Guide to Education Grants

Another Student Loan Resource:
Money. Some of us have it. Some of us need more of it. Particularly recent college grads transitioning from their campus to the workspace, from having student loans available that help pay their living expenses to having to make it on their own—all while paying back those student loans that paved their way to graduation.
 
With the surge in student loan debt outpacing the growth in starting salaries, and with tuition increases far exceeding increases in federal financial aid, a growing number of college graduates are facing barely manageable levels of student loan debt.
 
 
Tuition Hikes Outstrip Increases in Federal Financial Aid Awards
 
“Student aid continues to grow, but not as fast as tuition, and not enough to make up for the difference between family incomes and the price of college,” says Larry Abramson in a story for National Public Radio (“Tuition Hikes Outpace Student-Aid Increases,” Oct. 26, 2007).
 
According to the College Board’s “Trends in College Pricing” 2007 report, average published tuition and fees for in-state college students at four-year schools climbed by 6.6% for the 2007–08 academic year, a hike that “outpaced increases in the financial aid that lowers what most students actually pay” writes Erica Perez in the Milwaukee Journal Sentinel (“College Costs Outpace Inflation,” Oct. 23, 2007).
 
 
Starting Salaries Increasing More Slowly Than Student Debt
 
With more tuition to have to pay, students are graduating with more student loan debt than ever. In 2004, two-thirds of college graduates left school with student loans, and between 1993 and 2004, the average debt for college graduates with student loans soared a staggering 107%, according to a report by Luke Swarthout, a Higher Education Associate for the U.S. PIRG Education Fund. Student loan debt, Swarthout notes, is rising faster than both the cost of living and the cost of health care (“Student Debt and Consumer Costs in the Minneapolis–St. Paul Area,” July 2006).
 
Student debt levels are also eclipsing income gains. The “rapid rise in student debt comes while the real median income of younger Americans has only modestly increased” by 4.4% between 1995 and 2004 for household earners under 35, writes Swarthout.
 
Starting salaries for recent graduates can’t keep pace either. A report on “Student Debt and the Class of 2006” released by the Project on Student Debt found that for graduating seniors, average student loan debt rose 8 percent between 2005 and 2006, while starting salary offers rose only about 4 percent.
 
“Too many young people leave college saddled with heavy debt burdens and struggle to cover their loan payments on top of basic living expenses,” says Robert Shireman, Executive Director of the Project on Student Debt, in a press release for their recent study. “Students need better options and counseling when they’re deciding how to pay for college.”
 
 
 
Talk to the education finance advisors at NextStudent. They have all the information and advice you need on scholarships, federal student loans and affordable private student loans. Visit us at www.nextstudent.com.
 
Student Loan Girl
 
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Democrats on the House Education and Labor Committee recently released a You-Tube clip to promote the “College Cost Reduction and Access Act of 2007,” PL 110-84.  In addition to the popular Web site, the video has also been uploaded to the Committee’s special Web page for students. 
 
The 30 second spot, which features Justin Hamilton, Committee Chairman George Miller’s (D-CA) Deputy Chief of Staff, dressed as an oversize check for $4,400, is a spoof of an internet dating company’s ad campaign.  Hamilton opens the clip with “I’ll be honest, I’m into college students,” and concludes it by encouraging students to visit the Committee’s Web page to “see if you’re compatible” with the money the bill will purportedly save them.
 
However, at least one well-respected financial aid expert has some serious doubts on the real savings the new law will provide for students.  Below are the comments attributed to Mark Kantrowitz of Finaid.org in response to a blog posting from the Chronicle of Higher Education on the video clip:
 
The $4,400 figures are based on several flawed assumptions: that the average amount of subsidized Stafford debt per student is $13,800 ($9,811 is more accurate), that the 3.4% rate applies to all the debt (the rate cuts are phased in and the 3.4% rate only lasts for a year), and that the debt will be at a 15 year repayment term.
 
Actual savings will more likely be closer to $1,030 for a 10 year term, $1,660 for a 15 year term, and $2,363 for a 20 year term. If we limit the analysis to 4-year students, the savings figures are only 35% higher, still less than the $4,400 figure. Practically speaking, the typical student will save less than $10 a month on their loan payments.
 
— Mark Kantrowitz    Oct 16, 10:23 AM    #
 
To view the You Tube video prepared by House Education and Labor Committee Democrats, please visit:   http://edlabor.house.gov/college/

A few weeks ago, we blogged about states stepping in and taking action against credit card companies that prey on college students. If you think about college marketing from a credit card company’s perspective, the college campus is an ideal place to promote credit card applications.College students are typically short on funds. College students typically like to shop and probably don’t have the income to repay their credit card debts in full each month. More importantly, college students haven’t yet learned what many in their late 20’s, 30’s and 40’s have learned about credit card debt – that it is a horrible predicament to become trapped in.The $30 shirt you purchased on a credit card can turn into a $75 shirt over time once interest piles on. If you are a college student on a limited budget and without the income to pay off your entire bill at the end of each month, it’s likely that you will be paying for that shirt long after it’s been cycled out of your wardrobe!Instead of counting on credit cards to provide the extra income you need, here are some ideas for ways to earn extra money while in college.Proofread PapersLots of people have thought of this, but how many are actually taking action and doing it? As a proofreader, you can make a big impact on helping students to improve their grades. Try promoting your services on bulletin boards around campus or on online college forums. I found this to be a great way to buy extras while in college.Find an On-Campus JobThere are usually lots of jobs for students on campus – and some of them can be really fun! One of the best on-campus jobs I had in college was working in the mailroom. At first I thought it would be embarrassing, but it gave me the opportunity to meet and interact with tons of new people! Visit your school’s administrative office to find out who to talk to.Start a BlogThere are lots of students making money online by creating blogs. The more readers you can attract with high quality content, the more advertisers are willing to pay you for a mention on your blog. Visit top bloggers like ProBlogger and Dosh Dosh who are experts on the topic of blogging for income to hone your skills.These are all ideas that you can do that don’t have to take up a lot of your time while giving you the extra money you need and avoiding credit card debt. What ideas have you tried to earn extra money while in college?

In honor of Halloween, we felt it was appropriate to celebrate those who wear their costume
as a year-round occupation!  What’s a college game without a gigantic, foam head mascot? Time Magazine has compiled a hilarious photo collection of some of the most unique
college mascots around the country. Here are two that didn’t make the cut
but we think should’ve been on the list.

Is yours on the list? Know a mascot that should be? Let us know!

We’ve launched a new video contest where you can win $5,000!  We’re looking for people like you to create a SIC-Vid that incorporates at least one of the three words of our student loan consolidation process motto:SimpleInstantCompleteHow you incorporate one or all of these words into your video is completely up to you!Video Contest Details:

Submit a SIC-Vid between
November 5 - December 5, 2007. We’re
suggesting your video be 60 seconds or less in length. However if you think your
vision needs more time, that’s fine. We’d love to see your great work,
regardless of the length of your video.

Your video must include our URL,
www.scholarpoint.com, plus at least 1 of
the 3 words in our motto: Simple. Instant. Complete. This can be represented
visually with text or graphics or be spoken or sung.

Submit your video to
ScholarPoint’s contest group on YouTube. Next, send us an email with your name and
your YouTube video URL.

Promote your SIC-Vid until January 5, 2008 . The 10 videos with the most positive comments by
1/5/08 will go to the final round and we will select the winner from that
group.  So forward your video to your friends on Facebook, MySpace, Blogs, and
Email!

Have fun, get your creative juices flowing, and position yourself in the running to win $5,000!

College is expensive. And unless you come from a wealthy family you’ll need to learn to live on a budget while you’re there. The following are some of the most common financial drains for students along with some creative alternatives for getting around the high costs. We’re not suggesting that you sit around all day in your dorm without spending a cent, just that you’re smart with money and realize how much some things can actually cost you. 1. Starbucks – Addicted to café lattes? If you drink 5 of those a week at $3.50 each, that equals $3,640 over 4 years. Consider investing in a coffee maker from Wal-Mart instead. You can purchase a nice one for $20 and it should last you as long as you’re in college. A big can of coffee will run you another $10 but can last up to 50 cups of coffee or more, which comes out to $0.20 per coffee.  2. World of Warcraft – Yes it’s a very fun and addicting game. But it will also cost you $720 to play it for 4 years. And that’s just the monthly fee. When you add in the cost of the software and other various costs that may incur it’s even more expensive. With addictions rates as high as 40% for the game you might just be better off attending local AA meetings. “Hi, my name is John and I’m a WoW addict.”3. Credit Cards – Resisting credit cards is very hard, especially when credit card companies are so aggressive with marketing to college students. Having a credit card isn’t a bad thing though, it’s how you use them that matters. There are many times when you’ll need one or they might come in handy. Your first choice should be a bank issued debit card that’s tied to your checking account. You second option is getting a credit card. However, you should only be using it when you absolutely must and pay off the balance every month. Otherwise you’ll risk falling into the trap of getting into debt, paying minimum payments only, and getting dinged on interest. In that case, by the time it’s paid off you’ll have spent nearly as much in interest as the original balance. This is a good example:http://financialplan.about.com/cs/creditdebt/a/CostCreditCards.htm 4. New computers – I know you think your saving money by purchasing the cheapest low-end laptop you can find at Best Buy. In reality you’re actually costing yourself money in the long run with something that will quickly become outdated. Instead spring for the more expensive laptop that will last through all of college. We recommend getting an Apple, both the Macbook or a Mac Mini are great choices.  5. Software – Software is expensive. Most people don’t realize it but they often end up spending more on software than their actual computer. This day and age buying expensive software is in most cases a waste. And no, we’re not recommending you download it from The Pirate Bay either. Instead look for open source alternatives or software companies that give deals to students.  An example of open source software is Open Office or Neo Office, both great substitutes for Microsoft Office.  6. Booze – Beer and alcohol can add up. It’s not hard to drop $50-$100 or more in one night at the pub, especially if you’re buying drinks with hopes of hooking up with the opposite sex. Try not to get so trashed that you end up buying rounds for the whole bar either. If drinking is a way of life for you at college then drink before you go to the bar. Invest in a case of beer with some friends or a cheap bottle of spirits. You’ll be surprised how much money that can save you.7. Vending machine snacks – Getting through a day of classes can be near impossible without the assistance of a candy bar or two. However, paying $1 for a candy bar everyday can add up. Instead make a trip to your local Costco or Walmart and buy a box of candy bars, they usually come out to less than $0.25 each. Better yet, skip the candy all-together, your dentist will thank you and so will your wallet. 8. Books – College students spend an average of $700-$1000 per year on new books. Instead of always buying new you can shop for used books. If you can’t find them at your college bookstore I’m sure lots of students who took that same course last semester would be thrilled to sell you theirs. 9. Eating out – If there’s one skill you should learn to master at college it’s cooking. Eating out at $10-$20 per meal can sure add up in a hurry. Even at two meals per day you’d be looking at spending a couple hundred dollars every week. You could easily live off that amount buying groceries from the market and making your own meals. It’s a lot healthier than McDonalds Big Macs too. 10. Clothing – No one’s saying you should show up to college naked. But you don’t have to break the bank buying new clothes every week either. Be realistic with your clothing needs and only buy what you need. Try to resist the high-end fashion brands too. This is especially important for the ladies. 11. Spring break – Ah, spring break, the one time of the year that every college student looks forward to. Partying with MTV in Cancun sounds tempting but it also sounds very expensive. Between the roundtrip flight, hotel accommodations, clubbing, and food you’re sure to drop a couple grand. That doesn’t make much sense when surely there’s a spring break hotspot within driving distance. Grab a couple friends from your dorm hall and make a road trip out of it. It will cost you a lot less and chances are you just might have more fun. 12. Cars – Owning a car is expensive. When you add up car payments, gas, insurance, and maintenance you can easily see how owning a car can be a huge financial drain. The thing is that you don’t need a car at most college campuses; everything is within easy walking distance. If you need to be somewhere that’s too far to walk try bumming a ride from a friend or taking the bus. Bottom line – if you don’t need a car for college, don’t buy one.13. Dating – Don’t worry; we’re not suggest you go through college with a vow of celibacy. But when it comes to college dating you don’t need to take your date to the nicest restaurant in town either. If she (or he) is a decent person they’ll more than understand you’re a frugal college student. In fact, they may respect that quality in you. When it comes to dating on a budget, creativity is key. There are more than enough things to do around campus or town that don’t cost a fortune. Coffee houses and smaller concerts are a just a couple of many great ideas.

Another Student Loan Resource:
ReRip may not show you how to transform your old boards into something completely unboard-like, the way IKEA Hacker overhauls furniture, but ReRip does share with IKEA Hacker the goal of making the stale new again, giving old boards a second chance at life with different owners.
 
“Reduce. Re-use. Re-ride.” It’s ReRip’s official slogan.
 
ReRip, as the company explains on its website, “wants to pull used but rideable surfboards, skateboards and skis out of people’s garages and put them under the feet of those looking for a ‘new’ ride.” ReRip’s founders hope their venture will translate into fewer boards made, fewer toxins emitted and fewer materials discarded.
 
The company, started four months ago by Meghan Dambacher and Lisa Randall of Solana Beach, Calif., hopes to capitalize on the current trend that has consumers going green. In addition to hosting its used board network, ReRip wants to promote eco-friendly boarding businesses for those customers looking for new equipment, according to a story by David Berlin that appeared in The San Diego Union-Tribune (“New Life for Old Gear,” Aug. 26, 2007).
 
 
Start Small Until You’re Ready for the Big Leagues
 
Dambacher and Randall, as the ReRip homepage says, aim at “raising awareness one board at a time,” developing their business plan that can appeal to both eco-conscious and cost-conscious consumers.
 
“The idea is to make it easy for people to recycle equipment instead of throwing it away or buying something brand new,” writes Berlin. Dambacher and Randall acknowledge that “[i]t might not save the polar ice caps all by itself, but it could help.”
 
Much like frugal parents who start their musically inclined children on pawn shop instruments, or money-strapped college students who troll garage sales, eBay and online classifieds for affordable finds, wannabe extreme sportsters can turn to ReRip to find secondhand starter boards or trade up once they master new tricks—all while saving money and the environment.
 
ReRip, as Berlin explains “is essentially a Craigslist.com for action-sports items.”
 
You can get a 6-foot-4-inch epoxy Retro Fish surfboard for $320 from a seller in Oceanside, Calif. Or learn new moves on a Birdhouse skateboard autographed by professional skateboarder Brian Sumner, available for $165. Or grab a $150 M3 snowboard that’s seen a couple of seasons and is now too small for its owner.
 

Brian Sumner “Liverpool Tone” skateboard.
 
But the ReRip interchange doesn’t stop at just boards. Find skis, ski boots and other gear to hit the slope; helmets, longboards and wheels to shred up the park, and wetsuits and fins to ride the waves.
 
 
Taking Eco-Boarding to the Next Level
 
Eventually, Dambacher, a child development counselor, and Randall, a fitness manager, want to expand ReRip from a used product intermediary into a forum where action-sports enthusiasts can also buy new equipment that, in keeping with the company’s green outlook, is made with environmentally friendly products like Biofoam™.
 
Homeblown US, which manufactures Biofoam, incorporates the material in its surfboards. These Biofoam surfblanks are made from a mix that consists of 50 percent agricultural products and replace traditional polyurethane surfblanks. Homeblown claims that using Biofoam produces 36 percent less global warming emissions and reduces non-renewable energy use by 61 percent.
 

Homeblown US Biofoam surfboard (left) and Biofoam surfblanks (right).

 
 
By promoting eco-minded companies like Homeblown, which is generating press for its Biofoam boards, ReRip hopes to attract boarders who support green initiatives but may not necessarily want to confine themselves to used equipment.
 
As Dambacher says in Berlin’s article, “We understand people want new things, but we want to say, ‘OK, if you’re going to buy it new, buy it from this company because they’re doing X, Y and Z, and it’s easier on the planet.”
 
 
 
The student loan advisors at NextStudent are helpful and knowledgeable about student loans. They’re a trusted source in getting you the appropriate information about your student loan options and helping students and parents get the college financing they need. Go to www.nextstudent.com for more information.
 
Student Loan Girl
 
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