Caveat Emptor or Buyer Beware 24: More Hurdles to Getting Financial Aid

Saturdays we share tips or cautions to facilitate getting scholarships or avoid problems

Hattie wanted to earn enough scholarships to completely pay for her nursing degree through a private proprietary college. She met with the school’s financial aid counselor multiple times. The counselor helped her apply for a Pell Grant and Stafford Loan. The counselor evaded commitments about Hattie earning scholarships, but continued to push the benefits of going in to debt for an education. Unfortunately, the counselor convinced Hattie to borrow enough money to pay for the entire education totaling $98,000. After signing the contract, Hattie discovered that no one would give scholarships for a private, for-profit, proprietary school.

Impact of Government Shutdown and Financial Aid

Existing Pell Grants, Student Loans, and other financial reimbursement—except educational assistance to veterans—is authorized as 2012 budget money. As a result, you should not have any delays or problems related to existing loans or grants.

In addition, you should repay loans on schedule or face penalties or additional interest. The myth that the government shutdown cannot process payments is false. Automated, electronic student repayment programs do not require workers to process.

Students needing help or guidance from Department of Education counselors or specialists cannot provide services during the shutdown. We invite you to read the White House’s contingency plan on student aid.

US System of Student Aid Flawed

The Brookings Institute released a study on October 3, 2013 beginning with:

“The U.S. system of federal student aid is badly in need of reform.  Students are borrowing more than ever before to pay the rapidly rising costs of higher education, while at the same time questioning the value of the degrees they are earning.  There are real problems to be solved in our nation’s system of higher education, including: limited access for students from low income households; disappointing graduation rates; students defaulting on loans; and rapid tuition inflation across the industry.  The first step in creating solutions to these problems is to reform the system of financial aid.”

Please, read the report.

Tuesday we share ShopSleuth Ultimate Scholarship Resource Guide of student financial aid

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