Q: Jamie, What is the difference between "subsidized" and "unsubsidized" student loans? J. KesslerA: With subsidized student loans, the government pays the interest on the loan as long as the student is still in school (and for a grace period after graduation). Unsubsidized loans accrue interest form the day you get the money. Sometimes, you can defer paying the in-school interest until after graduation, but it will still be accrued and added to the payment amount once the student is out of school.
Q: Jamie, How often do I need to apply for financial aid? Thanks, P. Calcutt
A: You will need to complete the FAFSA and other forms every year that you are in school. Many scholarships and grants may be granted only for your freshman year, so be aware of this and try to plan accordingly. Reapplying will typically help families if your siblings start college while you are still in school. Last, changes in federal law may have an impact on the financial aid you receive.
Q: Jamie, How often do I need to apply for financial aid? Thanks, P. Calcutt
A: You will need to complete the FAFSA and other forms every year that you are in school. Many scholarships and grants may be granted only for your freshman year, so be aware of this and try to plan accordingly. Reapplying will typically help families if your siblings start college while you are still in school. Last, changes in federal law may have an impact on the financial aid you receive.
Q: Hi Jamie, How will I know if I am eligible to apply for financial aid for my child? Thanks, JK
A: More people are eligible than you might think. In fact, more that 70% of students today
receive some form of financial aid. After January 1 of the student's senior year, you should submit the FAFSA to start the financial aid process.
Q: Jamie, Our son will be starting college in Fall 2002. Is is too early to start now looking for help? C. Cipolla
A: The best time to start planning for college is before your base year for financial aid which is from January 1 of the student's junior year until December 31 of their senior year. This is the time period to which the financial aid formulas are applied to your financial situation. Therefore, start planning before your base year so you can be prepared to better position yourself to be eligible for the most aid possible.
Q: Jamie, I have 3 children in the 7th, 5th, and third grades. I have prepaid for five years of instate college tuition for all 3 with the WV college tuition plan the WV Treasurers ofc. Do you have any suggestions for me at this point or services to offer? Thanks, JF
A: Hi Joe, I would suggest saving additional money in your name versus the children's name. It will be assessed at a much lower rate when it comes time to apply for financial aid. I am a financial services rep so I have plenty of services to offer you. If you are interested, let me know.
Q: Hi Jamie. I'm starting very early! My son is in 9th grade, but we've been investing money in his name since he was born through a UTMA. I understand that assets held in the child's name are valued more than those of the parents for purposes of determining qualifications for financial assistance. I'm trying to determine whether to "spend down" over the next 3 or so years, or retain the money invested, and take the chance he may still qualify for assistance at the school he eventually decides to attend. I would classify our current income in the upper middle class range. Is there any reason for us to worry about spending down now, or would another strategy be more appropriate? Thanks, Mike W.
A: Hi Mike, The sad part is that you are correct. You try to do the right thing and then it turns out to be the wrong thing when it comes to applying for financial aid! Assets held in the child's name are assessed at 35% versus 5% when the assets are in the parents name. If you are above the $30,000 adjusted gross income level, you probably won't qualify for Federal money, but you can still qualify for other money. It also depends on how much money you have saved as to whether it will matter. My software will allow me to move things around to allow for income and asset transferring which would let us know for certain if spending down would make a difference to you. If you are interested, let me know.
Q: Hello,
I attended your seminar back in September and was quite impressed. We had already made financial
arrangements for my son's freshman year at WVU. My question is can you help thru your Company to obtain financial aid after a child has already started to college. You always talk about the Junior year for starting to get things rolling.
Thanking you for a response.
Joyce Mullins
jmullins@mckinneydrilling.com
A: Hi Joyce, It is never too late to apply for financial aid. You must apply for aid every year anyway. Most definitely apply for aid this coming year, even if you missed doing so last year. Thanks for your interest. Jamie
