Category Archives: Student Loans

Fed Survey of Consumer Finances

A short break from the FAFSA… In late September, the Fed released data from its most recentĀ 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

FAFSA FAQs 2

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

Aid Formulas

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

What Colleges Can You Afford?

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?

2018-2019 FAFSA Formula is Here

Wondering about income and asset protection allowances for the coming FAFSA? The FAFSA EFC Formula Guide for 2018-2019 is availableĀ 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

Borrowing: Where to Start

I’ve probably said this before, but there are families staring down tuition payments for the first time right around now. Most families use a combination of savings, cash flow and borrowing to pay for college. The first two are reasonably straightforward; they’re yours, after all. Borrowing is more complicated, and chances are that if you have a high school student, you’re getting lots of mail about education loans that are available to you. Continue reading Borrowing: Where to Start

Dept. of Ed. Freezes Loan Discharge Program

The federal Department of Education last week froze two Obama-era changes in student loan programs aimed to protect students against predatory for-profit schools. The first program allowed students to have their loan debt erased if the school acted fraudulently or otherwise cheated the student. The second program, known as the Gainful Employment Mandate, cut off federal loan funds for colleges whose graduates did not earn enough money to pay off their loans. The loan discharge rules were set to go into effect on July 1. Read more here.