Student Financial Aid News
+ Inside Higher Ed: The Education Department's "cohort default rate" — the rate at which student loan borrowers default within 12 to 24 months after they leave college — was initiated in the late 1980s largely to draw attention to institutions seen as preying on low-income students who may struggle to repay their loans. But changes Congress made in 1998 to how the rate is calculated have rendered it a far less useful indicator either of students' indebtedness or of colleges' malfeasance, numerous government and other reports have agreed in recent years.
+ An amendment attached to House of Representatives legislation to renew the Higher EducationAct this month is designed to make the cohort default rate a more realistic assessment of how individual institutions (and lenders) are faring in keeping student borrowers on track to repayment, extending to three years from two the period over which borrowers' defaults are measured. The change, if it becomes law, is likely to significantly raise most colleges' default rates, which could cause problems for institutions that have historically had higher rates of student loan default — most notably for-profit career colleges, but also some two-year and historically black colleges.
+ The cohort default rate was largely born of concern in the mid- and late 1980s about the explosion of trade schools, particularly in cities with large populations of minority and low-income residents, that were seen as trying to build their enrollments (and profits) by enticing academically underqualified students to apply for Pell Grants or guaranteed student loans that they were unlikely to be able to repay — especially if they received a substandard education that did not lead to a good job.
+ The idea was that abnormally high default rates would signify a low-quality institution that was failing to prepare students for work and life,
and that holding colleges accountable for the rates at which their students defaulted on loans — threatening loss of access to federal grant and loan funds for institutions whose rates exceeded 25 percent in three successive years or 40 percent in one year — would weed out fraudulent schools and force other institutions and lenders to take the issue of student debt more seriously.
+ Private student loans are an alternative to Title IV funding, and it's worth investigating a school's graduation and job placement rates before applying
Scholarship Update
+ The Brown Foundation for Educational Equity, Excellence and Research works
+ to foster academic achievement among our nation's young minority scholars and
+ advance educational equity and multicultural understanding.
+ We encourage and assist qualified minority students to pursue a career in education through the Brown Foundation Scholarship Program.
+ Be admitted to a teacher education program. Confirmation of their acceptance is required by the date of the award.
+ Be enrolled at an institution of higher education with an accredited program in teacher education.
+ Be enrolled at least half-time as defined by the higher education institution of attendance.
+ Have a minimum 3.0 grade point average on a 4.0 scale.
+ Submit two recommendations: one from a teacher, counselor, or other school official and one from a person familiar with the applicant's skills and abilities who is not a family member.
+ Details at our free college scholarship search site
Focus on Financial Aid
+ Three options to prevent defaulting on your student loans
+ Deferment
+ Forbearance
+ Student Loan Consolidation
+ Deferment is an entitlement that allows you to postpone your student loan payments for up to 3 years
+ Deferment forms
+ Forbearance is similar but discretionary from the lender
+ Read terms carefully
+ Student Loan Consolidation stretches out the repayment term
+ Monthly savings at higher total cost assuming you only make the minimum monthly payment
+ Student Loan Consolidation strategy - reduce monthly payments for the first few years after college, get on your feet economically, and then make MORE than the original payment OR accept that you will pay more in interest over the life of the loan
Source:-http://www.bostonnow.com/blogs/financialaidpodcast/
2007/12/03/fap681-how-to-avoid-defaulting-on-your-student-loans |
Students financial aid