Free Government Grants For College

As you look around and notice the skyrocketing college costs, do you wonder how so many people are getting their education paid for by free government grants? The federal government allocates over $30 billion every year to give away as free money.
These programs are a lot like Student Loans, except you never have to pay them back. In other words, it’s free money from the government that you can use to pay for your education expenses. This money can be used to pay for tuition, cover the costs of your textbooks, and many other expenses that you incur as a student.
Money is available for all types of students as well. Returning adult students, new students, and even students currently enrolled in college can obtain education funding. This is money that must be given out, and since most students are unaware that this assistance exists, it can be pretty easy to have a check sent to cover your college expenses.


It’s part of the government’s effort to “Keep America Strong.” If you can’t afford college, the economy suffers, so it is in the nations interest that you earn a degree.
While there is a significant amount of money available, it is your responsibility to ask for it in order to receive these funds. This is as simple as signing a form and dropping it in the mail. In a couple weeks you could receive a check in the mail for several thousand dollars.
This free money will be given away to those who know where to go and ask for it, and it doesn’t end with just education grants. You can apply for as many grants as you like, including free government funds to pay off your debt or to start a business. There are over 3,000 grant programs to choose from.

If you don’t claim some of these grants for students someone else will. Secure this free money now http://www.govfunds.info

Article Source: http://EzineArticles.com/?expert=Austin_Warty

Financial Aid News 162: Save $100 a year on fees

From NASFAA:

“The City Colleges must scrap its fee-laden debit card program for student loans because the fees are illegal, the U.S. Department of Education said in a recent letter to the district,” Chi Town Daily News reports. “In a July 7 letter, the agency wrote that students can’t be charged fees for using an ATM or visiting a teller to get their money … The letter comes two months after the agency first said the existing program was fine. Stephanie Babyak, a spokeswoman at the Education Department, said it reversed its own decision after asking the City Colleges some more questions about the debit card program. While the program was running, the first withdrawal from an ATM or a teller was free but future visits to an ATM cost $2 and talking to a teller cost $10. In May, the Department of Education told the City Colleges the program was acceptable since students had other ways of getting their refund money. They could wait for paper checks or get the funds direct-deposited into a bank account, the agency noted … Though the City Colleges does not face any sanctions for running the debit card program as it did, the Department of Education said it wants a response from the district about how it will fix the program.”

Commentary

With luck, the trend will spread of eliminating fees of any kind on debit cards for tuition rebates and student financial aid disbursements. These fees line the pockets of banks and schools with no measurable benefit to students other than not having to cash a physical check. Moreover, the disbursements themselves are usually the proceeds of a student loan, which means that students are paying additional fees on borrowed money, in effect paying twice for money that they’re already paying money on.

News You Can Use

One of the most insidious ways you can lose money, a little bit each day, is to do business with a major commercial bank that nickels and dimes you to death with fees. Everything ranging from fees for checking accounts to ATMs to Internet home banking to overdraft fees can add up to hundreds of dollars a month if you’re not careful.

Here’s an example – I recently went to withdraw money at a local ATM:

I walked away after seeing a $3 fee, knowing that the local convenience store ATM fee, just a few doors down, was $1.75.

There are three concrete steps you can take to protect your own wallet and deliver a strong message to commercial banks:

1. Don’t bank with a commercial bank. Look at community banks and especially credit unions for banking services that rival or exceed what commercial banks can deliver (often with much better service!) and no fees or very few fees. I’ve been a customer of a federal credit union for almost a decade and can happily say that my credit union (where the staff greets me by name) has no fees on 95% of its services. The SUM network of ATMs means no fees any time I use a SUM ATM, so I save money there. No fees for Internet home banking or Internet bill pay. I used to pay probably about $100/year in fees after all was said and done when I banked with a commercial bank long ago. Since then, banking with a credit union has saved me all those fees – over the span of a decade, $1,200. Who wouldn’t want $1,200 more free money?

2. Don’t patronize commercial bank ATMs. Every time you pay their inflated fees, you implicitly endorse their business practices and give them every reason to continue or increase their ATM fees. Go Google for ATM locators and find ATMs nearby that offer low fees or no fees. Join a credit union that’s a member of the SUM network and look for no-fee ATMs around you.

3. If you need to withdraw a small amount of cash – under $100 – and there no no-fee option around, go to any supermarket that offers cash back at the register and buy a pack of gum or some other consumable. You’ll pay about the same amount as an ATM fee but you’ll have something to show for it.

Finding a credit union is easy. Go to the National Credit Union Administration (NCUA) and use their search tool to locate a credit union near you. The NCUA is identical to the FDIC in terms of guarantees on your savings, so any money you have with an NCUA insured account has identical safety and coverage to FDIC insured bank accounts.

Additionally, many colleges have credit unions right on campus. Usually they’re set up primarily for employees of the college, but many allow students to bank with them as well. A commercial bank will almost always have an ATM on campus in a prominent place with high fees to sucker unaware students, but campuses with credit unions on campus almost always have a no-fee ATM as well. Save yourself some money and find it on your campus if you have one.

PLUS Loans for Graduate and Professional Degree Students

Graduate and professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in both the Federal Family Education Loan Program^SM (FFELP^SM) and Direct Loan Program^SM. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5 percent in the FFEL^SM program and 7.9 percent in the Direct Loan Program. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA^SM). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.

Federal Perkins Loans

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.
Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year.

How much can I borrow?

You can borrow up to $5,500 for each year of undergraduate study (the total you can borrow as an undergraduate is $27,500). For graduate studies, you can borrow up to $8,000 per year (the total you can borrow as a graduate is $60,000 which includes amounts borrowed as an undergraduate). The amount you receive depends on when you apply, your financial need, and the funding level at the school.

Other than interest, is there a charge for this loan?

No, there are no other charges. However, if you skip a payment, if it's late, or if you make less than a full payment, you might have to pay a late charge plus any collection costs.

When do I pay it back?

If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called "grace period." If you're attending less than half time, check with your college or career school to find out how long your grace period will be. For more information on repaying and your obligations as a borrower, click on the "Repaying" section of this Web site.

PLUS Loans (Parent Loans)

Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. PLUS Loans are available through the Federal Family Education Loan Program^SM (FFELP^SM) and the William D. Ford Federal Direct Loan (Direct Loan) Program. Your parents can get either loan, but not both, for you during the same enrollment period. They also must have an acceptable credit history.

How do my parents get a loan?

For a Direct PLUS Loan, your parents must complete a Direct PLUS Loan application and promissory note, contained in a single form that you get from your schools financial aid office.
For a FFEL PLUS Loan, your parents must complete and submit a PLUS Loan application, available from your school, lender, or your state guaranty agency. After the school completes its portion of the application, it must be sent to a lender for evaluation.


Also, your parents generally will be required to pass a credit check. If your parents don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so. Your parents might also qualify for a loan without passing the credit check if they can demonstrate that extenuating circumstances exist. You and your parents must also meet other general eligibility requirements for federal student financial aid.

How much can my parents borrow?

The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.

Who gets my parents' loan money?

Either the U.S. Department of Education (for a Direct PLUS Loan) or your parents lender (for a FFEL PLUS Loan) will send the loan funds to your school. Your school might require your parents to endorse a disbursement check and send it back to the school. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, your parents will receive the amount as a check or in cash, unless they authorize the amount to be released to you or to be put into your school account. Any remaining loan funds must be used for your education expenses.

What's the interest rate?

For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed (at 7.90 for Direct PLUS Loans and 8.50 percent for FFEL PLUS Loans). For PLUS Loans disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable and is determined on July 1 of every year. For 2009-2010, the variable rate for these PLUS Loans (in both the Direct and FFEL programs) is 3.28percent. Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.

Other than interest, is there a charge to get a PLUS Loan?

Your parents will pay a fee of up to 4 percent of the loan, deducted proportionately each time a loan disbursement is made. For a FFEL PLUS Loan, a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the PLUS Loan Program in your state) to help reduce the cost of the loans. For a Direct PLUS Loan, the entire fee goes to the government to help reduce the cost of the loans. Also, your parents may be charged collection costs and late fees if they dont make their loan payments when scheduled.

When do my parents begin repaying the loan?

For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.

How do my parents pay back these loans?

They'll repay a FFEL PLUS Loan to a private lender or loan servicer. They'll repay their Direct PLUS Loan to the U.S. Department of Education's Direct Loan Servicing Center.

Is it ever possible to postpone repayment of a PLUS Loan?

Yes, under certain circumstances, your parents can receive a deferment on their loans.
If they temporarily cant meet the repayment schedule, they can also receive forbearance on their loan, as long as it isnt in default. During forbearance, their payments are postponed or reduced.
Generally, the conditions for eligibility and procedures for requesting a deferment or forbearance apply to both Stafford Loans and PLUS Loans. However, since all PLUS Loans are unsubsidized, your parents will be charged interest during periods of deferment or forbearance. If they dont pay the interest as it accrues, it will be capitalized (that is, added to the principal amount of the loan, and additional interest will be based on that higher amount).

Can a PLUS Loan be discharged (canceled)?

Yes, under certain conditions. A discharge (cancellation) releases your parents from all obligation to repay the loan.
Your parents PLUS Loan cant be canceled for these reasons: You didnt complete your program of study at your school (unless you couldnt complete the program for a valid reasonbecause the school closed, for example), you didnt like the school or the program of study, or you didnt obtain employment after completing the program of study.

Federal Supplemental Educational Opportunity Grant (FSEOG)

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is for undergraduates with exceptional financial need. Pell Grant recipients with the lowest expected family contributions (EFCs) will be considered first for a FSEOG. Just like Pell Grants, the FSEOG does not have to be repaid.

How much can I get?

You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.

If I am eligible, how will I get the FSEOG money?

If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.