In order to enroll in income-based repayment you have to qualify by demonstrating financial hardship. The good news is that it is not hard to qualify. A borrower is eligible for IBR if the total initial standard monthly payments for Stafford, Grad PLUS and Federal Consolidation Loans in repayment exceed 15% of the borrower’s discretionary income. What is discretionary income? It is the borrower’s adjusted gross income minus the poverty guideline (which is $16,245 this year). The borrower’s initial IBR payment would then be 1/12 of 15% of their discretionary income.

Under the IBR plan a borrower’s financial situation is reassessed every twelve months. The borrower is responsible for submitting their information every year and based on changes in income and family size their payments will increase or decrease accordingly. However, when a person applies for IBR a monthly payment cap is determined and while enrolled in IBR their monthly payment will never exceed this cap. A borrower can also leave IBR at any time, but once again the borrower is responsible for making the phone call to say they want to withdraw.

One of the huge benefits of IBR is that after 25 years of strict monthly payments whatever a borrower has left to pay is forgiven. If a borrower does not have a job right after they graduate, and therefore has an income of zero, they can still enroll in IBR. Fortunately, within the IBR plan a zero-dollar payment counts towards the 300-payment limit and the 120-payment public service loan forgiveness clock.

The key to getting the most out of IBR is discipline and documentation. Borrowers need to have clear proof of their income, family size and marital status. They need to be disciplined enough to submit their information every year in order to avoid having to make their maximum payment. Also if a borrower wants to be eligible for public service loan forgiveness after ten years they need to keep documentation as proof of their work for an eligible organization.

Does this plan sound like a good deal? On Monday check back to see specific IBR situations and learn what the plan might be able to do for you.

Quincy, MA October 23, 2009 – This month, ScholarshipPoints.com, an Edvisors online education company, surpassed a striking 500,000 members. Through the free scholarships program, ScholarshipPoints.com is working to defray the ever increasing cost of college for students by giving away up to $100,000 in 2009.  Participation in the program is free, and members earn points by participating in surveys, reading helpful blogs, and engaging in other online activities. Accrued points can be exchanged for entries into any month’s scholarship drawing, including the upcoming $10,000 giveaway. To ensure funds are used for educational purposes, awards are sent directly to the student’s financial aid office.

After awarding students a total of $40,000 in 2008, ScholarshipPoints.com increased it’s commitment to students and is positioned to give away up to $100,000 this year including four $10,000 giveaways.  In addition to these quarterly scholarships, the ScholarshipPoints program gives away a number of $500, $1,000 and $2,500 scholarships throughout the year.

With the addition of four $10,000 scholarships, ScholarshipPoints.com has made a real difference in the education of many lucky students.   “For some students $10,000 is the difference between being able to continue school for another semester and having to take a semester off,” said Joe Cronin, CEO of Edvisors. “We enjoy doing this for students and we hope that we will be able to increase our award offerings every year.”

To keep members coming back, ScholarshipPoints.com strives to extend new and exciting offers and expand the number of awards available. In addition to giving away scholarships, ScholarshipPoints.com exposes students to partner scholarship programs, educational blog posts and podcasts, and study abroad travel opportunities.

The next $10,000 scholarship winner will be drawn on October 31. Students have until October 30, 2009 to enter. To enter the October 31, $10,000 giveaway, and for announcements about the next $10,000 giveaway, visit www.scholarshippoints.com.

After federal loans, private student loans, scholarships and grant options are exhausted many students still struggle to afford campus living. I know I did, but I was determined to make it work. I found out that there are other ways to earn money and living expenses through campus jobs and leadership opportunities.

During my sophomore year in college I applied to become a Resident Assistant. I found out that RAs have the sweetest financial deal on campus. Every school has different benefits for their RAs, but at my school our room and board expenses, including meal plan, were covered and we had single rooms. During my senior year I even had a room with its own bathroom! Some students would never even consider this option because they think that being an RA and having a campus social life are mutually exclusive. This was not true for me however. Although there were some long nights of duty and the occasional need to be the “bad guy” the benefits far outweighed the drawbacks. Some of my best friends from college are people I met through the RA program. Being an RA allowed me to connect with more students and faculty members than I otherwise would have. It also gave me the opportunity to make a huge impact on campus.

If you do not think that being a resident assistant would suite you there are similar opportunities out there.

You are probably still looking for creative ways to help pay for college and live on campus. If you have completely ruled out the resident assistant idea there may be other on campus leadership opportunities at your school that offer financial benefits. At my school many of the student government leaders received a stipend for their service. These people were elected student body representatives who put tens of hours every week into weekend programming, implementing change at student senate meetings, and balancing class and committee budgets. A lot of schools even offer financial benefits to their orientation leaders; students who volunteer or are chosen to help first year student make the transition to college life.

Another way to earn extra money in college is to take advantage of work study programs. Many students receive this grant as part of their overall financial aid package, but there are also jobs for students who do not receive it as part of a package. This is the issue of Federal vs. Non-Federal Work-Study. The truth is that work study is an easy way to earn extra spending money or shave dollars off of your tuition. Almost every department on campus employs student workers including the athletic department, admissions office, alumni affairs, conference services and the financial aid office. Chances are you will be able to find a job that meets your interests and gives you extra money to go to the movies, put gas in your car and make a late-night Wendy’s run.

The moral of the story is that where there is a will there is a way. Yes, living on campus is financially difficult, but there are plenty of ways to defray your expenses and still enjoy the sleeping until 11:00am and eating midnight pizza life of a normal college student.

The U.S. Department of Education invites students of all ages, educators, teachers, and administrators to participate in this historic moment by watching the president deliver the address, which will be broadcast live on the White House Web site (http://www.whitehouse.gov/live/) and on C-SPAN at 12:00 p.m., ET. We also encourage educators to use this moment to help students get focused and inspired to begin the new academic year. The Department of Education offers educators a menu of classroom activities—created by its teachers-in-residence, the Teaching Ambassador Fellows—to help engage students in the address and stimulate classroom discussions about the importance of education.

To further encourage student engagement, the U.S. Department of Education is launching the “I Am What I Learn” video contest. On September 8, we will invite students to respond to the president’s challenge by creating videos, up to two minutes in length, describing the steps they will take to improve their education and the role education will play in fulfilling their dreams.

We invite all students age 13 and older to create and upload their videos to YouTube by October 8. Submissions can be in the form of video blogs, public service announcements (PSAs), music videos, or documentaries. Students are encouraged to have fun and be creative with this project! The general public will then vote on their favorites to determine the top 20 finalists. These 20 videos will be reviewed by a panel of judges including U.S. Secretary of Education Arne Duncan. The panel will choose three winners, each of whom will receive a $1,000 cash prize.

Starting this Friday, you can visit www.ed.gov/iamwhatilearn to find out more.

Frequently Asked Questions (FAQs)

1. When will the president deliver his address?

President Obama will speak to the students of America at 12:00 p.m., ET on Tuesday, Sept. 8, 2009. (Note that this is a change from the time originally scheduled.)

2. How can I watch the president’s address to students?

Viewers may watch the address via the Internet by visiting the White House Web site, at http://www.whitehouse.gov/live/, where the address will be streamed live.

C-SPAN, the cable public affairs network, will cover the president’s speech live on its C-SPAN television channel and provide live streaming video online at C-SPAN.org. The speech also will be aired live on C-SPAN Radio (90.1 FM in Washington, D.C., and channel 132 on XM Satellite Radio).

White House television will make the address available via satellite for access by local broadcast outlets and school districts. The satellite feed will be live for testing and calibration beginning at 11am ET on September 8th using the following coordinates:

* Galaxy 28/Transponder 17, Slot C (9 MHz)
* Uplink Frequency 14344.5 Horizontal
* Downlink Frequency 12044.5 Vertical

For updates related to the president’s speech, please visit http://www.whitehouse.gov/mediaresources/ or www.ed.gov.

3. What is the duration of the president’s address?

The president is scheduled to speak for 15 – 20 minutes. The U.S. Department of Education provides resources for educators who may choose to use the president’s address as a teachable moment. Two menus of classroom activities, one for students in grades Pre-K – 6, and another for students in grades 7 – 12, may be found here:

Classroom Activities (Pre-K – 6)
download files PDF (115K) | MS Word (119K)

Classroom Activities (7 – 12)
download files PDF (170K) | MS Word (184K)

4. Does the White House Web site have the capacity to host all of the potential live viewers for this event?

The White House Web site is equipped with the appropriate amount of bandwidth to accommodate a large viewership.

Will the address be available in some form after the original broadcast date and time?

Downloadable video of the speech will be made available at http://www.whitehouse.gov/mediaresources/ as well as on www.ed.gov. C-SPAN.org will provide archived and “on-demand” viewing options.

6. Will the address include captioning for deaf and hard-of-hearing viewers?

The live address broadcast on C-SPAN will include captioning.

7. Is the “Get Schooled” television event in the evening on Sept. 8 hosted by the Viacom network and the Bill and Melinda Gates Foundation connected to the president’s speech?

While the U.S. Department of Education is a partner in this effort, the president’s noontime address is a separate event. Get Schooled is a five-year national platform developed by Viacom and the Bill and Melinda Gates Foundation that connects, inspires, and mobilizes people to find effective solutions to education challenges. The initiative provides resources, information, and creative programming aimed at engaging a range of audiences in an effort to address America’s education crisis. A television event, Get Schooled: You Have the Right, formally kicks off the “Get Schooled” initiative at 8:00 p.m., ET on Sept. 8.