Graduate Financial Aid

A blog about how to pay for graduate school

06.23.09 | Do something stupid and your education just may be free

Posted in Uncategorized by The Wise One

Tuesday Rant (a tongue-in-cheek observation)

Believe it or not it’s still possible in 2009 to get three squares a day, a roof over your head, and a college degree for the bargain basement price of $0. So how can you get a piece of this all American pie? Simple. Get arrested.

Correctional education, perhaps the greatest perk of all for inmates, involves vocational training or academic education as part of a prisoners rehabilitation and preparation for life outside prison. It’s these educational programs that allow many inmates to emerge from behind bars in better shape, financially speaking, than many law abiding citizens who are struggling mightily to make ends meet due in large part to sizable student loans payments. Most graduate students these days carry debt totalling over $40,000 and face monthly payments in excess of $400.

Between teachers volunteering their time and publishers donating books, as is the case at San Quentin State Prison in California, inmates are getting a top flight education for free. How fair is that? I’ve got the perfect slogan for a state penitentiary. “Commit the crime. Do your college time. All on the taxpayers dime.”

I guess all that’s left is to determine which non deadly crime will get you 4-5 years behind bars. I’d really hate to see someone paroled early prior to getting their bachelors degree in criminal justice, that would be just tragic.

06.16.09 | Why pay 50K for a degree when you can pay 50 bucks?

Posted in Uncategorized by The Wise One

Degree Mills, which produce phony degrees, have been around for over a hundred years and have helped thousands of people find employment. Of course if the human resource department did their due diligence at the time of hire these cheaters would not thrive at all, but many are too trusting and take the credentials listed on ones resume at face value.

The superintendent of school’s for California’s second largest school disctrict lost his job and faced serious legal consequences when the Stanford Ph.D he had claimed for years turned out to be a phony one. The chairman of the board of a major Florida university resigned, after it became known that he had bought his degree from an Oklahoma diploma mill.

The Federal Bureau of Investigation actually has a division called DipScam, which was launched back in the 1970’s, and is committed to investigating diploma scams. That’s how big the problem has become. In fact, in one operation they accumulating over 7,000 client names from a diploma-mill raid, and the FBI identified more than 200 federal employees in the batch, including 75 in the Defense Department with bogus degrees! Just mind boggling.

It may also trouble you to know that newspapers and magazines continue to allow these perpetrators to advertise. Next time you pick up The Economist, USA Today, Forbes, Psychology Today, Inc., Discover, Investors Business Daily, and the regional editions of Time and Newsweek keep an eye out for these second rate operations.

Do I endorse buying a phony degree? No. Have many people jump started or furthered their careers with phony degrees? Yes. Every man has their own code of ethics and personal standards they must follow. You can roll the dice if you want, but just remember the house usually wins.

06.12.09 | Will I Be Approved?

Posted in Graduate PLUS Loan by Lee Anne Hannula

The graduate plus loan has become a very popular loan amongst graduate students over the past few years. What makes it enticing is the fact that it is a Federal loan even though you have to pass a credit check in order to be approved. It also can be combined with your Stafford loans from undergraduate school and grad school once you are completed with your studies.

A problem that some people face is getting approved for the loan. Many people have asked me how exactly the decision is made for approval on these loans. The approval process is not as stringent as private loan approvals. They also don’t require that you have an extensive credit history or even a steady income. What the lenders look at is if you have an adverse history on your credit report. If you do, and it’s not cleared up it will affect you from getting the loan. If you have something on your report from 2 or 3 years ago, that is cleared up, you should still be approved for this loan, however they may require that you add a co-borrower.

Another common question I get with this loan is if you can apply with a cosigner right off the bat. The answer is no. It is required that you apply on your own first, and if you get denied, you will then be given the opportunity to add a co-borrower. I also recently received a question on the financial aid forum regarding defaulting on a credit card and if this disqualifies you for receiving a grad plus loan. If this situation was resolved and account is now current, you should still be approved. However if the situation was very recently, chances are you will need a cosigner. However defaulting on a personal loan or line of credit is not the same as defaulting on a federal student loan and does not disqualify you for borrowing more Federal loans. FOr more information on the graduate plus loan, visit the GradPlusLoans.com information page.

06.08.09 | Reference Letters Aren’t Worth a Dime

reference_letter1Monday Rant!

Why do graduate students need to submit letters of reference? The official reason is that letters of reference are designed to promote applicants qualitative abilities. What the school hopes to discover is specific descriptions and examples which illustrate a students potential to make a difference in the world. Personally, I find this part of the application process laughable.

Depending on the school, you’re required to submit 2 to 3 letters of recommendation. This antiquated, and in my view, irrelevant practice should die like the hornets in my gutter as any student with good grades can get a professor to essentially type a form letter.

If you’ve been out of school for a lengthy period of time you’re allowed to use work/personal references. I know three graduate students who actually typed their own letters of reference and then had their references sign it. The process is a joke and the professor’s many times are a joke too.

Having to rely on incompetent professors to ensure your entrance into these programs is simply ludicrous. Perhaps this process works at top tier schools where professors enjoy ego stroking themselves and their top students, who in turn enjoy the attention and need the validation; but at the State level the requirements should just be one letter of recommendation sent by the professor’s choice of media (I would say do away with the reference completely but I know that won’t happen).

Anyone who has gone to school knows that professors can be absent minded. My one reference requirement allows you to hedge your bet. With a one reference requirement you could ask three professors to write a letter, knowing that one would come through and not hold up the process for you. The extra letters (assuming they actually did them) could then be optional.

I realize schools are trying to delineate between worthy candidates, but the reference letter devalues this process. You might as well pick up a magic 8-ball and shake away. Will I get into graduate school magic 8-ball? “Ask again later.”

06.05.09 | Medical and Dental Residency Relocation Loans

Posted in Intro to Graduate Loans A to Z, Private Loans by Lee Anne Hannula

I realize that it has been difficult lately trying to get loans to pay for tuition, nevermind getting a loan just to help you out with other expenses while you are in school. With the way the economy is now many loan companies have ended certain loan programs leaving just school certified private loans that usually require a cosigner. I receive a lot of inquiries from med students who need help with moving costs they endure when they begin their medical or dental residency. There are now two new loans that you can get to help you with these costs, and they are specific for your needs. Here is an overview of each loan:

Medical Residency Loan
Medical Residency/Relocation Loan is available to those pursuing a career as a health professional in an allopathic or osteopathic residency program. Medical students and new residents often face costs not traditionally covered by financial aid award packages. The Residency/Relocation loan will cover expenses related to medical board exam preparation, participating in residency interviews, relocating for residency or other related expenses (e.g. transportation, housing, groceries).

Benefits:

* Borrow up to $20,000
* 1.0% interest rate reduction at repayment*
* 0.25% interest rate reduction for using ACH**
* Up to 15 year repayment term with no prepayment penalties
* Defer payments up to 7 years during residency program
* Cosigner release option available after 48 payments, if applicable
* All loans serviced by Graduate Leverage Servicing
* 24/7 account access
* Electronic application

Eligibility Requirements:

The Medical Residency and Relocation loan offered in partnership with the Student Loan Network and Graduate Leverage is available to those pursuing a career as a health professional in their final year of medical school and for six months following graduation. If the borrower is not a U.S. citizen or permanent resident, a cosigner who is a U.S. citizen or permanent resident will be required.

If the borrower is the sole applicant, they must be at least 18 years old in all states with the exception of 19 in Alabama & Nebraska and 21 in Puerto Rico. If they do not meet age of majority requirements in their state, a cosigner will be required. Additional qualifications apply.

The interest rate for this loan is LIBOR + 5.0% to 8.0% (variable rate***).


Dental Residency/Relocation Loan

The Dental Residency/Relocation Loan is available to those pursuing a career in dentistry. Dental students often face costs not traditionally covered by financial aid award packages. The Dental Residency/Relocation loan will cover expenses related to board exam preparation, participating in interviews, relocating for a residency or an internship and other related expenses (e.g. housing, transportation, groceries).

Benefits:

* Borrow up to $20,000
* 1.0% interest rate reduction at repayment*
* 0.25% interest rate reduction for using ACH**
* Up to 15 year repayment term with no prepayment penalties
* Defer payments up to 7 years during residency program
* Cosigner release option available after 48 consecutive, on-time payments, if applicable
* All loans serviced by Graduate Leverage Servicing
* 24/7 account access
* Electronic Application

Eligibility Requirements:

The Dental Residency and Relocation loan is available to those pursuing a career in dentistry in their final year of dental school and for six months following graduation. If the borrower is not a U.S. citizen or permanent resident, a cosigner who is a U.S. citizen or permanent resident will be required.

If the borrower is the sole applicant, they must be at least 18 years old in all states with the exception of 19 in Alabama & Nebraska and 21 in Puerto Rico. If they do not meet age of majority requirements in their state, a cosigner will be required. Additional qualifications apply.

The interest rate is LIBOR + 5.0% to 9.0% (variable rate***)

For more information on these loans you can visit Gradloans.com.

06.02.09 | Rejection is Certain for Grad Students

You know the market is tough when Harvard University is holding seminars on how to handle rejection. Yep, I’m afraid the days of the red carpet being rolled out for freshly minted college grad students are gone - or at least temporarily suspended.

Many experts advised while the job market was slumping it would be prudent to go back to school, beef up your skill set, get your MBA, and resurface ready to market yourself and land that high paying job. But those dreams appear to be just that - dreams.

What graduate students find awaiting them now is a heap of student loan debt and an even more competition job market than when they entered grad school. In April of ‘07 the unemployment rate was at 4.5%, opposed to the staggering 8.9% we currently see today (the highest it’s been since September ‘83). As good as your alumni network is you’re asking a lot to land a high paying job right now. More polished candidates with years of experience are scooping up those jobs, and doing so for thousands less than their degree would have garnered them a few years ago.

Things will turn around as Warren Buffet said earlier this year. “Amid this bad news never forget that our country has faced far worse travails in the past…and we’ve overcome them.” Buffet was referring to the two World Wars and Great Depression that has plagued our nation. But those words ring hollow to those who don’t have a billion in the bank. For them the future can’t get here soon enough.

If you are having trouble making ends meet (click here) for a free debt consultation quote.


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05.29.09 | Inmates Go To College

Posted in Uncategorized by Lee Anne Hannula

This is an article from the New York Times about Marymount Manhattan College (my alma mater) and its program to help inmates get college degrees. When I went to Marymount this program had just been developed and a few of my teachers taught at the prison as well. I always thought it was a great idea to give these women something more to live for…whether they are getting out of prison soon, or they are in there for life. In my opinion, everyone deserves a second chance, and this program without a doubt helps these woman succeed in the real world once they are released; it gives them hope and it gives them direction. I applaud the professors who take extra time out of their life to travel to the prison and teach these women. Now the next step would be to offer these women the opportunity to get their graduate degrees in prison…it’s possible right?

Valedictorian Knows What Future Holds
Thursday was graduation day for Cathy Watkins. She received a bachelor’s degree in sociology from Marymount Manhattan College.

Ms. Watkins did so well in her courses that she was named the class speaker. She set her speech on the lectern and put on her reading glasses. At 41 — a grandmother of three, no less — she was not the standard age for a graduate.

Much of what she said would sound familiar to anyone who ever sat through a commencement ceremony. “One person can make a difference,” she told her fellow students. “Let that difference start with you.” Afterward, she joined her classmates and visiting relatives for lunch.

And then Ms. Watkins returned to her normal life, locked up behind the walls and concertina wire of the maximum-security state prison for women in this Westchester suburb of New York City.

She has been here for 12 years. She is likely to stay here for a long time, having been found guilty of a 1995 murder in Manhattan. She didn’t do it, she said in an interview. But “innocent or guilty,” she said, “you can still grow to be a better person.”

“Even though these walls can restrict our physical movement,” she said in her valedictory, “they cannot restrict our imagination, nor our connection to the outside world.”

In some ways, a commencement exercise inside prison is much like any held on the outside. The graduates wore caps and gowns. They filed in and out of the Bedford Hills gym to Elgar’s “Pomp and Circumstance.” Their worthiness was affirmed by a guest speaker, Lanie Robertson, a playwright. “You each have your own spark of celestial fire,” he told them.

But how many ceremonies have you gone to where the robes hide state-issued green uniforms, or where the proceedings are interrupted and the graduates told to stand so that the guards can count them and make sure no one has slipped away?

At how many commencements can you say with confidence that the graduates enjoy the unqualified support of every one of their mates? At Bedford Hills, there was no such thing as polite applause. Dozens of inmates attended, and let out enormous cheers and whoops for each woman who walked on stage. It was as if every diploma was a victory for them all.

Thirty women graduated: 5 with bachelor’s degrees, 9 with associate’s degrees and 16 with high school equivalency diplomas that qualify them for college-level work.

Marymount Manhattan, on East 71st Street, has conferred degrees here since 1997 in collaboration with six other schools. “What better deal there is for the people of New York State, I simply don’t know,” said Judson R. Shaver, the college’s president. “The recidivism rate for women who graduate in our program, as far as we know, is zero.”

A 2001 studyby the Graduate Center of the City University of New York showed that Bedford Hills women who took college courses were far less likely to land back in prison than those who skipped the program. Overall behavior inside the prison improved. “If you want your degree, you have to stay out of trouble,” said Aileen Baumgartner, the program’s director since 2002.

IN a prison with about 800 inmates, Ms. Baumgartner had 175 students this semester. For those who stay in the program all the way, the road to a bachelor’s degree is long. Only a few courses may be taken each semester. Ms. Watkins needed 11 years to get her degree. Monica Szlekovics needed 10.

“I took my time,” Ms. Szlekovics said, adding with a glint of irony, “I have a lot of time.”

That she does. She was found guilty of a 1996 murder in Rochester and sentenced to a minimum term of 50 years. At 33, she can expect to stay where she is into old age.

For her, graduation was “bittersweet.” The program “allowed me to live in here,” she said. Now she wonders “what’s the next chapter in my life here? How do I engage myself intellectually?”

Women like Ms. Watkins and Ms. Szlekovics are “the most compelling” for Ms. Baumgartner. Most people focus on how a program like hers can help prisoners once they’re freed. “But frankly,” she said, “I’m here for the ones who won’t get out — because they still have minds and spirit, and can grow. Part of me thinks that crime stems from a lack of imagination. What higher education does is broaden the imagination.”

“I’m not in the business of shutting doors on people,” she said.

E-mail: haberman@nytimes.com

05.27.09 | GMAT’s Non-Standard Accommodations

Posted in Uncategorized by The Wise One

For someone like my wife who suffers frequent anxiety attacks, tests for her are exceedingly stressful. To be honest she’s brighter than me, but I’m the one holding the degree while she remains underpaid in the wonderful world of retail. Perhaps that’s why I was so inspired to post this blog. I really feel for anyone who has trouble taking tests; whose heart palpitations cause their blood pressure to spike and lead to wavering focus and a poor test score. Many people don’t know it, but if you need to take the GMAT to get into grad school you may qualify for a non-standard accommodation.

The non-standard accommodation gives you twice as much time as everyone else, if that’s what you need to compensate for a medical condition.

You’ll need to complete a form called the Documentation Certification for Nonstanding Testing Accommodations which you can get from a counselor at the office of your college that provides services for students with disabilities or from a human resource operator at the company where you work. There’s also a second form, the Examinee’s Eligibility Questionaire for Nonstandard Testing Accomodations that you may need to complete as well. If all else fails a letter from your physician detailing your condition will also suffice.

Additional note: On August 1, 2001 the ETS, who administers the exam, removed the indicator which alerted anyone who viewed your GMAT that you were awarded extedend time.


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05.22.09 | Student Loan Relief on the Way

Posted in FAFSA for Grad School, Loan Consolidation by The Wise One

At this point we’ve all heard the statistics. Graduate students on average earn between 15-20% more per year than those with just a bachelors degree. But what no one discusses is the mountain of debt many students find themselves in as a result of said degree.

However, the debt is manageable and worth it if you land the right job out of school. But in this tough job market many are accepting lower paying jobs than their degree is deserving of which is making it challenging to make ends meet. Fortunately federal student loan payments are going to become a bit more affordable later this year.

Under the College Cost Reduction and Access Act borrowers will be able to cap their monthly student loan payments at a reasonable percentage of their income. The plan takes effect July 1. It is an Income-Based Repayment program that caps students and borrowers monthly payments at just 15 of their discretionary income. Any current or future borrower whose loan payments exceed 15 percent of their discretionary income will be eligible. After 25 years in the program, borrower’s debts will be completely forgiven.

05.21.09 | Getting your Graduate Degree Online

If you have been toying with the idea of getting your master’s degree online, I wanted to supply you with compsome important information that may assist you in getting closer to achieving your goal. First off, many online schools participate in the Federal loan program, which means you can borrow the low rate Stafford loans and the Graduate Plus loans to fund your graduate degree. This is a huge help to all of us who are struggling in this stalling economy and also for those who simply do not want to drain their savings.

There are many online schools to choose from and the best place to start is to research them all and see which ones offer the program you need. Click here for a database on online school’s and online degree programs for graduate students.

Taking classes online can be a very convenient avenue for many to take, especially considering you can take the class on your on time. Once you log in to your course, you can interact with other students in chat rooms and you can ask questions and interact with your peers, just as if you are were in the class room. Usually an online class is broken down into lessons, which you complete in order. There are scheduled tests that you take, which are often timed, or sometimes you may have assignments that you need to complete and email to the teacher by a certain date. These types of classes do take a lot of self discipline so if this is not your strong suit, I wouldn’t enroll in an online degree program.

Just to get an idea of how many schools offer the program you need, and what those programs cost, definitely check out this directory and feel free to visit the Financial Aid Forum where you can ask other students who have completed online degrees about their experiences with it.