FAP709: FAFSA mailbag, SLM, casino scholarship, bankruptcy news

7 January 2008 0 views No Comment

From Financial Aid Podcast Show Notes and Blog:

Listen now:

Student Financial Aid News
+ Detroit News: U.S. personal bankruptcy filings jumped 40 percent in 2007 due to rising mortgage payments, job losses and other financial pressures.
+ The increase followed a sharp decline from a year earlier, when a new law made it more difficult for consumers to seek bankruptcy-court protection from creditors.
+ Samuel J. Gerdano, executive director of the American Bankruptcy Institute, said in a statement that the trend is likely to worsen this year as consumers’ high debt loads are “made worse by the home mortgage crisis.”
+ Inside Higher Ed: Sallie Mae, (ticker: SLM) the student loan giant, is warning that it may cut back on volume of both government-backed and private student loans, The Wall Street Journal reported. The company is citing cuts in government subsidies and other shifts in the lending industry.
+ The student-loan giant also said it continues to work on refinancing an interim $30 billion in asset-backed commercial paper conduit facilities, which effectively terminates on May 16. SLM noted its financing costs “will increase substantially if the facility is not refinanced” on or before Feb. 15 “and we will not be able to borrow additional amounts thereunder after that date.”
+ In order to meet its financing needs, “we are exploring other sources of funding, including unsecured debt,” said SLM.
+ Unsecured debt includes things like credit cards, lines of credit
+ My guess would be credit cards

Student Scholarship Update
+ Isle of Capri Hospitality Scholarship Fund
+ A scholarship of up to $20,000 (maximum of $5,000 per year for a maximum of 4 years) will be awarded to the recipient’s college of choice in the name of the selected student. Recipient’s college will receive second payment after Gulf Coast Community Foundation receives grades from the previous semester.
+ 3.0 GPA
+ 12 months or 12 credit hours in hospitality
+ March 31 deadline
+ Details at our free college scholarship search site

Mail Bag
+ Audio comment from Bryan Person of New Comm Road
+ Jeff writes in: Should I submit a FAFSA form before I have my 2007 W2 forms from my employer? Is it permissible to submit a FAFSA with estimated income information, based on 2007 pay stubs and withholding statements, and then amend the amounts entered on the FAFSA after the W2s arrive? How is this done? Is this a college-by-college consideration? If so, and if one college insists on a “no amendment” policy, would it be possible to submit an “estimated” FAFSA for the benefit of the colleges that permit such a thing, and a revised, precise FAFSA later for the one college that demands one and only one FAFSA form?
+ Yes, absolutely. Submit a FAFSA for the schools that accept it by specifying their school codes; exclude those that ask for no amendments
+ For schools that ask no amendments, submit a correction FAFSA later
+ It’s relatively safe to wait until the end of January
+ Richard writes in: My Mom and I have been calling the financial aid offices of the colleges I’ve applied to in order to find out the procedure for extenuating circumstances, like changes in family income due to a job loss. My Dad hurt his back and is out of work, waiting on social security / disability, which is difficult for us right now just trying to make ends meet. The schools have said to indicate this on our CSS/Profiles, which we’ll be doing very soon, and to mail each of them a letter explaining the circumstances. Unfortunately, my Mom and I didn’t note in our phone conversations and adventures who should write these letters, her, or me. I’m wondering what you think. I also feel weird writing letters explaining circumstances like these to a college that hasn’t even accepted me yet. Does this hurt my relationship with the school, like me imposing that I think I’ve gotten in, or is it expected?
+ Matt writes in: Hi, I can’t seem to find a way to download your previous episodes. iTunes only shows about 30 of the latest. Is there a way to download older shows?
+ Sure is – each episode has a direct MP3 download link