Title: FAP885: Financial aid crisis, student loans, free stuff

" The value of a college degree part two of the coming financial aid crisis plenty of free stuff. And so much more on this week's financially podcast episode 885."

" I guess publication of the student loan network. Visit us on the web at www. Financially podcast dot com. If you questions and comments by any -- station sent me some feedback and financially podcast at ten mil dot com. It's that -- by Charlie broke the biggest part."

" Good Friday November 14 2008 my name is Christopher Bennett thank you for tuning into the financially but just have agreed -- for you this week tons and tons of stuff. In the news but the GI bill the federal student loan programs a scholarship 21000. Dollars. Bill -- aren't graduate school financing and a free stuff for free song of the week lots lots to cover lots to do so let's get rolling with the news roundup. Topping the news this week from its entire dot com in addition to replicating the loan purchase of pool investor program to put in place for the 20082009. School year. Which would cover loans made through September 30 2010. The Department of Education plans to allow for the creation of conduits. Likely to be big banks or big student loan providers like Sallie -- Are designed to be middleman between groups of lenders and outside investors under these arrangements the conduits would using funds from private sources not federal money not about taxpayer money. Purchase student loans that we're fully dispersed between October 2003. And July 2009. Only not consulted involved some qualified. And the sixties would -- issue asset backed commercial paper to private investors now. What's put that somewhere in -- terms that normal people can understand the Department of Education is the -- says good start buying up loans that student loan companies can't sell on the market. Now what's this mean for you almost nothing from a loan servicing perspective if you take out federal student loans from any lender -- paperwork saccharin changed. Who you pay your bills to will not change it lets you consolidate student loans. So from a he had user friendly interface I guess this is a user friendly regulatory change you'll have to do anything. To take an end to these benefits now what does -- mean in the bigger picture is that student loan companies will have access to more capital -- cash. To make loans with because the federal student loans themselves can be sold back to the department education. This in turn means that federal student -- such is the Stafford loan the plus -- will remain widely available. You as a student should have actually no trouble securing and a federal student loans web all for the coming year. The regulatory change does not impact private student loans than non government loans though so. If you rely on private student loans for any significant portion of your education funding these are likely going to remain fairly hard to get unfortunately. Some extra stuff from the Bureau of Labor Statistics I was looking at the last weekend actually the official October 2008 unemployment rate six point 5%. However if you count in discouraged workers who folks who have given up trying to find a job and marginally attached workers essentially do labor. The unemployment rate is closer to 12%. Now here's where things get interesting if you dig into the -- stayed up. A college degree holder with a bachelor's degree or -- is three times more likely to be employed in the current economy than someone who never finished high schools to think about that for a second the unemployment rate. For someone with less than a high school diploma. Ten point 3% so with a bachelor's degree or higher three point 1%. Now moreover keep in mind that -- to -- holders -- statistically likely to have bigger salaries of non degree holders. If there was any question about the value of a college degree especially in tough times is -- us before -- should put that question to bed. Having a college degree is more valuable from an employment perspective than not having won in tough times. With the increasing acceptance of online degrees nontraditional degree programs all the things we've talked about in the past a few weeks. You got more choices than ever for higher education. Now. Less time we're talking about the financially crisis we talked about held quick shortfalls and increased demands to enrollments. Let's dig into some heavy economic data to look at what else is happening in the world financially. Bill us hasn't chart of on either underutilized labor we talked about that just a moment ago that eleven point 8%. Under utilized labor also incorporates people who are part time employees who want a full time job but can't get one. Now the recent this is important because under utilization of labor affects financial leaders will be working only part time. You have got much less income to work with so 12%. Under utilization labor -- is huge. Now second item -- real action was that the Yahoo! finance had an article this week about daycare centers reporting record drops and -- it's like. 300% drops Dickerson has gone from 5060 kids in rolled down a ten or fifteen. What does this all mean. The same economic pressures that are driving parents to find alternatives -- daycare going to impact public and private university enrollments as -- ability to pass to pay for higher education. As the labor markets get tougher for job seekers the raw numbers of people apply for financial -- will jump as well as well trance of some private college just public colleges must private colleges have the endowment. And financial means to step up institutional lately carpet you know thirty billion dollars -- pay from and going to go to college and so the summary not only will more people be applying for financial -- in this coming year due to demographics that incoming class is going to be the largest ever. But also more people be applying for more financial aid. Due to the economy. Bear in mind. For some forms of financial Hadley grants they as a limited pool money is if you have more people plan for the same amount of money it slices of pie will get smaller. So what should you be doing to prepare for all this first. Be aware there is an entirely new section of the facts of the free application for Federal Student Aid including. A question about displaced workers for 2009 now the definition of a displaced worker is really vague and we're trying to get more clarification for the Department of Education but. Right now the way at the the legislation reads -- that the paperwork reads this and it encompasses anyone who has been laid -- let go unless the termination was for call us and like -- slash -- boss' tires. Or you just up and quit your job such you quit you not eligible to claim itself as displaced worker. When you go to filed a facet for 2009 to super important to me keys that section for families wanted to hard times. For the immediate moment if the wager missing your family a loss of jobs. He should be talking chief financial officer to date right away. One of the things they can do. -- a limited basis is adjuster financially package even mid year. To account for significant financial changes at home in this case he be asking about professional judgment override on future earnings. For the spring semester. Which could change how much you pay at least word you know the first half of 2009. You're gonna need to provide copies of termination notices and and unemployment insurance notices the -- that they if famous wager has received. As documentation. Of the financial status changed but it is available to -- changes available so that you can get some help. In terms student lulls like a said federal student loans like -- fossils beef perfectly fine you may find some change in lenders but always school may change which the federal loan program it's enrolled in but the boat load themselves. Plenty -- availability. Private student months not so much. General education finance. Be open to the possibility of changing schools and attending a less expensive institution. Be aware of the possibility you might even have to take some time off -- messy as much as you can. Try to find this many ways to reduce the cost of college as possible -- credits community colleges island degree programs college credit testing. Anything you can do to cut down the Rockwell cost of what it goes to put me for college. If you're not aggressively pursuing every single scholarship you're eligible for you need to get on that wagon as soon as possible. Grab a copy of our free scholarship search. 2009. Competition for scholarships going to increase drastically. Get in the game now get all the groundwork done now on be ahead of the curve -- the crowd. Make sure that you sign up for our free scholarships program a -- points. Victoria at George Washington University -- to get a hold of -- but Victoria George Washington University won the 10000 dollars scholarship. But we're talking with the her financial office to make sure that the money gets there and and all that isn't her aid packages just appropriately but. Pay ten grand just went out the -- some months and now we're giving away a thousand dollars every month so make sure here's your sign up a scholarship points that -- Intro to general personal finance. That they had despite urging from retailers for the holiday season spending less rather than Mori is and should be your primary concern right now with the about whether or not your job was in danger with a -- famous financial health was good or bad. Frugality in uncertain times as one of the best defenses you can use to protect yourself. Cut out everything they can be cut. Discussion spend like dining out coffee from coffee shops and so on and so forth if you're thinking about. Allocating dollars for the holiday season gold light on spending and heavy on face time with family content. Safe money safe safe safe. Can't say enough time to fill the -- the pockets to sing. If you aren't saving right now you should start gets start an FTSE insured savings account and go to financially podcast dot com slash ING. And a set up FTSE insured savings account with ninety direct we're in a period of chiefly shouldn't right now win the amount of money is circulation is actually decreasing. Which means. Side benefit -- it's not great for the economy but side benefit means the dollar you -- today may actually be worth more tomorrow rather the last. Overall. I'm still optimistic about the longer term prospects of anyone in or entering college were -- when -- graduate college college education for those who want to is still strong investment in yourself we saw that with the -- a state. That said it's not enough to hope that the economy is gonna turn itself around or that things are gonna get better all by themselves. Yes actually in time. Time we'll fix that things -- great may have problems that the country's facing but. Just waiting for things to get better it is not a great strategy. The uncomfortable reality is that things are going to get worse before they get better windows 2009 is pretty much already written off by a lot of economists. With everything else going on in the economy there are no bail -- for college students so the most important person you need to talk to about your ability to pay for college is EU. Take up the time to ticket the Scotia continental go find the financing for education. Work hard innovate find different ways to raise money. That others aren't doing look around for opportunities to bring a scarce dollars like affiliate programs online adventures of all kinds since he was out there. I believe in your ability to beat the bad economy you wouldn't be listening to the financially podcast if you were already motivated. If you were already energized and determined to make college affordable for yourself. While the Russell -- it's around him politely hopes that someone's gonna come to their rescue I know you'll be doing it amnesty whatever it takes to pay for college -- I believe you this final request from the news tell me more ways the financially podcasts can help you to what resources are you missing obviously besides money. What things don't you know about that you need to know about to make education finance such better how can the financially podcast help you more. Get in touch financially podcasted gmail.com or 2635128. And -- what what else we can be doing to make things easier or more effective for you in your quest to pay for college. That's news for this week. We've also got a scholarship of the week coming up next. In this -- scholarship update the assumption college of merit scholarship established to reflect assumption colleges commitment to upholding. -- campus culture that champions academic excellence and student leadership scholarships of 20000 dollars. Are awarded to students whose high school records demonstrate strong academic achievement leadership and potential for success. An Assumption College. All students who apply and are admitted to such a culture considered for these awards. Presidential scholarships received 20000 dollars -- a bunch of other ones of lower amounts as well and the scholarships this part of school. Scholarships are guaranteed for four years so as long as you maintain the required level academic achievement and assumption once you get the scholarship. You don't have to apply for it again year after year automatically -- which is very very nice. Be sure to check it out at a free stuff floats at student scholarship search dot com now over nine point six billion dollars in scholarships we've got tons and tons stuff in there. Make -- ticket out pleased time now for quick job cast. In the job -- with this week we found out that the economy shed 516000. -- is the five to 16000 jobs in a one a week which is just in astonishing figure. With that report showing significant weakness there has never been a better time to focus on improving your personal -- network even if you were in college you if you have -- gotten into college now now -- a great time to start. Building up that base so that by the time you gradually whether it's in a month whether it's -- a year whether it's in five years you've got the personal network. That you need to make things happen now way above and beyond what everyone else gonna have. Start by using a service like linkedin which is free to get started with -- your profile gather recommendations you're in school. Do volunteer projects while you -- so that you can experiment and figure out what things are going to be brave few career wise. Without having to take significant risk to worry about you know where you gonna pay the bills found. If you get a chance hopefully to the show us financially podcast dot com. About how to get started powering up to linkedin profile going to make sure that you try some of the things we talk about the video. It was recorded at -- can't DC earlier this year. I'm Libby junior were revised version of it at the -- the conference Massachusetts association -- financial aid administrators. Next Thursday. But you want to make sure that you watch the video if you can't. And see what you can due to power PU word your job search efforts or your personal career network efforts right away. That way. You'd just not left out in the cold when now when it comes time to find some work for you. Time now for the -- that."

" Okay."

" Opening of the mailbag today Kelly -- since I've been thinking about getting my masters degree but I need gets a financially did you. What are the chances of -- actually getting funding these days okay well. Fruit for the -- screen for graduate programs graduate Stafford loans. You chances are excellent because their need based there's also what's called -- gradual plus slow. These policies to -- parent loans for undergraduate students but has nothing to do with parents or undergraduate so the gradual plus up. We'll let you take out a -- if that is the federally guaranteed loan to cover the rest of the cost of education so. You would get say. The full 18500. Dollars and staff the most graduate school and than anything else that you need to cover this additional unmet needs. The question postal fill in the gap. Both -- very widely available can cover up to the cost of education without any problem. For graduate private student loans much harder to come by in this economy but thankfully like -- said the gradual plus some. You do exactly the same think and possibly possibly Hillary industry not. Most graduate -- to those are our variable rate loans so sometimes it may be. Lower than the eight point 5% of the graduate plus we'll sometimes the gradual press tools to be higher than it really depends on where interest rates are but then -- the worth checking out if you want to go find. Lots and lots -- information about graduate school financing go to grad loans dot com. It's a great -- one virus of course and make sure you also doing some scholarship searches for your master's degree as well. The a lot of undergraduate scholarships tend to focus on neat. Financial need demonstrated financially graduate scholarships and fellowships at different they tend to focus on field of study so if you -- be taking. An NBA it is NBA specific awards there's also things like. Teaching assistant ships and fellowships and all these different opportunities to earn some money rather than borrow to win you heard in the proceeding you graduate degrees so. Check that out all the suffered at grad bones dot com. Time now for free stuff Friday. It's free stuff Friday got a lot of stuff for you this week reminder of course to where Ryan is actually one everything is in the show notes at financially podcast outcome seek and -- does not have to write things down try to remember stuff all the to Saddam over the website financially podcast dot com. Two. The free stuff challenge which we talked about last few weeks. If you see something a freestyle Friday not a lot this week but a little bit of stuff not not too much but a PC free stuff that you don't need. Gravity anyway and then share with someone who does needed donated that it's any consumer goods to shelters stuff like that. Forward a lot of coup -- and stuff this week's a printout US print out a whole watch other ones and not make sure that those get distributed as well. Starting off with something really random Christina had a list of perfume line must secure -- of free samples I guess the branding itself was strong enough to get it distributed so. If you're so inclined -- it -- It it Walgreens is giving away free eight by ten photo simply a sign up for their free photo program and upload photos and get a free eight by ten if you had an iPhone. There's instructions on Lifehacker dot com for how to tether your iPhone -- laptop to use the Internet access of the iPhone. Went on a laptop. It's. Should avoid the -- not read the details be real careful but it is available to you want to do that for free. Penn state university has a great great great resource alike -- living wage calculator. Put in your location and a hole which other things that would give you an idea what's the cost of living in that area is if you are looking that you're moving to someplace you gonna want to check out -- living which calculated see what kind of in common job. You gonna need in order to make ends meet there. Sound snap dot com was given away free sound effects if you want them. This agree article wants to get rich slowly 42. Of the top recession resistant jobs so again if you're thinking about tickets to work on. A great opportunity that we've got from old country buffet and -- they've got its free coupons for some free food their. This a lot of free stuff too confined online if you -- if you just go up in Google for him free coupon code where free coupon download. Were free get a coupon file type PDF. Any of these the little restrictions that you we used in the scholarship search. You can also use for finding lots of those free stuff free samples is is huge free samples sound a free -- sign up. And -- Serb boon for them. Pull out which ten. And then. Share with everybody else if you're a member of the financial podcast loyalists the group on FaceBook please could. Dick ticks and tiger who participate in the discussion forums there -- And -- they see little discussion about free stuff that you have found. So that other people can not take advantage of it as well. That's freestyle Friday for this week. Let's take a look at the free song of the week this is box prelude from suite number one by Chilo journey. That was Chilo -- Bach prelude from suite number one you can find out more information about them get their music -- journey dot com of course link in the show notes. At financially podcast dot com. All right folks that's going to wrap it up for this week's financial aid podcast next week. I'll be at the -- the conference Massachusetts association of student financial aid administrators but I plan on having a show. Regular old fashion the -- podcast Friday morning as always. If you have comments questions feedback of any kind financially podcasted gmail.com or 2635128. This one's coming -- in the next coming lesser of two interviews from a two folks at Cleveland State University the director of undergraduate admissions of the director of financial aid both interviews. Very insightful very week's exciting a lot of good information so make she stay tuned for those as well be willing Lucent on both Wednesday -- of this coming week. And of the fat so. Almost this past the month now. Is -- finally done. It's now revision and editing stuff like that we're gonna have a special with this one about a special audiobook version that's been on fast online dot com. With -- noble chapters the stuff is they have an iPod. To give -- a question about a question you too distant shuffled skip to that particular chapter. On in question seven before or whatever may be that that's going to be available -- online dot com. You know the next month or so some of the to the financially podcast that he get a chance. And in. We know the economy is not doing wonderfully. Anything that I come across all share with you please share the show intern with the to your friends today. Help them get set up using Google reader iTunes or whatever and get to friends signed up today to listen to the financially podcast because -- things. Soldier on we gotta keep trying to find more in more ways to help you make college affordable. Thank you for listening to financially podcast thank you for participating and giving feedback we had a tremendous blog -- ST Paul's feedback and stuff I didn't read all the eggs and taken an -- But by all means keep coming keep participating. And state to into the financially podcast thanks a lot and -- practicing."