Thursday, April 13, 2006

Basic Requirements

To receive aid from the federal student aid programs
discussed in this guide, you must meet certain criteria:
Financial Need
Except for some loan programs, you must show you
have financial need, according to our requirements. See
“Financial Need and Expected Family Contribution
(EFC),” page 8.
Educational Requirements
1. You must demonstrate by one of the following
means that you are qualified to enroll in
postsecondary education:
Have a high school diploma or a General
Education Development (GED) Certificate.*
Pass an approved ability-to-benefit (ATB) test
(if you don’t have a diploma or GED, a school
can administer a test to determine whether
you can benefit from the education offered at
that school).
Meet other standards your state establishes
that we have approved.
• Complete a high school education in a home
school setting approved under state law.
2. You must be enrolled or accepted for
enrollment as a regular student* working
toward a degree or certificate in an eligible
program.* (You may not receive aid for
correspondence or telecommunications courses
unless they are part of an associate, bachelors,
or graduate degree program.)
3. You must meet satisfactory academic
progress* standards set by the postsecondary
school you are or will be attending.
Legal and Other Requirements
1. You must be a U.S. citizen or eligible
noncitizen.
http://studentaid.ed.gov/students/
attachments/siteresources/Stud_guide.pdf

Monday, April 03, 2006

Is consolidation right for you?

This example is based on a borrower with a $20,000 loan debt that has neverentered repayment status (two $5,000 loans at 6.32 percent and two $5,000loans at 7.66 percent). This borrower’s weighted average interest rate is 7percent. The same borrower would have a weighted average interest rate of7.625 percent if he or she consolidated after entering repayment (two $5,000loans at 6.92 percent and two $5,000 loans at 8.25 percent).

IN-SCHOOL CONSOLIDATION SAVINGS

Loan Term --------------Savings -------------- Repayment Plan
10 years --------------$1,779 --------------- ---Standard
12 years ----------------- $1,822 ------------------Extended
20 years -----------------$1,893 --------------------Graduated

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