Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Categories
Tip of the Day

Tip of the Day Don't try to Pick Stocks

Don't try to Pick Stocks - Some of us when we have extra money think that we can invest it in the stock market and earn some returns on...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Higher Education Act

Posted On: 2005-11-07Length: 21:15

Listen to this podcast

Good morning everyone it is Monday November 7, 2005 episode 109 of the Financial Aid Podcast my name is Chris and it's a pleasure as always to have you joining us today. We have a lot to cover today, first of all thank you to Greg over at Five Questions for the station ID; appreciate it very much. Got some stuff on the Higher Education Act that is going on right now in Congress including by Dr. Charles Young. Reminders on the Motorola scholarship update and Podsafe music and of course the contests we're running. Let me hit those contests really quick before we get started. If you don't remember or you are just tuning in, we have two contests going on right now; the first is a survey on our website at www.financialaidnews.com it's in this months November newsletter, we basically have a three question survey about financial aid and by filling out the survey you are entered to win-we are giving away five $15 iTunes music store gift cards please go fill out the survey and you will be put in the competition to win one of the five gift cards. $15 to the iTunes music store that will buy you seven episodes of Lost, or Desperate Housewives, or 15 songs. Second contest is celebration of our recently completed 100th show which was about a week and a half ago. The contest is we are giving away either an Ipod Nano or a student loan payment for a month, anything basically up to $300 so it would be your choice as to which prize you would like. To enter the contest you can do it in two ways, first is apply for any loan product from the student loan network and you would be automatically entered to win, Stafford loans at www.staffordloan.com, PLUS loans at www.parentplusloan.com or at www.plusloan.net , student loan consolidation at www.studentloanconsolidator.com or graduate student loans at www.gradloans.com or an ACT loan at www.acteducationloans.com any of those sites fill out a loan application and you'll be entered to win the Ipod Nano with the cool Lanier Headphones. The second way to apply of course is the no purchase necessary route and you can do that at www.financialaidpodcast.com you'll find the contest details a little ways down the page, just go ahead and fill out the free form and you will be entered to win as well. Note that you must be subscribed to the Financial Aid Podcast because we will only announce the winners on here no where else. Those are the contests and let's get to the news.

In the news today topping the news the talk of the town OP-Ed by Dr. Charles Young who is Chancellor Emeratus of UCLA and President Ameratus of University of Florida has written a fairly long op-ed piece for roll call which is the Congressional newspaper of record. Dr. Young's piece goes over a number of changes and the Higher Education Act of legislation and their immediate affects on families including first in the Higher Education Act on legislation proposed by the house, this is different from the Senate version by the way. Any Federal student loan borrower who is still in school no longer will be eligible to consolidate their loans and lock in their respective rates, if you remember this passed year, we at the Student Loan Network as well as lenders all over the place in order to get people locked in to last year's low rates before the rates went up by almost 2%, offered students the chance to consolidate while they were still in school. Yes you can actually still do that now the advantage is, there is less advantageous to do so right now, than it would have been back in June. Under this new legislation you would not be allowed to even file an application until you graduated; for those people who are sophomores or juniors in school this past year and who have managed to lock in the loans that they have acquired so far, up to that point in their academic careers, they would not have been allowed to do this under the new legislation and that would have been a shame because it basically would have made their loans much more expensive.

Let's see he goes on to say that student loan borrowers would be prohibited from consolidating with the Department of Education if they had taken loans out from a third party lender-the Department of Education basically offers what's called income contingent repayment option for students who are working in Public Service fields. This is something that is not really well publicized and should be, but if you are working in a Public Service field or basically any low paying career path, especially in Public Service, the Department of Education offers a consolidation option that no other lender happens that is based on your income if it's below a certain amount. Obviously the legislation that prohibits you from consolidating with the Department of Education if you have loans to a third party lender, is not advantageous to those third party lenders, the borrowers of the those third party lenders really it seems like an unusual restriction I guess it's to try and make-I don't even know why they would do that. The vast majority of student loan holders would be barred from re-consolidation. In January of this year the Department of Education ruled that anyone who has Federal student loans can re-consolidate into the Department of Education, actually re-consolidate again after that with a third party lender. A lot of times this is done when, let's say you have $30,000 in student loans from a major label lender and you are not real happy with that. You've consolidated with them you've consolidated and the benefits they offer aren't great. If you wanted to change lender's you couldn't consolidate with another lender like the Student Loan Network directly but what you could do is consolidate with the Department of Education and then once that was done you would consolidate again with the new lender.

So if the new lender offered payment terms that were much better, or better discounts or borrower benefits things like that; that's the situation that you would want to do that. The new legislation by Higher Education Act effectively prohibits that so basically once you've consolidated once, you're done and there are no other options available to you. Which is unfortunate because really in the market place if you've-with mortgages or with auto loans and things like that if you see a lender that has better terms you have the opportunity to refinance your loans with that lender. The legislation in the House effectively is saying no we are not going to allow that simply because I guess a couple of the major lenders, I won't name names but their names sound vaguely feminine, had their lobbyists petition their elective representatives in the House to include this what you would call "protectionists legislation," and that is not a really good thing for anyone except those particular lenders. There is that in the legislation and there are also additional taxes for consolidation. We've talked about them in the past. Basically there is the 1% on consolidation loans, if you wanted to consolidate you would pay an additional 1% in interest that doesn't count the 1% offset fee that the Senate was talking about in their bill. So in the worst case scenario you would have the House adding it's 1% fee onto your interest rate, that you would be paying 15 or 30 years or however long, and you would have the 1% up front fee to pay for other national priorities; which Dr.Young actually goes-pretty candidly he says, "hopefully Congress will put aside the idea of having students and parents fund wars and hurricanes and devote education funding to education instead." He encourages as we do here at the Financial Aid Podcast and at the Student Loan Network, we encourage you to touch base with your elected representatives at www.House.gov and www.Senate.gov. Both of those are good resources for touching base with your elected representatives and letting them know that the legislation that is out there-eehhh not so much. Let's move onto a scholarship update.

Today scholarship update is a reminder; the folks from Motorola dropped me an e-mail to remind you that the Motorola Forward Scholarship, the deadline is November 15, 2005. You have a little bit more than a week to enter the scholarship if you've forgot about it; we talked about it probably about two months ago. Basically the scholarship is a $10,000 cash scholarship, an opportunity to participate in an eight week apprenticeship with Motorola Chief Technology Office, a blue tooth enabled car and a Motorola package valued at $1,500, so probably about a phone and a couple of other things. A $2,500 cash scholarship and a Motorola product package valued at $250 will be awarded to three runner ups at the my Moto choice winners. If you haven't applied, the rules basically are full and part time college students studying any field can submit their visions of seams mobility through one of the following entries. A non-fiction essay of white-paper up to 1,500 words, a short story fiction up to 1,500 words, short film animation up to five minutes, comic strip up to 20 frames, digital art including graphics, photo's and schematics up to 10 frames. Entries will be judged on three criteria, depictions of seamless mobility vision, 80%, creativity of entry, 10% and feasibility and sophistication of ideas, 10%. Judges will select a grand prize winner and three runners up, the top finalists will be posted online where you can vote for your favorite to receive the My Moto Choice Award. This is a pretty impressive scholarship, when you think about it, $10,000 cash scholarship, plus a car, plus some various other goodies, I guess; all for submitting your vision of how-I guess they call it seamless mobility, but basically its' how the various mobile technologies are going to look in the future, in the next 5, 10, 20 years for however long that you want to make the mobility vision.

If you look at what's happening in the technology field right now in terms of mobility and moving around, you have Y-Max, and you have 802.16 which has it's a Metropolitan Wireless Network, where anything within a 16 mile radius of the transmitter can get a wireless connection so you don't need access points everywhere you can have them in a few places in the city. The entire city would have internet access at all the time. Hopefully it will be shown that wireless internet access like that doesn't cause cancer but if you can imagine what it would be like then to walk around with a laptop or maybe a wireless enabled Ipod or something. I presume for the scholarship you should be referencing Motorola products or your vision of future Motorola products. If you can imagine watching television, watching video podcast or tuning into the Financial Aid Podcast everywhere, this would be kind of cool. If you could imagine setting up shop with a little boom box and just turning on the wireless connection and tuning into your favorite podcasts no matter where you were, you wouldn't need the giant infrastructure that you currently need to have wireless internet access. You may only have the little router at your house, but there is a whole infrastructure that comes with that as well, that you never ever see which actually kind of is the idea. The Motorola Forward Scholarship, its at www.motorola.com/motofwrd, and we've talked about the URL in the past it's a ridiculously silly URL but hey I guess the vision of the future is in words that don't have vowels. We will also be putting this in our scholarship search database as well at www.studentscholarshipsearch.com so you can find it there as well.

In the mail bag, very briefly, we are not going to do a full mail update, because there isn't one. But I wanted to thank Jay Fits for pointing out that letter from Dr. Charles Young in roll call as well. It was very helpful to see; a lot of people picking up this material, a lot of people are saying, "hey this is what's going on in Washington, is this something that we should be concerned about?" The short answer of course is "Yes." There are a lot of interesting things going on out there that are of concern. I think that is going to cover it for today's show, its going to be a little bit shorter than normal, I was going to do the News You Can Use, but-the thing I was going to cover isn't really clear on our websites, and one thing I try to do on the Financial Aid Podcast is when I talk about something on one of our websites, Student Loan Network, it's good if it makes sense. The stuff I was going to cover, I have to re-write it today, and make it make sense first before I reference it on the show, otherwise I will go there and look at it and go, "Wow, that was really confusing, that didn't help at all." One important reminder, if you are a college graduate who graduated on May 15, or there abouts of this past year, your grace period ends this November 15, that gives you seven days and 16 hours left to consolidate your loans. If you graduated on June 1 or there abouts, your grace period ends on December 1, which is only 23 days away so need to file your application for consolidation as soon as possible to make sure that you lock in the rate. That is 13% lower than the rate will be when you grace period ends. You can do that at www.studentloanconsolidator.com or give us a call at the office here 1-877-328-1565. I would say operators are standing by but it's 7:45 a.m. and no one is in yet. I suppose you could call me but given how my voice sounds I still haven't shaken this bloody cold, you will hear someone rasping your loans in your ear, I don't know if that would be fun. Let's tie up today's show with a piece of Podsafe music, say that a few times fast; piece of Podsafe music from Skyless Spencer, "If I Were Rain," its billed as inspirational slash country but does sound really good. It appeared on the Podsafe Music Network over the weekend so here we go, "If I Were Rain," by Skyless Spencer.


New Podsafe music from Skyless Spencer, "If I Were Rain." It kind of reminds me of a country version Jewel, really good music; from the Podsafe Music Network. You can also check out her website at www.skylessspencer.com, there will of course be a link in the show notes at www.financialaidpodcast.com and that is going to do it for today's show. Reminders of course on the iTunes, Ipod Nano contest. I will tell you what; we are going to give a special just to listeners of the Financial Aid Podcast because we've put out this information to really everyone. If you are a listener to the Financial Aid Podcast and you win the competition, when you e-mail us back to let us know that you've won, let me know if you have been a listener of this particular episode of this show and we can, instead of the Ipod Nano with the Lanier Headphones, we can do an Ipod Video. The 30 GB version instead if that would be more appealing to you, but this is only for listeners of Financial Aid Podcast and if you've only tuned into to this show. If you are hearing this now, then that is the third option for that prize instead of the Nano with the Headphones because it's still about $300 give or take' we will do the 30 GB Ipod Video instead. If that sounds good, you heard it here and only here on the Financial Aid Podcast. All right folks that is going to do it for today's show, stay tuned, stay subscribed, if you are not subscribed get subscribed it's really easy, really it's one step now if you have iTunes just go to www.financialaidpodcast.com and add to my iTunes. If not, there are also other directions on the site. Questions or comments, feedback send it financialaidpodcast@gmail.com , if you have all your feedback please be sure to send it that way as well. I will be more than happy to take a look at it, unlike Adam Curry I actually read stuff after a while so if you want to attach it to your e-mail, that would be perfectly fine. Show notes at www.financialaidpodcast.com, if you really like the show get one of your friends to subscribe to it let them in on all the financial aid secrets that you don't hear anywhere else. Until next time stay tuned, stay subscribed and take care folks bye-bye.

Discuss It!

ksa writing said:

Higher education through some kind of the scholarships does used to enhance the mind level of the students and they also used to feel more confidence when they are aware for their basic purposes and guidelines.

ukbestessay service review said:

I hope that this act will bring some reforms into our educational system. There are many flaws which need to be rectified. This is the best time to do so as everyone is more aware about the importance of education.

professional writing service said:

I hope that this act will bring some reforms into our educational system. There are many flaws which need to be rectified. This is the best time to do so as everyone is more aware about the importance of education.

Accounting Assignment Help said:

Its motivation is to fortify the instructive assets of our schools and colleges and to give money related help to understudies in postsecondary and advanced education and the law would express that schools confront the loss of government assets on the off chance that they disregard their obligation to secure First Change rights on grounds.

Content Writers said:

Education is not just a tool for profiting â it can be useful for our souls and souls too, likewise, moms with larger amounts of instruction invest more energy with their youngsters, paying little heed to whether they are utilized or not.

CV Writers said:

We should know that how to read the financial aid offers which your academy will provide you. Be sure you can do distinguish among funding, finance, scholarships, and work-learning offers. You can easily avail this by discussion to the workers of your academyâs financial aid workplace.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day General and Administrative Overhead

General and Administrative Overhead – These are costs related to the operation of a firm the stem form its general functions. It also applies to expenses related to any administrative functions. While these are necessary parts of a company’s overhead, it doesn’t necessarily mean any cost that are the result...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com