Positives And Negatives Of Private Loans For College 2019

Private Loans For College

Our office gets a number of questions from parents asking about the positives and negatives of private loans for college 2019 as different financial options researched. We believe the drawbacks are as following:

  1. Interest is often variable
  2. Less flexible repayment options
  3. The student may have to start making payments while they are still in school
  4. Higher limit on lending which will mean the student will be paying more interest
  5. The loan will be dependent on the student’s credit score
  6. If the lender requires a co-signer, the student may be putting that person at financial risk.

However, there is a positive in considering a private loan. 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 last week that retained a private loan at a 3% rate.

In summary, when looking at the positives and negatives of private loans for college 2019, I recommend the student and or the parent should contact local banks and credit unions to learn what they have to offer before utilizing any unsubsidized Federal loan and should never turn down a subsidized Federal loan. 

If you have additional questions or need information on how to lower college costs, please contact our office.

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.

College Debt And Financial Aid

College Debt And Financial Aid In 2019

The topic of college debt comes up in many of the conversations with the FAFSA, the CSS Profile and financial aid consulting clients.  Recently I had the opportunity to speak to Alexa Sauvagere with College Magazine on the and why it is so important to plan your financial aid efforts ahead for a college education.

Since the cost of college continues to dramatically increase, I always recommend that parents start a college fund within 3-6 months after they have their precious child. Many parents procrastinate in the college planning process and are shocked at the fact that they cannot afford to send their child to a college they deserve to attend.

If you would like to know more about our financial aid consulting services and a complimentary assessment of your opportunity to maximize your awards please contact us for a no-obligation review of your FAFSA.

FYI, College Magazine is a great source of college information for students who are currently experiencing campus life across the US.

Debt Management Tips from the Pros – College Magazine

Did Your College Financial Aid Award Fall Short?

college financial aid award

Did your college financial aid award fall short?  You are not alone.  Unfortunately, many of the initial financial aid awards from the colleges are not what families count on for making paying for college reasonable.

If this is your situation, you need to reach out to our office immediately for a complimentary consultation.  We have 28 years of experience know what makes a good and fair award and how to appropriately appeal, will make an immense difference in what the out of pocket cost the family will incur. We continue to appeal and negotiate our client’s financial aid offers that we feel the college can do better. The result, more money for college. If you would like us to review your award(s), please contact our office.

2019 FAFSA College Financial Aid Verification Process

2019 fafsa college financial aid verificationI was motivated today to discuss the 2019 FAFSA college financial aid verification process since we have been receiving a lot of questions on this topic and moreover because I received an email from a client yesterday that stated she was told by a representative from a college that her family and others are chosen for Verification because of President Trump.  The person claims that the President refuses to pay for grants and wants to make it difficult as possible for students to receive financial aid.  I simply replied,  you are not being told the truth.

The verification process has been around for many years.  One-third of all FAFSA applicants will be randomly chosen for verification.  Other reasons that a family will be chosen is if the FAFSA includes incomplete data or data that appears to contradict itself and if any original information has been modified.

A question I get from time to time is, can I elect not to complete the process?  Yes, you can.  But why would you?  By doing so, the student will forfeit all access to federal aid, need-based state aid, and in many cases the college’s institutional need-based aid.

If you want more information or clarification on this topic, please contact our office.

Q&A Appealing Financial Aid Offers to Maximize Your Money

I just did recorded an interview with Jocelyn Paonita Pearson from The Scholarship System. In this helpful interview, we talk about when to appeal financial aid offers, how you can possibly damage your chance of receiving more money, how to approach financial aid appeals versus scholarship appeals and much more.

The 30-minute Q&A is part of a series on “Appealing Financial Aid Offers to Maximize Your Money” in the Debt-Free Degree Lab, a monthly membership to assist families in securing a debt-free degree.

How The EFC or Expected Family Contribution Is Determined 2019

college expected family contribution 2019

One of the most common questions almost every parent has when the sign up to work with us is, How The EFC or Expected Family Contribution Is determined 2019? Various colleges will determine the financial need in different ways. It all depends on what form(s) the college requires.

First, let’s talk about the CSS Profile that the College Board will process. Under the Profile, the college will calculate the EFC (Estimated Family Contribution) using the IM (Institutional Methodology) or CM (Consensus Methodology) which will determine how much gift-aid (grants) the student will qualify for.

The second form, the FAFSA (Free Application For Federal Student Aid) that will calculate the EFC (Expected Family Contribution) using the Federal Methodology that will determine how much Federal Aid (Pell Grant, FSEOG, subsidize and unsubsidized loans, and work-study), the student will qualify for. If the college only requires the FAFSA, they will utilize it to determine all need-based aid.

Finally, some colleges who do not require Profile may have their own institutional form that will be required along with the FAFSA. If you would like more information or clarification on financial need, please contact our office staff.

Tips For Students On How To Pay For College

Throughout our 28 years  of helping families lower their out of pocket cost for their education we have compiled our most valuable tips for students on how to pay for college. First students should always walk into the financial aid office the first day they are on campus and ask if there are any “in house” scholarships they can apply for. Many times there are and students are not aware that they exist.

Other tips include: pursue outside scholarships keeping in mind that they should never pay for a scholarship service. Set up a 529 plan. Whenever possible purchase used textbooks and sell them when they are finished with them. Utilize work study on campus whenever possible. Keep credit card debt at a minimum and always pay it down on time. Choose the right meal plan. Set up a student checking account. Most of them are free. Keep organized regarding their spending habits. Get the right cell phone plan. Utilize alternative transportation. Consider being a resident advisor. Many colleges will offer free or reduce room and board.

If possible, retain a trained expert in the financial aid process. These people can save families thousands of dollars in their 4 year education. Contact us if you would like to learn more.

How Much College Can You Afford?

Many factors come into play when comes to how much college tuition a family can afford.

  1. What colleges is the student applying to?
  2. What is families’ liquid asset situation like?
  3. How much was saved for college?
  4. What financial aid forms are required?
  5. Many colleges require more forms than the FAFSA. Who is completing the forms?

The bottom line here is the correct interpretation of the questions and know what information you do not have to disclose. The more mistakes made, the less aid offered. Families that utilize a trained expert in the process will historically retain more aid.  That is where College Aid Consulting Services has been assisting families for 28 years to avoid the mistakes and maximize the Financial Aid available to them.  Contact us today to learn more.

Client Testimonial

“Our “miracle” was a direct result from working with College Aid Consulting Services. Our financial planner gave us his name via several of her clients who had highly recommended him. After an exchange of information over the phone, he assured us we would see substantial savings in college costs with his help. Needless to say, we signed on the dotted line. Immediately my husband and I were impressed with Ronald’s service – always returning our calls promptly and doling out calming advice. He assisted us with college applications, financial aid forms, and other related documents. The most exciting time in this process was near the decision deadline. Even though we had received a generous financial package, our expected family contribution was higher than anticipated. With Ronald’s insistence and editing, we drafted a letter of appeal which resulted in an additional annual grant of $3,000.00! Now that the dust has settled, we realize with another daughter being a high school junior, this process will soon start up again. Knowing that Ronald will be able to guide us, makes this a worry-free experience. We could not be happier with all of his help.”

~ Dana L.

Top 12 College Scholarship Myths

These are the top 12 scholarship myths of 2019. Read these to help dispel misinformation about the college financial aid process.

  1. My child won’t get a scholarship(s) because there is too much competition. Not true
  2. My child needs a 4.0 to retain a scholarship(s). Again, not true
  3. The scholarship search starts during the senior year in high school. Big mistake! Start in your junior year
  4. Scholarships will pay for every portion of college. For the majority of students, not true
  5. The Scholarship process is a one-time thing. If I don’t get one the first time I will never get it. Not necessarily
  6. Scholarship applications take too long to complete. False, many don’t
  7. Merit-based scholarships are only awarded to students with high GPAs. Not true.
  8. Receiving a scholarship(s) will mean less financial aid from a college. Maybe but not always
  9. Only students with high academics don’t need to apply for scholarships
  10. A large amount of scholarship money goes unclaimed. False, only a small amount do
  11. Scholarships are just for students that could not otherwise afford to go to college. Not true
  12. Many scholarship amounts are to small and not worth the time. Maybe. However, what if you retain 4-7 scholarships. They add up!

I continue to advise my students and parents that searching for scholarships is like the lottery, if you don’t play you will not win.

If you would like more information or further clarification on any of the above, please contact our office. We do provide our clients with a list of proven sources of scholarships that has benefited many students.

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