The New York Yankees beat the defending Philadelphia Phillies 7-3.
The win is their 27th World Series title.

It’s the first time since New York was attacked on 9/11 they’ve been champions.
And it is fitting they won the World Series Chanpionship in their new ballpark.

Hideki Matsui was the man of the hour with a 2 run home run, a 2 run single,
and a 2 run double for a total of 6 RBI’s out of the scored 7 Yankee Runs.

And he doesn’t even speak English (at least not on camera).

It just goes to show you that anyone with the drive and determination can
“make it” because the USA is the land of opportunity.

Interestingly enough, most of the Yankee players were recruited from college.
It seems if you want to make it in professional sports, you need to make a
name for youself while playing college sports, otherwise the recruiters
will never find you.

But with the US economy in turmoil, college is becoming less affordable
for many families. In addition to the affordability problem to get into and
remain in University comes one of the unexpected and most difficult challenges…

PAYING YOUR STUDENT LOAN’S BACK!

Amanda, a communications major who graduated from a major University this year,
was fortunate enough to land a decent entry level job at the Rachael Raye show.
However, after she pays her rent, electricity, cable, phone, etc etc  bills,
the $600 per month for student loans she has to pay back is unaffordable.

What should she do?
The answer may surprise you.

If anyone has read the book “The Secret” or seen the movie or watched Oprah
when she was talking “The Secret” or has the DVD, then you know that the
secret to getting whatever you want in life is to “focus on what you want.”

Huh?

You see, you have to stay focused on exactly what you want.
So the first thing that needs to be done is to…

Figure out EXACTLY what you want.

Most people Never do this and it is the secret to success.
Consequently and unconsciously, people focus on what they don’t want.

For example, when I asked Amanda what she wanted, she said…
she wanted the bill collectors to stop calling and harassing her.

That’s not really what she wants.

She is focusing on what she doesn’t want. She DOESN’T want the bill collectors
to call her. So by not focusing on what she wants, she’s automatically focusing
on what she doesn’t want and manifest MORE of that into her life.
Hence, more bill collector calls.

I’ll get deeper into the law of attraction at another time.
But for now here is some practical advice…

Paying off college loans can seem like a next to impossible task.
Each year, more people graduate with increasing levels of debt.
This is largely due to the fact that college is expensive.

It doesn’t matter if you’ve graduated from a state school, private college,
or community college. Most people have some level of debt associated
with getting a degree. Now the trick is how you’re going to pay for it.

Depending on the type of loan you have, repayment options are many.
Some people are so overwhelmed by the total amount of the debt,
that they rarely see the various types of repayment options that are available.

A good suggestion is to stay focused on the monthly payment versus the total sum
of what you owe. This should make the idea of repayment more manageable.

If you are a recent grad and you’re wondering exactly how you are going to pay off
your loans, don’t despair. There are a variety of methods you can use.

One of the most popular and effective is student loan consolidation.
Using student loan consolidation, you group your loans into a single loan
which often reduces your monthly payment amount.

Keep checking back at this site for updates. For a ton of information
about scholarships, grants, FASFA, college and paying student loans:

College Scholarships, Grants, FASFA, Paying Student Loans

What kind of federal loans are available for college?

The chief federal loan program is the Stafford loan.
A Stafford loan is a federal loan program that allows students
to borrow to pay for college.

Loans are made by either a private lender or directly from the
federal government. For students with high financial need,
the government pays interest on at least a portion of that
while you’re in school.

Anyone (regardless of family income) can take out an unsubsidized
Stafford, which still lets you defer payments until after graduation.

Depending on your school, you may be offered a Stafford directly
from the government. Or you may take out a government-guaranteed
Stafford loan that’s provided by private lenders such as banks.

If eligible, a student can receive a subsidized loan, which means
that the government pays interest on the loan until the grace period
ends.

Unsubsidized loans are available to all students, who can elect
to pay interest before or after the loan repayment period begins.
Interest rates are set on July 1.

All students applying for a federal student loan are required
to complete a FAFSA loan application.

If you have high need, you may also be offered a Perkins loan.
A Perkins loan is a federal student loan program to pay for college.
Perkins loans are subsidized loans, which means the government
pays the interest until the end of the loan grace period.

The annual interest rate on Perkins loans is capped at 5%.
All students applying for a federal student loan are required
to complete a FAFSA loan application.

The grace period for Perkins loans is nine months.
The borrowing limits are $4,000 per year for undergraduates.

Below are some terms that you often come across  as you sort through
the maze of financial aid readings to apply for financial aid…

Expected family contribution (EFC)

Expected family contribution (EFC) is a formula used by the
U.S. Department of Education to determine student eligibility for
such financial aid as Grants, Subsidized Student Loans, or
participation in Work-Study.

The formula assigns a weight to the assets and income of household members
to calculate the EFC. The EFC is stated in dollars.
You can find a worksheet for calculating EFC at the DOE Web site

(www.ed.gov).

FAFSA Deadlines:

Submit 2006-2007 FAFSA on the Web Applications by Midnight Central Daylight Time,
July 2, 2007.

Submit 2007-2008 FAFSA on the Web Applications by Midnight Central Daylight Time,
June 30, 2008

Prepaid tuition plan

Together with college savings plans, prepaid tuition plans are a Qualified
State Tuition Plan (QSTP) that is regulated by Section 529 of the tax code.
These two types of plans are also called Section 529 plans.

As a result of the 2001 tax cut, withdrawals used for qualified expenses
have been exempt from federal taxes since 2002. Depending on the state plan,
contributions or withdrawals may be deductible from state income taxes.

Prepaid Tuition Plans allow you to pay a child’s college tuition today,
usually at current prices. You can usually make installment or lump sum payments.

College Savings Plan

Together with prepaid tuition plans, college savings plans are a qualified
state tuition plan (QSTP) that is regulated by Section 529 of the tax code.

These two types of plans are also called Section 529 plans.
As a result of the 2001 tax cut, withdrawals used for qualified expenses have been
exempt from federal taxes since 2002.

Depending on the plan, contributions or withdrawals may be deductible from state
income taxes. College savings plans invest in a professionally managed mutual fund
or group of funds.

You can save well over $100,000 for most college savings plans.
Since states have some discretion in setting up tax rules, contribution limits,
and management fees, you should read the terms and conditions of the state plan
you are considering.

Section 529 plans

A Section 529 plan is a tax-advantaged account used to save for the college education of
a child, grandchild or other dependent. Section 529 plans are run by state governments
(and some private colleges) and include college savings plans and prepaid-tuition plans.

Section 529 plans are named for the section of tax code that governs them.
Investors contribute to an account that is managed by the investment board or
treasury of the state in which the account is opened.

Section 529 plans are offered in the form of prepaid tuition plans in 20 states
and as college savings plans in 41 states. Tax laws for contributions and distributions
vary from state to state.

Both plan types allow for tax-deferred growth in the account. Since 2002,
the funds taken from a Section 529 plan to pay for qualified higher education expenses
have been tax-exempt.

With all the different types of financial aid available, it can become confusing.
Below are some students loans explained in an easy to understand manner. 

Stafford loan

A Stafford loan is a federal loan program that allows students to borrow
to pay for college. Loans are made by either a private lender or directly
from the federal government.

If eligible, a student can receive a subsidized loan, which means that the
government pays interest on the loan until the grace period ends.
Unsubsidized loans are available to all students, who can elect to pay interest
before or after the loan repayment period begins.

For the year beginning July 1, 2005, the maximum loan amount to undergraduates
is $23,000, if dependent, and $46,000, if independent.

For graduate students who borrow a subsidized Stafford loan, the maximum loan
amount is $65,500. Interest rates are set on July 1.
All students applying for a federal student loan are required to complete a
FAFSA loan application.

Perkins loan

A Perkins loan is a federal student loan program to pay for college.
Perkins loans are subsidized loans, which means the government pays the interest
until the end of the loan grace period.

The annual interest rate on Perkins loans is capped at 5%. All students applying
for a federal student loan are required to complete a FAFSA loan application.
The grace period for Perkins loans is nine months.

PLUS loan

A PLUS loan is a federal loan program available to help parents pay college expenses
for a child. PLUS loans have a 10-year repayment period and require monthly payments
beginning two months after the loan is disbursed. Interest rates on PLUS and other
applicable federal education loans are reset every July 1.

FFELP

An acronym that stands for Federal Family Education Loan Program.
This is a federal student loan program for Stafford loans where a private lender
such as a bank or credit union disburses the loan to the student.
Loans are guaranteed by the federal government.

FDSLP

An acronym that stands for Federal Direct Student Loan Program.
This is a federal student loan program for Stafford loans where the federal government
disburses the loan to the student. Loans are administered by the participating school.

UGMA/UTMA accounts

UGMA/UTMA accounts are custodial accounts with limited tax advantages that are used
for giving to a child or other beneficiary under the age of 18 or 21.

UGMA is an acronym for Uniform Gifts to Minors Act.

UTMA is an acronym for Uniform Transfers to Minors Act.

UGMA accounts are generally limited to the transferring only such liquid assets as
stocks, bonds and other savings deposits. UTMAs allow for transfers of such illiquid
assets as real estate. Depending on the state you live in, you would use either an
UGMA or UTMA.

In some cases, both laws may apply. You should consult a tax or financial
adviser to more thoroughly understand UGMAs and UTMAs.

UGMA/UTMA accounts are custodial accounts you may use to save for your child’s
college education. Another advantage of using an UGMA/UTMA account is that earnings
on the account are taxed at the child’s rate if the child is at least age 14.

This rate is usually the lowest tax rate of 10%.

If the child is under 14, the first $750 in earnings on an UGMA/UTMA account is
TAX-FREE. The next $750 is taxed at the child’s tax rate. At higher levels,
earnings on the account are taxed at your income tax rate.

Frequently Asked Questions about FAFSA…
Q. Who can assist me with any FAFSA questions that I have?
 
A. You can call the Federal Student Aid Information Center at

 1-800-4-FED-AID (1-800-433-3243)

with questions about the FAFSA on the Web or paper application process
or about federal student financial aid in general.

In addition, FAFSA on the Web filers can get help at

http://www.fafsa.ed.gov/faq001.htm
 
Q. What should I (the student) do if my family has special circumstances
that aren’t mentioned in the application?
 
A. If you or your family has unusual circumstances
(such as loss of employment, loss of benefits, death, or divorce),
complete the FAFSA as best you can and submit it as instructed.

Then talk to the Financial Aid Administrator (FAA)
at the school you plan to attend.

If your family’s circumstances have changed from the base year (2005),
the FAA may decide on a case-by-case basis to adjust data elements
used to calculate your EFC - (Expected Family Contribution).

Any adjustment the FAA makes must relate only to your individual
circumstances, and not to any conditions that exist for a whole class
of students.The FAA’s decision is final, and cannot be appealed to the
U.S. Department of Education.
 
Q. If I live with an aunt, uncle, or grandparent, should that relative’s income
be reported instead of parental information?
 
A. Only if the relative is your adoptive parent.
Dependent students can be considered dependent only on their parent’s
and must report only parental information on the FAFSA.

You must report (in Worksheet B) any cash support given by relatives,
but NOT in-kind support (such as food and housing) from relatives.

PLUS Loans

The law now allows for graduate and professional degree students
to borrow money from the PLUS program.

The terms and conditions that apply to parent PLUS Loans
which  are made to parents of dependent students, also apply to
PLUS Loans that are made to graduate and professonal degree students.

These terms and conditions include:
 - a requirement that the applicant NOT have any adverse credit history 
 - a repayment period that begins on the date of the last disbursement
   of the loan 
 - a fixed interest rate of 8.5% for FFEL PLUS Loans
 - a fixed interest rate of 7.9% for Direct PLUS Loans

As with PLUS Loans made to parent borrowers, eligible graduate
and professional degree students may borrow under the PLUS program
up to the cost of attendance, minus other financial aid received.

Unlike parent PLUS applicants, graduate and professional degree
student PLUS applicants must file a FAFSA.

In addition, graduate and professional degree students must have
their annual loan maximum eligibility under the Stafford Loan program
determined by the school before they apply for a PLUS Loan. 

Federal Student Aid Information Center (FSAIC)
1-(800) 4-FED-AID - 1-(800) 433-3243

TTY users (for the hearing-impared) can call
1-(800) 730-8913

Callers in locations without access to 1-800 numbers
may call (319) 337-5665 (this is not a toll-free number).

The FSAIC staff can answer your federal student financial
aid questions and can give you all the help you need -FREE -
including:

* information about federal student aid programs,
 
* help completing the FAFSA,
 
* help in making corrections to your Student Aid Report (SAR),
   which contains your application results,
 
* information about the process of determining financial need
   and awarding aid, and
 
* information about your federal student loans.

Cut your monthly student loan payment by up to 60%

You can also use an automated response system at this number
to find out if your FAFSA application has been processed
and to request a copy of your SAR.

You can also write to the Federal Student Aid Center: 

Federal Student Aid Information Center
P.O. Box 84
Washington, D.C. 20044-0084

Direct Loan borrower services
1-(800) 848-0979 | TTY users can call 1-(800) 848-0983.

Direct Consolidation Loan information
1-(800 )557-7392 | TTY users can call 1-(800)557-7395.

Office of Inspector General Hotline
1-(800) MIS-USED - 1-(800) 647-8733

To report student aid fraud (including identity theft),
waste or abuse of U.S. Department of Education funds:

email: oig.hotline@ed.gov

NATIONAL SCIENCE AND MATHEMATICS ACCESS TO RETAIN
TALENT GRANT OR NATIONAL (SMART) GRANT

A National SMART Grant will provide up to $4,000 for
each of the third and fourth years of undergraduate study
to full-time students who are U.S. citizens, eligible for
a Federal Pell Grant, and majoring in physical, life, or
computer sciences, mathematics, technology, or engineering
or in a foreign language determined critical to national security.

The student must also have maintained a cumulative grade point average
(GPA) of at least 3.0 in coursework required for the major.
The National SMART Grant award is in addition to the student’s Pell Grant award.
 
To be eligible to receive a National SMART Grant, you must be able to answer YES
to all of the following questions:

-Are you a US citizen?

- Are you eligible to receive a Pell Grant?

- Are you enrolled as a full-time third or fourth year student
in a baccalaureate degree program?

- Do you have a 3.0 cumulative grade point average?

- Are you currently enrolled in an eligible major in one of the following categories:

 Computer Science
 Engineering
 Critical Foreign Languages
 Life Sciences
 Mathematics
 Physical Sciences
 Technology 
 Multidisciplinary Studies

If you could not answer YES to all of the above questions,
you DO NOT qualify to receive a National SMART Grant.

However, you may still qualify to receive other types of federal student
financial aid. Make sure that you have completed a FAFSA
(Free Application for Federal Student Aid).

For more information call: 1-800-USA-LEARN
Cut your monthly student loan payment by up to 60%

In previous posts, student loans and scholarships were covered.
Now I’ll start giving you information about Grants.
Grants are Great because you don’t have to pay them back.
Essentially, it’s FREE MONEY!

On Feb 8, 2006, President Bush signed into law two new
student grant programs - The Academic Competitiveness Grant
and the National Science and Mathematics Access to Retain Talent
(SMART) Grant.

$790 Million is set aside for these grants, created by the
Higher Education Reconcillation Act of 2005.
The grants encourage students to take more challenging courses
in high school, making success in college more likely.

ACADEMIC COMPETITIVENESS GRANT

An Academic Competitiveness Grant will provide for the first year
of undergraduate study up to $750. And up to $1,300 for the
second year of undergraduate study to…

Full-time students who are U.S citizens…
Eligible for a Federal Pell Grant…
And who had successfully completed a “rigorous high school program”,
(as determined by the state or local education agency and
recognized by the Secretary of Education).

Second year students must also have maintained a cumulative grade
point average (GPA) of at least 3.0. The program will be available for the
first time for the 2006-07 school year for first year students…
who graduated from high school after January 1, 2006.

The program will be available for second year students who graduated
from high school after January 1, 2005.

The Academic Competitiveness Grant award is in addition to the student’s
Pell Grant award.  If you can answer YES to all of the following questions,
you may potentially be eligible to receive an Academic Competitiveness Grant.
 
- Are you a U.S. citizen?

- Did you graduate from high school after January 1, 2005?

- Are you eligible to receive a Pell Grant?

- Will you be enrolled as a full-time first or second year student in
a two-year or four-year degree program?
If you COULD NOT answer YES to all of the above questions,
you do not qualify to receive an Academic Competitiveness Grant.

However, you may still qualify to receive other types of federal student
financial aid. Make sure that you have completed a FAFSA
(Free Application for Federal Student Aid).

For more information call: 1-800-USA-LEARN

Q. My parents make over $65,000 per year.
Should I apply for Financial Aid?

A. Yes. Many students and families fail to apply for financial aid
simply because they don’t think they qualify. Many different factors
are taken into consideration when awarding financial aid packages.
The only way to be sure is to apply.

Q. How difficult is it and How do I apply for financial aid?
A. It’s easy to apply. Complete a Free Application for Federal
Student Aid (FAFSA).

Applications are available from the U.S. Department of Education at:
1(800)4FED-AID

or online at
http://www.fafsa.ed.gov.

You may also pick up an application at your school’s financial aid office
or at your local library.

Cut your monthly student loan payment by up to 60%

Q. When is the best time to apply for Financial Aid?
A. You can apply for financial aid any time after January 1st for the
upcoming academic year. You are encouraged to submit your FAFSA
as soon as possible after January 1st.

Q. How often do I need to apply for financial aid?
A. Because financial situations can vary from year to year,
the government requires you to reapply each year.

Q. Can a part-time student receive financial aid?
A. Most financial aid programs are available to students if they
attend school on at least a half-time basis.

Q. Can I get financial aid if I have defaulted on my prior student loans?
A. You must make payment arrangements with the holder of your defaulted
loans to regain eligibility for additional financial aid.
Contact your lender or servicer to find out more about their requirements.

Q. If I receive a schlorship do I need to report it to my schools’s
financial aid office?
A. Yes, because it will affect your eligible aid amount.

Q. What are Private Loans?
A. Private loans are credit-based alternative loans for students who
require education funding beyond the amounts allowed under the federal
loan programs, or for students who do not qualify for federal program loans.

Q. When should I apply for a private loan?
You should apply for a private loan after you have completed the FAFSA
and received financial aid award information from your school.

Q. Do I need to apply for a Private Loan with a co-borrower?
A. Adding a co-borrower can save you money. The co-borrower’s good
credit history may positively affect your interest rate and any fees you pay.
Parents, grandparents, or legal guardians typically have more established credit
histories that can help lower your interest rate and fees, which
typically results in a lower monthly repayment amount.