ONU Expert: Director of New Student Financial Assistance
Friday, February 20, 2009
Brad Thomas - Director of New Student Financial Assistance
How does this new economy affect financial aid?
The economy and lending crisis has caused some lending institutions to pull out of education loans. However, the Federal government was quick to expand their student loan programs.
President Bush signed a bill into law in 2008 that increased the unsubsidized Stafford limits by $2,000 for undergraduate students.
President Obama is considering expanding student loans again in 2009 by the same amount. The economic stimulus package could also include an increase in the Pell grant.
The Department of Education acts as a lender through the Stafford and PLUS loan programs. Students file for financial aid through the Free Application for Federal Student Aid (FAFSA).
Each student will be offered fixed interest loan amount regardless of credit history - Freshman $5,500; Sophomores $6,500; Juniors and Seniors $7,500 per year.
Sallie Mae is the nation's leading provider of student loans. Other banks and institutions offer private loans that are usually adjustable rate and require a cosigner.
Olivet students commonly use Chase Select Student Loans or Sallie Mae to borrow money for tuition, books, and living expenses.
The Parent PLUS loan can be a way for a parent to borrow for a dependent child’s education.
The loan does require an application and credit history is checked. The government credit check can be less stringent that most private lenders.
If a parent is denied the PLUS loan, the student will be offered an additional $4,000 under the Stafford loan.
What is a typical timeline of when parents/students should get in their financial aid info.?
This is the prime financial aid and scholarship season. Families can file for aid after January 1, 2009 for the fall semester.
Olivet has a priority deadline of March 1, 2009 for the FAFSA and Foundation scholarships.
We provide a financial aid award letter approximately two weeks after completion of the FAFSA online. Go to: Fafsa.ed.gov
Why should I file for Financial Aid when we probably make too much money?
Every student that files the FAFSA will be offered the Stafford Student Loan. Some families file knowing that they will not receive grant money from the state or federal government.
Some scholarships require that you file the FAFSA. Olivet has need-based grants and the new Crawford Scholarship for freshman requires a determination of need.
We recommend that everyone file the FAFSA – although it is not required for admission.
Where can I find private grants and scholarships?
Scholarships are available from most large U.S. corporations. Companies like Wal-mart, Burger King, Kohls, Comcast, etc. have scholarship opportunities.
Search engines such as www.fastweb.com or www.brokescholar.com provide scholarship information based on your submitted profile.
We urge families to never pay for scholarship search assistance. Scholarship applications are free and usually can be found on the Internet.
Local banks, businesses, and service clubs are also good sources of scholarships.
Is a state school always less expensive than a private Christian college?
In many cases, it is less expensive to attend a school like Olivet because of institutional funds and scholarships. Olivet offers merit scholarships for academics, athletics, art and music.
We also have foundation scholarships and generous church support that help students. Remember that God is in control and He has a plan for your life!