Title: FAP916: Student loan payment changes, online degrees

" New ways to repay your student loans credit cards taking another hit declines in scholarship funding and so much more on this week's financially podcast episode 916."

" Financially podcasts publication of the student loans didn't he stop by the web site. Actually podcast dot com these comments on the and subscribe for free and iTunes into music by Charlie flew the biggest -- run some."

" Good Thursday July 2 2009. My name's Chris -- thank you for tuning into the financially podcast got a great show Fulham also some new information this week. Also -- news coming in all over the place so let's get rolling right into which with the weekly financially to round up. Topping the news this week two pieces of me and cent higher at first they study about online course effectiveness. Online learning has definite advantages over face to face instructional when it comes to teach in learning accord between new meta analysis. Released Friday by the Department of Education the study found that students who took all or part of instruction online. Performed better on average than those students taking the same course -- face to face destruction. Further -- took blended courses those that combine elements of online learning and face to face destruction appeared to do best of all. That finding could be significant as many colleges report that blended instructions among the fastest types of enrollments growing. That this is not a huge surprise that online learning is more effective than face face destruction one of the conveniences. Of log online degree programs is that it is done at your own pace. On your own time seal block at the time. Presumably win you most in the mood most able to look at. That's -- the greatest benefits of online degrees C to simply to win you have the time so. Instead of having to be at a class at a certain time can be home and take care of whatever needs to happen at home meal kids at dinner or whatever the case may be. And then. When you ready to sit down and dedicate some time two years -- course were to -- One thinks is also about online degrees is that because it is at your own pace is this something you're just not getting. You -- to about the instructor blowing right by that which is what typically happens -- a lot of the more advanced courses. You can access to you take it -- and get the concepts as they come out so it's very very helpful. And you're having the ability to have some face to face time means you can ask him questions of instructors throughout -- your online degree progression so. We also read -- our online decreasing check out www. Advisers. Dot com for more information. From the New York Times students looking for college scholarships are going to have a harder time this year as providers hammered by falling investment returns. And declining Philanthropic support cut back. The recession has led foundations corporations state governments and colleges themselves to reduce their support of providers scholarships and in recent months programs have been reduced or canceled out right. The cuts come as some economic conditions make it harder for at least pay for college and has more unemployed people look for financing for retraining. Peterson's the online -- college prep site. Known by the company Nelnet found that all build a number of scholarships rose to one point seven million in 2008 from one point four million a year earlier. The average amount awarded fell nearly 7% 4300 dollars from 4600 dollars now. -- decline of 7% scholarship fund and while unpleasant is it's actually far less severe than I -- expected to see personally. I was kind of expecting on the 20% marker Mort given how many scholarship funds park their actual cash investments and of course the market taking a beating all over the place. There's a clear strong message nonetheless the longer this recession goes on the greater hit that all these scholarship funds are going to take so is absolutely imperative. That you get super super aggressive -- finding scholarships as soon as possible. Locked out as many she can't and even while you were in school when your arm breakthrough -- over the case may be. Be hunting for scholarships if you haven't gotten a free scholarships -- gets go to student scholarships and shut com slash e-book. Grab a copy of it you will not be site there's a whole bunch of different things there that will help you. Get more scholarships and we'll help you get fine discussions and and land them. Finally from USA today across the nation a number of universities are making it harder and costlier for students to use credit cards starting Wednesday. Students at the University of Southern Maine who -- who pay tuition using classical face a two point 75% processing -- Other schools have adopted heard in the process of adopting similar policies include George Mason northwestern Wichita State and the University of Virginia. You're a student gotta -- keep taking hit after hit it's no surprise though that tough times mandate the passing along of processing fees from credit card companies and the card companies charge colleges I think. Anywhere from two to 3%. For any credit card payment then that adds up so for those folks. Who used to pay a for colleges and classic and you know rack up points and miles of whatever. You now have to calculate the value of those miles compared to the -- the fees that are applicable in the case of US semi of a two point 75% -- Tuition bills 10000 dollars you're paying a 275 dollar fee for the -- ceasing classic. Are you getting enough you miles or rewards points or whatever the case may be to make up for that 275 dollars -- worth it. -- questions ask before US swept the classic. Time now for a scholarship update. In this -- scholarship update two things first congratulations to Caroline Moran. Who won our 2500 dollar June scholarship points drawing so congratulations to you the these witnessed them all the scholarships recently are up on scholarship points uncommon if -- Are not members gosh appointee should because obviously people are winning heck of lot of money out of it. And is free to participate goat discussion points dot com and sign up today. Also this week operation homefront is proud to announce the operation homefront military spouse scholarship program scholarship will be awarded to recipients. On August 15 selection for the scholarship -- made by a panel of judges and the award will be scored at three areas the applicants are sponsored the essay questions. Their commitment to volunteers and grade point average this is -- spouses of military active duty military members who hired him I guess. On the home front to whatever. But what of the case say they've got a 100000 dollars with the scholarships 37 of them. The -- giving out and the funds can be used for tuition fees books and we paid to the institution it is renewable to sort of happened to win one year. There's a possibility could win it again and again so that's the the scholarship update for the week. Also how the scholarship points code for this show in the it was the end of the show -- stay tuned for that. A one quick reminder we made a pretty big adjustment this week a scholarship points the refer a friend bonus. Went up from twenty points per referral to thirty points as we wanna help people win the 10000 dollar scholarship. That is coming at the end of the months of the more opportunities you have to refer people the more points you can rack up now we're giving you 50%. More points you can thank us later time now for news good news."

" Okay."

" In news you can use this week we are looking at income based repayment which is a brand new program just kicked off by the federal government. Income -- payment is a -- payment option for federal student loans and it is theoretically helps borrowers keep their loan payments affordable. With payment caps based on the income family and family size from most eligible borrowers. I BR loan payments will be less than 10% of their income and even small for borrowers with low earnings. The way it works and this is -- the world's most easily decoded formula but. It takes into account the number of people who live in your house and the amount of annual income you make. If you multiply the federal poverty lever level -- will -- based on the -- published by health and human services. Times 150%. Minus your income. You would get the amount of money divided by twelve. That you it is the maximum amount of you votes to loan payment now that sounds completely and totally confusing because it was confusing as all -- to me. We put up a nice really easy is chart a -- on dot com. Which shows. You know find here you're -- annual income -- defined by 5000 sunset let's say it's you and -- married and you make 40000 dollars a year -- go on the trip I'm 40000 dollars due to people in house. And you'll find that the maximum amount that you have to pay in a student loan payment at that income level. Is ninety dollars and 23 cents a month which is a pretty significant discount given that. -- it no matter how much you've bought whether it's a thousand dollars 5000 dollars and 50000 dollars. Ninety bucks a month is what you are capped -- if you using income base your payment which is that a really really big help the more people who live in your house for example if you're a single parent with two kids yet it. At that point the amount of money you can make before at the start of any payments is around 42000 dollars. Even if you making sixty grand a year. The amount of income at that -- would -- capital and a 235 dollars a month which is a huge saving -- A global link to the shown in the sun as the financial podcast dot com four this income based chart will show you exactly. How you could figure out all the different testing commission payments and stuff that are right for you would be sure of course if you sign up for this. Through the Department of Education be sure to read the fine print as always make sure that -- actually gonna save money. Fourth sign on the dotted line. Time now for free stuff Friday. It's free stuff Friday when it -- their parts of the show course everything's gonna be in the showed us financially podcast that counts and no need to run around -- writing things down. And -- also if you hear about some that might be usable for someone else that you don't necessarily need to take rampant anyway it's still free. And until needed to give it local community shelter of community program help you community health and costs absolutely nothing -- and you could you and if you've got to pay me a good head trick taxes and accounting could even take the tax deduction yourself. For the next year so let's get rolling. The first from our -- futures if -- finance -- this is really creative in how to finance there this is completely useless but RJ if you just has a forty year historical commodities wall chart. As opposed it uses a place matter wallpaper if you dorm also really really empty but. It does talk -- is to show you how the economy has changed over the last forty is kinda useful if you again you're in economics -- Clouds start is to promote their FaceBook group is giving away full global water -- for dogs so this is kind of thing you can take with -- when you're going hiking or whatever. And it's his -- and rolled out in Philadelphia dog. Amazon to celebrate the fourth of July holiday has a new album of ten patriotic songs. All of them are banned songs from the groups like the US -- marine corps band of the navy band at Saturn and we'll have much as some of those later in the free music of the week. But at the great album completely free download it and granite. Caribou coffee also figuring out the FaceBook is wearing an awful lot of people artists put their FaceBook page in the giving away free samples for anyone. Who becomes a fan of their -- heavily commission nuts to that. The company said for which it just is so they make up company of some kind -- guess the Havel's kiosks in in major stores. It has a coupon for a free makeup kit with a brush -- to things that well frankly I would never use. But you might so be sure to grab it and then take the coupon to your nearest to stand at the I guess the big box stores to your choice. And -- there and finally at the Eminem Morris companies giving away a fairly large Eminem's dispenser if you like the kind of thing to say. It's a promotional thing for some upcoming thing. Also this week. The Indy scholarship update is these code for -- is 5593. RPM. Says 5593. Romeo -- Mike put that in -- twenty points. At scholarship points dot com and you'll only get those points towards the hopefully be 10000 dollar scholarship at the end of the month. -- rule out a deal -- free news can we can have five songs this week. All in a row they're very short -- of the five service branch anthems of the F five military branches of the United States of America so. Well do you I think -- and -- army navy. Air force marine corps and Coast Guard is -- ago."

" Okay."

" And if you'd ever heard them before those were all five branches in the US military is. Anthems each branch has some anthem and there's all what you lyrics it's a furious so if she can now. Find is of course that the online encyclopedia of the -- choice. That's gonna do it for this week's episode of financially podcast if you have comments or questions please senate checked in financial podcast at gmail.com or leave a comment right on the website to financially podcasts not count. You can even though go to financially formed a common asked question there and see if other folks in the community have some answers we that a better. Then that anything I could come up with -- which courses and it likely because got a whole lot of smart people over there. Asking and answering questions in action check out of financial informed dot com. Again everything's in the show that's a financially podcast dot com if you have the opportunity please. Tell a friend about the show get a hooked up and get hooked up discussion points dot com as well if you remember over there. Foreign. -- and many opportunities for free scholarships as we can possibly give way here we giving away over a 100000 dollars. In scholarships this year we've given away between 9000 32000 now. So far this year so make sure that you're Richard over scholarship went south comp again the code for this it was 5593. RPM. And I will talk you all next week have a great weekend have a great holiday weekend it's fourth of July weekend here please say. Don't buy any fireworks for it illegally and trying to keep oil limbs attached. And I'll talk to next week's take it."