Alright folks, it’s more student loan talk today. Don’t be intimidated, whether it’s a DVD, a sweater, lunch money, or a library book, we’ve all borrowed something, ergo* we have all had loans. The main catch of a loan is that you have to return what you borrow, and unlike a library book, which you return all in one piece, with student loans you return what you borrow bit by bit. But because student loan lenders allow you to return what you borrow at a slow pace, they charge you interest.
Instead of borrowing a private or personal loan directly from a bank, many students (myself included) choose to borrow from the federal government, which typically offers loans with lower interest rates.
There are four kinds of federal loans:
1. Subsidized Stafford
2. Perkins
3. Unsubsidized Stafford
4. PLUS
Subsidized Stafford Loans are only available for students with specific financial needs. The benefit of a subsidized loan is that the federal government pays the interest on the loan while the student is in school.
Perkins Loans are very specialized loans, given to students with exceptional financial need. The school actually determines which students are eligible for this subsidized loan.
An Unsubsidized Stafford Loan is your average student loan, with the student responsible for the interest that builds on the loan during school, as well as during repayment.
A PLUS Loan is a loan for parents who are helping put a student through school. Here again, the family (not the government) pays for the interest that builds on the loan while the student is in school and during the repayment period.
For more information on federal loans, visit the Department of Education’s student loan site. Of course before you can apply for any federal loans, you have to fill out your FAFSA, the Free Application for Federal Student Aid! The information you enter on your FAFSA will determine your eligibility for subsidized loans. Parents choosing to apply for PLUS loans do not have to fill out a FAFSA but it is always recommended to do so.
*See, you can actually use those SAT vocab words!
Imagine this: You receive a letter from some national company informing you that you’ve been selected as a scholarship finalist, even though you can’t remember applying. All you have to do to secure your scholarship is fill out a form online, and cover the nominal cost of the scholarship taxes with a quick credit card payment. The company assures you that your scholarship check will be sent immediately upon receipt of your online payment.
WAIT! This scenario should have triggered loud alarm bells in your head. Did it? What would you do in this situation? Would you call your best friend to celebrate the good news while borrowing your mom’s credit card and paying the “scholarship taxes”? Or would you have the good sense to see through this scholarship scam?
It’s not uncommon for students to hear about great new scholarship programs that sound too good to be true. Immediately, students should question whether the promise of “free money for college” is “legit.” Various versions of scholarship scams have been around for a long time, and unscrupulous individuals are always eager to dupe unsuspecting students and families out of money and/or private information.
Be wise and follow these six guidelines for avoiding scams when seeking scholarships to pay for college.
1. If you don’t recognize the company name and if you don’t remember applying to the scholarship program, don’t blindly agree to accept the award.
It’s highly unlikely that a legitimate company will contact you and offer you free money out of the blue. At the very least, do some research on Google on the company or scholarship name. Pay attention to negative comments or complaints, and find out just what is being offered (and what is required from you) before continuing.
2. If you are unsure about what is being asked on a scholarship application, investigate before sharing any personal information.
Take a few minutes to read through the official scholarship rules, privacy policy, terms and conditions when applying for a scholarship. Pay attention to how your personal information may be used, and whether or not it’s protected by the scholarship provider.
3. Never agree to pay for a scholarship, even when the payment is supposedly being used for application fees or taxes.
Legitimate scholarships are provided to assist students in paying for college. With few exceptions (such as talent competitions and programs requiring portfolio reviews), scholarship providers do not charge fees. If you win a scholarship, you (or your school) should receive a check. Any other arrangement should make you highly suspicious.
4. Never provide your credit card number in exchange for the guarantee of a scholarship.
As noted above, you should be receiving money as the result of winning a scholarship, not being asked to “reserve” or “guarantee” your award.
5. Be wary of companies requiring a Social Security number at the time of application.
Your Social Security number is the gateway to your identity. Unless you are actually receiving money, you should not have to give it to a scholarship provider. If you do win a scholarship, you may be asked to provide your Social Security number as part of the proper reporting of the award to the Internal Revenue Service. You may find scholarship applications that request your Social Security number for validation purposes (e.g., to check your credit to make sure you are not delinquent on student loans). In these cases, we suggest you contact the scholarship provider and discuss your discomfort in supplying your SSN. Ask if you can be excused from providing it until such time that you win the award and they need it for tax or award verification purposes.
6. Don’t believe scholarship search companies that promise to find you a scholarship.
Because the search companies are not in charge of selecting scholarship winners, they cannot guarantee you will receive a scholarship. Companies making such promises are not to be trusted; steer clear.
For more information about how to protect yourself from scholarship scams, visit the Federal Trade Commission’s website: http://www.ftc.gov/scholarshipscams.
When it comes to searching and applying for scholarships, many students and parents are unsure about where to look. Here are five places you should always turn to when seeking free money for college:
1. Searching and Applying for Scholarships Online
Use reliable scholarship websites that offer updated scholarship data and a profile-based matching system. Time-saving scholarship matching services, like the Scholarship Finder provided by WiseChoice, will use the information you supply about your grades, hobbies, awards, family background and career plans to match you with scholarships that you can compete for and possibly win. As long as you keep your profile information current, you can check back each month for new and updated scholarship matches and information.
There are so many scholarship programs out there, you won’t find one single, all-inclusive web site of all possible scholarships. So it is to your benefit to sign up for more than one of these online services and monitor your results regularly throughout high school and your college years.
2. Finding Scholarships at Your High School
A good place to start is your high school’s website. There, you may find clues about who is in charge of the scholarship information. Often, scholarship details are in the “Guidance” section of the website. Other times, the information may be listed in a section for “College Planning” or “For Seniors.” Scholarship information from your high school’s website may or may not be up-to-date so be sure to visit the guidance office and talk to the person in charge of collecting scholarship information. Let them know that you want to learn about local scholarships that are being offered in your school, county and region. This is important because most local scholarships are only advertised through area high schools.
3. Locating College-Specific Scholarships
Once you’ve identified a short list of colleges you want to apply to, you’ll need to check each college’s website to see if there are scholarships available for freshmen. Start your investigation in the “Financial Aid” section of the website. Some colleges have a streamlined application system, in which they award scholarships using information from your college application. Other colleges require you to fill out a separate application specifically for the scholarship process. In either case, you need to stay on top of deadlines. In addition to possible application forms, essays and letters of recommendation may also be required for college scholarships. If you can’t find the information you need on the school’s website, call their Financial Aid Office or Admissions Office.
4. Getting Scholarships from Employers
If you have a job, check with your employer to learn about employee scholarships and tuition reimbursement programs. The Human Resources (H.R.) office is usually the best place to go with questions like these. Likewise, ask your parents to check with their employers. Many companies offer scholarships for dependents of employees, and these are not always publicized outside (or even inside) the company. If an employer does offer a scholarship, make sure to get all the details about deadlines and paperwork. It’s likely there is an application and validation process that must be followed to get the funds.
5. Securing Scholarships from Local Organizations
Many local organizations, like churches, clubs, educational foundations and your local chamber of commerce, support students through scholarship programs. Check first with the groups you have connections with to see if you are eligible for their scholarships. Have you volunteered at any community organizations? Don’t forget to find out if your parents belong to any community organizations or service clubs, too. Ask coaches, mentors, and other students about scholarship opportunities, and watch for community notices about scholarship programs. Local organizations sometimes advertise their programs through the local newspapers, on bulletin boards, through neighborhood newsletters and email updates.
Once you decide to seek out scholarship information as a possible way to help pay for college, you will quickly learn to identify the most reliable and up-to-date sources of scholarship information. Have confidence in your scholarship quest, keep searching, and apply, apply, apply! Good luck!
If you listen closely at school, I guarantee you’ll hear it. At first it might be a low rumble… maybe a couple of kids outside their lockers talking about prep classes… but the closer it gets to the spring, it will turn into a whispered roar of who’s registered to take them, who is allowed extra time, and who’s been studying for them the most. At least you’ll know you aren’t the only one thinking non-stop about the SATs and ACTs.
My mom didn’t believe in test prep courses. She was of the thought that you should prepare yourself as best as you can, so your score is an authentic reflection of your abilities. On the one hand, I was glad because I really didn’t want to waste an evening in a prep class, but on the other hand I was really worried that I was missing out on an advantage that other kids were getting.
The most important advantage you get out of any test prep class is practice time. Time to practice a variety of questions and problems over and over again. Sure, maybe you’ll be taught a “trick” or two about how to best answer difficult questions, but the real advantage is that you are focusing (or should be!) on the test you will be taking for at least a few hours a week. I truly believe that any of you can gain this advantage yourself and can do plenty well without a course, if you put the time into studying on your own – which is often easier said than done.
To study for the SATs, I had a practice test book where I worked and reworked problems and practice questions. I made vocab flashcards and I made a point to review them for at least a little bit every night. I made sure I had my registration information and pencils ready the night before the test. I got a good night’s sleep and ate a filling breakfast the morning of the test. I left the house plenty early to arrive to the testing site ahead of time and maintained my inner-calm throughout the test. And I did just fine.
It’s always true… the more effort you put in, the more you get out in return. The best way to prepare for either the SAT or the ACT is to actually prepare. If you get to take a course, pay attention in the class, ask questions and do your review work. If you study on your own, set aside uninterrupted time and use it to study for the test!
Check out the video below for the latest news report on the SAT and ACT (and SAT Subject Tests) for additional information and study tips:
Do you have study tips to share? Think one test is better than the other? Share your thoughts with me, and others in the comments section!
The holidays are over and we are into the New Year, and back to the daily grind. Before you know it, spring will be here, and spring time for high school juniors—and possibly some seniors— means one thing – STANDARDIZED TESTING!
Which brings us to the question on everyone’s mind, the SAT or the ACT?
Most colleges accept either test, but check the admission requirements of schools you know you are applying to, to make sure you take the test they prefer. We all have heard that the tests are different. Some say the ACT is easier because there isn’t an essay (there is; it is optional though). Others say the SAT is easier because it covers fewer subjects than the ACT and you don’t have to “know” as much. One test is not easier than the other; rather they are structured differently. The ACT tests your knowledge and the SAT tests your reasoning and critical thinking. Having the option to take one over the other is an advantage because – shocker – not everyone thinks the same way. My best advice to you is to take a practice SAT and a practice ACT and see which test works best for your testing style.
Here’s the basic info and important upcoming testing dates:
The SAT tests how you think, so it covers critical reading (comprehension and sentence completion – focus on vocab), math (geometry and algebra II), and writing (required essay, testing grammar skills and ability to communicate ideas clearly). You do lose ¼ point for incorrect multiple choice answers, but there’s no penalty on questions where you have to produce the answers yourself. If you take the test more than once, you decide which scores to release to schools, but you cannot mix or combine your scores from different test dates. Total scores range from 600 to 2400, plus you receive two subscores: 20-80 points for multiple choice questions on writing and 2-12 points for the essay.
NEXT SAT TEST DATE – March 13, 2010 – REGISTER by February 4, 2010!
The ACT covers your high school subjects, English, math (algebra, geometry, and trigonometry), reading (comprehension), and science (analysis, interpretation, evaluation, and problem solving) with an optional essay. Unlike the SAT, there is no wrong answer penalty. If you take the test more than once, you decide which scores to release to schools, but you cannot mix or combine your scores from different test dates. Composite scores range from 1-36 and you can receive an additional score from 2-12 for the optional essay.
NEXT ACT TEST DATE – April 10, 2010 – REGISTER by March 5, 2010!
I spent my first two years of college at a smallish, private university with about 6,000 students, and my last two years at a large public university with around 30,000 students.* Were there differences? Of course, and most of the differences were related to the size and the resources of the school, not necessarily because one was private and one was public.
I graduated from my home state’s flagship university, University of Maryland, which meant I got to attend a great school at an in-state tuition price. It was significantly less expensive than the private university I transferred from— a total benefit of having a well-funded and impressive public school in your own state. But don’t be fooled into thinking that all public universities are inexpensive. Often the cost of tuition for in-state residents is discounted through government funding, but out-of-state students could find themselves paying just as much as they would at a private college.
Some people think that attending a private university is more prestigious than going to a state school. The truth is, a good school is a good school, and a degree from a good school always carries prestige. I am equally as impressed by my friends who graduated from New York University as I am of those who graduated from the University of Virginia because they are both excellent schools. (Do you know which of those is private?!)
And by the way, what makes a school excellent is more than just its ranking. Good schools have students that are dedicated to the institution, the faculty, and the student body. Students should attend a school that makes them feel comfortable, where they are able to thrive and succeed with equally happy and driven peers. And this is exactly WiseChoice’s mission—to find your “best-fit” colleges that will result in a successful and rewarding experience. Just like a good pair of jeans or a good car, good schools should not be judged on brand name alone. A good brand is worth a lot less without a comfortable fit and the ability to achieve maximum performance.
You have a million criteria to consider when looking for a good school: location, size, course offerings, types of students, cost, activities, etc. These are far more important than if the school is public or private. Toss out the preconceived notions and focus on picking the school that is the right fit for you. Blanket statements like, “I will not attend a public school,” are as ridiculous as choosing your school solely on its team colors!
*I should note that I attended a private, religious-based school and although religion was a part of the campus, it was not the focus. I found that my public university had just as much of an opportunity to get involved with religious groups and actually, several religious groups had a larger presence on campus than the main denomination did at my private school.
Have you ever had your name in the newspaper for something? Maybe you’ve had your name posted at school for being on the honor roll, or for your community service efforts, or for being on the winning soccer team? If you have, then you understand what a great feeling it is to be acknowledged for the good work that you do. That’s how I felt the other day when one of my friends called to say she’d seen this article on WiseChoice! There’s nothing like a public shout out for your team!
Two years ago it was nearly impossible to get a Nintendo® Wii™, but I had to have one, despite the fact that it was a bit out of my price range. So I saved my money, searched Craigslist, and agreed to pay more than the retail price to have one in my hands right away. And then, there I was with my Wii… and the one game it came with… that I couldn’t play with anyone because I only had one remote. I quickly realized to achieve the level of enjoyment I had envisioned I needed more remotes and more games, an extra Nunchuk™, a charging station, wheels for Mario Kart™, an extra guitar for Guitar Hero®, and the list went on and on. What started off as a $300 purchase quickly snowballed into a much more expensive entertainment investment. And that my friends, is a lesson in hidden costs—those extra expenses that never occur to us at first.
When calculating the cost of college, in addition to tuition, you have to consider the hidden costs. If you are planning to go away to school, surely you have factored room and board into your budget, but have you thought about the added costs of pizza nights? And you are not always going to want to eat in the cafeteria so factor in money to buy the occasional groceries and a microwave and mini-fridge. What about decorating your dorm room? I’m not suggesting that everyone needs to have designer digs, but at a minimum you will probably need to buy bedding, a few storage containers, maybe a fan, and a lamp to read by. This of course implies that you will be reading in college, necessitating the purchase of text books and some office supplies.
When thinking about your costs of college, will you have a car on campus… a car that requires a parking permit and gas? How will you get home for breaks? If you are close enough to hitch a ride with a fellow student, you’ll want to pitch in for gas money. Otherwise be sure to budget for your plane, train, or bus ticket home. Most of you will probably do more than sit in your room studying all of the time, so plan to have funds available to attend social events and explore your new surroundings. Oh, and don’t forget about laundry money! (I can hear the collective groan!)
It might be a tad depressing to add up all these additional costs of college, but by thinking of them ahead of time and properly budgeting, you should be able to find all kinds of deals on dorm necessities and save money for those pizza nights. The last thing you want to do is arrive at school excited for your new experience and be unable to fully partake. That would be like playing Wii tennis by yourself… you can do it, but trust me, it’s not nearly as fun as playing it with friends!
Ladies and gentleman, it is finally here! The college fair! Granted, you may not find funnel cake and ferris wheels, but nonetheless, it is still an exciting fair. A college fair is a gathering of colleges and universities (ranging anywhere from ten to hundreds of schools) in one convenient location. They allow prospective students to talk with college representatives to learn more about their specific institutions. College fairs are useful because they can help you learn more about a college you already know well, help you eliminate some from your list, or acquaint you with schools you never considered. Your high school counselor is an excellent resource to find college fairs in your area. You can also review the 2010 National College Fairs Schedule to find a fair close to you.
Attending a college fair is a process comprised of three phases: before, during, and after. By breaking down your fair experience into a three-pronged approach you are bound to eliminate chaos and confusion and have a more rewarding experience.
Before the fair
The key is to know beforehand what you aim to learn. Compile a list of characteristics that you want from a school. Do you want a small or big student population, rural or urban? This list will help you target the schools that are right for you. Review the list of schools attending the fair so you can decide which schools are must-visits. And be sure to bring a list of questions. These questions should be unique to you and your college interests. Avoid asking questions easily found in standard college materials. Keep in mind that no representative will tell you that a program is bad, so be prepared to ask specific questions that are tailored to your interests.
In addition to questions, bring a notebook, pen, and a bag to carry all the brochures you will inevitably accumulate. To maximize your time at the fair, print out several sheets of mailing labels which include your name, address, phone number, email address, high school name, high school graduation year, possible major, and any extracurricular activities. At the fair, you can stick your pre-made labels onto the college information cards, saving you from writing your information over and over again and giving you more time to talk to the representatives.
During the fair
Much like a real fair, figuring out where to start can be challenging. Once you arrive at the fair, devise a plan of attack. Many fairs will provide yowith a map (and booths are typically arranged alphabetically). Review the map and plot your course to avoid wandering. Be sure to familiarize yourself with the fair schedule. Some college fairs include information sessions that can be very helpful. You’ll want to allot your time in case you want to attend a session.
After each visit to a booth, take a few minutes to jot down your impressions, conversations, and useful information into your notebook. Doing this after each table will help you keep all that information straight while your impressions are still fresh in your mind.
Finally, leave time at the end of the fair to pursue the remaining colleges. Who knows, you may come across on a great school you had never heard of.
After the fair
Fairs, whether college or the popcorn kind, are exhausting. Your first post-fair duty is to relax. Allow yourself at least a day to decompress before you dive into the myriad of brochures you’ve acquired. Within a week of the fair, review the brochures against the notes you jotted down in your notebook. You may find that some colleges weren’t as appealing as you originally thought. Weeding out colleges that are not the best fit will help you narrow your choices. For the colleges that piqued your interest, explore their websites, research their programs, and schedule on-campus visits.
Congratulations, you’ve just narrowed down which schools may be the best fit for you.
My parents paid for my college education. I never knew what a big deal that was until I had to pay for my own graduate school tuition (and by pay, I mean pay back lots of loans). So when my parents encouraged me to apply for college scholarships, I probably shouldn’t have blown it off as much as I did. But I was a high school senior with activities and a job and a social life, which didn’t leave any time to search for scholarships, let alone apply for them with all their required essays and letters of recommendation. My mom kept telling me about so-and-so who got a scholarship for being left-handed, or playing the oboe, or being able to type with his toes. There’s nothing interesting or fantastic about me so unless there were millionaires giving away money “just because,” I didn’t see the point.
But now I’m older and wiser and willing to admit the error of my ways. Would you ignore a $20 bill on the ground because you were in a rush? Of course not, and that’s kind of what scholarships are… money waiting to be found, if you take the time to look for it. And you should start looking. Many scholarships are awarded on a rolling basis so the earlier you apply, the better.
Don’t know where to begin? Try an Internet search or WiseChoice’s Scholarship Finder. You will be amazed at the unusual scholarships available just because you are you – Asian, a Boy Scout, Catholic, a member of Daughters of the American Revolution, 4-H Club, or whatever.
Oh wait, you are the star of the football/lacrosse/debate/drama team and you just *know* you will have scholarship money thrown at you? The reality is, there are a million other high schools all with their own stars too. So unless you already have an offer in hand, get started on your scholarship search. Of course it requires some time and effort but chances are, there is a group out there that will reward you for your accomplishments, so start applying to see what might get offered to you and help with your college costs.
Subscribe to this blog
Subscribe to RSS feed
Join Us
Become a fan of WiseChoice on Facebook
Follow us on Twitter
Categories
- Choosing a Major / Career (2)
- College Admissions (28)
- College Applications (10)
- College Search (12)
- College Transfer (3)
- Community College (1)
- Financial Aid (17)
- Greek Life (2)
- Just for Parents (3)
- Learning Difference (2)
- Life at College (9)
- Miscellaneous (2)
- Social Media (1)
- Topics of Interest (2)
- Visiting a College (5)
- WiseChoice (2)