About.com Saving for College

Bank of America Bailing on FFEL Student Loans

Sat, 07 Nov 2009 01:28:52 +0000

According to a Reuters report, Bank of America is bailing on the FFEL program. According to the Reuters article, this represented $4.8 billion in loans in 2008, making�Bank of America�the fourth largest FFEL lender in the country.

Bank of America's decision to exit the student loan business apparently comes ahead of the Obama administration's plan to focus its efforts on direct lending.

Bank of America Bailing on FFEL Student Loans originally appeared on About.com Saving for College on Saturday, November 7th, 2009 at 01:28:52.

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College Savings Tips for Parents Starting Late

Thu, 05 Nov 2009 23:50:57 +0000

It seems that whenever I'm out speaking�about�saving for college, I hear parent after discouraged parent tell me that their child is in their teens and that they feel like it is too late to start saving for college.

Of course, considering the overwhelming cost of college, nothing could be further from the truth. Even saving a small amount for a year or two can pay for a semester of tuition or a couple years of books. That ultimately equals less money out of pocket during college and�lower student loan balances at graduation.

Here are�the top five (of many) tips I offer to parents getting a late start:

Consider prepaid tuition plans
Ask for Section 529 gifts
Sign up for UPromise
Re-evaluate your whole life insurance policy
Consider two years of community college

To understand the rationale behind these tips, check out my full-length article on the same topic.

College Savings Tips for Parents Starting Late originally appeared on About.com Saving for College on Thursday, November 5th, 2009 at 23:50:57.

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Senate Votes to Extend Homebuyer Credit - Potential College Planning Opportunity

Wed, 04 Nov 2009 21:31:09 +0000

The Senate voted 98-0 today to extend the deadline for the first-time homebuyer credit. Prior to the vote today, the credit was expected to expire November 30th, 2009.

If the House of Representatives also approves the bill and the President signs off on it, the deadline to purchase a new home and claim the $8,000 credit will be extended to contracts signed by April 30th, 2010.�

Even better, the new legislation if approved will potentially allow�homebuyers�that have previously owned a home�in the last five years to claim a $6,500 credit on new purchases.

What�could�all this have to do with paying for college?

A whole lot. For parents who are considering downsizing their empty nest, or that are getting back on their feet towards the end of this recession, $6,500 - $8,000 can easily pay for a full year of college at many schools.

So, if this bill becomes law, parents planning on buying a home in the next six months should talk to a tax preparer about when they can expect a refund and what size it'll be. Knowing this ahead of time may keep a parent or student from taking out loans, tapping�their 401k to pay tuition, or withdrawing from a higher priced school.

Senate Votes to Extend Homebuyer Credit - Potential College Planning Opportunity originally appeared on About.com Saving for College on Wednesday, November 4th, 2009 at 21:31:09.

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RIP - Michigan Financial Aid Programs

Tue, 03 Nov 2009 12:21:32 +0000

Chalk up another casualty for the Great Recession.

According to StateNews.com�and other sources, Governor Granholm of Michigan has killed (with applause from many), roughly 61% of the college financial aid offered by the state of Michigan to its students. In doing so, Granholm avoided a budgetary shutdown of the state government.

Steamrolled by Granholm's pen were:

The Michigan Promise Program
The Part-Time Independent Study Progrm
Michigan's Educational Opportunity Grant Program
The Michigan Work-Study Program

With similar discussions and actions being taken in numerous states, along with the�potential restructuring of Federal student loan programs, it�serves as�a harsh reminder that parents should not count on the government to fund their child's education. A deliberate savings strategy is more important now than it ever has been.

RIP - Michigan Financial Aid Programs originally appeared on About.com Saving for College on Tuesday, November 3rd, 2009 at 12:21:32.

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Over $200,000 in New Colorado Scholarships Offered through CollegeInvest

Mon, 02 Nov 2009 00:38:05 +0000

CollegeInvest, a non-profit division of the Colorado Department of Higher Education, is offering 65 scholarships to Colorado students for the Fall 2010 school year. The deadline for applications is April 1, 2010.

These Colorado scholarships fall into two categories:

$6,000 Service Scholarship (27 available)
$1,000 Opportunity Scholarship (38 available)

Best of all, neither of these Colorado scholarships has a GPA requirement or requires an essay. In fact, it only takes a few minutes to determine your eligibility and to enter.

To learn more about these programs, visit CollegeInvest.org and read the official press release.

Over $200,000 in New Colorado Scholarships Offered through CollegeInvest originally appeared on About.com Saving for College on Monday, November 2nd, 2009 at 00:38:05.

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Baylor University and the College Tuition Bubble

Sat, 31 Oct 2009 18:04:38 +0000

Like all good bloggers, I've got Google alerts set to catch anything and everything that is related to the intersection of my subject area, in this case money and college. So, I couldn't help but notice the irony when I got an alert containing both an article about Baylor University increasing their tuition by 6.5% and another about the possibility that�rising tuition rates are a bubble about to pop.

Personally, I'd love to see the tuition bubble burst. I'm all in favor of both a college degree and financial aid, but I truly believe that the return on investment is decreasing rapidly as both tuition and the number of graduates rise.

The article on the tuition bubble is by a guy name David Bacon, a.k.a. The Quantum Pontiff.� Give it a look.

Baylor University and the College Tuition Bubble originally appeared on About.com Saving for College on Saturday, October 31st, 2009 at 18:04:38.

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GDP Rises 3.5% in 3rd Quarter - Is The Recession Over?

Thu, 29 Oct 2009 23:43:49 +0000

The Gross Domestic Product for the United States, a key measure in many people's determination of whether or not the economy is in a recession, rose 3.5% in the 3rd quarter of 2009. While many argue that such a robust increase paired with other financial good news is a sure sign of recovery, others are not so sure.

As far as I'm concerned, the idea of declaring whether we're in a recession or not, is far too wide of an analysis. The reality is that sectors of the economy and certain geographic areas are doing quite well. Simultaneously, other sectors of the economy are still taking it on the proverbial chin.

Since the term "recession" is becoming more and more arbitrary, my advice in determining the answer is simple. Ask yourself, for you, whether or not the recession is over. Then, listen to what your gut tells you and realize that people with long-term financial plans don't frantically adjust them or their investments in response to a word that has become as arbitrary as "recession."

GDP Rises 3.5% in 3rd Quarter - Is The Recession Over? originally appeared on About.com Saving for College on Thursday, October 29th, 2009 at 23:43:49.

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Three Year College Strategies - Newsweek Magazine

Mon, 26 Oct 2009 00:27:34 +0000

I was sorting through this last week's mail when I came across an interesting�Newsweek article. The article examines the growing trend of students embracing a three year college graduation plan. As it turns out, more and more schools are open to the idea as well.

Interestingly enough, a number of education experts are decrying the idea of colleges formally switching over to a three year graduation program. Their argument is based on the belief that four years of college are needed for students to fully mature. Of course, some critics (myself included), think that four years only yields one more year of acting immature for many college students.

You can read the entire article on Newsweek.com.

We want to know what you think... Is a three year college plan something you'd consider for your child?

Three Year College Strategies - Newsweek Magazine originally appeared on About.com Saving for College on Monday, October 26th, 2009 at 00:27:34.

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Reader Question - How Do I Calculate My Rate If I Consolidate My Student Loans?

Sun, 25 Oct 2009 23:55:20 +0000

A reader recently asked, "How do I calculate my interest rate if I consolidate my student loans?"

Well, in short, the consolidated rate on eligible loans is actually just a weighted average of your previous rates. In other words, they simply blend your existing rates together proportionately. A student loan consolidation�doesn't really lower your cost of borrowing unless you have PLUS loans with a rate over 8.25%, which is maximum rate you'll pay under consolidation.

To save you the trouble of doing the math, the Department of Education has put up a very easy-to-use student loan consolidation calculator.

Reader Question - How Do I Calculate My Rate If I Consolidate My Student Loans? originally appeared on About.com Saving for College on Sunday, October 25th, 2009 at 23:55:20.

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UPromise Adds New Partners - UGG Boots, Simple Shoes, Costco and More!

Sat, 24 Oct 2009 22:23:24 +0000

Just in time for the holiday season, UPromise.com has added a plethora of new merchant partners to help parents earn college tuition when they shop. Take a look at the list below and see if there's an opportunity to turn your holiday shopping into tuition dollars.

UGG Boots - 6%
Simple Shoes - 8%
Nine West - 6%
Costco - $2 per membership
Anne Klein - 6%

To see the entire list of�new partner stores, visit UPromise.com.

UPromise Adds New Partners - UGG Boots, Simple Shoes, Costco and More! originally appeared on About.com Saving for College on Saturday, October 24th, 2009 at 22:23:24.

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