How to write a college scholarship essay

By Ivy Research

If you're reading this blog post you may have heard all sorts of misconceptions, and probably read some of them through the internet. One common misconception regarding the college scholarship essay is that for some magical reason it is no longer a typical essay. Guess what, this same fallacy occurs with the college application essay as well. 

The truth of the matter is that an essay is an essay. What is an essay? An essay is basically a literary form that is designed to change the mind of the reader or to convince the reader to do a particular action that you want that reader to do. 

It's that basic, so regardless of which essay you truly admire like for example, George Orwell. If you look at their essays they follow the same standard form while the appearance of the essay might be creative and clever some might even look like a recipe' or a short novel. 

But at the end of the day it has the formalistic elements and structural elements of a typical essay. This includes an introduction, body, and conclusion. The body is what really drives the essay. It's the engine of the essay. The typical body of an essay is composed of an assertion and supporting facts of evidence. 

That is really the essence of an essay. Without it, your scholarship application essay is just a list of opinions or a list of bald assertions. Nobody's going to award you money for college, law school, graduate school, medical school, an MBA program, or graduate program based on your opinion. Opinions are like noses, everybody has one. To make your essay successful, you have to really deliver on the promise of the essay in an effective way. So how do you do that?

Grab eyeballs and work it from there

First of all, you need to grab the attention of the reader; you can do this by identifying a great theme that organizes your personal facts. Don't get too caught up in the selection of the theme because its main job is to organize the facts. It's your facts that really carry the essay, and not anything else. 

Next, in order to be awarded with scholarship money, you have to convince the reader of your essay that you have the traits and attributes they are looking for. How do you do this? You do this by making an assertion and then backing up that claim. So you have to back it up with facts; back it up with actual information from your past. 

You cannot just lay out several opinions and several assertions and expect the reader to buy what you're selling it doesn't work that way. Finally, the conclusion raps up the key assertions that you made in the past. You’re not so much repeating the assertions, but pointing them to a call to action. This action is frozen in such a way that it answers the question: Why should we award you the money instead of another applicant?

Your essay reflects your character. Make sure you autograph your scholarship application essay with quality, and without sloppiness and shoddy sentences. Just high quality writing indicates you have taken the application process seriously

This guest post was brought to you by the best provider of scholarship application essays on the Internet, IvyResearch.Com

Tips on decoding the student loan application

Saving enough money to pay your way through college is easier said than done. Thousands of college students apply for scholarships, grants, and student loans to help them tide over the hefty college expenses such as tuition fees.

Before you start applying for student loans, you need to know exactly what you will be getting into. Finding the right loan that will fulfill every need you have is the key to success.

How much do you really need?

Most students make the mistake of borrowing too little or too much through a student loan. You will find many calculators and online cost adjusters that will help you calculate exactly how much you need to borrow to meet all your educational requirements.

While borrowing, ensure that you reach the maximum limit on every available federal student loan before you borrow from any private student loans. It is prudent to borrow just as much as you need to cover your education costs, no more, no less.

 

Types of loans available to students

There are a variety of loans that students can apply for. Most students will be able to qualify for more than one loan. In order to know which loans are the best for you, it is important to spend some time understanding the characteristics of each loan.

For example, PLUS, Perkins, and Stafford loans each have something unique to offer to students. They also have different rules that need to be followed. Give yourself the best tools to apply for loans and streamline your debt by researching on the types of loans available to students.

 

Promissory notes

Often the simplest things become roadblocks because they were not done in time. Collecting and organizing the information that you will need while applying for student loans falls into this category. Organize all the promissory notes that you will need and gather information pertaining to the Department of Education school code, co-signer information, as well as any disbursement dates before you begin the process of applying.

 

Balance your potential earnings with loan payments

Finding a steady job is a concern in these tough economic and recessionary times. Research and find out what successful graduates in your chosen field of study are being paid after graduation and what are the chances of them finding a job in that field?

This will help you understand what your earning potential is like after graduation, will you need a master’s, should you enter this major, and how you will be able to make payments towards paying off your student loan debt?

Attached Images:

•  License: Royalty Free or iStock source: http://office.microsoft.com/en-us/images/results.aspx?qu=students&ex=2#ai:MP900439511|

Select your student loans after considering all the pros and cons via adequate research.

Using college credit for work experience to reduce cost

By Jared Morison

The rising cost of education has put lawmakers on their feet in a quest to find measures that will help to reduce the cost of tertiary education. One effective method that has been identified is to spread out this type of education by extending it to online institutions of higher learning. Online universities are famed for the high quality low-cost  education option they offer.

An even cheaper source of obtaining a degree online is the college credit for work experience based degree program. In this program, the individual earns academic credits that would normally be obtained only from spending time in the classroom by simply presenting his or her work experience to an institution of higher learning.

While most people are bent on dragging down the college credit for work experience degree program, the truth of this degree program cannot be buried as more and more people are getting to know the real value of this form of education.

Lawmakers in Colorado are the latest group of high profile personalities to endorse the college credit for work experience degree program. The major reason that has influenced the decision of these lawmakers is the cost of financing experienced based degrees. Experienced based degrees are by far a cheaper form of tertiary education than the traditional system.

According to the decision by the lawmaking body in Colorado, institutions of higher learning will be encouraged to award college credits for work experience. Under this scheme, traditional universities will have to create departments similar to their distance learning units that would only be required to assess the life experience of degree seekers in order to create academic credits out of work experience. Once this scheme is fully accepted by the majority of colleges, it will help to significantly cut down on the time required to complete tertiary education. Reduction in the duration will further lead to a drastic reduction in education costs.

Who will benefit?

There are no specific individuals who would stand to benefit from the extension of the work experience degree program to cover all traditional institutions. This is because irrespective of your area of operation, the non formal education program that has helped to make you an expert in your field of work has its academic equivalent. For this reason, your work experience will earn you a suitable academic degree in the shortest possible time. It is hoped that when fully passed, the bill will support military personnel who have undergone several tour of duties serving in various capacities within the Armed Forces to earn academic degrees that will assist them to take on a particular career path when their time in the military is over.

The benefits of this program go far beyond the reach of the degree holder as the entire society stands to benefit from it as well. This is because by allowing individuals with the right knowledge to earn degrees based on their work experience, we are able to keep a strong workforce in the job market. These people would be able to render valuable services for the benefit of the society.

Jared Morison is an ex-marine whose main duty is to explore the career opportunities opened to the men and women who make the ultimate sacrifice for their countries.

Planning for your child's college education the right way

If you are like most parents, you want your child to go to college and receive the best education possible. You know that receiving a good education will make your child a more well-rounded person and provide him with better job opportunities. College, however, is not cheap. A four-year college can end up costing you tens of thousands of dollars, so you have to plan ahead to avoid frustration in the future. Here are some different ways you can save for your child's college education costs.

Contribute part of your tax refund

If you receive a decent amount of money from your tax return each year, you should consider putting at least a portion of it toward your child's college education fund. After you have paid necessary bills with the refund, consider putting the rest of it toward your child's education fund. Doing this every year can help a lot in the long run.

Consider a 529 Plan

Many parents are enrolling in 529 plans to save money for their child's college education. A 529 plan offers an easy way to save for your child's education and comes with numerous benefits. One of the benefits of opening up a 529 account is that the earnings are exempt from federal taxes if they are withdrawn for educational purposes. There are two types of 529 plans. The first option allows you to pay your child's college in advance at current tuition rates. The second option allows you to invest your money in a tax-deferred account that can be used later to pay for college at future tuition charges.

Open an education savings account

Opening up an education savings account is another great way to save for your child's college eduction. This plan is different from the 529 plan because it allows you to use the funds toward any form of education including private elementary or secondary school. Withdrawals from this account are tax free as long as they are used for educational purposes.

Save through Upromise

Upromise is a subsidiary of Sallie Mae and allows members to earn money for college by purchasing qualifying items from restaurants, grocery stores, gas stations and online retailers. The money that you earn from this program can go into a 529 plan or savings account.

Find out about reward features on your credit cards

If you often use credit cards, you should find out about their reward features. If one of your credit cards has a cash back feature, take advantage of it. Putting the cash you earn from purchases toward your child's college education fund will help you save thousands of dollars over the years.

Do not allow the rising costs of college get you down. There are many easy and affordable ways to save for your child's education. You just have to be willing to put in the effort. If you start saving early for your child's education, you should have no problem paying for his college in full. Although your child might not recognize your efforts right now, he will appreciate it in the future when he is not in debt from taking out too many student loans.

This article was written on behalf of Target Insurance Services, a provider of general liability insuranceand contractors insuranceto help protect you from unwanted surprises that may disrupt your life.

Earning grad school financial aid while teaching

By Chris Walker

Student loans and student debt are no joke. This is serious business. Many students are graduating from college and post college studies with too many financial obligations; a great deal of this financial burden is due to education costs. In fact, many students graduate with enough debt to finance their own homes. I know it sounds crazy but that’s the reality.

We’re talking about 6-figured debts here. Can you imagine the rising expenses if that same graduate gets married? We’re talking about a crippling debt. Given the soft economy and the shortage of high paying jobs available out there, many students are facing the demon of student debt. Thankfully, there are many ways to mitigate or outright eliminate your student debt when you graduate.

In the graduate school context, a lot of these can be achieved through financial aid packages that involve a lot of scholarships and grants. Unlike loans, scholarships and grants don’t have to be paid back. The downside to this financial aid option is that they are very competitive. There is really no assurance that you will get them. While there are some grants that are given as free money by the government, they are far too small to cover the amount that you need to pay for your studies.

In terms of scholarships, you have to compete with other graduate students who are applying for the same pool of money. In fact, the more lucrative ones involve competition not just with the students from your school but also from all over the country and worse, all over the world. So, what do you do? You have to seriously consider a work-study. 

Photo Credits 

Graduate student aids are the bread and butter of most college campuses’ teaching staff. It’s an open secret that the more prestigious a university is, the more focused the professors are on research. Since research takes up so much of their time, they really can’t stretch themselves to cover the nitty-gritty of teaching. Lecturing is one thing but actually leading discussions and labs regarding the topics and the readings are other things entirely.

This is where the graduate student teaching assistant comes in. Not only can the TA lead the discussions, give out assignments, and monitor progress, they also help with grading term papers and finals. They are the backbone of any educational institution. The only thing that sucks is that most of them aren’t paid that well. Thankfully, this is changing since many are beginning to get more vocal about being paid decent enough wages so that they can not only pay for their living expenses but also their school expenses.

Work-study. This is where you should seriously get as much of your financial aid from. The great thing about work-study is that you can mold your graduate coursework and schedule around your teaching coursework. If you play your cards right, you can actually learn while on the job and also do your regular learning and research. And at the end of the process you will come out better prepared for either a career in academia or out in corporate America.

Regardless of what your overall goals and aspirations are, going through the teachers’ aid experience will help you get the vital skills that you need to succeed with other aspects of your life. We’re talking about punctuality, working under pressure, dealing with different types of personalities, dealing with bureaucracies, turning in work on time, double-checking your work, and so on and so forth.

This guest post was brought to you by Chris Walker, a writer for http://www.sampleessayaboutmyself.com. Chris writes model personal statement essays.

Guest post: When student loans are no longer subject to repayment

US-PDGov

By: Jung Stone

We've seen in the news that student loan debt in United States has exceeded over a trillion dollars. To make the matters worse, the total debt amount has been continuously growing due to student borrowers who are not able to make their payments.

The good news is that the government provides various student loan forgiveness programs for federal student loan borrowers under certain conditions.Unfortunately, individuals who have taken out private student loans are not eligible for this government sponsored program.

Following is a list of the available loan forgiveness programs:

Teacher loan forgiveness program

This program was designed to encourage individuals to teach in areas where there are shortage of teachers or a large population of low income families. Types of federal loans that are qualified for the teacher loan forgiveness program include Stafford, Direct Subsidized, and Direct Unsubsidized loans with the maximum amount capped at $17,500.

In order to be eligible, an individual is required to teach for five consecutive academic years at designated schools by the US department of education and should not have any history of default in their student loan payments.

Public service loan forgiveness program

The public service loan forgiveness program was created in 2007 to promote more individuals to work in the public sector. Direct loans including Stafford, PLUS and Consolidation are qualified for this program. Types of public jobs include government and non-profit organizations such as public safety and various service sectors.

Under the public service loan forgiveness program, an individual needs to make all scheduled payments of his or her federal student loans for 10 years (120 payments) while working in the public sector. Once this requirement is met, the remaining debt will be forgiven.

Military student loan repayment program

The military student loan repayment program is divided into Army, Navy and Air Force and each has different programs. The total amount of repayment for each military division varies and has different eligibility requirements. For instance, the Army pays up to maximum of $65,000 of student loans while the Air Force's max amount is $10,000 per recruit.

Medical/law loan forgiveness program

The loan forgiveness programs for medical students are created to serve areas where there are shortages of health-related resources. Students who have graduated from medical schools with federal student loans can qualify if they work for non-profit public health care organizations for a certain number of years. As each state and school offers various types of loan forgiveness programs, it is strongly advised to talk to your particular school admissions department.

Similar to the medical loan forgiveness program, many states also offer loan repayment assistance programs to law graduates who work full-time in public interest sectors for a certain number of years (usually up to five consecutive years).

Why the cost of education should be marked to market

Image attribution: Lumaxart; CC BY SA-2.0

At the undergraduate level, a degree in accounting costs the same as a degree in journalism. Yet, according to the Daily Beast, a degree in Journalism is the most useless degree to have (wiping my forehead, good thing I have two degrees in philosophy!) Having said that, there is a real societal and economic issue underlying education costs. Basically, undergraduates are not getting an education marked to market, which basically means the value is not measured in terms of actual worth.

Skeptics would argue, if degree costs were measured in terms of worth, professors in low-valued fields would not work because the pay is so low. Really. Has that been proven or is that just speculation? From one perspective, life is more than just money, actually, much more than just money and some might just be passionate to share some things in life regardless of compensation. How do I know this? Quite simple, I've been writing for over five years and have a very low income.

What if education were marked to market, what then? For starters, the debt to income ratio of creative types who choose to learn about their fields would be more manageable. That isn't so bad is it? Oh, actually it is for those who only care about money. For those people, who I relate to at a substantial level, follow the smart money. Makes sense, following the arts is not typically being in the path of smart money, unless it's coming from George Lucas, Jean-Louis Gauthier, or William Shakespeare. So if you want to teach art and make a living, have a lot of faith in life. Otherwise, focus on the money ball.

There is another real economic problem to marking education to market however. Specifically, if all education costs were marked to market, only a handful of degrees would really be worth a great deal. In such case, and assuming many degrees would be valued at far less than their actual present costs, the economy would be affected significantly. For example, professors could be on food stamps, perceptions of education could lower enrollment causing the revenue of educational institutions, and the quality of educational programs to decline. If economics is the focal point, then yes, that is a big deal; but what if it isn't?

Economic models are not fool proof, and the field of economics is one of many that applies mathematical formulas to sociological constructs.  This is why economics is not considered a science, and what is not scientific is not absolute, therefore economics is not accurate. Also, measuring worth is not quite that simple as a survey of the career paths of thousands of former students would need to be tracked to create any sort of statistical significance to the valuations. It would also be challenging to isolate the exact influence education has on wealth apart from other variables such as luck, personality, motivation etc.

Even if economics were a science, which at basic levels it is, the scenario does not bode well materially. For example, Jeremy Grantham, a well known fund manager, thinks "grandchildren have no value" because of the unsustainable course of current economic practices according to John Elkington of the U.K. Guardian. Indeed, Grantham has clearly illustrated that constant growth is impossible with finite resources and demonstrates this using simple mathematics. This is reiterated by Henry Blodget of Business Insider who summarizes Grantham's reasoning as essentially this: "One cubic meter of possessions at a growth rate of 4.5 percent per year for 3000 years is equal to 10 to the 57th power."

The economy is a fragile mechanism that millions of people depend on to live and thrive. That's no small potato in an existential world where 'actual living' is a legitimate concern. In such case, humanity and common sense draw lines where economics might not. Specifically, minimum values of educational worth similar to minimum wage of labor. Makes sense doesn't it? No degree is worth nothing, and everybody is on Earth for a reason, so why stand in the way of life when it such a good thing? In other words, undervaluing education is just as bad as overvaluing it because it slows progress, and decreases the quality of education. 

Guest Post: The biggest villains behind today's student loan crisis

Submitted by Elena Verley; syndicated courtesy of Online Colleges 

Image attribution: Online Colleges; ©Onlinecolleges.net

Student loan debt has now reached $1 trillion, and the situation has gotten so bad that there are Americans who are having their Social Security checks garnished to pay off outstanding loan debt. Meanwhile, recent graduates sit in a precarious position of underemployment, combined with doubling rates and rising monthly bills as their loans are sold from one lender to another. It’s clear that we’ve reached a crisis point. But what got us here?

There are several places where we can lay blame: colleges, for becoming so expensive and ignorant of student finance, the government, for restrictive policies and inflating prices with student aid, private lenders with predatory tactics, and even students for allowing themselves to get in too deep. The fault lies not with just one, but all of these student loan villains, who have all done their part to bring us to a very real point of trouble. Read on to learn in detail how each of these groups has played a role in the destruction of student loans.

Colleges

Although students, Congress, and banks are catching a lot of flack for the student loan debt crisis, many are pointing out that the high cost of college that creates the need for so many mind-blowing loan bills is the real problem. Cato Institute research shows it costs just $8,000 a year to educate an undergrad at the average residential college, while most students pay double that: $16,000 at public universities and $37,000 at private ones. What’s making up this major discrepancy? Multimillion dollar sports programs, glowing recreational facilities, excessive administration, and tenured faculty who may or may not actually be teaching are the most likely culprits. It seems that colleges can raise their prices because they know they’ll get paid one way or another, whether it’s through grants, scholarships, loans, government contributions, or endowments. Colleges raise tuition, get more aid, and raise tuition again in a vicious cycle that is not at all beneficial to students.

Financial aid offices

Whether the heart of the problem lies with price of education or not, it seems that colleges aren’t doing a whole lot to make student loans a responsible process. Financial aid offices aren’t known as places that will gently point out to students that perhaps they’ve gotten in over their heads, even though they often have a full picture of just how bad a student’s financial situation has become. Financial aid offices are in a great place to assess the financial situations of students and give them a reality check before they get in too deep. But it sure doesn’t seem like colleges want to do that. Some, like NYU’s VP of Enrollment Randall Deike, believe that it would be “completely inappropriate” for universities to take on such a role, as “some families will do whatever it takes for their son or daughter to be not just at N.Y.U., but any first-choice college.” Others may be hesitant to point out the problem, as it will likely send students to a different, cheaper college and push down enrollment numbers. U.S. Senators Dick Durbin and Tom Harkin are working on a solution to this problem, introducing a bill to require that colleges offer counseling to students who are seeking private student loans.

The federal government

Government intervention into student finance has been well-intentioned, but produced disastrous results. US News and World Report points out that the federal goals of making a college education within reach, while requiring that debts ultimately be repaid certainly seem reasonable and noble, but have not exactly worked out as planned. Where there was once a $2,500 annual limit on federal student loans, there’s now a $31,000 limit for four years. As the federal government pumps out more financial aid to help students afford college, colleges find that they can charge more for tuition, making education less affordable. And just about everyone can take out a student loan, giving colleges no incentive to keep costs down while students continue to rack up five-figure loan bills just to get a four-year degree. Even if students declare bankruptcy in the future their student loan debt lives on, as the government has deemed that student loans are not dischargeable. Beginning in 2014, student loan forgiveness laws will go into effect, capping federal loan payments at 10% of a student’s income, and forgiven after 15 years. This is excellent news for the future, but it doesn’t do a whole lot to help out those who are struggling today. Loans can be deferred, but ultimately, they must be paid.



Lenders

The government isn’t the only one handing out student loans like candy. Once students reach the limit on what they can borrow through federal student loans, they can turn to private lenders with much less favorable terms, but the same non-dischargeable debt. This fills the gap between what the government will provide, and what students need to actually pay for school, but it’s a dangerous situation to be in.nStudents with private loans are often subject to having their loans sold and terms changed, which can alter their loan payments by hundreds of dollars per month. These loans are convenient for students who need them to get through school, but their existence is highly problematic. Lenders like Sallie Mae and Wells Fargo have been accused of making subprime loans to student borrowers, not taking into consideration the risks behind these loans. They’ve given money to students attending schools with low graduation rates, students who may or may not actually finish school, get a job, and have the means to pay back their student loan. What happens then? They just sell off the debt, or, get a government bailout to cover the losses. The five biggest private student loan lenders have made profits reaching well into the billions, but at the same time, were able to get a $112 billion bailout from the government for loans that could no longer be sold.

Students and their families

We hate to blame the victims, but we have to ask: what exactly did students think they were getting into? Why didn’t parents save? Many programs exist. Obviously, many students feel that they don’t have a choice, and student loans, even subprime ones, often mean the difference between getting a college degree and not going to school at all (or worse, dropping out halfway). With big plans to get a great job after graduation, we’re sure that most students feel confident that they’ll be able to pay their student loan bills off without a whole lot of trouble. But why aren’t students more wary of taking on so much debt, especially with poor job prospects? We have to point out that there are often situations in which students could have acted more responsibly, and must bear some of the blame for our unfortunate student loan situation. It is possible to graduate college without debt, even if your parents haven’t saved one red cent. Enrolling at an in-state public college, starting out in community college, hunting down scholarships, picking up part-time work and paid internships, and even living at home are all major ways that students can make their school bills more manageable. Would we be in this situation if more students availed themselves of these options rather than taking a blind leap of faith right into crushing debt?

Ultimately, many parties are responsible for the student loan crisis. As we reach a point of decision, it will be interesting to see if and how colleges, Congress, lenders, and students themselves make a change for the better.

Ways to finance college costs

Paying for college is something that can be facilitated by a few practical and thoughtful steps. The opportunity cost of going to college can be in the tens of thousands of dollars, not to mention the actual expenses associated with enrolling in college programs. Despite these education costs and expenses, there are ways to lower both the opportunity cost and the expenses of college education significantly. This article will outline some of those methods.

College savings plans

Depending on how far into the game you are, your parents may have set up a college savings plan such as the 529 college savings plan for you when you were a child. If you don't plan on attending college for several more years it may be a good idea to look into this type of plan as they are completely tax free in terms of deductions and withdrawal so long as the money is used for designated college expenses.

Living with family

Residence is one of the biggest expenses at college. A typical college year can last 8 months and include room and board and dining expenses in excess of $8000/yr. After 4 years that's a lot of money. While living at home doesn't include the complete college experience, it might be worth  not incurring tens of thousands of dollars of student loan debt to miss out on dorm and near campus life depending on how intent you are on paying for college.

Transfer credit from community college

Some community colleges offer courses that can be transferred with relative ease into a University program. If you are planning on enrolling in a university program, looking into the local community college courses and transferability to universities may well be worth it. Additionally, depending on the community college, one may not want to or have to attend university if the program one is interested in can be achieved through community college.

Corporate tuition assistance

If you are lucky, you might be able to land a job with a company that has tuition assistance. Even if it isn't 100 percent assistance or grade based assistance it is worth the time spent filling out the application to try and redeem such valuable job benefits. Additionally, one doesn't always have to be employed by a savvy large corporation to receive such benefits, a small business owner may see such assistance as the perfect tax deduction and might be worth asking for instead of a raise.

Consortium universities

Some universities may be members in a regional tuition consortium allowing students from one state to attend universities in another state at a discount to the normal out of state tuition. After establishing residency which is usually a period of 1 year, those students may qualify for instate tuition. Calling different universities admissions offices is a good place to start in researching this possibility.

Register as in-state not out of state/attend state vs private school

The difference between instate and out of state tuition can be enormous. It might be worth establishing residency before hand in order to qualify for the lower tuition at State schools. Private schools may not honor the in state and out of state guidelines since they are private institutions. Additionally private schools tend to charge much steeper tuition costs. There are many credible state universities that's education program is considered at par with if not better than some top tier private schools.

Buy used text books

Many college and university bookstores offer resale programs for books that are used in consecutive or repeated semesters. This allows new students to buy books from previous students who have resold their books back to the college or university bookstore. After 40 classes of course work, some with 2 or 3 textbooks each the savings on used books can add up. The price of used textbooks can be marked down by 10% or more depending on the condition.

Sell text books online

If the textbooks your class uses are new editions they could be worth something through online retailers. To optimize on this technique, purchase used text books through the book store or online and then resell them to minimize costs. Since textbooks can cost up to and sometimes over $500.00/semester, the potential savings are in the thousands of dollars over a traditional 4 year university program.

Employment during enrollment

Working during school can help pay for costs in addition to making graduating on time a lot tougher. Depending on whether you work full or part time will make a difference on how much you can earn versus how many credits to enroll in. Burn out is possible when working full time and attending a rigorous academic program so be realistic with yourself as well.

Avoid student loans and credit card expenses

Student loans may seem like the easy option at first but depending on the interest rate upon graduation and thereafter, the interest on the loans can multiply the real cost of attending college or university. Avoiding these methods of payment may be impossible, but keeping the future cost in mind is prudent.

Apply for scholarships and grants

Good grades and standardized test scores can mean one very good word, scholarship. While test scores alone don't translate to scholarship they can be a big help. Researching the different types of scholarships and grants available and applying for them properly is key to qualifying for this type of free education. It is worth the time to work for and try for these types of funding.

Paying for college may seem daunting at first and the prospect of debt may not seem appealing at all and that is because it isn't. However, if you decided the opportunity cost of an education is worth it and will pay back more in the future, then the next step is to find ways to minimize these costs and expenses. The tips and methods in this article can help with just that. The more of the tips that are utilized and the more consistently they are applied, the greater the potential savings, affordability and practicality of paying for school can be.

How Owning More Than One Home Affects FAFSA Applications

Owning more than one home affects the Free Application For Federal Student Aid (FAFSA) by increasing net asset value for a family. Since assets are a significant factor in the FAFSA 'application', and the FAFSA review process, reducing the value of these assets can potentially increase the amount of Federal financial aid qualified for. Reducing asset value can be done, but may take financial resourcefulness, and a willingness to convert and/or transfer ownership of those assets to different financial instruments and/or persons.

Home factors weighed in the FAFSA methodology

There is more than one variable of home ownership that can affect the influence of a second home on FAFSA. Each one of these elements may influence the designation of the home as an asset, and the weight of affect the home has on the student aid application. The greater the asset value and/or income from the second home and the closer the connection of ownership is to the FAFSA applicant, the greater the potential reduction in FAFSA qualification(s). The following list comprises aspects of second home ownership that can influence FAFSA.

• Home value(s)
• Income from the home
• Documented owners
• Property appreciation
• Location of home

Obviously the more expensive the property is the greater the value of the asset and henceforth, its influence on FAFSA. Additionally, if the real estate is used for rental or lease, an income derived from such may also have bearing on student loan qualification. Similarly, if the home's value has or is expected to appreciate in value, this may be a factor in the FAFSA 'Federal Methodology' depending on how elaborate it actually is.

If the home is not owned by either the FAFSA applicant(s) or the FAFSA applicant(s) parents, then the important of the home on the application is likely reduced. Lastly, if the home is owned abroad in another jurisdiction via international business held trust, it may not qualify as ownership in so far as FAFSA is concerned. Moreover, depending on where the second home is located i.e. either domestically or internationally, its assessed value may vary thereby further factoring in to FAFSA.

Affects of home ownership on FAFSA

If a particular home is considered relevant by the FAFSA process it can cause the 'Expected Family Contribution' (EFC) to rise. In such case, there can be a number of potential repercussions on the student aid application. Generally, the greater the EFC, the less likely FAFSA will be approved and if it is approved, the amount qualified for may decline. Below are some elements of FAFSA that may be affected by ownership of a second home.

• Qualification for financial assistance
• Increase in student financial aid
• Consideration for Federal and State grants
• Access to more educational programs
• Entrance into Federal Work Study

A highly priced home owned either by the student or the student's immediate family could disqualify the applicant from FAFSA approval in so far as the FAFSA process allows. Moreover, if the home becomes less of a consideration either by lowered value or less relevant ownership, this may help the applicant qualify, and be eligible for a larger amount of assistance. This assistance can include both Federal and State grants and/or entrance into Federal Work Study programs in addition to qualification for subsidized and non-subsidized loans. Also, with qualification and increased eligibility, comes the potential to be admitted and enroll in more educational programs.

Techniques to reduce home ownership's influence on FAFSA applications

A family that owns a second home doesn't necessarily have to give up on FAFSA. This is because there are certain financial techniques and strategies that may limit or eliminate the second home as a financial consideration in the 'Federal Methodology' used during the FAFSA review process. If the correct steps are taken, the second home need not be a problem to student loan applicants. It may be helpful to keep in mind some of the financial techniques listed below are quite involved and could take some time to prepare for.

• Transfer ownership to a business
• Sell the home
• Reinvest home proceeds in non-eligible assets
• Temporarily forfeit ownership
• Convert home into a trust owned entity

If a second home is registered as owned by a business, it may not qualify as a personal asset depending on the business structure and/or how the FAFSA process considers business structure in relation to ownership. Also, if the second home becomes too much of a financial obstacle, it could be sold, hence nullifying its influence on FAFSA. However, if the home is sold within the same or previous tax years as the Federal assistance application, it may increase the capital gains of the owner and the Expected Family Contribution in another way. Thus it is more advantageous to sell the home in a tax year that is not considered by FAFSA and then transfer the proceeds to a non-eligible asset such as a retirement account and/or personal assets.

Placing the property into the custody of a flow through trust or business owned trust may reduce the eligible income generated from the property considered in the FAFSA process. Moreover, if the primary trustee of the trust is both the business owner, parent of, or the FAFSA applicant, ownership of the home can be transferred back to the original owner if and when it is no longer an influence on the FAFSA procedure.

If ownership of the second home is temporarily transferred to another party, the home is less likely to be considered an asset in regard to the Federal assistance application. This can be achieved by filing a property transfer affidavit, memorandum of understanding and/or repurchase agreement/contract, in addition to a quit claim deed and forward contract to secure reacquisition at a later point and under no uncertain terms. This last attempt at bypassing the asset ownership can be quite involved and may also require a mortgage assumption.