Graduate Financial Aid

A blog about how to pay for graduate school

05.29.09 | Inmates Go To College

Posted in Uncategorized by The Wise One

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.

05.15.09 | I Can’t Pay My Loans…Can They Be Canceled?

img_debt
One word for you. NO! You’ve got to love the financial aid forum where people post questions freely and ask me for my coveted advice regarding their financial aid and their student loans. I recently received an intriguing post that I thought should be shared with the general student population:

To Whom It May Concern
I have a question about paying student loans. I attend graduate medical school and now in debt of $200000. But I want to drop out since I dont feel it’s the right field for me. I wonder if I drop out and come back for school for accounting degree. How can I pay off the loan? Do they have income sensitive payment? If I cannot pay the loan can it be cancelled? Thank you.

I did not make this post up. And believe it or not, this poster is not the only one who is in this situation. I just don’t understand why it would take you $200,000 to realize that it is not the right field for you. $200,000 is a A LOT of money. It results in a student loan payment of $2300 per month. This is a classic example of someone who borrowed money with no concern about how it would be paid off. Blind borrowing I like to call it. It’s not smart and it hurts no one but yourself. This person (unless they win the lottery or inherit some serious dough) will probably default on the loans…because $2300 is a lot to have to pay per month. Heck, if he/she consolidates the loans the monthly payment would still be $1500 a month. Now I made some mistakes of my own (don’t we all??) and I am paying for them now. But my mistakes are manageable…200k is just way too much debt to take on if you aren’t 110% sure of the profession you are borrowing it for.

So for anyone else who has this problem…PLEASE know that you are responsible for paying that loan back even if you can’t afford to pay it. You can put the loan payments on hold for 3 years give or take but all in all you will need to pay that loan back. The results of not paying it will leave you financially paralyzed. You will not be able to buy a house, lease a car, or in some cases get a government job. Your tax returns will be seized and your paycheck can be garnished. This is not something you can sweep under the rug.

Is anyone else in this situation? Are you regretting the decisions you made? Please share your story and leave a comment….you might be able to save someone else from going down that same road.

05.15.09 | MBA, the Best Marketing Tool of All

Marketing yourself is the name of the game, and having an MBA is the equivalent to a flashing neon sign in a pile of bachelors degrees; it stands out.

Yes, other variables are considered when a hiring manager is looking for the right candidate. Experience, how you present yourself in an interview, and if you were referred by someone at the company are all important factors, but wearing that MBA crown is undoubtedly the best chance you’ve got. Imagine if they had an actual MBA crown you could wear, or perhaps a huge wrestling style MBA belt? Now that would be priceless!

According to a recent article in the Pacific Business News, MBA’s degrees are holding their value among young professionals. Nationally, MBA graduates on average earn $106,000, according to a survey by the Graduate Management Admissions Council. MBA’s open so many more doors.

My friend Brian who is an MBA student, not a graduate, landed a paid internship with an excellent company in Boston last month. They liked the fact he was enrolled in an MBA program. It’s a great way to spark up a conversation. I have a BS in Economics, but am currently studying toward my MBA in International Management. Now that has some cache. Sometimes just taking that one class can open an unexpected door. And once that door is open you can have some real fun.


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05.08.09 | What are You Willing to Pay?

I am the moderator of a financial aid forum where studentsdumb post all sorts of questions regarding their financial aid, their tuition, and basically anything else that relates to college. I recently have been seeing a lot of posts about how to cover graduate school programs, and even in some cases undergraduate programs that will cost in excess of 150k-200k. All I have to say to that is WHY? Why would you do that to yourself?

One person who posted wanted to go to Vanderbilt because it has a good name and a good reputation, but it was going to cost her $200k to get a bachelor’s degree; and when I say cost her, I mean that she has to pay it all…she didn’t get scholarships from the school, or grants from the government. She simply wanted to go to Vanderbilt and borrow $200k to complete her bachelor’s degree there.

It is one thing if you get in to a reputable school and they offer you an action packed financial aid package…leaving you with maybe $20k to pay a year…that is doable, but to borrow that much for a bachelors degree is just absurd to me (and I think it is just as absurd to borrow that much for a graduate degree as well). $200k in loans will give her a monthly payment of at least $1300, and that is only if she consolidates and stretches the loan out to 30 years of repayment. On the standard 10 year repayment her monthly payment will be $2400. There goes her financial future.

I recently filled out a Stafford loan entrance counseling form…and they had this neat little page that asked me how much I was planning on making per year once I am done with school. It also asks you how much you are planning to borrow. With a student loan debt of $35K it advised me that I would need to make at least $45k a year to afford my monthly payments. I have always said that people borrow way too much in loans when the degree they are getting will not provide them with a salary large enough to pay off their loan debt. A friend of mine is getting her graduate degree in teaching, and she is borrowing 60k to get it. Do you know any teachers that make upwards of 75k a year? Some teacher’s might be lucky to make this 10 to 15 years into their teaching career. So what will they do for those 15 years when the loan collectors are knocking on their door?

What are you willing to borrow to get the degree you want from the school you want to get it from? Where is the line drawn? Let’s hear it people.

Join the forum! I need help replying to posts, so if you feel confident in your financial aid knowledge or you just have a lot of experience dealing with the happy folks in your Financial Aid Office PLEASE JOIN.

Redeem your points!!! Code: EXCESSIVEBORROWING101

05.06.09 | I Don’t Need All The Money, Now What?

grad_loan_moneyMy friend’s girlfriend Jenny is attending Grad School and has been approved for a Graduate Stafford loan for $20,500, which is great. However, she may be eligible for the Teacher Education Assistance for College and Higher Education (TEACH) grant for up to $4,000, which would be even better. This grant is designed for students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. The program was rolled out in 2008-2009. The conundrum Jenny is facing is how much money she should request.

Let’s say Jenny needs $10,000 for her Grad classes, has been approved for up to $20,500 in federal loans, and may receive up to $4,000 for the TEACH grant. How much money should she request?

Answer : $10,000. Request the highest amount you may need to cover your tuition. In this case we already know that figure is $10,000. The financial aid office at the school will notify Jenny at a later date, but before classes begin, if she will receive the TEACH grant, and if so for how much (the grant is based off your FAFSA and specific high-need area of study). So what if she finds out she is getting a TEACH grant for $2,000 right before the semester starts? Jenny has already requested $10K, and it is not prudent to take out more than you need.

Answer: Send the additional funds back. You may cancel all or part of your loan at any time by notifying your school before your loan is disbursed, and within certain time frames after your loan has been disbursed. These time frames, and procedures for canceling a loan, will also be explained in notices that the school is required to send you. In this case Jenny would be sending back 2K as she would only need to borrow eight thousand to go along with her grant money.  That means Donald Duck is hauling $2,000 back to the bank.

05.04.09 | Enrollment Status Change

From Student Loan News, Updates and Blog Posts » Graduate Loans:

If your enrollment status changes, there are a few steps that you, as a borrower, must take care of.

Withdraw from School
Drop enrollment to less than half-time
Return to school at least half-time after a period of less than half-time or non enrollment
Transfer to a another School
Graduate
Go to Graduate School

Contact your FAO
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x

Complete Exit Counseling

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x

x

Notify Your [...]

Originally published by Student Loan News, Updates and Blog Posts » Graduate Loans.