College Financial Aid Advisors

College campuses are springing back to life. For the freshmen, it’s an exciting new time in their lives, while the other students are one step closer to achieving their dreams. You might see many approaches to studying, from those who don’t study at all to those who spend all of their time holed up in the library. You want to try to achieve a balance between getting good grades and being involved in the college experience. Good grades will make sure you get a good return on your tuition investment when you go out to look for a job down the road. But they can also get you good rewards now if you took out a private student loan from Discover® Student Loans. You can actually receive a cash reward for getting good grades! Students who earn at least a 3.0 GPA (or equivalent) will be able to qualify for a one-time 1% cash reward of the disbursed principal balance on their loan. Here are a few tips to help make sure you get your reward for good grades: • Attend Classes: This might seem like a no-brainer, but it is surprising to see the number of students who don’t attend their classes regularly. They are definitely not going to get the best return on their investment, and they are usually very surprised when they get low grades. Attending classes and taking notes is your best way of getting the information you need, and some professors even award a few extra points if you are there consistently. • Get to Know Your Instructors: Most instructors are interested in helping you learn the material. You might be surprised at the help that is available if you just ask. Be sure you understand their writing style and requirements so you don’t lose points when you turn in assignments. • Start Early: Some students say they like the pressure of working on a last-minute deadline for assignments, but this is a sure-fire recipe for disaster. If you have a project that isn’t due until December, map out a schedule for yourself to accomplish something each week. • Work with Others: Get to know students in your classes so you can form a study group and prepare for exams. Don’t be afraid to ask for help from a tutor if you’re just not getting it. Think Ahead In addition to the possibility of getting the cash reward from Discover Student Loans, you’ve got a lot of other great reasons to study hard and get good grades. You’ll have a better shot at landing your dream job, will probably be able to make better decisions in life, and will definitely make your parents even prouder of you. Not bad for spending a little time hitting the books! If you need more information about the college financial aid process, or would like to learn more about federal and private student loans, contact College Financial Aid Advisors (CFAA).

Students heading off to college in the next few weeks have plenty of motivation to get good grades. There is the sense of accomplishment you feel when mastering new information. Good grades increase the opportunity for a better job in your future. And it keeps mom and dad off your back about working harder! As if those weren’t enough reasons, students who have taken out a private student loan from Discover® Student Loans have even more reason to study harder now. They can actually receive a cash reward for getting good grades! It sounds too good to be true, but it is. Students who earn at least a 3.0 GPA (or equivalent) will be able to qualify for a one-time cash reward on each new Discover student loan. Here’s how the Rewards for Good Grades program works: • Apply for a Discover Student Loan: To be eligible for cash rewards you must submit an application for a Discover Undergraduate, Health Professions, Law, MBA or Graduate Loan on or after May 1, 2014. You must have been approved for, and received, the loan. You will be eligible for only one reward for each new Discover Student Loan. • Study Hard: You must earn at least a 3.0 GPA or its equivalent. Visit the Discover Student Loans website to find the exact Grade/GPA requirement for Rewards for Good Grades at your school. Discover may request additional documentation to verify your GPA. • Request Your Reward: You will need to complete and sign a Redemption Request Form within six months after the academic term covered by the loan has ended. If your loan covers several academic terms, you will have to wait until the end of the final academic term covered by the loan to submit the Redemption Form. • Receive Your Reward: Within six to eight weeks after your request is submitted you will receive a 1% cash reward of the disbursed principal balance on your loan. It is your responsibility to notify Discover if you do not receive your expected cash reward. You can call 1-800-STUDENT at any time, 24/7, if you have any questions about Discover’s Rewards for Good Grades program. A Lifetime of Benefits Although some people are able to achieve success with lower grades, or even after dropping out of college, most find that there is a direct correlation between grades and their income. For example, WallStreetOasis.com conducted a study of 3,401 employees of both large and small investment banking firms. They found that a first-year associate who had a GPA between 2.9 and 3.1 made an average total compensation of $79,700. If the GPA was between 3.2 and 3.4 the compensation was $99,700, and with a GPA between 3.5 and 3.7 compensation would increase to $137,400. If you need more information about the college financial aid process, or would like to learn more about federal and private student loans, contact College Financial Aid Advisors (CFAA) or visit my About.com website, Paying for College.

As another school year begins, parents of high school juniors and seniors are just embarking on the long road to achieving the college dream for their children. You may have already poured over the brochures, taken some trips this summer, and started narrowing the list down to your Top 10, but have you done anything about the financial end of college yet? If you pay attention to the news media, you might think the cost of a college education is spiraling out of control. But a New York Times article by David Leonhardt points out that the government is making the same mistake many first-time parents of college-bound students make. To prove how college costs have increased dramatically the government often relies on published tuition figures, without taking college financial aid into consideration.  Since the deciding factor in college affordability is the amount of financial aid received, here are some tips to get you started: • The FAFSA Matters: The Free Application for Federal Student Aid, or FAFSA, is the entry point for federal student aid and often for state, college and private financial aid as well. It is important to complete this form quickly and properly. Visit the government’s website now and learn everything you can about this form. It is usually available online beginning in October, but you can start collecting your information now. When the forms are available, file as soon as possible because some aid is limited and only available on a first-come, first-served basis. • Search for Scholarships: After the grants and financial aid from the federal government and the college, scholarships are one of the best ways of bridging the financial gap. Search for scholarships early and often. • Work-Study Programs Help: These programs help students earn money for college, and they also prepare them for life. Inside Higher Ed reported on a study by two Columbia University researchers which found that, “Students who participate in the federal work-study program are more likely to graduate and be employed six years after college than their similar counterparts who don’t participate in the program.” • Learn About Student Loans Now: Don’t wait until your child needs money to learn about the differences between federal and private student loans. Invest the time to research them properly now so you can make smart financial decisions later. Talk to Financial Aid Professionals There is no need to deal with all of the financial aid decisions on your own. Talk to your high school guidance counselor and the financial aid office where your child is applying. If you need more information about college financial aid, or would like to learn more about federal and private student loans, contact College Financial Aid Advisors (CFAA).

Recently there has been a great deal of “interest” in student loans. The media and the government have made an issue of student loan debt, while students and parents are still trying to navigate the student loans maze. This negative attention may make it seem like student loans are a bad idea but, when thoroughly researched and used properly, they can be a great tool in helping students achieve their college dreams. As with any kind of loan, you want to do your research because all student loans are not alike. There are differences between federal and private student loans, as well as differences among private loan lenders. Two important areas you must understand before signing for any student loan are interest rates and fees. The Discover® Student Loans website does an excellent job of explaining its policies regarding rates and fees. Take a look at some of the information they provide and see how their loans compare to federal student loans as well as loans from other private lenders: • Great Rates: You must know what interest rate you are paying on your student loan, and whether it is fixed or variable. Interest rates on federal student loans are the same for every borrower and are fixed at set rates, depending on the type of loan. Discover provides the choice of highly-competitive fixed or variable interest rates. Applications submitted to Discover on or after June 1, 2014, will have an interest rate based on the 3-Month LIBOR (London Interbank Offered Rate). They will also reduce your interest rate by 0.25% when you sign up for automatic payments. Since rates on private student loans are based on the borrower’s credit history, the interest rate is not the same for every borrower. Your credit history or the availability of a cosigner may result in a lower interest rate. • Zero Fees: Another factor which can increase your borrowing costs is fees. Lenders may charge extra for loan application fees, origination fees, and late fees, which ends up costing you more money in the long run. For example, an origination fee covers the administrative fees for processing your loan. The federal government and many private lenders have origination fees, while Discover does not have any fees at all. It is important to find out about these fees and factor them into your total cost of borrowing. There are other ways that private student loan lenders such as Discover help you manage your student loan debt. For example, Discover offers rewards for good grades where students who receive at least a 3.0 GPA (or its equivalent) can qualify for a one-time cash reward equal to 1% of the loan amount on each new Discover student loan. It may seem confusing, but knowledge is power when it comes to student loans. If you need more information about the college financial aid process, or would like to learn more about federal and private student loans, contact College Financial Aid Advisors (CFAA).

As we approach the beginning of another college year, more students and parents are learning about student loans. It can be overwhelming trying to understand all of the rules that apply to these loans. Fortunately, there are some helpful websites which provide explanations in easy-to-understand language. One example is the Discover® Student Loans website, which provides a side-by-side comparison of federal student loans with their private student loans. Some rules you can understand by looking at this chart include: • The lender: This is the entity that provides you with the money you need to attend college. With federal loans, the Government is the lender. With private student loans, another entity is the lender; in this case, the lender is Discover Bank. • The borrower: That is the person who receives the money. With federal loans, the student or the parent is the borrower. With Discover Student Loans, the student is the borrower, although a co-signer may be required. • Loan limits: This is the maximum amount of money you can borrow. With federal direct loans, loan limits are set by the Department of Education. For federal PLUS loans and Discover Student Loans, you can borrow up to 100% of your cost of attendance, minus other financial aid you receive. • Interest rates: This is the amount you pay to borrow money. Interest rates may remain fixed throughout your loan, or they may vary as the economy changes. Interest rates are fixed for federal student loans, while Discover offers both fixed and variable opportunities. • Origination fees: Sometimes the lender charges you an additional flat amount for making the loan. Federal direct student loans impose an origination fee of 1.072% of the loan amount for loans that have a first disbursement made between December 1, 2013 and October 1, 2014; the origination fee for PLUS loans made between the same period is 4.288%. Discover does not charge an origination fee for its student loans. • Rewards: These are perks that are returned to you for borrowing money from a specific lender. The federal government does not have any rewards, while Discover offers rewards for good grades. • Deferment: This is a period where you don’t have to make any payments on your student loan, usually while you are in school. Frequently payments are deferred until six months after graduation, or less than a half-time enrollment in school. Discover does offer the option of making $25 per month payments while the student is in school. • Repayment terms: This is the amount of time you have to repay your loan. For federal loans, the repayment term is ten years, but can be expanded to 25 years under certain circumstances. For Discover Student Loans, the standard repayment term is 15 years. There is no need to get confused by the student loan rules. If you need more information about the college financial aid process, or would like to discuss more about federal and private student loans, contact College Financial Aid Advisors (CFAA).

When you are young, it seems like summer is meant to be just an endless time for fun and relaxation. As you get older, though, you need to start making the transition to having your summers be as productive as the rest of the year. There are many things you can do now that will make your financial life easier for you, and will help you learn how to mix fun with getting ready for life. Discover® Student Loans, a provider of private student loans, has issued a challenge to all of the students who will be entering or returning to college in a few weeks to make this the most productive summer ever. Here are a few tips that can help you enhance your summer: 1. Earn enough money to pay for your out-of-pocket expenses at school: One mistake many college students make is that they under-estimate their need for out-of-pocket funds during the school year. When they get to school, they start spending without any real thought behind it. If they find themselves without sufficient money, they start putting their purchases on a credit card. That’s where there financial problems begin. Interest starts accumulating, and they quickly end up with monthly payments that are beyond their means. 2. Put yourself on a budget for the school year: Sit down with your parents and try to draw up a budget for yourself for the coming school year. Think about the expenses you will have, and about your potential sources of income. Then, make sure you stick to your budget once you get to school! 3. Look for scholarships: One way to help reduce the costs associated with attending college is through scholarships. Check out Discover’s Free Scholarship Search tool which lets you search over three million scholarships with no registration required. 4. Learn about student loans: Student loans can be helpful in paying your college expenses, but some students get in over their heads by borrowing the maximum amount of money without thinking about how they are going to repay it. You will first need to compare federal and private student loans, so you can make smart choices about borrowing. 5. Think ahead: Don’t wait until you graduate to think about how you are going to repay your student loans. Use these student loan calculators to help you estimate monthly payments or prepayment benefits. Then check out Discover’s Return on Investment tool to make sure your future income will be able to cover your payments. You don’t want to be surprised when you graduate to find out that you can’t earn enough in your chosen career field to repay your student loans. Start your journey to becoming a smart consumer now. Give yourself a summer that is both fun and productive! If you need more information about the college financial aid process, or would like to discuss more about federal and private student loans, contact College Financial Aid Advisors (CFAA).

Time is getting tight for students in the college class of 2018 and their parents. As these freshly-minted high school graduates get set to embark on their college careers, there is a final mad dash to get all of the college financial aid and financing into place. One helpful component of this process can be college student loans, but it can be somewhat confusing to understand all of the variables involved. Here are five tips to help you successfully navigate the student loan maze: 1. Maximize the amount of “free” financial aid: This is financial aid that usually does not have to be repaid, such as grants and scholarships, although there might be some exceptions if you drop out of school. This type of aid can come from the U.S. federal government, the state where you live, the college you attend, or a nonprofit or private organization. Work-study programs allow you to earn money to help pay for your college education. There are also a number of other programs for students in specific situations, such as the child of a veteran. 2. Consider federal student loans first: If the financial aid does not completely cover your college costs, the next step is to investigate student loans. This is money you borrow, which will need to be repaid with interest. Federal student loans from the U.S. government usually offer lower interest rates and flexible repayment options. 3. Learn about the types of federal student loans: The federal Direct Loan Program is the largest federal student loan program. In these programs, the United States Department of Education is the lender. Direct Subsidized Loans are made to students with a demonstrated financial need. The government pays the interest while the student is in school. Direct Unsubsidized Loans are made to students regardless of financial need. Interest accrues during the school years, but is deferred until repayment begins. Direct PLUS loans are made to parents. The Federal Perkins Loan Program is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is lender. 4. Review your private student loan options: If you have exhausted all of your federal student loan eligibility, then it is time to turn to private student loan options. These loans are made by a lender such as a bank, credit union, state agency, or a school. There are several differences between federal and private student loans, so always be aware of who the lender is. 5. Compare private student loan options: Not all private student loan options are alike. There may be differences in interest rates, payment terms, and upfront fees. Discover Student Loans provides an easy-to-understand chart which compares some of the most important features of its student loans against those available from other private lenders. If you need more information about navigating the student loan maze, or want insights regarding the college financial aid process, contact College Financial Aid Advisors (CFAA).