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August 8, 2023

Student Loans Forgiveness 2023; What You Need To Know Now

Student loans forgiveness; what you need to know now in 2023. Back in March of 2020 President Trump put a pause on payments on federal student loans. The plan temporarily set interest rates at 0%. Now interest on all federal loans begin accruing in September and regular payments resume in October. All borrowers should receive a statement at least 21 days prior to when their first payment is due from the U.S. Department of Education. The notice will include both the due date and the required payment amount.

What borrowers should do

First, make sure you can log into studentaid.gov and verify your contact information. Your dashboard will have your loan details including your loan servicer and current payment plan option. Based on the information, go to your loan servicer’s web-site and log in to your profile or create a new one to set up your automatic payments. Then use their loan simulator to find out what payment plan meets your needs the best.

Second, I highly recommend borrowers plan ahead and be proactive in the process. Establish a habit now of setting aside a monthly loan payment before the due date. Deposit the amount into a savings account. This will give you ample time to adjust your budget as needed before the actual payment is due.

If one cannot afford their payments, they should contact the loan provider and discuss a deferment or a forbearance that will suspend payments. However, keep in mind that the interest will start accruing again.

Filed Under: News
March 9, 2023

2024 College Financial Aid Costs; What You Need To Know

2024 College Financial Aid Costs; What You Need To Know. Recently, we have been receiving feedback from parents who are disappointed in colleges misrepresenting their bottom-line costs. This is also highlighted in a recent story from NPR College financial aid letters mislead and confuse, with real consequences.

When searching for financial aid for college, it’s important to be aware that many college websites are posting outdated total costs (including tuition, room and board, and fees) that can date back to previous years. We are also finding financial aid offers may feature an inaccurate comprehensive fee.

Colleges that require the CSS Profile may use one of two formulas to calculate an institutional EFC, which is a crucial factor in determining a fair financial aid award but may not be included in the offer. That’s why it’s crucial to work with an FAFSA advisor, who can help navigate the process of financial aid assistance. Utilizing a financial aid consultant is especially important for students from divorced families, who may face additional challenges when filling out the FAFSA.

By being proactive and working with an experienced financial aid consultant, students and parents can ensure they have a clear understanding of the financial aid process and receive the best possible financial aid award.

We invite you to take advantage of our free assessment to understand 2024 college financial aid costs and opportunities fully. Contact us to schedule time that works for you.

Filed Under: CSS Profile, FAFSA, News
September 4, 2022

2022 College Scholarship Scams

2022 college scholarship scams. These scholarship cons hook victims with the promise of money, but upfront “fees” never actually materialize into those needed funds. For students who are struggling to pay tuition and other college expenses, an unexpected offer of a scholarship can seem like a wish come true.  However, the majority of the time, it is bait for a scam.  

I have always preached to students and their families over the years that they should be wary of websites, seminars, or other schemes that promise to find scholarships for a fee.

Scammers typically claim to represent the government, a university, or a nonprofit organization. The details vary, but the con is the same.  The scammer will pose as a financial aid representative using words like “National” and “Federal” to sound more official.  In a more recent twist, the representative claims to help with student loan forgiveness.  They also may claim you have won a scholarship or a grant (without ever applying) and ask for payment of a one-time “processing fee.”

In another version, the scammer pressures you into applying for a “guaranteed” scholarship or grant. However, there is a fee to apply.  Once the fee is paid, time goes by, and the money is never sent.  When attempting to contact a representative, it is quickly discovered that the company has set so many conditions that it is almost impossible to receive a refund.  For example, when a family does not secure a scholarship(s) from a list that they paid for, they are informed that unless they apply to all of the scholarships listed (which could be hundreds), they do not qualify for a refund.

In summary, beware of unsolicited offers and never, never pay a fee for an outside scholarship service.

College Aid Consulting Services has been helping students get more financial aid since 1990. We are the top-rated independent full-service college financial aid consultants on the FAFSA, CSS Profile, and other financial required forms. No other financial aid consulting services has the experience we do in assisting families in obtaining more money. Contact us today for a free consultation to learn more about our services.

Filed Under: College Life, High School Planning, News
January 12, 2021

Multiple 529 Plans For College Financial Planning 2021

I was recently asked a question regarding multiple 529 plans as part of college financial planning in 2021.

As a general rule, I don’t recommend parents should utilize multiple plans. However, there are occasions that call for multiple 529 plans:

  • If your children are more than a couple of years apart in age, you will most likely have different investment objectives for their college savings. You may decide that one particular 529 plan has better equity-weighted investments (suitable for a young child) while a different 529 plan is more attractive for its conservative options (suitable for an older child).
  • If you have a sense of which particular schools, or types of school, your children are likely to attend, the choice of institution may influence your selection of a 529 plan. This is especially true if your state offers a prepaid tuition plan, or if you are considering the private-college Independent 529 Plan. A few of the 529 savings plans also offer extra benefits for students attending certain schools.
  • If you’re simply not sure about your choice of 529 plan, you can hedge your bets by spreading your contributions among two or more 529 plans. You might also achieve some more diversification in your investments by doing so, at least in regard to the fund managers handling your college savings.

When shopping for a 529 plan, you should always consider your own state’s 529 plan, even if you ultimately decide to go with an out-of-state 529 plan. Special tax or other benefits may be available for using your in-state plan.

In some states, you may be able to take full advantage of a state tax deduction by enrolling just one of your children in the state’s 529 plan, giving you more freedom to search outside your state for a 529 plan for your other child. In other states, however, the full state tax benefit is obtained only when both of your children are enrolled in the in-state 529 plan.

Contact us right now for a no obligation assessment to understand if we can increase your financial aid and reduce the stress of sending your child to college.

Filed Under: News Tagged With: , , , , ,
January 4, 2021

Beware Of A New Surge In College Student Loans Scams

Beware of A New Surge In College Student Loans Scams. On December 7th, 2020, the House and the Senate had approved new legislation intended to establish criminal penalties for those who access student loan information from the U.S. Department of Education information technology systems for “commercial advantage” or their own financial gain. Offenders can be subject to a fine, a prison stay of up to five years, or both.

The bill, which has been named the Stop Student Debt Relief Scams Act, would also expand requirements for loan exit counseling for colleges and universities that participate in federal student aid programs.

This exit counseling intends to curb fraud even more by warning students about so-called student debt relief organizations. The law would also require the Department of Education to prevent hackers and thieves from accessing their database for student aid, and to warn students if anything fishy is noticed with their accounts.

With the Covid-19 student loan forbearance to end on January 31, 2021, it’s expected that we will see a rise in these companies trying to take advantage of scared borrowers.

It remains to be seen if the Stop Student Debt Relief Scams Act will become law, but even if it does, student borrowers should be keeping their eyes out for new and old student loan scams. While the worst offenders have been laying low since interest and payments were paused on federal student loans through January 31, 2021, you can expect the same fake student debt relief companies (and perhaps even some new ones) to be back in full force after the beginning of the year.

To avoid student loan scams, the U.S. Department of Education states that you never have to pay for assistance for your student loans. Unfortunately, way too many companies masquerade as debt relief companies who can offer some type of help for student borrowers. Often these companies will try to charge you $1,500 or more for services you can get from the U.S. Department of Education for free, and they may even try to steal your personal information or your identity.

You can usually spot fraudulent companies easily since they tend to make wild claims, but it does help when you know what to look for. These companies might say you have to pay for their help now, or you’ll miss the opportunity altogether. Others might guarantee you’ll qualify for more financial aid, which is just plain sketchy since there’s no way a third-party company can do that.

Some companies may be more interested in obtaining your personal information instead of helping you out. For example, they might promise to erase some of your debt or help you qualify for more aid, but only if you give them your credit card number or bank account information. In addition, if anyone from an organization claims that they can assist you with your student loans and asks for your FSA ID username and password, hang up immediately.

If you would like more information on this topic and how to better navigate your loans, please contact our staff.

Filed Under: News Tagged With:
August 25, 2020

Why You Should Still Pay Your Student Loans Even Though Payments Have Been Suspended

cares student loan payments

The CARES Act, which is currently active, allows borrowers of federally-held student loans receive a payment suspension for the remainder of the year. The legislation was passed in March suspending payments through September has now been extended by President Trump through December 31st, 2020.

The payment pause ensures that borrowers don’t fall behind on their loans since it includes a suspension of interest on the loans. Basically, the suspension extends the amount of time a borrower will pay by the number of payments not made during the period. Borrowers who take advantage of not making payments won’t see interest accrue over that time.

For borrowers who are not experiencing financial difficulties should consider making payments throughout the hiatus. By making payments during the pandemic, borrowers can benefit from the interest suspension and pay off their loans faster.

If you would like more information on student loans and your options, please contact our staff.

Filed Under: News
March 5, 2020

College Financial Aid Awards Are Starting To Arrive

Financial Aid Awards Are Starting To Arrive

The bulk of college financial aid awards are starting to arrive now to students that will be attending college in the 2020-21 year. If you filled out the FAFSA and CSS Profile you might have interpreted the question incorrectly not receiving all the aid possible. Immediately you should be asking yourself are these award(s) fair for my college student? The answer is unless you are awarded 100% of the total college cost you wouldn’t know. 

The reality is that many families will simply take what is originally offered therefore will spend more for college than they need to, sometimes into the thousands of dollars more.

If you are reading this you must have questions and be looking for the best answers.  Just like a good tax accountant it pays to have a professional who knows how to accurately interpret the questions and provide the best answer based on your situation to receive more financial aid. College Aid Consulting Services brings 30 years of experience, our clients are assured, in the end, that they will receive the best aid package possible. Since we have worked with the majority of 4 year state schools and private colleges in the U.S., we know what to expect from a given college. If you would like one of our staff to review your awards letters and information that was submitted, please contact our office.

Filed Under: News Tagged With: , , , ,
January 7, 2020

FAFSA4caster Does Not Tell The Whole Story

FAFSA4caster

The FAFSA4caster does not tell the whole story for predicting your college financial aid.  It is useless when it comes to their bottom line.  While this is a tool provided by the Federal Student Aid and available on their website it only gives an estimate.  The  FAFSA4caster does not factor in their eligibility for institutional grants   If the student is applying to colleges that require the CSS Profile, the FAFSA this even truer.  With that in mind, they will be in receipt of financial aid awards based on different figures resulting in disappointment.

Most importantly the FAFSA4caster  does not help you interpret the FAFSA questions any better.  Keep in mind, the CSS Profile will assess more information than FAFSA. In addition, the majority of financial aid estimators on the colleges’ websites are not accurate; therefore useless.

The most important factor in maximizing your financial aid is knowing how to properly interpret the questions.  This is where you can massively increase your award by working with a trained college financial aid consultant.  If you wish a true calculation of your aid eligibility, contact one of our staff.

What you need to know about financial aid for college
News Source: charlotteobserver.com

Filed Under: News Tagged With: , , , ,
May 31, 2019

College Financial Aid Bait & Switch

College Financial Aid Bait & Switch

Every year I come across articles and examples of college financial aid bait and switch.  To be clear, not all colleges will play this game, but some do.  There are ways to deal with this.  First, if the family is able, they should retain a proven expert in the college financial aid process.  He or she will know how to effectively deal with the situation.  If not, if the student receives a generous offer in the first year, the family should ask the appropriate person in the financial aid office if they can expect a similar offer in the second year and so on.  If their response is a no, ask why.

Read the article that we found on Nerd Wallet that inspired this blog below. If you would like more information on bait and switch, please contact our staff.

Why Your Financial Aid May Plummet After Freshman Year
nerdwallet.com/blog/loans/student-loans/financial-aid-plummet-after-freshman-year/

Filed Under: News
April 26, 2019

5 Facts Parents Need To Know About Student Loans In 2019

5 Facts Parents Need To Know About Student Loans In 2019

Here are 5 facts parents need to know about student loans in 2019.  It’s important I start this blog by mentioning the drawbacks of private student loans that may include the interest is often variable, less flexible repayment options, the student may have to start making payments while they are still in school, there is a higher limit on lending.  This will mean the student will be paying more interest, the loan will be dependent on the student’s credit score, and if the lender requires a co-signer, the student may be putting that person at financial risk.

  1. Never turn down a subsidized loan.
  2. Know the differences between subsidized and unsubsidized Federal loans.
  3. Borrow only what you need.
  4. Be clear in what you are signing.
  5. Shop around at local banks and credit unions to learn what they have to offer in private loans before utilizing any unsubsidized Federal Direct Stafford loan. Why? Friendly terms! Over the last 2-3 years, I have been learning from some of our clients that they have secured a private loan with a lower interest rate than a Federal loan. For example, I talked to a client recently that retained a private loan at a 3% rate.

If you need more advice about student loans, financial aid, FAFSA, CSS Profile or scholarships please don’t hesitate to contact our office.  We offer a complimentary consultation to see if our service would be a fit and help your family reduce the out of pocket cost of college.

Filed Under: News Tagged With: , ,
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