"Well, that depends."

When you ask a question to a financial aid administrator, what is the usual answer? “Well, that depends.” This is a common joke among the financial aid community, but there is a lot of truth in it. Your financial aid depends on many factors, which include: day or evening program, number of credits, academic status, grade level, and satisfactory academic progress. On top of all that, all of these are subject to state and federal regulations.

The regulations are what really make financial aid so difficult. Financial aid rules change every year, which means staying current on the rules is nearly a job by itself.

The government is so tough on financial aid because they want to keep track of tax payer dollars. The Pell Grants and Direct Stafford Loans come from the pockets of everyone in the form of our tax dollars.

Since there are so many factors that must be considered in financial aid, things take a little bit of time to make sure there are no rules being broken. In life, we must get used to change. Unfortunately for you the student, financial aid can change as often as your socks.

(Originally published in the Metro Business College Arnold Newsletter - April 2011)

New Pell - 2011-12 Award Year

In April, a government shut-down was looming if a deal wasn’t reached on the Federal budget, and after numerous short-term extensions, a deal was finally reached. But what does this mean for you? Out of all the cuts in the new budget, the cut to the Pell Grant program is most significant for our students. The maximum Pell Grant a student can receive won’t change; the maximum will stay at $5550 for the year, so that does not change. So, what’s the big deal?

The award year (beginning July 1, 2011, and ending June 30, 2012) will eliminate the “year-round Pell.” I will use $3000 total in Pell as an example. To understand what this means, you must know that one third of your Pell Grant ($1000) comes to the school each quarter. So, if you attend school during the July, October, and January quarters, then your entire Pell Grant has come in. April is still in that award year, and with a year-round Pell, you can get another disbursement of Pell for April, even though all your Pell has come in already (which would be a total of $4000). The new rules get rid of this extra quarter.

The only good news is that this only affects students who are enrolled for all four quarters between July 1 and June 30 (July, October, January, and April quarters). Hopefully there will be enough done in the next year to allow the year-round Pell to return. If you have any questions about how this will affect you, stop in at the Financial Aid Office for more information.

(Originally published in the Metro Business College Arnold Newsletter - July 2011)

What is an EFC?

If you've filled out a FAFSA before, you might recall seeing an EFC number when your FAFSA was completed. When you submit your FAFSA online or in the FA Office, you will see an EFC. You will also see your EFC when your Student Aid Report gets mailed or emailed to you.

EFC stands for Expected Family Contribution, and this is what you are expected to contribute to your education. The most important thing for you to remember about the EFC is that depending on what your EFC is will determine how much Pell Grant you will receive. The lower the EFC, the more Pell you qualify for; and the higher your EFC, the less Pell Grant you will receive. Each year, the EFC's relation to the amount of Pell Grant changes, so even though your EFC doesn't change from year to year, the amount of Pell you qualify for may change.

Your EFC is also used in determining your need-based loans. Your need-based loans are figured using your Cost of Attendance and subtracting your EFC and any other FA. The resulting amount is the amount of need-based loans you can qualify for.

In case you're curious, your EFC is calculated based on several factors from your FAFSA: AGI, taxes, earned income, untaxed income, tax credits, exemptions, number in household, number attending college, etc. If you are an independent student, you and your spouse's information is used. If you are a dependent student, then your parent's information is used along with yours.

So, as you can see, the EFC is more than just a number!

The Financial Aid Corner

Welcome to the Financial Aid Corner! Financial Aid for college is incredibly difficult to understand and keep up to date. Every year there are changes made which may be completely different than the previous year's rules. Think of the Financial Aid rules like a model of a car and the Department of Education as the car manufacturer. Each year the manufacturer releases a new edition of an existing model, and when they do, sometimes they change very little and sometimes they change a lot. Some models are discontinued, just like some rules are discontinued.

It's difficult to keep up with the rules even if you are in the industry because there are so many rules, you would only want to focus on the rules that deal with your situation specifically. The goal of this blog is to inform you on some of the intricacies of Financial Aid and hopefully to inform you on a wide range of subjects. As mentioned above, Financial Aid can be very complicated: there are exceptions, exceptions to exceptions, and once in awhile exceptions to the exceptions of the exceptions.

And I have to include a few disclaimers:

This blog is meant to inform and educate; it is not meant to be the sole answer for any particular situation. Every person's Financial Aid is unique to them, and therefore may not be fully explained through any post that will be found here. No blog posting should be taken as a cited source for any particular situation. The best thing for you to do as a student is to check with your Financial Aid Office. Rules are unique sometimes from school to school, so the way one school might take care of a situation may not be how another school could. And if you're an FAO checking this blog out, then always go back to the FSA Handbook and the Dept. of Ed. for guidance. I personally always err on the side of caution, so don't quote me, since I don't know everything, but then again, in FA, who does? I should also add that no student names will be mentioned on this blog, although some real situations might be used as examples; however, these real situations will be interspersed with fictional situations. The purpose is to give examples so that you will better understand the topic.

Applying For Student Loan Debt Settlement After

Getting rid of your financial obligations with the debt settlement company that does not affect your ability to apply and receive federal student loans. Federal student loans provided by the government, who did not see your credit report before determining your eligibility. Federal student loans based on your financial or non financial support for the needs of school fees, so you can rest easy knowing that the negotiations to get rid of your debt will not determine whether you will be approved or rejected for student loans.

Debt settlement should not affect your chances for a good private student loans. These types of student loans are usually based on overall credit report and score. As a private student loan lenders see that you're trying to pay off your debt in a reasonable and responsible, they are more likely to consider your application and help you.

When considering a debt settlement company, you should always do research and check the portfolio of several companies, not just one, because there are many places out there want to do business with you. Search the Internet and libraries for information and find out if there was ever any complaints filed by consumers and to ensure that leading companies. Call the company to find out how long they have been in business and ask lots of questions. This is probably a good idea to write down a list of questions before calling to make sure that you do not go out questions that you may want to answer.

By the way, to examine and compare the best debt settlement services in the market, you will be able to determine the one that meets certain financial situation. However, be advised by a trusted reputation and debt counselor before making a decision, this way you will save time through specialized advice from seasoned debt counselor and money by getting better results in a shorter time frame.

Hector Milla

Bad Credit Student Loans - Get Approved Today

If you are looking for a student loan and you have bad credit is important to know that you can get approved today. With a low credit score you will pay a higher interest rate, but getting a loan may be important to you. One way to get interest rates lower is to work on lowering your credit score and can be easier than you think. The first thing you want to do is get your credit report from all three major credit agencies. Once you've scanned through and check the accuracy then you need to submit any dispute so they can remove any items that should not be there.

This can be difficult if you are a student and you try to pay the school to get a loan you can afford. You may have to walk through some tough points with your credit, but that does not mean that you can not obtain the loan money you need to get an education. You want to make sure that you get interest rate quotes from several different lenders so that when you get your loan you can find the lowest option. You may also want to check with federal grant money that can be available to you before you apply for a loan.

Remember that the search for student loans can be easier than you think even if you have bad credit. You will pay a higher interest rate but have the money you need to get the most important education. Using several methods to improve your credit score can be the best way to find low interest loans that would accessible to you.

By Bryan Burbank

Student Loan Alternative - Do You Need Extra Money For College?

Are you trying to pay for college, and you can not get enough money from regular financial aid? Do you need extra money for tuition, books, fees, and living expenses? There are ways that you can get more money with student loan alternative student loan if you know where to look. Here are some tips to help you.

First, when you are looking at your budget and find out how much money you need for your college should always be more than hype. This is important because if you just assume you'll be fine on what you need, then how would you deal with unexpected expenses like car repairs or trips to the hospital.

Second, the alternative education loan you can get extra money to help you so you do not have to work and you can concentrate on your studies. There are various types of alternative student loans out there for you and all you really need to do is talk with the financial aid office to find out what you can qualify for.

Finally, when it comes to all types of loans for the school is important that you ensure that the loan does not have to be paid back until you've graduated. They should make some kind of grace period after graduation before they start asking you to pay your student loans. This is important because you do not want to stress this when you take the class.

By Chad Wistick