Financial Aid – Federal Or Private Loans?

It is true that the world revolves around money, however, in the world of education not having enough money is not the end of your education – financial aid is there to help you solve your worries.

Therefore, if you belong to a low or a middle class family and you thought that you might never be able to pursue a college degree, it is time for you to think again. Regardless of how bad your financial circumstances are, which is of course a good thing when we are talking about aid, you should definitely apply to a college and financial aid and who knows you might even get a hundred percent financial assistance.

There is a belief in students that if they seek financial assistance from the colleges, they might not get accepted by the college. This is simply not true. Most of the colleges do not even look at the fact that you have applied for the financial aid; as long as you present yourself as a suitable candidate there is no way that you should not get into the college. Once you have been accepted by the college, and if you truly are in need of the aid, the college will see that and the result will be in your favor.

There are two types of financial aid – one that is determined by your academics known as the merit-based financial; the other is known as the need-based financial aid which takes into consideration only your financial standing. Many universities now offer more merit based than the need based financial aid. So if you are a brilliant student, and also in need of financial assistance, you just might be the perfect candidate for receiving financial aid.

If you had to choose between federal and private loan always go for the federal loan. This is because unlike federal loans, private loans do not offer you with a fixed rate. While the interest rate may be a certain amount one year, next year there is a high chance that the interest rate increases. As the interest keeps accumulating, you end up having a huge amount of debt which you can never have imagined. Be sure to also try government grants that carry no annual interest fees as well and don’t have to be paid back for extra assistance to help you when you’re in need.

Applying For Financial Aid

According to the College Board, nearly 60 percent of the students currently enrolled in colleges and universities are receiving some financial aid. Many people assume that their income is too high to qualify for financial aid, and in many cases that may be correct. However, even if it appears intuitively that a family’s income is too high to qualify for financial aid, application for financial aid should still be submitted due to the methodology used in evaluating other asserts and liabilities and the total number of children attending college.

Many years ago it was recognized by the federal government that a college education is too expensive for many families and that the federal government had a special role in financing education, to make it available to all, regardless of resources. As a result, over the years, a number of programs have been developed to provide general assistance. Financial assistance is now well entrenched in the nation’s college funding system. While some feel reluctant to apply for financial aid, it should be remembered that it is funded by income taxes paid by many of those same persons.

All applicants for federal student aid must complete the Free Application for Federal Student Aid (FAFSA) and file it with the College Scholarship Service (CSS). Depending upon the college or colleges at which application for admission is begin made, the FAFSA may be the only form that needs to be completed. However, in order to apply for state scholarship or grant programs and for aid at many other colleges and most private scholarship programs, other forms may have to be filed. Many colleges and universities, for purposes of awarding their own private funds, require the CSS/Financial Aid PROFILE.

Within a few weeks of filing a FAFSA, the applicant will receive a Student Aid Report (SAR). This form should be carefully reviewed and corrections made as necessary in order to obtain a revised SAR. If a PROFILE form is filed, the applicant will receive an Acknowledgement and a Data Confirmation Report. As with the SAR, the applicant should carefully review the information and make corrections as required.

How Financial Aid is Determined

The presumption made in determining a family’s need for financial aid is that the family is considered the primary source of funds for college and is expected to pay its fair share of the cost of a college education. How, then, is a family’s college education financial need determined? First, there are three factors:

• The amount that the family is judged capable of contributing to the student’s college education costs

• The cost of attending a particular college or university

• The resulting difference, if any, or the amount of need

To determine the extent of the assistance required, financial aid administrators use a formula determined by the federal government, better known as the Federal Methodology. It takes into consideration earned income, unearned income, assets, expenses, family size, age, and other factors. It does not consider the value of the family’s home in arriving at a family’s total assets nor does it consider the income of a divorced, noncustodial parent in determining total income.

Where to Look For Educational Financial Aid For Single Moms

Education is very important for everyone most especially when looking for a self sustaining job. It is undeniable that the higher your educational attainment is the more chances you can have in achieving the work that you want. Employers would consider your knowledge and skills as an asset in their company that is why it is much better to level up your learning by getting a college education. However, you need to have the needed financial sources to achieve what you desire.

Single moms are one of the groups of individuals that needed more help. As a single mom, you are physically and emotionally exhausted especially that you have to build and support the family on your own. You have to give up your dreams in going to college and getting the education that you want just to support and live every day with the finances available. Everything is within a budget. If possible cheaper deals are considered on everything like discount on food, sale on clothing, purchasing discount stun guns for protection and a lot more.

These are the difficulties that most of the single moms encounter especially when you have to take care of two or more of their children. Education is sacrificed by single moms because you opt to prioritize other things for your children and leave out your personal desires. Getting a higher education in life and landing a better job would be a great help for you. That is why financial aids are available for single moms if they are determined to go back to school. These are few of the financial aid sources that you can approach.

First of all financial aid for single moms can be available if you approach the staff who are authorized to provide them in the school proper. Assistance programs are available in different schools for you to ask for financial support when it comes to your dream of pursuing education.

Moreover, you can ask for financial assistance from the local government where there are grants for single moms. All you need to do is go to the necessary government department and ask for applications so that you can file your appeal for a financial grant in your education. Aside from government aid, inquire about other private sectors and companies where you can ask for sponsorship when it comes to the finances of your studies.

Lastly, you can search online for scholarship grants for single moms available online. There are different websites where you can search for someone to give you the chance to live a better life even if you are a single mom. All you need to do is do online research. Look over what you need to pass and what the requirements are so that you can pursue your dream of college education without any waste of time.

Financial aid is what mist single moms need. It will relieve them from the expenses that they have to budget for the family and the stress that they have experienced from being the alone to support the family. A help in their financial problems is like a feeling of relief when you immobilize an attacker who tried to hurt you with the use a streetwise stun gun. It lightens the burden that you carry by being a single mom. That is why grab the opportunities that different sources can provide to you. Increase your learning to get a better paying job and survive the trial of being a single mom.

Current Topics in Financial Services Education

For those working in the finance industry, keeping up to date with current financial services education and current events are very important. Financial services training can help advisors learn about new areas of interest and keep up with the trends of the market. Relevant subjects such as health
care are important to keep abreast of. This overview will go over some recent updates.

HEALTH CARE
Health care is always a relevant topic for financial services training. Health care costs have risen at more than twice the pace of overall inflation since 1990, more than doubling their share of the economy during that period. Even adjusting for the size of its economy and population, the U.S. spends far more money on health care each year than any other country in the world. As of 2009, health care spending made up 15.3% of the U.S. economy compared to an average of 8.8% for developed countries.

Under current policies, government spending on health care is projected by the Congressional Budget Office to rise to more than 18% of GDP per year over the next 75 years; since WWII, the U.S. government has collected tax revenue to finance its entire budget that has equaled an average of 18% of GDP each year.

DJIA: OCTOBER 2008 TO OCTOBER 2009 As you may learn in a financial services education course, the DJIA is a large stock market index. It was created by Charles Dow in 1896.

From October 1st, 2008 through September 2009, the Dow dropped from its peak of over 14,000 down to 10,000 (October 2008) to its March 2009 low and then back up to 10,000 for the first time (October 14, 2009) since dropping to 10,000 at the beginning of October 2008. The DJIA hit a closing-day low point (6,547) on March 9th, 2009.

CORRELATION COEFFICIENTS
Another topic for financial services education is correlation coefficients. Correlation coefficients measure interdependence between two (or more) variables. In financial services training you may learn how to read these coefficients.

Over the long term, different asset categories tend to have predictable relationships (correlations). For example, U.S. Treasury prices usually move in the opposite direction of stocks because people buy Treasuries and sell stocks when they are worried about the economy and do the reverse as they get more optimistic. Over short periods of time, correlation coefficients can vary wildly.

For example, from the end of July 2009 to November 2009, the U.S. dollar index and S&P 500 were 60% inversely correlated (71% inverse correlation in October). However, between January 2007 and the end of July 2009, the correlation was just 2% (an almost perfect “random correlation”).

Over a recent 15-year period (1994-2008), the correlation between oil prices and the S&P 500 ranged from +20% to -20% (random correlation). At extremes, the correlation was +40% to -40%; in mid-June 2009, the correlation briefly hit +75%.

Health care, the Dow Jones Industrial Average (DJIA), and correlation coefficients are all topics of interest in financial services education. Financial services training may cover these topics in greater detail.