The Higher Education Act, which oversees federal financial aid programs, is overdue for a reauthorization. The House education committee, led by Rep Virginia Foxx, R-NC, is about to release a draft proposal called the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. According to Inside Higher Ed, the proposal includes significant changes in several key areas: Continue reading Higher Ed Act Reauthorization
You may have seen news this year about Operation Game of Loans, a crackdown by the Federal Trade Commission and 11 state attorneys general on student debt relief scams. Dozens of bad actors are accused of having collected close to $100 million in bogus fees that were marketed to student loan debtors as debt relief programs. In addition, they often falsely promised to help reduce or eliminate student loan debt and misrepresented themselves as affiliated with the Department of Education or other government agencies. Continue reading Operation “Game of Loans”
This article from Ron Lieber at the New York Times highlights some recent bipartisan efforts to help students and families better understand the cost of college. (As he points out towards the end, even if these come to no avail, the information is available to those who seek it.)
A short break from the FAFSA… In late September, the Fed released data from its most recent Survey of Consumer Finances. This survey is completed every 3 years with the goal of helping “the government and, ultimately, the public at large understand the financial condition of families in the United States and to study the effects of changes in the economy.” The survey covers a range of financial topics including savings, borrowing, business ownership, investment, use of financial institutions, pension coverage and more. Continue reading Fed Survey of Consumer Finances
Q: I won’t qualify for financial aid. Do I need to fill out the FAFSA?
A: Yes! Regardless of whether you think you’re eligible for aid, you should complete the FAFSA. You have to complete it if you (or your student) intends to take out federal student loans, which are available to anyone regardless of need. If you have any intention of borrowing, the Direct Student Loan should be your starting point. Plus, some Continue reading FAFSA FAQs 2
Here is an article I wrote for another advisor’s site on college affordability.
If you’ve been reading this blog for a while, this is a bit of a refresher post.
There are three aid formulas: Federal methodology (FM), based on the FAFSA; Institutional Methodology (IM), based on the CSS PROFILE; and Consensus Methodology (CM), which uses both aid forms. Each is a different way of calculating a family’s Continue reading Aid Formulas
As fall kicks into gear, students begin looking in earnest at colleges. Kids tend to focus on a few core aspects of colleges when creating and narrowing down a list: majors available, location, big vs small. Later in the school year, I get calls from panicked parents whose students have fallen in love with and often been accepted to wonderful Continue reading What Colleges Can You Afford?
Wondering about income and asset protection allowances for the coming FAFSA? The FAFSA EFC Formula Guide for 2018-2019 is available here.
Unlike the past few years, the changes this year are pretty modest. The income and asset protection allowance for parents went up nominally. For example, the income protection Continue reading 2018-2019 FAFSA Formula is Here
One problem with a phrase like “rule of thumb” is that when you type it, it’s in your mind for long enough to seem extra weird. Setting that aside, a recent New York Times article has some good suggestions for simplifying the college savings process. Among them: Continue reading College Savings “Rules of Thumb”