This may sound like a no-brainer, but we get calls everyday from people who have no idea who their loans are with.

These people owe thousands of dollars to someone… but they don’t know who!

Yes, you sign this paperwork when you’re much more interested with other things like new roommates, buying textbooks, signing up for classes, but trust me – this is something you need to know.

Four years (or less) from now you will need to start paying these people back.  What happens if you have an emergency and you need to contact these companies right away?

And don’t forget – always inform you loan companies when you move so that you receive any new paperwork in a timely manner.

I was reading an article from the Chicago Sun Times this week about a survey that reveals that parents are saving less for their kid’s college education this year than last year.

Well, duh, as those kids might say.

Let’s see – mortgage crisis, banks are failing, people are worried about heating their homes this winter (where I am in New England, that’s big worry!) .  They can’t afford to fill their cars up with gas, not to mention the rising cost of food – have you noticed that a bag of flour is double what it was a few years ago?

And in the midst of this, some genius decides to poll parents about saving for their kids education.

I should’ve bet money on this one.

There’s a great opinion piece in Tuesday’s Christian Science Monitor that mirrors many of my posts over the past few years lamenting the lack of financial knowledge in people under 40.  We simply don’t learn finances in school – and we;’re the lucky few if we learn it from our parents!

Here’s an excerpt:

“Why does the school system require classes such as math, English, and science, but not basic personal finance?

We force students to learn trigonometry, yet how many of us ever use it again after graduation? In contrast, how many transactions involving money will we each conduct on a daily basis for the rest of our lives?

Think about each time you purchase something with a credit card, make a car payment, reconcile your bank account, or pay taxes. Even though these transactions are a daily occurrence for most consumers, we receive very little financial education on them from our school system, or even our parents.
…

Results from my recent online consumer survey, FinancialLiteracyQuiz.com, show that:

•Only 50 percent of those who took the survey know that property taxes and mortgage interest are tax deductible

•Only 40 percent know that their liability for credit-card fraud is limited to $50.

•Only 33 percent know what “annual percentage rate” (APR) means.

•Only 32 percent know what required deductions are taken from their paycheck.

So, why should Americans care? These are basic pieces of information that are critical to financial decisions. And the better job we do of financially educating the next generation, the more financially independent they will be. This will not only mean breaking free from ongoing support from parents or destructive financial habits, but it could potentially save a lot of money.”

An amendment by Rep. Davis (D -Illinois) which would have extended some bankruptcy protection to students holding private student loans has been removed from the Higher Education Act Reauthorization (HR 4137).

As you can guess, there was strong opposition from banks and financial institutions and this definitely affected the vote, I’m certain.

The bank’s argument against the bankruptcy protection amendment was that bankruptcy protection would ultimately make private student loans more expensive because lenders would have to increase interest rates and fees to cover loans that were in default and discharged in bankruptcy.

If you’re in college you’re probably short on money.  Instead of buying what’s at the bookstore (and spending $130 on a book that they won’t let you sell back) have you tried comparison shopping?

Continuing from my posts last fall and spring on the exorbitant price of textbooks in this country, I thought I’d share some helpful resources with you.

For example, did you know that you can save up to %90 if you buy the international edition instead of the US edition?

Take a look at this website – http://www.campusx.com/college-textbooks/

It’s got a free eBook that has great ideas on how to save load of money on your textbooks, as well as some sites that might offer you some good deals.

And of course there’s always Amazon.com and BarnesAndNoble.com as well as other bookstores – chain and local alike – that may be able to offer you a deal.

The important thing to remember is to shop around.  Don’t assume your bookstore is the best deal, it’s probably not.  And remember, your professor may get a kickback if enough of a certain textbook are sold, meaning he’s more likely to list it on the book list.  That’s not to say it’s a bad textbook, you just need to be careful what you spend on it.

A new study shows that 1/3 of kids aren’t ready and that they need remedial classes to bring them up to speed.

In this intriguing article from USA Today, the author examines how colleges spend billions of dollars to get high school graduates up to a level they should already have reached.

“Christina Jeronimo was an “A” student in high school English, but was placed in a remedial course when she arrived at Long Beach City College in California. The course was valuable in some ways but frustrating and time-consuming. Now in her third year of community college, she’d hoped to transfer to UCLA by now.
…
Simply dumping the remedial students into large classes isn’t necessarily expensive for colleges, although it’s also not very effective. But smaller classes typically require more attention and money. Some states have refused to fund remedial courses at the university level. In California, Oakley said, state funding for community colleges favors credit courses. Remediation (or “basic skills” as he and many educators call it) is typically noncredit.”

Are you still looking at colleges perhaps?  Take a look at HowToGetIn.com and see what they offer.  Their College Prep Action Plans may help you avoid this predicament!

Incoming college students – meet the College Opportunity and Affordability Act, signed August 14 by President Bush.

According to USA Today, it “will require the Department of Education to post online the colleges and universities with the highest percentage increases in tuition and fees in a three-year period. It also calls for the department to list the 5% of colleges with the highest overall sticker prices.”

I’m asusming that at somepoint in the not-so-distant future, you’ll have a list available online to see who’s the most expensive and who raises tuition by an exhorbitant amount, though knowing the government it may take ages for you to get access to it.

What do you do if your school won’t certify your FFELP loan?

Well, if they say they don’t want to work with the lender you chose, that’s illegal.  They are not allowed to refuse certification based on your lender of chose; if they do the Department of Education can fine them!

You probably remember the hullabaloo last year with the New York Attorney General suing schools who forced students into using preferred lender lists.  Those lists are illegal.  Schools can recommend lenders who provide good service, but cannot restrict you to a lender or lenders of their choosing.

Unfortunately, some still try to get away with it.

Section 432(m)(1)(B)(ii) of the Higher Education Act of 1965, (as ammended and extended) prohibits this. Furethermore, the Department of Education’s regulations 34 CFR 682.603(e) further limit when a financial aid administrator can refuse to certify a Stafford or PLUS loan… and this does not include the borrower’s selection of a particular lender or guaranty agency.

So quote the law to them – that’ll get them jumping!