While a lot of kids are celebrating the arrival of summer and planning trips to the pool and beach, many students are heading back to school for the summer. If you are one of them, there is some good news for you!

For the first time in the history of the Federal Pell Grant, students who have used all of their Pell Grant eligibility in the fall and spring semesters can receive additional grant funding for summer school. The change, legislated by the 2008 Higher Education Opportunity Act, is designed to encourage students to enroll in summer school so they can graduate sooner.

If you would like more information on how to maximize your summer tuition savings, call Reecy for a free consultation.

HOR passes Resolution 1353

In the House of Representatives, U. S., May 25, 2010. 

 Whereas education is the key to a successful future for many people in the United States;

 Whereas the ability of some students to attend an institution of higher education is conditional on the availability of student financial assistance;

 Whereas the cost of higher education continues to rise for 4- year private colleges and universities, 4-year public colleges and universities, 2-year community colleges, and for profit institutions; 

Whereas students and families across the United States are making important decisions about financing their education at an institution of higher education;

Whereas efforts to increase awareness about student financial aid options are necessary for students across the United States to receive all of the financial aid available to them;

Whereas increasing awareness about the Free Application for Federal Student Aid (FAFSA) ensures that more eligible students may benefit from Federal financial assistance;

Whereas students must complete and submit a new FAFSA each school year to be considered for all forms of Federal financial aid;

Whereas each year, about 16,000,000 students apply for financial aid by filling out the FAFSA;

Whereas increasing access to Federal financial aid helps reduce students’ reliance on costly private loans; and

Whereas Student Financial Aid Awareness Month will help call attention to the critical role financial assistance plays in helping students attending an institution of higher education: Now, therefore, be it

Resolved, That the House of Representatives—

(1) supports the goals and ideals of Student Financial Aid Awareness Month;

(2) encourages students and families across the United States to participate in activities being offered during Student Financial Aid Awareness Month; and

(3) recognizes the importance of educating students and families about Federal student financial aid.

Attest:

Clerk.

• HRES 1353 EH

“Sallie Mae, the USA’s largest private student lender, will announce today that starting May 10, rates on its Smart Option Student Loan will be 2.88% to 10.25%, based on the current London Interbank Offered Rate (LIBOR), the benchmark for the variable-rate loan. That’s down from a range of 4.38% to 12.88%.”

While this is good news for college students and those who will begin in the fall, there’s even better news!  Most families can qualify for additional financial aid and lessen the amount of money that they’ll need to borrow. 

In the 31 years that I’ve been involved with financial aid, there are numerous legal income planning and asset repositioning strategies that can be employed to save families $1,000’s!  Send an email to learn how, and it’s never too late!

Boca Raton, FL – It’s that time of year again when colleges send out financial aid offers, some full, some empty.  But whatever the case, there’s almost always some room for improvement.  Case 1:

A freshman at Tulane whose parents hired Reecy 2 years ago, but then decided not to use his services or expertise at financial aid time and paid the full tuition and related costs for school year 2008-2009.  The recession affects the family, and they are hard pressed, but pay the 1st semester bill for 2009-2010 of $27,000.

Enter the financially devastated father who calls Reecy for help and explains their dire financial situation.  At the end of the call, he mentions that he had just mailed Tulane another $27,000 check for semester 2! 

Based on Reecy’s assessment of the situation, he recommends the following:

1.  Call the school immediately and tell the Bursar’s Office not to deposit the check                                                                                                                                                   2.  Immediately complete the FAFSA and CSS Financial Aid Profile to get the family in the financial aid system for 2009-2010 and 2010-2011                                                                                                                                                                                                                                

3.  Write a detailed appeal letter explaining the family’s riches to rags story

4.  Have the 2009 tax returns completed and sent to the school ASAP 

5.  Reposition the student’s assets into a tax deferred annuity to increase financial aid by $2,000/yr

Once all the above tasks were completed, and there had been a few brief conversations with the financial aid office, an offer was finally received.  The school waived the second semester bill, and there was an actually a $2,000 credit for the 1st semester.  Aid consisted of the following:

Tulane Scholarship – $16,000

Pell Grant -                          2,600 

SEOG -                                   2,000                                        

Stafford Loans -                6,500

Perkins Loan -                   2,500 

TOTAL                             $29,600  

We anxiously await the 2010-2011 aid offer!

Not bad for a fee of <$1,000, but it’s all in knowing how to legally play the financial aid game.

Reecy Aresty has been in financial aid trench warfare over 31 years.  Why not trust your unappealing offers to a pro with skills few can match.

1. Your school has a history of meeting financial need and you have substantial unmet need
2. You asked for a Federal Work-Study Award (you did, didn’t you) and it was absent from your award package
3. You didn’t get a maximum Stafford Loan: 5,500; 6,500; 7,500; 7,500
4. Your parent’s income and assets in 2009 are or will be substantially less than in 2010 – it’s time to ask for Professional Judgment
5. You rec’d a Pell Grant, but no ACG/SMART, SEOG or Perkins Loan
6. Your parents recently separated or divorced and there’s a considerable difference between their income and assets – time to employ the ambiguous non-custodial parent strategy
7. Etc., etc., etc…

In the 31 years that I’ve been in financial aid trench warfare, I’ve appealed 1,000’s of awards – with much success.  As time is of the essence, why not contact me for a free consultation to discuss your situation.

BEST OF LUCK TO ALL IN THE PURSUIT OF HIGHER EDUCATION!

It’s almost a Catch-22; staying in the class could result in a low grade affecting the GPA, which in turn could affect the Bright Futures!  What’s a student to do?  Plan your schedules carefully and have backup classes to take if you must drop a class during the allowable period!

2010-2011 FAFSA UPDATE

The 2010-2011 FAFSA will be available just after midnight on New Year’s Day!  However, this doesn’t mean it has to be submitted immediately.  There will still be BILLIONS in need-based aid available for the forseeable future, so don’t act in haste. 

The application has been shortened, and we will post suggestions later in the week.  Every family who either has an enrolled student  or is sending one off to college in the fall is encouraged to complete the form.  It’s kind of like the lottery – you’ve got to be in it to win it.  Check back for more info next year!

This will not reduce borrowing rates, but it will ensure that necessary funds will be there, as the gov’t has no shortage of money – now or in the future.

If you’ve read other posts, you know that paying for college is the easy part, and the tough part was getting in.  There are still legal ways to get more aid for the second semester and beyond even if a parent didn’t lose their job, or your family just had a new addition!  Send us an email to learn more and stay tuned for more posts!

For the past three decades Reecy has helped thousands of families send their kids to the college of their choice for less than they ever dreamed possible.  If you have a question on financial aid, call the show, Reecy will surely have an answer!