way to cover your shortfall with a private student loan from NextStudent.

It is important to keep up to date on all the news regarding student loans and education.

Talk to the education financial advisers at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.

Be sure to tune in next Monday for my next blog on student loan issues in the news.

Student Loan Girl

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