Listen to clip here.

The full text of the interview is also  on the above link.

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Some of the highlights of the Bill are the following:

The amendments made by this section shall be effective for loans first disbursed on or after July 1, 2008. For students enrolled as regular students in eligible programs:

• The bill introduces an additional unsubsidized Stafford annual limit of $2,000 for undergraduate dependent students.
• The bill increases the additional unsubsidized Stafford annual limits by $2,000 for dependent students whose parents are unable to borrow a PLUS loan. (Previously 1st and 2nd year students would qualify for an additional $4,000, but now will qualify for $6,000. For students who have successfully completed their first two years, the limits will increase from $5,000 to $7,000.)

• The bill increases the additional unsubsidized Stafford annual limits by $2,000 for independent undergraduate students. (Previously 1st and 2nd year students would qualify for an additional $4,000, but now will qualify for $6,000. For students who have successfully completed their first two years, the limits will increase from $5,000 to $7,000.)

• The amendatory language has designated a separate category for graduate and professional students; these students will not see any annual limit increases. Their additional unsubsidized Stafford annual limit remains $12,000. (Previously the Senate sought to increase annual limits for graduate students, but that provision did not make it into the final bill).

• The bill increases aggregate unsubsidized loan amounts for undergraduate dependent students from $23,000 to $31,000 (minus subsidized borrowing)

• The bill increases aggregate unsubsidized loan amounts for undergraduate independent students from $46,000 to $57,500 (minus subsidized borrowing)

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I’ve condensed the candidates current stance on student loans, financial aid, and tax credits designed to increase incentives to get a degree.

Hillary Clinton:

*  Increase in the Pell Grant maximum.  No specifics given at this time.

*  FAFSA or Free Application for Federal Student Aid would be eliminated and replaced with a simple check box on income tax returns.  Clinton claims the FAFSA is difficult and ultimately discourages students and parents from applying for Federal Aid.

*  FFELP or Federal Family Education Loan Program is eliminated and replaced entirely by the Direct Student Loan Program.  This cuts subsidies to lenders and banks and moves all federal loans into the hands of the government.

*  AmeriCorps Scholarships are increased from $4,725 to $10,000 for full-time participants.

*  Hope tax credit increases from $1650 to $3500.

*  Colleges are required to provide a college graduation and employment index, an online cost calculator, and must agree to a truth in tuition disclosure.

Read more about Hillary Clinton’s proposal here.

Barack Obama:

*  Increase in the Pell Grant maximum.  No specifics given at this time.

*  FAFSA or Free Application for Federal Student Aid would be eliminated and replaced with a simple check box on income tax returns.  Obama also claims the FAFSA is difficult and ultimately discourages students and parents from applying for Federal Aid.

*  FFELP or Federal Family Education Loan Program is eliminated and replaced entirely by the Direct Student Loan Program.  This cuts subsidies to lenders and banks and moves all federal loans into the hands of the government.

*  Higher Education tax credit is increased to $4000 replacing the Hope tax credit of $1650.   In addition, anyone claiming the Higher Education tax credit will be required to complete 100 hours of community service for each year it is claimed.

Read more about Barack Obama’s proposal here.

John McCain:

*  McCain has not yet released his specific plan for higher education financing but has introduced a “student loan continuity plan”.

Read more about John McCain’s proposal here.

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1.) Be Decisive: Establish some goals before going back to school. Meet with a career counselor and discuss what degree is worth your time and money. Think about where you might like to live and decide if the career path you are choosing fits into that region.

2.) Get College Credit Elsewhere: If you are just getting out of high school, maybe you can use an AP credit towards your degree. This could save you real money and time. If you are an older student, see what CLEP (College Level Examination Program) tests are available.

3.) Give Financial Aid a Chance: Applying for financial aid doesn’t have to be a nightmare. Whether you are going for your first semester or starting graduate school, all are eligible for Federal Student Aid. The form can be filled out online at www.fafsa.ed.gov in about 30 minutes. If you are still a dependent, you will need some help from your parents. If you are older, all you will need is your tax returns and basic information.

4.) Take Advantage of Tax Breaks: Tax credits could be a substantial savings for your parents or yourself. These breaks come in many varieties, whether it is the Lifetime Learning Credit, HOPE credit, or just deducting the cost of tuition. Furthermore, any interest you pay on student loans after graduation can also be used to your advantage.

5.) Spread Out Your Expenses: While conventional wisdom has always been to get it done as quickly as possible, slow and steady is another approach. Going to school half-time will give you tax deductions for twice as many years and will allow you to work your way through school instead of devoting all your time to it. If you don’t have a sure-thing job waiting on the other end, don’t be afraid to take a little longer to get that degree. If you have subsidized loans, the interest doesn’t start to accrue until after you graduate, so a little extra time won’t hurt you financially.

6.) Get Assistance from your Employer: Many jobs will offer some kind of stipend for taking college classes. This is more applicable for the older student, but might also apply to many younger working students. Take advantage of any work related assistance if offered.

7.) Be Realistic about your Financial Situation: Take the time to talk with the people in your life about what you can realistically afford. Take this information to financial aid officers and let them help you figure out if it will work at their school. Choose a school that fits both your long-term goals and the financial position you are in. There are many options, so keep them open and be real about which will work for you.

8.) Consider Online Education: A four year degree from a traditional college is not right for everyone. It is also not the only option. Perhaps a two-year Associates Degree is better for you. Maybe specific training or a certification program will meet your needs. There is nothing wrong with choosing an online institution that will ultimately get you the degree you need to make yourself more employable. Just be sure that they are recognized U.S. Department of Education or the Council for Higher Education Accreditation.

I hope this has been helpful. Every student, regardless of age, should be able to get a degree and achieve the goals they desire. The more thought you put into it before you head off to school, the better off you will be.

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The Washington Post wrote a story this week titled “High School Seniors Get ‘F’ in Finance“which points out that high school seniors are getting less proficient when it comes to economics and money management. Seniors recorded their worst score in six years with a grade of 48.3%.

For many, going to college will be one of the greatest accomplishments and also one of the most expensive endeavors they will experience in their life. We do our best to prepare them for the academic portion of college but do little or nothing to prepare them for the financial commitment they are about to encounter.

People are trained to understand the financial implications of buying a house and, as a result, most people don’t buy their first home until their middle to late twenties. Sadly, nowadays a college education costs as much as a house. Given that, it’s imperative that parents and teachers educate their children about economics before they graduate high school. In the words of Fed. Chairman Ben Bernanke, “The financial preparedness of our nation’s youth is essential to their well-being and of vital importance to our economic future.”

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Making matters worse is the dramatic drop in the amount of money in the Perkins pool.  U.S. News and World Report estimates that as many as 50,000 students who previously qualified for the low interest Perkins Loan will not be eligible this year.  This is sure to cut deep for those that need it most.  Perkins loans are historically given to only the poorest students and fall in the category of “exceptionally needy”.

Colleges such as Michigan State University and Maryland College have had to deal with a 25%-50% drop in available Perkins loans.   In many cases, colleges have started to cut off graduate students from getting the loans in an attempt to make more available for undergraduates.

The Perkins loan program has been criticized by Congress as not being fair.  This is in large part to the pool that was set years ago and has not been reset to account for recent enrollment.  This creates a situation where a student who can get a Perkins loan at one school may not be able to get the same loan at another with a smaller pool of money.  Federal Stafford and PLUS programs are seen as equal regardless of which school you attend.

In the end, it is just one more hurdle that students will face as they head off to college this fall.  Perkins loans are down, federal loans will be more difficult to obtain, and the private student loan industry has seen a rise in rates and a tightening of credit criteria.  In an attempt to address what many believed was a broken system, it seems that all that has been accomplished is making it that much harder to afford to get a degree.

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US News and World Reports recently wrote a post a bout 6 Ways to Get Free Money For Grad School. An interesting note in the story is that 40% of students GET free money when going to grad school. These tips may help you stay out of the 60% of those students that don’t.

1) Apply To Multiple Schools & Start A Bidding War
This is a tricky thing to do, but applying to a school that you are overqualified for could definitely help in getting some free money. When a school is looking at applicants,and you are overqualified, they may offer you some money as you will help raise the overall stats and rankings … helping them in the long term.

2) Fill Out The FAFSA
If you are a candidate for need-based aid, the FAFSA is a must. While it is confusing to fill out, there are many good videos these days on YouTube that can help!

3) Ask Your Financial Aid Officer!
These people are professionals that help student find funding for college! They know more than you, and might be able to get you free money.

4) Look For Charities and Agencies that Fund Graduate Studies
Great for education, medical, science and languages, many groups out their willingly pay others to further their education, why not try?

5) Ask Your Employer
Many employers help grow the knowledge base of the company and their workers by footing part of the grad school bill. Not only is the pay a positive, but the free money for school is great, a win-win situation!

6) Look for Tax Benefits
Use tax benefits to your advantage. Deduct student loan interest, tuition expenses, and take advantage of the lifetime learning tax credit.

These six steps are a great start to getting free money for grad school, and not having to rely on student loans!

Full story can be found here.

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Private College is not just for the wealthy anymore. With colleges like Caltech, Swarthmore, and a few of the prestigious Ivy League schools taking bold steps in financial aid, it may be worth exploring as a real option for anyone striving for the best. Many private schools have changed their financial-aid policies in an attempt to keep the best and brightest applying. Many have replaced loans with grants and increased scholarships across the board, even to families earning well into the six-figures.

Topping the list this year is Caltech, with a 3-1 student/faculty ratio, an impressive faculty of Nobel Laureates, and Stephen Hawking as a regular guest lecturer. If your child is a math or science wiz, this place could be worth checking out. It is a very small school, but well worth the cost and effort if you can get yourself accepted. With an average graduate debt of only $5k, it is truly a school for everyone, regardless of socio-economic status. Thanks to numerous grants and a work-study program, students are able to attend a top school and graduate with a fraction of the debt the rest of the country averages.

Swarthmore College near Philadelphia is a great choice as well. In 2008, they have earmarked $1.7 million from their endowment to help cover the grants aimed at eliminating student loans. Much like the others, the grants are largely need-based. In the race to be the top school however, they do award some of the grants for merit which allow them to attract the nations top students who may not qualify on a financial basis only.

Ivy League schools are joining in as well. Princeton has actually been at it for years with the change from loans to grants starting back in 1998. Other Ivy League schools are close behind thanks in part to the huge endowments these schools possess.

So have a look at the entire list here before eliminating the most costly private schools from your list of choices. You may be pleasantly surprised with what you find.

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First, always look for free money first - that means look for scholarships and grants. There are a number of reputable scholarship search engines available to students including fastweb.com and scholarships.com.

Second, pursue federal student loans. Federal student loans are guaranteed and subsidized by the federal government and, as a result, are generally more affordable than private student loans. While many federal student loan companies have ceased operations in the past few months, including College Loan Corporation, there are still hundreds of lenders offering federal student loans. Some press accounts seem to indicate there is a panic in the student loan business, these challenging times for some lenders will not likely affect the ability of students to access low-cost federal student loans.

Finally, if scholarships and federal student loans are not enough, consider private student loans. The financial crisis is affecting a lot of private student loan providers, so while there are fewer loan options, there are still quality providers. Be careful, though, as there are number of payday loan providers advertising to students. Payday loans are not private student loans, and they are not structured specifically to help families afford education. Worse yet, payday loans carry tremendously high interest rates and are meant to help cash-strapped individuals with very short-term liquidity needs.

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