ScholarPoint Connect

Despite Scoring Flaws, FFEL Least Expensive Federal Student Loan Program

ScotC — Tue, 12 Feb 2008 18:38:00 GMT

Student loan observers were looking to the President’s budget to provide the first official numbers on the comparative costs of the two student loan programs, FFEL and Direct Loans (DL), since cuts to FFELP lenders and guaranty agencies passed last year. For the first time, the President’s Budget indicates that FFEL is cheaper to taxpayers than DL. FFEL is a public-private partnership between the government and private industry and DL is a program administered solely by the federal government.

For 2009, the government costs for FFEL are projected to be 2.58 cents per dollar loaned, while the DL rate is 2.64 cents per dollar loaned. In some ways, this was expected. Congress has passed massive cuts to the FFEL program in the past two years, hurting the program that provides loans to roughly 80 percent of America’s college students.

For years, supporters of the government administered program have pointed to the comparative costs for the two programs as a reason to provide all federal student loans through DL. This column, authored by Daniel Fisher and appearing in Forbes, captures many of the arguments of FFEL supporters.

In addition to noting that several college officials believe private industry does a “better job than the government at processing loan applications and handling collections” than the government bureaucracy, it also mentions the increased costs that many schools may face should they switch to DL. Additionally, the column points out the flaws in the budget forecasting that has resulted in the increased legislative risk for the FFEL program, stating that the accounting that produces favorable numbers for DL “would make an Enron executive blush.”

Starving Artist Wins $5,000 in ScholarPoint’s SIC Vids Contest

cokelly — Mon, 04 Feb 2008 19:02:00 GMT

Back in November, we launched a contest to give away $5,000 to one lucky winner for the best YouTube video that incorporated one or more of the words in our slogan: Simple, Instant, Complete. Today we are thrilled to announce that the winner of the contest is Prince Gomolvilas for his video College and It's Consequences.

There were so many great ones (you can see them all here) that we knew making a decision would be tough! That's why we set up the contest to let the YouTube viewing audience help us decide who would go to the final round by "voting" for their favorite video with favorable comments. With 57 positive comments, Prince's video moved into the finals round where it was chosen by our judges based on a 5 category scoring system.

What does it feel like to win $5,000?

We'll let Prince answer that:

1. How does it feel to be the $5,000 winner?

When I found out I was the winner, I cried uncontrollably the way I did at the end of "Terminator 2," when Arnold Schwarzenegger dies by dunking himself into a vat of molten metal. But this time, my tears were tears of joy.

2. How did you come up with the idea for your video?

I knew that I wanted it to be all about ME. And so it is. I also wanted to find a way to get a shot of me in my underwear.

3. How long did it take to make and did you enjoy it?

I spent a long afternoon conceiving, improvising, shooting, and editing the video, and I had a blast. I had no crew and no outside help, which actually wasn't as bad as it could've been. I'm such a control freak anyway, so the only person that I had creative differences with was myself.

4. What do you plan to do with the money?

Papa needs a new pair of shoes. (I'm partial to Ben Sherman's, and the only reason I feel compelled to mention Ben Sherman is to show you how hip I really am.)

5. Are you going to let this success go to your head and henceforth only be known as "The Artist"?

Success had already gone to my head long before I was even successful at anything. As for "The Artist," no way! I was, and always will be, the original Prince.

Congratulations Prince from all of us at ScholarPoint! Be sure to check out his video for a great laugh - and to see just how easy it is to consolidate student loans in your underwear!

Student Loan and Higher Ed Communities Await President’s Budget

ScotC — Fri, 01 Feb 2008 14:55:00 GMT

As always, the President’s budget will be a major focus for all involved in education during the first of the year. Although the President refrained from discussing higher education policy in his State of the Union address, the full details of the budget will be announced Monday.

Although the details of the budget are under a shroud of secrecy, the FFEL community will be anxiously anticipating the comparative cost numbers for the FFEL and Direct Loan programs. One issue being watched closely will be how the estimated costs of the FFELP and Direct Loan Programs change thanks to the drastic cuts to FFELP that were passed in last year’s student loan reconciliation bill. The President’s budget will show the first official calculation, via the Office of Management and Budget (OMB).

Most observers have said they will take a “wait and see” approach on the comparative costs of the two programs. However, should official numbers illustrate that Direct Lending is more expensive than FFEL, Direct Loan supporters could have a major problem with one of the main arguments in support of the government administered student lending program, especially considering that the FFEL community maintains that the ineffective forecasting models still skew budget scoring against private lenders.

The Weirdest & Wackiest Scholarships You’ve Never Heard Of

Brian — Mon, 28 Jan 2008 22:55:00 GMT

The Klingon Language Institute’s (KLI) Kor Memorial Scholarship

Although fluency in the fictional Klingon language is not required for this scholarship being a fan of Star Trek can’t hurt. Each year $500 is awarded to an undergraduate or graduate student studying language in any form. Qapla! The award recipients are announced each year at the qep ‘a’ (the annual KLI conference).

Left-handed scholarship

Left handed students who attend Juniata College in Pennsylvania automatically meet the criteria for the Frederick and Mary F. Beckley Scholarship of up to $1,000. I wonder if there are a lot of southpaws at Juniata.

The Parapsychology Foundation Inc. Scholarship

The foundation offers the $3,000 Eileen J. Garrett Scholarship to an undergraduate or graduate student studying or conducting research in the area of psychic phenomena to meet the requirements of their degree program. That kid from Paranormal State should probably apply for this one.

National Association to Advance Fat Acceptance Scholarship- New England Chapter

To be considered, applicants must be a single, overweight high-school senior maintaining at least a 2.5 GPA at a New England high school. Each year two people win the $500 prize.

The National Candy Technologists Scholarship

Each year the American Association of Candy Technologists (AACT) chooses one food science or related field major to receive a $5,000 scholarship. Candidates must maintain a 3.0 GPA, attended an accredited four-year college, have sophomore or junior status, have a demonstrated interest in confectionary technology and— of course—like sweets.

National Marbles Tournament Scholarships

Since 1922 the National Marbles Tournament has been held annually in different cities. Over the four-day tournament more than 1,200 marble games are played. With so many games played obviously only the most skilled mibsters (marble shooters) have a chance to win the 2 $2,000 scholarship prizes.

The Make It Yourself Wool Contest (MIYWC)

Surprisingly, this scholarship is fairly competitive. The contestants must prove their sewing, knitting or crocheting skills to the American Sheep Industry Association by constructing their own garments from wool. State winners proceed to the national competition where winners are awarded $1,000-2,000 scholarships.

The Chick and Sophie Major Memorial Duck Calling Scholarship

Any high school senior in the United States is eligible to participate in the Chick and Sophie Major Memorial Duck Calling Contest held annually in Stuttgart, Ark. Participants must adhere to the rules of the World’s Championship Duck Calling Contest which give each person 90 seconds to use four calls (hail, feed, comeback and mating). The best duck call gets the winner $1,500. Here is video of a duck caller.

The Lambert and Annetje Van Valkenburg Memorial Scholarship

Anyone who is a direct descendent of Lambert and Annetje Van Valkenburg is eligible to apply for this $1,000 scholarship. Due to the low number of applicants the criteria was changed to allow those legally adopted into a Van Valkenburg family and those with any variation in the spelling of the last name to also be considered.

The United Daughters of the Confederacy Scholarship

Only direct decedents of “worthy” confederate soldiers, sailors and marines are considered for the $1,000 Helene James Brewer Scholarship. Applicants must reside in Alabama, Florida, Georgia, South Carolina, Tennessee or Virginia. They also must plan to study southern history or literature at an accredited college. In addition, proof of Confederate Military Record and the applicant’s line of decent from the Confederate ancestor must be submitted.

The American Fire-Sprinkler Association Scholarship

Simply writing an essay about a successful fire-sprinkler activation in your town or state gets seven applicants $3,000 each year.

The National Christmas Tree Association (NCTA) Scholarships

For several years the NCTA sponsored the “Help Santa Find the Perfect Real Christmas Tree Scholarship” which awarded a $5,000 scholarship to one child in each of the four age groups (6-9, 10-12, 13-15, 16-18). Applicants were asked to submit a picture of their family with the Christmas tree they had picked and an essay explaining why the tree was perfect for them. In 2007 the NCTA dropped this scholarship for the “Get Real This Christmas! YouTube video scholarship,” which asked applicants to create a unique video explaining why real Christmas trees are better than fake ones. The winner received a $500 prize.

The Society of Vacuum Coaters Foundation Scholarship

Any student of an accredited educational institution currently enrolled in a course of study which relates to vacuum coating technology may apply. Each year the two most qualified candidates receive a $2,500 scholarship and are invited to a Technical Conference held by the world’s experts in vacuum coating technology. Anyone sure what exactly this is?

“Stuck at Prom” Contest

Duck brand duct tape annually sponsors the “stuck at prom” contest, which awards $5,000 to the couple with the best outfits made out of duct tape. In recent years the Duck Company has received over 4,000 entries each year. Some past winners are pictured below.

Tall Clubs International (TCI)Scholarships

Like many college scholarships, applicants must be under the age of 21 and be planning to attend college the following fall. However, TCI’s scholarship also has a height restriction; female applicants must be at least 5’10” and male applicants can be no shorter than 6’2”. Multiple scholarships up to $1,000 are awarded annually.

Carnegie Mellon University Bagpipe Scholarship

Each year Carnegie Mellon University offers one $7,000 scholarship to a student who wants to study bagpipe. Surprisingly (or not), many years no one accepts the offer. Besides the money, winners (or accepters) are also able to study with the three-time world bagpipe champion, Alasdair Gillies. Currently, there is only one bagpipe major in the United States, making this one of the least competitive scholarships out there.

The National Organization for the Reform of Marijuana Laws (NORML) Scholarship

Each year NORML gives out a $650 scholarship to the student who writes the best essay outlining a more “sensible” drug policy for the United States. It’s unlikely one of these winners would qualify for the Goodie Goodie scholarship mentioned next.

The Goodie Goodie Scholarship

Joseph H. Deppen donated the money for this scholarship in memory of his sister who, apparently, was a goodie goodie. To qualify the student must attend Bucknell University, must not drink, smoke, chew tobacco, take drugs or participate in any strenuous athletic contests. It’s doubtful that many students meet these requirements. The amount awarded can vary.

The Golf Caddy Scholarship

Each year the Evans Scholars Foundation gives out about 200 full tuition scholarships renewable for up to 4 years. To qualify applicants must have a strong two year caddie record, maintained at least a B average in high school, and demonstrate financial need as well as an outstanding character. Although the scholars may use their award at the University of their choice, most choose to attend one of the 14 universities where the Evans foundation maintains a scholarship house.

Are You Utilizing All of the Student Funding Resources Available?

cokelly — Wed, 23 Jan 2008 00:32:00 GMT

When most students think of financial aid, they think of federal loans that are available through the FAFSA (Free Application for Federal Student Aid). While federal loans are certainly the most common choice among students, many times those loans don't cover the entire cost of tuition. Before you give up on your top college choices try tapping into these three other lesser known sources of financial aid:

State Government Student Loans

Unlike the FAFSA application that is the same for all 50 states, some states may require a completely different application to apply for state government loans. While some states use the information in the FAFSA application for state loan consideration, other require a completely separate application. Furthermore, each state may require one application if you plan to attend a public college and a different application if your college is private.

If you're unsure about which state government loan application to complete, contact the school that you plan to attend. If you haven't made a choice yet and are deciding between a public and private school, be sure to check with both schools as each type may require a separate application.

State loans can be tricky if you live in one state but plan to attend college in another state. In which state should you apply for the loan? Start by contacting your home state. By doing a search online for "(your state) student loans," you can find information about which department to contact for more information.

Private Education Loans

Private educations loans may be the first place that students turn after federal student loans because these types of loans are often advertised on TV and through direct mail - but that doesn't mean that this is the wisest choice. Depending on the lender you choose, private student loans can be much more expensive than government loans because of expensive origination fees and other fees. Furthermore, these loans are often secured loans, meaning that you may need a cosigner who can offer collateral in case you fail to pay back the loan.

Another thing to consider about private student loans is that they cannot be consolidated with federal loans after graduation. Also, many private student loans don't have the same perks in terms of deferment options and flexible repayment plans.

Private student loans can be a smart choice if you choose a good reputable lender. Just like when choosing a credit card, you'll want to do your research to ensure that you are securing private student loans with a lender that is fair and offers as many benefits as possible.

Scholarships and Grants Through Your College or University

You may be surprised at the number of scholarships available through your college. If you haven't decided on a college yet, the types of scholarships and grants available through different schools may be a big factor in your decision process. To find out what types of scholarships your college or perspective college offers, visit the financial aid section of the school's website or call the financial aid department. Many scholarships are available through the academic office of your major. Don't forget to visit your particular academic office's website or contact the department by phone.

If you are applying for several colleges, you may want to fill out a College Scholarship Service Profile, also known as a CSS profile. The CSS profile is often used by private institutions as a way to get a clearer picture of a student's finances. The CSS profile does include a fee, so you'll want to check with the colleges you are considering to see if they consider the CSS profile before taking this step.

Follow up on Recent College Financial Aid Announcements: “Wealthy Colleges' Largess Draws Rebuke”

ScotC — Fri, 18 Jan 2008 17:57:00 GMT

This article, appearing in the Washington Post, details the reaction of some higher education administrators to Harvard’s recent expansion of its financial aid offerings. While schools with vast amounts of resources will more than likely follow suit and offer better aid packages to students from a wide array of family incomes, some officials at schools with smaller endowments feel these initiatives place them at a competitive disadvantage to their wealthier counterparts.