How Will the Economy Affect Your Financial Aid?

Lauren Bayne Anderson

The stock market’s plummeting. Congress is bailing out Fannie Mae and Freddie Mac. And student loans are getting tougher to come by.

But you’re not sure how — or if— any of it affects you. Chances are it will. And while you may not be feeling the effects of it yet, that’s simply because it hasn’t trickled down yet.

When it comes to financial aid, some know the scope of the industry better than others. Mark Kantrowitz is one of those people. The author of our own, FastWeb College Gold, A Step-by-Step Guide to Paying for College, and a slew of other financial aid resources including FinAid.org , Kantrowitz sheds light on what today’s economy means for you.

Who is affected most by the credit crunch?
Kantrowitz says: Students at community and technical colleges, especially institutions that are for-profit, are having the toughest time because they are more likely to receive private loans. Also, lenders under profit pressure are less willing to write loans for shorter, one- and two-year programs -especially at schools with historically high default rates. —Time

I’m leaving for college next year, is it worth it to start saving just now?
Kantrowitz says: Save whatever you can. Something is better than nothing. If you wind up having to borrow the cash, you’ll pay for it in interest. Either you could save a certain amount of money before college, or pay back twice as much after college. —First 30 Days

Is it worth it to going back to school in lieu of the tough job market?
Kantrowitz says: Prospective students should keep in mind that student loans may be more difficult to come by these days. "Lenders have tightened criteria," he said. "If you have a bad or marginal credit score, you are going to have a harder time obtaining a student loan." —Red Orbit

How will the financial crisis affect my ability to pay my student loans?
Kantrowitz says: Interest rates on many loans are likely to jump by 2 percent within the next month. "Interest rates on these loans will increase as the lenders pass on their increased cost of funds," he said. —New York Times

How do I select the best student loan for me?
Kantrowitz says: Choosing a loan comes down to who offers the cheapest interest rates and fees. The Perkins loan is the most beneficial federal loan, followed by the Stafford loan. Families of undergraduate students can take advantage of a current phased-in interest rate reduction that Congress passed. But only for a while! “As in everything Congress does, it has five years and then it reverts to the status quo because of federal budgetary constraints." —Chronogram

For more advice from Kantrowitz, check out FinAid.com !

What Makes a Highly Successful Scholarship Winner?

Review the following habits of scholarship winners for tips on how you can
make your scholarship quest successful.

1.Successful students always remember the five P’s – Prior
preparation prevents poor performance. Prepare for the scholarship
search early. Do not wait until your senior year

2.Successful students do not rely on their parents to do all the work.

3.Successful students vigorously avoid mistakes on their essays and
applications. They always spell-check, proofread, and allow one
other person to proofread their applications and essay for errors.

4. Successful students do not ignore scholarships that may be local or
those for small amounts. Scholarship amounts, even as small as
$50, can add up.

5. Successful students do not rely on only one source such as the
Internet for their scholarship search. They use many resources.
Many scholarships on the Internet or in the free scholarship
searches that you find on the World Wide Web are nationally known
and are harder to win due to greater competition. Local and regional
scholarships are not found as easily through an Internet search,
although they may be easier to win because the applicant pool is
smaller. You have to use a combination of resources to find as
many scholarships to apply for as possible.

6. Successful students market themselves well. In their applications,
they highlight positive aspects about their lives, especially
community involvement.

7. Successful students do not apply to one or two scholarships and
wait for the best. They apply for all scholarships they are eligible to
win. They keep applying until the total they have won exceeds what
they need to pay for the college they want to attend or until they
graduate with a degree.

8. Successful students are organized. They keep track of deadlines
and materials required to complete an application.

9. Successful students are well rounded. They participate in
extracurricular and community activities. They write about these
activities in scholarship and college essays in a descriptive
manner. They try to benefit others as well as themselves with the
extracurricular and community activities in which they are involved.

10. Successful students understand that SAT scores and grades alone
do not win most scholarships. Scholarship programs look at many
factors such as community activities, leadership, presentation of
your application package, special or unusual talents or skills, etc.

11. Successful students do not look for the easy way out. It is harder for
them to believe in a scholarship scam that promises to do all the
work for them. They understand that those things for which we work
hardest often bring the greatest rewards. Hard work in the
scholarship process as a high school student could result in an
easy college life without work later, or a loan-free life after college.

Scholarship Success Stories

"I was waitlisted at the University of Oklahoma whose automatic admission this year was 1170 on the SAT. I scored an 1140. I did not meet their waitlist qualifications . . . Based on what I learned from you [Marianne Ragins] I took the initiative to include with my application, my résumé, three reference letters, and a personal statement of why I wanted to attend their university. The Admissions Director later told me my application stood out. He earmarked my application, placing me number one on their waitlist because of my application presentation and its focus on community involvement. In fact he chose me and ten other out-of-state students out of 4000 applicants for the President's Leadership Class even when I was still on the waitlist. If I had not sent in the additional materials, my community involvement would not have been recognized and I would have been denied admission. Because of your advice, I not only have admission to the college where I really wanted to go, I also have the privilege to serve and learn from the president of the university in his leadership class, along with a $13,500 scholarship . . . I watched my brother and sister who were ranked number one in their high school class achieve great scholarship success from following your advice. . . I really didn't think I could qualify for anything with a bottom 50% class rank . . . But I presented my platform of what I could do well . . . followed your advice . . . and was rewarded immensely for my achievements . . . You challenged me that there was something out there for everyone. There really is."

Blair Brandon
Blair won 16 scholarships and grants for her first year of college totaling $112,400.

Individual results may vary. The statement(s) above should not be viewed as guarantee that you will definitely win a scholarship.


"My son Marcus was accepted to a private university that cost $15,000 per year in tuition alone. The university did not offer any types of scholarships to him. After learning of this, Marcus and I started preparing and organizing information based on Marianne Ragins' book, Winning Scholarships for College: An Insider's Guide, and her workshop. Using this information, we were able to get enough scholarship money to pay for his entire tuition bill."

F. Robinson, Parent and Workshop Attendee

Individual results may vary. The statement(s) above should not be viewed as guarantee that you will definitely win a scholarship.


"I would like you to know what a difference your book, Winning Scholarships for College: An Insider's Guide has made to me and my son. After reading your advice, we began to collect data about college and financial aid. Greg (my son) was beginning his junior year last fall when we found out about a scholarship sponsored by a local celebrity. . . Due to the preparation you recommended, we were ready to send in all of the necessary information by the deadline. In December, Greg was awarded $2500 to be used at the college of his choice. That same month using the same carefully prepared information, he was given a $3500 grant."

Mrs. R. R. Baker, Parent

Individual results may vary. The statement(s) above should not be viewed as guarantee that you will definitely win a scholarship.


"Dear Ms. Ragins, I wanted to tell you thank you for coming to speak at Northeastern University. The seminar was excellent . . . Thanks to you Ms. Ragins, I will be starting a part-time schedule in the fall."

L.J. Martin, Workshop Attendee


"The most important aspect of The Scholarship Workshop was the encouragement given by Ms. Ragins to keep applying for scholarships. I have applied for 17 scholarships and have been inspired by her strategies to create and send along with my applications a résumé. Because of this I have already been offered a part-time job at a bank. I sent them my scholarship application along with my résumé and they called and asked me if I would be interested in working part-time for them."

Adrienne Hickox
Adrienne won scholarships and grants for her first year of college totaling $5620.

Individual results may vary. The statement(s) above should not be viewed as guarantee that you will definitely win a scholarship.


"I am glad I came. I got the information I needed for my children as well as myself."

Workshop Attendee


"I would like to say that the workshop was very needed and informative. It gave me a lot of inspiration because it helped me to realize that if I have the determination to achieve something I will."

Kimberly Duhart
Kimberly won five scholarships and grants for her first year of college totaling $5300.

Individual results may vary. The statement(s) above should not be viewed as guarantee that you will definitely win a scholarship.


"I attended The Scholarship Workshop because I was amazed by Ms. Ragins` accomplishments and fame, which inspired me to acquire scholarships to help fund my college education. . . important aspects of the workshop were scholarship research processes, organization skills, and essay writing techniques. I learned to explore libraries, the Internet, and outside sources. Through my research, I discovered and applied to many scholarships for which I met the criteria."

Mia Armstrong
Mia won three scholarships totaling over $9500.

What if My Parents Refuse to Pay?

Unfortunately, federal aid isn’t distributed on whether your parents want to pay for your education; it all depends on whether they can. Parents have many reasons for not contributing to their child’s education: can’t afford it; it’s the child’s responsibility; sticky divorce.

Regardless of your parents’ reasons, however, the federal government’s opinion is this: paying for a college education is the parents’ primary responsibility. The government only steps in if it is impossible for the parents to pay up. And the only way to deem it impossible is to fill out the FAFSA. Good news: it’s not too late. Bad news: You still need to convince your parents to fill out a FAFSA.

Even if you don’t qualify for need-based aid, filling out the FAFSA automatically qualifies students for an unsubsidized Stafford Loan. Yes, “loan” may be an icky word, but a federal government loan is the best loan opportunity that you will be presented with in your lifetime. The interest rates are low and the payment plans make it easier for recent graduates to pay off their debt in a timely manner.

Also, by filling out the FAFSA, students may even qualify for subsidized Stafford and Perkins Loans as well as Pell Grants, which are even better.

Having trouble convincing the parents? Pitch the idea from the angle that they don’t have to help financially, but they can do you this huge favor. Additionally, it’s not a bad idea to go to your school’s financial aid office and present them with your situation. Perhaps they can pull some strings or talk good old Mom and Dad into helping with professional reason. Still not budging?

Check out these other tips on convincing your parents to help this one last time.

by Kathryn Knight, Admissions.com Staff Writer

Sholarship's Tips

There is no magic formula for applying for and receiving a scholarship. But these tips can start you on the right foot.

1. Be organized. Stay on top of deadlines, gather all pertinent documents, and make copies of everything you submit. It is a good idea to send your applications by certified mail to ensure receipt.

2. Be honest. Don't exaggerate your grades, memberships, skills, or qualifications. It is better to focus on the scholarships for which you might be eligible.

3. Follow instructions carefully. Some scholarships require you to write an essay; others may want letters of recommendation. Send in what is requested and proofread everything. Typos and missing materials can cost you a scholarship.

4. Proofread your application: Review everything. Typos are a sure way not to be considered for a scholarship. Consider asking a parent, teacher, or friend to read your application.

5. Keep copies of everything you send: If your application is misplaced, having copies will make it easier to resend your information quickly.

6. Send your application packet by registered mail: Many sources offering scholarships will not confirm receipt of your application. Consider sending your application via USPS registered mail so you know your materials arrived safely.

source : collegeanswer

Scholarship Myths

Myth

You must be an “A” student to win a scholarship.

Truth:
Having an “A” average alone will not guarantee you a scholarship.
The Coca-Cola Scholars Foundation conducts one of the largest
corporate-sponsored scholarship programs in the United States.
Although a good academic record is a contributing factor, having
an “A” average exclusively will not qualify a student as a Coca-Cola
Scholar. Coca-Cola Scholars are well-rounded, unique, and
independent individuals.

Myth

Billions of scholarship dollars go unused every year.

Truth:

Although some scholarship money is unclaimed each year, this
money is often earmarked for students with very specific
qualifications such as a particular last name or some unusual
characteristic. For instance, students who are Catholic and have
the last name of Zolp may be eligible for a full-tuition four-year
scholarship at Loyola University. For more information on unusual
scholarship opportunities including those for students who are
short, tall or overweight, review Chapter 15 of Winning
Scholarships for College.

Myth

B or C students have little opportunity to win scholarships.

Truth:

B or C students still have opportunities for scholarships. If you are
a B or C student and you have a history of participation and growth
in extracurricular activities as well as involvement in your
community, you have an excellent chance of winning scholarships.
Highlighting your participation and involvement in a student
résumé and an essay will help you be successful. For more
information, read Chapter 9 of Winning Scholarships for College,
"Grade's Don't Mean Everything - Standing Out in a Crowd" and
Chapter 11, "Writing Perfect Essays."


Myths

You cannot win a scholarship if you do not have financial need.
Or, middle class students cannot get money for college.

Truth:

Middle class students can win money for college. Although they
may not be eligible for some need-based scholarship programs,
they still have numerous opportunities to win merit scholarships.
For more information, read Chapter 9 of Winning Scholarships for
College, "Grade's Don't Mean Everything - Standing Out in a
Crowd."



Myth

Grades and SAT scores are the only factors you need to worry
about for winning scholarships.

Truth:

Having good grades and high SAT scores are definitely important.
However, you still need to have a history of participation and
growth in extracurricular activities as well as involvement in your
community to win scholarships. Also showcasing your
participation and involvement in a student résumé and an essay
will help. For more information, read Chapter 9 of Winning
Scholarships for College, "Grade's Don't Mean Everything -
Standing Out in a Crowd" and Chapter 11, "Writing Perfect
Essays."

Institute of Management Accountants Education Fund Scholarship

Institute of Management Accountants Education Fund Scholarship

Provided by:	Institute of Management Accountants
Deadline:	February 15, 2009
Type of Award:	Scholarship

Awards Available	Amount
Varies	$1000 - $2500

The Institute of Management Accountants Memorial Education Fund Scholarship is available to undergraduate and graduate students majoring in management accounting, financial management and information technology or have a declared major parallel to one of the aforementioned fields. You must be studying at an accredited institution in the US or Puerto Rico, taking at least six credits per semester and have a minimum 3.0 GPA. You must also be a student member of the Institute of Management Accountants to be eligible for this award. Two letters of recommendation, a resume and a personals statement must be included with your application.

Applicable Majors

Management Accounting, Financial Management, Information Technology

Website

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