Help with College Costs at Sallie Mae

Sallie Mae, the largest provider of student loans in the country, announced today an offer that no family preparing for college admissions should miss.

A new website, at Sallie Mae, aims to help alleviate fears and provide answers. “We have helped more than 21 million Americans achieve the dream of a college education, and we do not intend to let this economy keep us from helping you achieve yours.” They’re not only offering detailed responses to frequently asked questions, but on Wednesday (February 25), Sallie Mae has a toll-free hotline open from 6pm – midnight EST. In addition, you can submit questions directly to the site, get email updates when new answers are posted, and download a free podcast that explains how to complete the FAFSA (the federal financial aid application).

Finally, there are two 45-minute webinars that explain how to calculate and compare college costs, create a plan to pay for college, understand loan payments, and use free scholarship Web tools. The webinars will be held on February 24 at 6 pm and February 25 at 7 pm (both EST). Register by emailing schoolresource@salliemae.com. If you miss it, the webinar will be available on their website beginning February 26.

College Scholarship Scam

With the economy getting worse, there are growing concerns among parents about funding their children’s college education.  There are some common scams used by con artists.

1. Con artists send letters to parents offering loans.  In order to process the loan, the borrower must pay an application or service fee.  Once the fee is paid in advance, they are never heard from again.  Legitimate loans usually do not require advance fees.

2. You’ve probably heard about the Nigerian scam.  They send you a letter (with a check enclosed) notifying you that you’ve won money for college. You’re asked to send a check back for fees, taxes, or overpayment (the letter said you won $1000, but the check is made out for $1500., so you immediately get a second letter asking you to refund the difference). Your check gets cashed, and the one you received is returned for insufficient funds.

3. Swindlers send offers of loans on letterhead that looks similar to the Department of Education or another government agency. The Department of Education, however, doesn’t solicit consumers to borrow money, so any mail received is illegitimate.

4. Fraudsters claim that millions of dollars in scholarships go unused each year and then, for a fee, guarantee to secure a student a piece of that money. They may even offer to fill out the applications for the student.

5. Some people will try to charge you a fee to do a scholarship search; most their searches are done using a scholarship database that is free for anyone to use.  You can do the search yourself without paying any money at such sites as Sallie Mae’s web site or FastWeb.

College and Recession

It is not a surprise that everything costs more each year.  College tuition, on the average, has risen four times since the 1980’s.  Some students get loans.  Some parents tap into the equity of their homes

And now we are in a recession with the job losses, decline in home values and investment portfolios, the tightening of financial aid belts, it is becoming more and more difficult to pay for college.  Most colleges are now back for the Spring Semester, but more students than ever before will extend their winter break, not being able to return to school because they can not pay the tuition.  The amount of unpaid tuition bills has increased over 65% this year according to a survey by American Association of Collegiate Registrars and Admissions Officers

Some colleges are calling on their alumni for donations to help keep the students in classroom. Brown University has increased the amount of back tuition students can owe and still stay on campus by 50 percent.

Lawmakers are talking up tuition tax credits at the state and federal levels. It’s essential to the dreams of millions of families that lawmakers make these tax credits a reality.  Still much financial aid is awarded on a first-come, first-served basis. With the prospect of increased Pell Grants being discussed as part of President Barack Obama’s economic stimulus plan, families should help themselves by getting in line and submitting the FAFSA (Free Application for Federal Student Aid) ASAP.

Harvard Application Increased

“A record-breaking number of more than 29,000 students have applied for spots in Harvard’s class of 2013, up about 5 percent from last year’s 27,462 applicants, the admissions office announced today. With an increase in applicants but the same number of spots available, this year’s admissions season is poised to be even more competitive than last year’s.” – quoted from Harvard Crimson.

According to William Fitzsimmons, Dean of Admissions and Financial Aid, the admission rate will be lower than usual since Harvard is expecting to have only 1660 seats available for the new freshman class.  They are expecting to offer less number of admissions to the applicants, offer less admissions in April then go to the waitlist to fill spots.

Yale has also announced that they had a great increase in the number of applicants this year. Both of these schools offer great financial aid packages to students so that students do not have to rely on student loan to pay for their education.  So…  Does this increase in the number of applicants at both of these top notch schools have anything to do with the economic difficulties?  What do you think?

Good luck to all the applicants!

Kohl’s Scholarship

“The Kohl’s Kids Who Care® Scholarship Program recognizes and rewards young volunteers (ages 6-18) who help make their communities a better place.”

The discount chain store Kohl’s has a scholarship program.  The nomination starts on Feb 1, 2009.  This program is for youth volunteers who make differences in their communities.  No GPA requirements, as far as I understand.  Please go check out the Kohl’s Scholarship Program web site.

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