Fastweb and Other Scholarship Search Engines

My Fastweb Experience

This past weekend, I listened in on a college discussion panel. There were a few recent college graduates and a current college student discussing college life and giving a few tips to the high school students. One question came up about scholarships and the panel stated that the scholarship process is very hard and that college scholarship essays are typically 4-5 pages long. My heart dropped when I heard this. I was outraged that they were giving this false advice and potentially deterring high school students from applying for scholarships when they didn't apply for many themselves. That was probably why they had ALL graduated with so much debt. The main one that said the scholarship process was difficult said she graduated debt-free because her mom paid for all of her schooling but later disclosed that her mom had $75,000 worth of debt. That is NOT graduating college debt-free or anywhere close to it.

Hearing the panel's thoughts made me think back to when I just started the scholarship search process. When I first started the scholarship process, I remember being really nervous and worrying that I wouldn’t qualify for any scholarships.  I worried that I would spend a ridiculous amount of time looking for, finding, applying to, and writing essays for scholarships only in the end to NOT win them.  I also remember first arriving at fastweb, one scholarship search engine, seeing the smiling faces on the front page of past scholarship winners with large amounts that they won, and THEN thinking “WOW I really can win that, that can be me on that front page.” (Now I know their marketing was GOOD)

So I eagerly went and signed up for a fastweb account.

Up popped thousands of scholarships that the fastweb search engine said I was eligible for. Immediately I felt overwhelmed. Where do I start? Which one should I apply to first? Millions of questions went racing through my mind and it was just all too much. I went from afraid and nervous to optimistic and confident to overwhelmed and miserable all in about 45 seconds!

So I walked away from the fastweb search engine and started watching TV instead. Have you done that before? Maybe you felt overwhelmed and ended up watching youtube videos instead or logged on facebook or checked your email and never really got back to the task you were supposed to do?

Well days later, actually it was WEEKS later, I decided that I put off fastweb long enough. I was going to sit down and just do it.  So I answered the questions, filled out the essay, and hit submit. The process felt like it took forever! And each application that I filled out on fastweb was actually 5 pages long or more! (So the panelist was actually right, somewhat. There are some applications that are 5 pages long or more. Usually these scholarships are found on fastweb and other search engine websites. But, the majority of scholarship applications are only 2 pages long. These 2 pages consist of a 300-500 word essay and a few short answer questions that ask you to list some basic information about yourself.)  I remember thinking, “I never want to do this again.”

Months past and I did not hear anything about the fastweb scholarships that I had applied for.  I guess I didn’t win. I wondered why I didn’t win. Was I not qualified? Did they not get my scholarship? Did they not like what I had to say?

I later learned that the most known scholarships (the ones that you hear of the most and that are usually featured first on scholarship database websites like fastweb) are also going to be the most competitive scholarships because a lot of people know about them and are applying. The more people who know about a scholarship, the more competitive the scholarship will be to win, and the less likely you are to win unless you have a stellar application.

So I started focusing on finding scholarships that were less known and I started WINNING!

What CBS News Says About Fastwe

My experience with fastweb and other scholarship search engines wasn't so good and I wasn't the only one that had this experience. In fact, CBS news had an article out that stated that Fastweb was ineffective and produced zero promising scholarship matches for the users. The article also mentioned other scholarship search engine websites and said that they weren't too effective either at matching students to worthwhile matches.

To view the article: http://www.cbsnews.com/8301-500395_162-57604396/do-college-scholarship-search-engines-work/

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Sidestep your student loan payments - Debt settlement shouldn’t be a slam dunk choice

Have you considered debt settlement for your student loans?

If you’re someone who has defaulted on his federal student loan debt, or gone without making payments for at least a year, you may feel that you don’t have any other option but to drown in debt. But did you know that you still have the choice of settling your debt with the collection agency to pay an amount which is less than what you owe? Well, if you’re a grad who is looking for ways to sidestep his student loan payments through a debt settlement option, you’re off to a tough road! Unlike credit card debt and personal unsecured loans, private and federal student loans can’t be discharged through bankruptcy, according to the US Department of Education. Since student loans are tougher to shake off than all the other kinds of debt, there could be remedy for those who are fiscally snowed under by student loans. Read on the concerns of this article to educate yourself on some facts on student loan debt settlement.

How about considering an income-based repayment plan for student loan debt settlement?

Is an alternative affordable repayment plan all that you want? If answered yes, how about considering the income based repayment plan? Through this plan, the monthly payment will be calculated on a percentage of your discretionary income. This is the amount, by which the adjusted gross income surpasses 150% of the poverty line. For most borrowers, this is the most affordable option as it is based on the income of the student and not on the total amount that you have borrowed. In case your income is less than 150% of the poverty line, the monthly payment will be based on the income based repayment plan.

Debt settlement for your defaulted student loan debt

If you wish to settle your defaulted federal student loan debt, you should be able to make a lump sum payment to pay off a major portion of the balance of the loan. A compromise offer will demand you to pay back the settlement amount entirely within a span of 90 days. There are some common circumstances where the defaulted borrower will make a lump sum payment like obtaining an inheritance, winning a lottery and getting a big bonus at work.

The key to obtaining a good debt settlement deal is knowing the available options for settling your debt with the collection agency. The US Department of Education appoints the private debt collection agencies to make different kinds of debt settlements without getting prior approval.

1. Waiving off or eliminating all the collection charges and the borrower pays the present principal amount and the accrued interest rate
2. Payment of minimum 90% of the present principal and interest rate
3. Payment of the present principal balance and half of the  accrued interest rate which is still unpaid.

In case you’re someone who has offered an amount which is less than the aforementioned compromises, the collection agency will require getting approval from the US Department of Education. This is a reason why non-standard compromises aren’t much common. 

Calculating the compromise and minding the taxes

When debt settlement is the only option, the students should prove that the collection fees and the interest amount have burgeoned so rapidly that it’s impossible to pay back. Once the lender agrees, you should make it within 60-90 days. Once the settlement figure is decided, you have to check the tax implications too. Any debt that is forgiven is subject under tax and therefore the borrower has to make sure he knows this liability of his.

Therefore,when you’re saddled with federal student loan debt, you can take resort to debt settlement in collaboration with the debt collection agencies. Get everything in writing and make sure you repay 100% of what is paid.

Community colleges are assisting students to graduate without debt

How Community Colleges & Others Can Help the Cost of Education

Cost of education is skyrocketing unbelievably. As a consequence, more and more people are struggling to deal with their student loan debt. As per the current reports, student loan debt in U.S. has already crossed the $1 trillion limit. In such a circumstance, the Obama government considers it important to find some effective solution to curb the higher cost of education as soon as possible. For that purpose, Obama has recently announced a plan to make college affordable for every student in America. There are basically three proposals in the plan - (a) linking federal student aid to the overall performance of the college that is based on the yet to be developed rankings; (b) evaluating the scorecards of colleges to help people select the right college according to the performance; (c) expanding the eligibility criteria for Pay As You Earn repayment program to assist students in managing debt. All these strategies are quite new and yet to be applied officially. Still, some states have already applied these ideas to increase the education affordability. For instance the community colleges in California follow some of these ideas to assist students to manage the cost of education.

 

Do Community Colleges Truly Help Lessen Costs?

The fees structure of California community colleges has been judged to be a bit ambiguous by many economists. The current rate for a single unit is $46. This is supposed to be a reasonably low rate. But, the combination other costs associated with education like the textbooks, lodging for students and the transportation cost, can increase the overall expense up to $17,000 in a year. The Institute for College Access and Success found this data in their recent research. This much of expense can be difficult for an average student to manage.

To make things more convenient for the students, the Board of Governors of the California Community College formed The Student Success Task Force or the SSTF in the academic year 2011-2012. The 20-member task force came up with 22 recommendations which are similar enough to the president’s plan. Most of the economists feel that the plan Obama has decided to implement may help to make education affordable for all. The community colleges have already taken the initiative to implement the recommendations by SSTF, so it’s easier to assume how the president’s plan may develop in future.

According to the Student Success Act of 2012, students must make satisfactory progress in academics to be eligible to waive the enrollment fees. The provision took effect on 1st January 2013. The standards for academic progress will work in accordance with the other standards compulsory to get financial aid from federal and state government. As a consequence, the community colleges have become more responsible to support students for better academic performance so that they can achieve all their goals without any financial obligation.

The Student Success Scorecard, introduced by the SSTF, provides students with all the needed information about the college rankings. The scorecard offered by the SSTF will provide all the necessary information about a college’s retention rate, transfer rate, overall success rate, graduation rate completion and so on. With the help of this information, students may check the ranking and select the right college with better success rate. This will ensure a better career for students and thus they will be able to live a debt free life.

There is still much more to do to keep student loan debt under control. By following the recommendations by SSTF, community colleges are trying to assists students to get affordable education without much trouble. As student loan debt is still excluded from bankruptcy, it becomes more essential for students to get affordable education to graduate without debt. However, the techniques that community colleges follow must be adapted by every college to make education actually affordable for all.

Another Student is On His Way to Graduating DEBT-FREE!

Another student is on his way to graduating college DEBT-FREE!

Are you going to be the next person on her way to graduating college DEBT-FREE?

www.debtfreecollegegrad.com

Public Colleges: Pros & Cons

Are public colleges better than private colleges?

With so many different colleges to choose from, it can get overwhelming as a high school senior. Should you pick from one of the many public colleges to attend? Or should you choose a private college? Lets begin by breaking down the pros and the cons of public colleges.

 

Pros of Public Colleges

• Tuition- Public colleges are very affordable to attend, especially for students that attend the college in the same state that they live. Tuition at public colleges and universities are a lot less expensive than private college tuition.
• Diversity- Public colleges typically have many different types of people that you can meet. They have a large student population and people come from different states, backgrounds, ethnicities, etc. Along with being diverse in people that you will meet, public colleges also offer an abundance of extracurricular activities.
• Course Availability - Public colleges provide a lot of flexibility when it comes to signing up for and taking your courses. Courses are offered at different times through out the day so if you want to work during the day, you are able to take night classes and if you want to work a night shift, you can sign up for day courses. Public colleges can incorporate their curriculum into your schedule very easily.

Cons of Public Colleges

• Larger class sizes- Since there are a lot of people that attend public colleges, public colleges tend to have more students in each class. Some classes consist of lecture halls filled with students. There can be one hundred students or more in some classes with only one teacher. For some people, it is difficult to learn in a huge lecture hall full of students and the professors are not able to give students individual attention.
• Overcrowded Campus-  Due to the high number of students that enroll in public colleges each semester, classes will get filled up quickly---especially the courses with the "best" professors. Also, lines at lunch, the bookstore, and other popular places on campus can be long since there are so many students that attend the public college.
• Communication with Professors- Professors at public colleges can have hundreds of students each semester. Due to having so many students, professors at public colleges might have limited times where they will communicate with. You might have to visit during their set office hours or schedule an appointment with them before just dropping by to ask a question.

***Note: Not all public colleges have a lot of students that attend. Some public colleges have classes with only 10 or 20 students in them each semester. It all depends on which public college you choose to go to and what classes you choose to enroll in. You can still find smaller class sizes at a public college.

After knowing about the pros and cons of public colleges, would you want to attend a public college? Leave a comment letting me know if you would or wouldn't and why.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Private Colleges: Pros & Cons

Are private colleges better than public colleges?

With so many different colleges to choose from, it can get overwhelming as a high school senior. Should you pick from one of the many private colleges to attend? Or should you choose a public college? Lets start by breaking down the pros and the cons of private colleges.

Pros of Private Colleges

• Smaller class sizes- One of the biggest positives of private colleges are their smaller class sizes. For some people, it is difficult to learn in a huge lecture hall full of students. With smaller class sizes, the professors will be able to get to know you personally and can make sure that everyone in the class understands the lecture material.
• Scholarships-  Private colleges tend to give out a lot of money to the students in the form of merit scholarships because they receive a lot of endowments and donations.
• Close Community of Students- Private colleges have a close-knit community where the students are able to communicate with the professors and everyone is involved in campus activities. Also, there will be more student involvement in the classroom so private colleges are more academically driven and focused.

Cons of Private Colleges

• Lack of Diversity- Private colleges are not known for being very diverse in their student population. Private colleges typically attract a specific type of student, which comprises the majority of their student population.
• Tuition- Private colleges are the most expensive type of college to attend. Yes, we said that private colleges give a lot of financial assistance in the form of scholarships, but those typically go to the students that are at the top of their class, have the highest GPA and SAT scores.
• Credit Transfers- Private college credits are usually difficult to transfer to other colleges or are non-transferable. This means if you want to transfer to a different college after attending a semester or two (or more) at a private college, you will most likely lose some of the credits that you have earned at the private college. For example, you took 30 credits at a private college. When you transfer over to a different college, only 15 credits might transfer over to the new college. If you want to transfer colleges after attending a private college, you might have to take some classes over at the new university.

After knowing about the pros and cons of private colleges, would you want to attend a private college? Leave a comment letting me know if you would or wouldn't and why.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

High Blood Pressure Linked to Student Loan Debt!

Did you know that high blood pressure and poor health in young adults is linked to debt?

Just think about all of that student loan debt that some young adults have acquired. The average amount of student loan debt in 2012 was about $29,000.

Did you know that this student loan debt could be making you SICK and causing you to have high blood pressure?

Researchers at Northwestern University conducted a study which discovered that young adults between the ages of 24 to 32 with high financial debt/ student loan debt were more likely to have higher blood pressure readings AND were more likely to feel stressed and depressed.

This study, which was published in the Social Science and Medicine Journal, found that young adults with higher debt had a 1.3% increase in their diastolic blood pressure reading. 1.3% may not seem like a huge increase, however, an increase of the diastolic blood pressure by only two points will increase the risk of a stroke by 15 percent.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Study Abroad to Save Money on College

Did you know that if you study abroad you can actually save money on college?

 

Most people think it costs a lot of money to study abroad. If you are going to study abroad through a college in the United States, it will be costly. However, if you study abroad by actually attending a college that is out of the country, it can be a cheaper alternative.

I had a new client walk in today which reminded me of this study abroad trick to saving money on college. She was finishing up her undergraduate degree in Biology this December, but still did not know what she wanted to do career wise. She majored in Biology because she thought she wanted to go to Medical School, but now she was not as certain. Although she did not know what direction she wanted to go in, she was set on continuing her education anyways. After talking to her for a while, I found out that she was originally born in Sweden and was thinking of moving back since she loved it so much the last time that she visited.

I suggested that she should study abroad in Sweden since that is where she is thinking of moving to eventually. Since she was a dual citizen of Sweden and the United States, if she wanted to study abroad and go to school in Sweden it might be cheaper for her (especially since she had already acquired student loan debt). When you study abroad, some colleges that are overseas will offer free tuition or very reduced tuition fees. However, each country has different requirements so the client would have to look into that country's specific requirements to see if she would qualify for the reduced or free tuition.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Is 4 Years of College Worth A Lifetime of Debt?

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Recently, there have been a lot of articles surfacing about skyrocketing college costs and the effects that student loan debt has on graduates. Usually, the student loan debt that graduates end up with is so abundant that it puts a serious burden on them. The burden is so great that it poses the question, "Is 4 Years of College Worth A Lifetime of Debt?"

Yahoo! Finance spotlighted "7 College Graduates Whose Lives Were Wrecked by Student Loan Debt." These 7 people's stories and experiences can help you be the judge--- Is 4 years of college worth a lifetime of debt?

"Stephanie Snyder, 44, graduated in 2005 with a B.A. in Public Administration. She worked three jobs at one time to pay down her $38,000 student loan balance."

"Carla Ruiz, 53, earned her MBA in 2006. Today, she's $120,000 in debt and lives in an attic apartment."

"Kyle Laffin, 25, asked his dad to co-sign a $100,000+ private student loan for a B.A. in accounting. Now, he has $1,200 monthly payments. His dad is working two jobs and dipping into his retirement savings to help him pay it down." 
  
"Since earning his MBA in 2004, Michael Pope, 38, has been bankrupt, homeless, and unable to find a job that pays well enough to tackle his $140,000 loan debt."

I've only summarized 4 of the 7 people in the Yahoo! finance article whose lives were wrecked by student loans. (To read the full article, go to: finance.yahoo.com/news/7-college-graduates-whose-lives-were-wrecked-by-student-loan-debt-151703790.html?page=all)

So back to the question, "Is 4 years of college worth a lifetime of debt?" After reading these stories, I think not. College is supposed to help you obtain a better life, but being submerged in debt will not help you accomplish that goal.

Would you trade a lifetime in debt for a college degree? Leave your comment below.

Testimony from A DebtFreeCollegeGrad.com Graduate

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

I met Floyd Clark in April 2013. He told me that his son, Tavion Clark, was considering joining the military because he didn't have any money to go to college and didn't want to put the burden on him [his father]. Floyd really hoped that his son wouldn't join the military so he asked for my advice. I revealed to Floyd and his son some of my scholarship and grant secrets. Now, it's September 2013 and Tavion Clark is attending Old Dominion University in Virginia. All of his college expenses are covered and he is even receiving refund checks back from the college. I'm so glad that Tavion really followed my instructions and took his scholarship search seriously. In less than 5 months, Tavion went from having no money for college to having more than enough.

Are Refund Checks Real?

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

After one of my last posts, I've been getting a lot of questions about college refund checks. One of the most common questions that I received was, "Can you really get refund checks back from the college? Is that really true?" The answer is yes.

What do you think happens when you get more money than it costs to attend college? It's just like when you overpay a bill. Or like when you purchase something that costs $5 and you only have a $20 bill. The store does not get to keep the difference. You get the change back. The same applies when you go to college and get more money than what it costs to attend. You get the change back. With college, the "change" that you would get from that $20 bill is in the form of a refund check.

The college will give you refund checks when you get more money than what it costs to attend college. No, I don't mean have your grandparents or parents make a bigger payment than what you need, of course that will work too, but that defeats the purpose. You get more money than what the college costs by winning scholarships.

FAFSA Tip: Should You Put Assets In Your Child’s Name?

BIGGEST FAFSA MISTAKE

Stocks, bonds, real estate investments, money in checking and savings accounts, and other assets are very valuable to have. I am a huge advocate of parents teaching their children early on about these things. It is even better if the children learn how to and actually invest in these assets themselves.

However, it is NOT a good thing when it comes to filling out the FAFSA and other financial aid forms for college.

 

Assets that are in the student’s name will get penalized heavily when it comes to the FAFSA and other financial aid forms. When it comes to financial aid from the FAFSA form, 20% of the student’s assets will be counted in the FAFSA’s financial aid calculations as opposed to only 5.64% of the parent’s assets being counted in the financial aid calculations on the FAFSA form. This is a difference of nearly 14%.
Also, parents can “protect” some of their assets. This means that the FAFSA form will not count a percentage of the assets at all when trying to determine the amount of financial aid that the student will qualify for.

Overall, putting assets in the students name versus the parent’s name could be the difference between your child qualifying for some financial aid through the FAFSA form and not qualifying for any financial aid.

Money Saving Tip for Your Master's Degree

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Have you ever thought about getting your Master's degree?

If you have, you have probably started looking at the fees associated with it. A Master's degree can be

pretty expensive for only two years worth of education. For example, if you want to get a Master's degree at Harvard University, you can expect to pay $40,000 per year for only tuition--- this doesn't include room and board or other fees. Usually it takes 2 years (sometimes more) to complete your Master's degree so you are looking at $80,000 total at the very least. That will be a lot of money, especially if you already have a student loan tab from your undergraduate degree.

To help decrease the costs associated with obtaining a Master's degree, I am going to share with you a money saving tip for your Master's degree.

One money saving tip for people that are thinking about getting a Master's degree is to get the Master's degree overseas. Usually the Master's degree programs overseas only take 1 year to complete. That means even if the tuition is still the same, you would only have to pay $40,000 versus $80,000 for your Master's degree in the United States so you already saving 50% of the cost. However, tuition is not the same. In addition to the overseas Master's degrees taking less time to complete, they are also cheaper.

Although going overseas to get a Master's degree will be cheaper and quicker, you might want to check with your potential employers first to make sure that they will accept it.

Student Loan Forgiveness Programs: Do You Qualify?

With all of the concern and discussions on the debt crisis, can you believe that there are actually student loan forgiveness programs?

According to a recent study, over 33 million workers can qualify for student loan forgiveness.

If you work in a school, hospital, city hall, or join the military, you can be eligible for the student loan forgiveness program. Teachers, firefighters, police officers, soldiers, and even health care workers can qualify for these student loan forgiveness programs. Clerks at state department of motor vehicle offices, secretaries at city halls, and accountants that work at non-profit art groups can also qualify.

One of my friends that graduated with student loan debt signed up to become a teacher through a student loan forgiveness program. She had to work in an under-served area, committed to working there for a set amount of time, and took a pay cut, but to her it was worth it. At the end of her contract, she will be free of student loan debt.

Would you make that trade off--- taking a pay cut and working in an under-served area for a specified amount of time to rid yourself of your student loan debt? Leave a comment below with a "yes" or "no" and why you would or wouldn't.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Parent Plus Loan, Who Is To Blame?

In the last two posts titled, "Parents, Are You To Blame," we discussed the rapidly increasing amount of student loan debt through Stafford loans and the Parent plus loan.

There we posed the question: who is actually to blame for all of this student loan debt that has been accumulating over the years through the parent plus loan.

If you didn't get to read the first part of the article, you can view it here.

If you missed the second part of the article, view it here.

In this last part of the three part series, we will come to the conclusion on who is to blame for the student loan debt crisis through Stafford loans, private loans, and the parent plus loan.

 

One last thing that I noticed when I was in college was that the students who were responsible for paying for their own college education took college more seriously than the students whose parents took the responsibility. I remember being in my Pre-Calculus class with another student. He was a junior at the time (and I was just a freshman). I asked him what he was majoring in. He said he didn't know. He was just going to college because his parents told him to and they were paying for it. If you are a junior in college and you still don't know your major, you are most likely not graduating in 4 years. You are going to need an extra year or two years (maybe more) before you are able to graduate unless you just major in general studies. Parents, understand that an extra year or two in college means extra money that it will cost before graduation. For some, this will equate to more student loans, including the parent plus loan, that will have to be taken out.

So who is actually to blame for the student loan debt crisis through parent plus loans?

Sure, we can blame the government and colleges. They shouldn't have allowed it to get this out of control. But ultimately, students and parents are to blame for the student loan debt crisis through stafford, private, and parent plus loans. At the end of the day, it is your debt that you signed up for. Each person has to take responsibility for their own actions.

One last note: Parents and students, if you don't know something or don't understand something completely, you should seek help from a professional.

By: Shanice Miller, Founder of DebtFreeCollegeGrad.com

Parents, Are You To BLAME for Stafford Loans?

In the last post titled, "Parents, Are You To Blame for Student Loan Debt," we discussed the rapidly increasing amount of student loan debt through Stafford loans.

There we posed the question: who is actually to blame for all of this student loan debt that has been accumulating over the years through Stafford loans. If you didn't get to read the first part of the article, you can view it here.

In this continuation of the article, we will further discuss the student loan debt crisis and who is to blame for all of these Stafford loans.

Reminiscing back on my college days, I remember a particular roommate that my friend had. Right after the semester started he was so excited because he was getting money back from the college. Yes, refund checks are wonderful. But, not this refund check. See this student wasn't getting a refund check back from an abundance of scholarships, he was getting a refund check back for an abundance of loans--- Stafford loans! Now that isn't good at all.

Right now some people might be wondering how can that be. Let me explain. When you sign up for Stafford loans or any other loans, you can either chose to sign up for the maximum amount that you are eligible for or you can just opt to take out what you need. Now some people would take out the maximum amount of Stafford loans to use for other expenses like books and living expenses.

This particular student would take out the maximum amount of money that he qualified for in Stafford loans. He would use some of the Stafford loans on books, but with the rest of it, he would buy things that made him happy like clothes, video games, or the latest phone. At the time he just saw it as "free money" but that "free money" was actually a debt tab that he was quickly increasing.

I'm pretty sure he wasn't the only student that did this. Parents, students do NOT need to take out the maximum amount of money that they qualify for in Stafford loans or any other student loans. You should only take out what is necessary to cover tuition and the school fees--- nothing more. Taking Stafford loan money and using it for the child's pleasure is a sure way to be swimming in debt upon college graduation.

In the next post, we will follow up on one last reason why we have a student loan debt crisis and how you can avoid your student from being part of that statistic so stay tuned!

By: Shanice Miller, Founder of DebtFreeCollegeGrad.com

Parents, Are You To BLAME For Student Loan Debt???

Student loan debt is getting out of control!

According to the Wall Street Journal, "Americans are borrowing more to pay for college." By the beginning of 2012, Americans owed $904 BILLION in student loan debt which is an 8% increase from just last year. So who is to blame for all of this student loan debt?

Are colleges to blame for this excessive student loan debt?

With rising tuition and fees which cause the students to borrow more just so they can stay in college and get a degree to hopefully get a "good" job when they graduate, it is a possibility.

Or is it the government's fault for all of this student loan debt?

The government should be increasing the amount of grants given to students to help balance out and help the students keep up with the increasing college costs, right?

Actually, the PARENTS are to blame for student loan debt!

When I was in college, I encountered too many students who chose the college they attended just because their friends were going there or the campus looked nice or "it was far away from home." The truth of the matter is soon-to-be college students don't really take into consideration the cost of the college. At that age, they are just so excited to go and are only thinking with their emotions. The mounting student loan debt that they sign up for each year isn't quite real yet. It just seems like another form that they have to fill out in order to take college classes. It doesn't get "real" until Sallie Mae sends them a paper in the mail stating that their first student loan payment will be due 6 months after graduation and by that time it is too late. They have acquired $30,000 or $60,000 or even $120,000 in student loan debt (not including interest) and don't know where they are going to get the money to pay it back with the entry-level positions that they have accepted.

Parents, you HAVE to be the ones to think logically in this situation. Sit down with your soon-to-be-college student and have them understand the cost of attending the college they want to go to. Compare it to the costs of some of the other colleges that they were accepted into as well. Have your child understand that the cost of attending the college is for each year, not the entire 4 years. So if you have to take out student loans in the amount of $15,000 this year, you need to multiply that by 4 (at the very least) so their total student loan debt will be $60,000 that they will have to pay back, not just $15,000. Even tell them how much the monthly payments will be that they will have to pay back so they understand and are aware. Parents, you MUST get your child to think about the future, not just the present. Right now, they are just signing a paper. But in the future, that signature is going to cost them more than they ever imagined.

By: Shanice Miller, Founder of DebtFreeCollegeGrad.com

Can You Go To College For FREE?

Over the years, a lot of people have asked me, "How can I get free money for college?"

My reply: "It's simple to get free money for college."

You can get free money for college using one of two methods. Either you can win and receive scholarships or join the military. I chose to get free money for college by using the scholarship method, but for some people the military might be best.

I have a few friends who decided to go the military route to get free money for college, but even within the military route, you have different choices.

Military Option to Get Free Money for College #1:

I had one friend who wanted to go to Columbia Law School. She received a full scholarship for her undergraduate studies but had to take out loans for her law school education. When she graduated, she realized just how much money in student loans that she took out and enlisted in the military. The military is giving her free money for college by paying back all of her student loans for her in exchange for her agreeing to practice law in the military and she loves it. It was a guaranteed job that she got. She didn't have to worry about going on interviews or applying for positions or having to pay back her loans.

Military Option to Get Free Money for College #2:

I went to school with one person who was already enrolled in the military and he wanted to become a dentist. Since he was already enrolled, they paid for his school and gave him a stipend each month, but he had to commit to serving in the military for a certain amount of time after he graduated. (Also, the Uniformed Services University of the Health Sciences in Bethesda, MD has a similar program for people that want to become medical doctors. Here, you can get free tuition and a starting salary of $65,000 while you are attending classes, but you have to commit to being in the military for 7 years after you finish your residency).

Military Option to Get Free Money for College #3:

There are military schools (for example, the U.S. Naval Academy in Annapolis, MD) where they pay for your tuition, room, and board plus you get a monthly stipend just for attending the military school. Once again, you have to commit to serving a specified amount of years after graduation in the military.
For some people, the trade off is worth it--- sign up for 4 or 7 years or more in exchange of avoiding $100,000 or $250,000 or more in debt. Do you think it's worth it? Leave your comment in the box below.

For more information on going to college for free, visit: http://www.debtfreecollegegrad.com

By: Shanice Miller, Founder of DebtFreeCollegeGrad.com

Parents COURT ORDERED to Pay Back Child's Student Loan Debt!

I ran across this article about parents being court ordered to pay back their child's student loan debt from the Wall Street Journal not too long ago and was shocked and amazed by what it said.

The article states, Lenders who extended $132,000 in student loan debt to Kristina Pietras before she dropped out of the University of Toledo knew she couldn’t afford to pay back the student loan debt.

But they convinced a bankruptcy judge that her parents could pay back the student loan debt.

Yes, her parents were COURT ORDERED to pay back the daughter's $132,000 student loan debt. The parents even tried to file bankruptcy, but even filing for bankruptcy didn't make the student loan debt go away.

Wow! Parents, BEWARE! You could, in fact, be held responsible for your child's student loan debt if you co-sign on a loan.

The articles continues on to discuss other cases where parents, and even grandparents, were court ordered to pay back the student's student loan debt when the student defaulted on the loan.
Could you imagine having to pay back another person's student loan debt? You didn't even get to reap the rewards of the student loan debt, but you are still responsible for it.
So the moral of this story is parents, only sign your name as a co-signer for the student loan debt if you are prepared to pay them back yourself. You don't have to get student loan debt to pay for college. There are other options.

If you would like to hear about other options that are available to fund your child's college, email me at: info@debtfreecollegegrad.com

To view the article, go to: http://blogs.wsj.com/bankruptcy/2012/10/29/soured-student-loans-bankrupt-parents-grandparents/

Leave a comment letting me know how you would feel and what you would do if you were court ordered to pay back your child's student loan debt.

By: Shanice Miller, Founder of DebtFreeCollegeGrad.com

Are You Like the Brady Bunch With More Than One Child Going To College At The Same Time?

Maybe you are like the Brady Bunch. With six kids, the Brady Bunch was bound to have at least two, if not more, kids in college at the same time. I wonder how the parents in the Brady Bunch coped with having to pay for two kids in college, while at the same time still having to pay for the four younger siblings as well. The costs can really start to add up especially when you have to pay for more than one kid in college at the same time. Luckily for the Brady Bunch, I think the oldest children were only in high school, but they were bound to go off to college some day.

Or maybe you aren't like the Brady Bunch and only have two kids, but they are close in age: like only a year or two apart. Or could you imagine having three or more kids all a year apart in age? Or maybe you have twins. They will definitely be going to college at the same time.

Families--- whether big, like the Brady Bunch, or small--- can end up with the same question if they have kids that are close in age: How will I be able to afford to pay for my children's college costs at the same time?

Well parents, you can get some help if you have two kids in college at the same time. If you apply for financial aid and show that you have two kids in college at the same time, you can get a break. For example, say you have only one child attending college. Your household income is $150,000 and you have assets totaling $500,000. With just one child in college, the way that the formulas are constructed, it says that you can afford to spend $50,000 (hypothetically speaking). So with one child attending a $40,000 school, you wouldn't get any financial assistance. BUT, if you have two kids in college at the same time, you would get $30,000 in financial aid versus getting $0 in financial aid.

So what should you do if your kids aren't twins and don't enter at the same time? If your kids are one, two, or three years apart, you might want to ask the oldest child to take a year off after high school so that your children can be in college at the same time (or so that you can at least have a few of their college years overlap).

If you have a question pertaining to college and paying for college, feel free to contact me at: shanicemiller1@gmail.com

By: Shanice Miller, Founder DebtFreeCollegeGrad.com

High Income Parents CAN Qualify for Need-Based Financial Aid

One of the biggest MYTHS is that students that have parents with high incomes (high incomes referring to parents making $80,000 or $100,000 or more!) cannot receive financial aid.

There are parents all over that do NOT fill out the FAFSA (Free Application for Federal Student Aid) because either 1) they think they won't qualify for financial aid because they make too much (or have a lot of assets) or 2) they filled out financial aid forms before and only qualified for loans. When high income earners don't know the "loop holes" that you can use when filling out your financial aid forms, they will only qualify for loans. Can you see why so many people that earn a lot of money think that it would be a waste of time to fill out financial aid forms? I sure can! It's all because they don't know the rules to the "FAFSA" game.

So GREAT news for Parents that are 6 figure earners: You CAN qualify for need-based financial aid. One of the ways that you can qualify for financial aid is by choosing a college that uses the Section 568 formula. With the Section 568 formula, you can take all of the money sitting in your bank account and pay down or pay off your mortgage. Doing this will help qualify you for need-based financial aid. Whereas, if you would have kept the money just sitting in your bank account, you most likely will have received $0 in need-based financial aid.

One thing to remember, the financial aid forms are always based on the previous year (just like your taxes) so you have to really think about the right time to do these things. For example, if you take all of the money out of your bank account in the beginning of the year, say January 2013, it will not be taken into consideration for your child's financial aid award letter for the 2013-2014 school year because the 2013-2014 financial aid award letter is based on your income and assets from 2012.

To find out more ways how you or your child can graduate college debt free and get financial aid, visit: www.debtfreecollegegrad.com

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

3 Exclusive Tricks to Graduating Debt Free

Everyone dreams of college, but no one thinks about how you will graduate debt free?

Graduating debt free is a BIG problem because high school students don't think about the costs associated with going to college. Although children and students don't take the cost of attending college into consideration and don't think about graduating debt free when they are first starting college, the parents NEED to. Students are graduating college with enormous amounts of debt. This debt is putting a hardship on children after they graduate, making moving out and purchasing their own homes or cars more and more difficult. These things wouldn't be difficult to obtain if the students would have graduated debt free. So I am going to share with you 3 of my exclusive tricks that I used that helped me graduate college 100% DEBT FREE!

Exclusive Trick to Graduating Debt Free #1: Scholarships

I cannot STRESS this trick enough. Scholarships were the difference between me owing money to the college each semester and me graduating debt free and getting money back from the college. Scholarships essentially helped me graduate debt free. Most people think scholarships are only for people with good grades. That is a BIG MYTH. Merit scholarships, or scholarships for people with good grades, is only ONE type of scholarship that is available for students to apply to to help them graduate debt free. There are a lot of merit scholarships that you can apply for and win, especially for students at the top of their class. However, you may not get the most merit scholarships from the top schools. Some schools may give you more merit aid than others based on how you rank and if they see you as a "desirable student." Colleges will compete to get the best students and they do this by giving the most merit aid (aka giving the student a full-ride scholarship so the student will graduate debt free). There are other types of scholarships besides merit that you can get. Usually these scholarships are based on community service performed, extracurricular activities that you are involved in, intended college major/ career, or any other hobby or interest that your child has. Scholarships played a big part in helping me graduate debt free.

For tips on winning and receiving scholarships for college so that you can graduate debt free visit: http://www.debtfreecollegegrad.com

Exclusive Trick to Graduating Debt Free #2: Community College

Community colleges can really help you graduate debt free. Community colleges usually get a stigma of being the place that students don't really want to go or think about when they are picking a college to attend. People think community colleges are for students who don't have good enough grades to get accepted into a 4 year university. They call it the "dumb school" or the "13th grade." That can be further from the truth. If you think you are going to get an easy "A," you're wrong. I went to a 4 year university my first semester, then decided to switch my major. When I spoke to my adviser about my new major, she couldn't offer me any advice besides "students that pick that major usually switch to a different college." So that's what I did, I switched. I applied to another university, but they were taking too long to get back to me. The beginning of the new semester was nearing and classes were filling up quickly. I didn't want to waste a semester not doing anything so I signed up at the community college. To my surprise, a lot of my professors at the community college were either doctors or the same professors that taught at the 4 year university that I wanted to attend. They definitely graded me the same that they would grade the other students in their courses at the 4 year schools.
Now that those stigmas and myths are out of the way, my exclusive trick to graduating debt free #2 is to go to a community college. Community colleges are very inexpensive to attend in comparison to in-state or out of state colleges and universities. If you start off at a community college first, you will save a lot of money on room and board (by commuting to school and staying at home with your parents) and on tuition costs (since tuition at community colleges are about half the price of in-state colleges). Saving this money can help you graduate debt free. After you spend your first 2 years there, getting the basic courses out of the way, you can transfer to your desired 4 year college.

Exclusive Trick to Graduating Debt Free #3: In-state Colleges

Attending a college that is in the same state as your residence is usually cheaper than attending a college that isn't in the same state as your residence. Saving money here can also help you graduate debt free. If you are planning to move to a different state when your child is in high school (maybe you are moving because there are better state schools in another state) you should check out the college's rules for being considered a resident of the state. Some colleges will ask if you have been a resident of the state for the past 12 months in order for you to qualify for in-state tuition.
I used these 3 tricks (along with a few others) to graduate college debt free. Let me know (in the comment box) some things that you would do to cut college costs so that you (or your child) can graduate debt free.

By: Shanice Miller, founder of debtfreecollegegrad.com

Graduates with Student Loans Ineligible To Purchase a Home?

Did you know student loans can make you ineligible to purchase a home?

"College graduates typically earn more than non-college graduates during the course of their lifetimes, yet the average 30-year-old who left school with a bachelor's degree in 2004 is most likely ineligible today for a home mortgage due to a high debt-to-income ratio." (Meaning it's because of their student loans) (Excerpt taken from the Post Gazette Article titled "Student Debt Pushes Homes Out of Reach)

Reading this first paragraph really made me understand the reality of student loans and the toll that it takes on the student. I had never stopped to think about how difficult it would be to qualify for a mortgage, or even pay all of your bills each month once you graduate from college with student loans because I was not a part of "that world." Right after I graduated college, I immediately started looking for a house to purchase. I got my pre-qualification letter and was able to purchase my home without any issues just 2 months after I graduated probably because I didn't have student loans. The process was too easy for me. I had graduated debt free (without any student loans) and received refund checks back each semester due to being strategic about the college that I chose AND winning scholarships. I saved a lot of the money from my refund checks to use for the down payment and closing costs for my home. 

At 22 years old, I wanted that house with all of my heart. It was my own home. Something that I accomplished and achieved. It symbolized freedom and happiness. Everyday I walked into the house smiling. Years later, I am still smiling and paying the mortgage happily. Nothing feels better to me than coming home to my own peace and quiet without student loans. With all of the joy and pride that the house gives me, I couldn't imagine being 30 years old--- the age when most people are getting married and purchasing their first homes--- with excitement brewing in my stomach while going to the bank and applying for my first home mortgage loan to only hear the words "REJECTED" because of student loans--- something that I signed up for when I was only 18 years old and not fully understanding what was happening.

The article continues on to state, "Today's college graduates are worse off financially than previous generations" due to student loans.

To read the full article: http://www.post-gazette.com/stories/business/news/student-debt-pushes-homes-out-of-reach-649831/

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Student Lives in Van to Avoid Student Loans!

We should all avoid student loans by living in a van! According to Yahoo Finance, a graduate student lived out of a van so that he wouldn't get student loans.

Ken Ilgunas acquired $32,000 of student loans when he finished his undergraduate studies. He immediately felt the stress of the student loans and wanted to get rid of them, but he had a big problem--- he wasn't able to find a job in his field. So he took a low-waged position, earning just $8/ hour even though he had a college degree, and lived very frugally to aggressively pay down his student loans. After two and a half years of this, he paid a total of $35,000 (some interest had accrued on the student loans) and was free of his student loans, but he wanted wanted to continue his education. Ken figured that living out of his van while almost starving himself and freezing to death during cold winter nights would be the sacrifice that he was willing to take to avoid getting student loans again.

Now this is a really extreme way to avoid student loans, but I can understand the logic behind him doing this.

Attending college is much more affordable when you just have to pay for tuition. Adding in the cost of room and board to your college fees can just about double your cost of attending that particular college. For example, if you go to a college in your state of residence, tuition may be $4000- $5000 per semester (depending on which college you attend the cost can be higher or lower). The room and board (on campus housing and meal plan) will add an additional $5000 or so to your cost of attendance each semester. So instead of college costing $5,000 a semester, it now costs $10,000 each semester with the housing and the meal plan. Over 4 years, with just tuition costs you might have had to get only $20,000 in student loans but now that you had to pay for housing and meals, you had to take out $40,000 in student loans.
Luckily, I didn't have to make this extreme sacrifice to avoid student loans and you don't either. I applied for and won enough scholarships to cover all of my school costs AND even got money back from the college. You too can do the same thing.
To read the complete article, go to: http://finance.yahoo.com/news/duke-grad-student-secretly-lived-in-a-van-to-escape-loan-debt-194021112.html?page=1

By: Shanice Miller, founder of DebtFreeCollegeGrad.com

Are You Going to Have College Debt When You Graduate?

I was well on my way to being over $100,000 in college debt when I graduated college...

By all means, being in college debt isn't what I wanted or anyone else that I know would EVER want. But when you aren't aware, you just don't think about things like college debt.

At 17 years old, everyone keeps asking you two main questions:
-What college are you thinking of going to?
-What do you want to be when you grow up?
And I was tired of saying "I don't know" and not having an answer so I just picked something. Anything sounded better than "I don't know." At the time I was taking a graphic design class in high school that I enjoyed. I'm a creative, artsy person who loved to work with computers so I picked that field. Looking back on things, schools really don't teach you about many career options. They make it seem like your options are being a doctor, lawyer, accountant, teacher, fire fighter, police officer, etc. (All of those options can lead to college debt.) Little did I know, the main careers, weren't the only careers. So, at 17, I chose to be a graphic designer.
But I still didn't know what school I wanted to attend. Of course everyone wants you to go to their Alma mater so those were the schools that I started looking into and applying to--- all which would leave to me acquiring college debt. I thought I had everything figured out when the college acceptance letters started rolling in. I did... until I received the financial aid award letter. They almost all consisted of some form of college debt.
$36,000 in loans!!! That is major college debt. Yes, I had received some scholarships from the schools, but most of the money that it cost to attend the school that I had my heart set on was in the form of loans, which is just college debt...

One Thing You Should Do To Avoid College Debt

One of the things that I failed to do in order to avoid college debt was to create a realistic list of colleges that covered all of my needs. Your college list should, of course, consist of schools that you or your child wants to attend, but that shouldn't be the only thing that you take into account. The school also needs to be a "good-fit" academically, socially spiritually, and politically. Most importantly, it has to be AFFORDABLE (not just for the first year, but for all 4 years of college). That means the student should not come out with much college debt. The amount of college debt that I would owe was the component that I didn't even think of when I went to apply to these colleges. The amount of college debt is also the component that everyone fails to mention when they tell you that you should go to their Alma mater. Affordability is so important. If you can't afford the school, you most likely will not be able to graduate or will struggle trying to afford the school so that you can graduate. And if you can't afford the school now, when you graduate that college debt will come into play when it is time to repay Sallie Mae. College debt is extra stress that no one wants.
So What Did I Do to Avoid College Debt?

My mother always told me that college debt was bad so I avoided college debt like the plague.

By: Shanice Miller, founder of DebtFreeCollegeGrad.com