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How Single Moms Can Find Grants – Two Easy Steps

By Felicia Ramone

the-college-prosOne of the most ignored ways of finding a financial education is through grants. Grants are sums of money that are given by federal or private institutions to help individuals pay for a variety of things. One of the things that grants are used for is to pay for college. Single moms can have their entire college education paid for through federal grants. Here are two easy steps to do this.

Grants are not simply given to people because they request them or because they need them. People must qualify for them in order to receive this federal or private funding. It is applied for over the Internet or forms can be filled out and sent in by mail.

The grant process, one shoe have filled out and submitted to paperwork can take several weeks for the application to go through. Depending upon your financial situation, you may or may not be approved. If you’re in a financial bind, and you have very little money or assets, you may find that your application process is much more quickly.

The Obama administration has a two-step process for applying for  grants.

The first step is to fill out the FAFSA. This is the federal grant paperwork that you need to get your financial aid process going. This required paperwork is necessary in order to get you into the federal system that you can qualify for grants such as the Pell Grant.

The second step is to submit this paperwork as quickly as possible. Most people recommend submitting it by February 2 if you’re going to go to college in the fall of the same year. This gives the federal processors time to process your application and to make sure that you get the funding issue are entitled to.

Following these two steps, you will be able to move forward toward earning a college degree. Most students take out loans and end up paying them back nine months after leaving college. Many students, including single mothers can apply for the Pell Grant and receive thousands of extra dollars for their education. Do this today.

About the author:
Visit our sites for more information on finding free grants for students or obtaining financial aid and federal funding through the Obama administrations stimulus package.

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Filed under: College Financing, College Planning, Grants, Mothers, Pell Grants, single mothers, single parent families, , , ,

Obama’s Budget ‘Nationalizes’ College Loans

President Obama is promoting a college education as a way to lift the incomes of working the-college-pros5families. His recently announced budget plans would help needy families by further increasing the Pell Grant and linking its maximum value to inflation. The money to do this will come from slashing the $4 Billion in government subsidies and guarantees to private banks that make college loans. Ending the subsidies essentially puts all new student lending into the government’s hands – effectively ‘nationalizing’ the system.

The change threatens the business model of the private student lenders, since the subsidy supports their earnings on student loans that have relatively high levels of default. The share price of Sallie Mae, one of the largest private lenders, fell 31% on this news. Private lenders would continue to service and collect on existing loans.

Currently about 64% of all student loans are private loans, with the remaining 36% being direct government loans from the Department of Education. Although the President’s budget ideas are not yet enacted into law, it is clear the Administration is moving in this direction, which they say would save taxpayers more than $47 Billion over the next decade. Congress took a step in the same direction by passing the College Cost Reduction and Access Act of 2007, when it reduced the subsidy to the private lenders. The private sector has since had difficulty financing student loans during the credit crunch, requiring the government to step in as the ‘lender of last resort’. I have always recommended direct government loans over those from private lenders due to their lower fees and the relative ease of consolidating the loans after graduation. As long as higher education remains a social priority for the government, this is a positive change in my view.



President Obama’s 2010 budget proposes several key changes to federal student aid programs. In this edition of the SimpleTuition newsletter, we summarize and highlight the major points of this budget as they relate to student financial aid and higher education.
The proposed budget will be undergoing review and revisions until it takes effect in the 2010-11 school year. Until then, follow our E-newsletters for updates on the budget’s changes.  A very resourceful website to visit is , where you can search, compare and apply to both federaland private student loans.


Please note that this budget proposal is subject to review and revision and Bay Area College Planners will be following this process and reporting on updates.


Summary of Budget Proposal

Federal Family Education Loans

One of the most material changes to federal student aid programs is the proposed elimination of the Federal Family Education Loan program or FFEL by the start of the 2010-11 school year, which according to the budget proposal, “needlessly costs taxpayers billions of dollars”. All new federal loans will come through the Direct Loan Program according to the President’s budget, saving more than $4 Billion a year which will be reinvested as aid to students. The Direct Loan Program allows the Department of Education to act as a lender and provide funds for StaffordPLUS and GradPLUS Loans.

Contrary to many press reports, the President’s proposal does NOT eliminate private student loans (also known as “alternative loans”). Private loans are used to supplement federal student loans. This proposal removes private lenders from the marketing and administration of federal loans but does not eliminate private/alternative loans which are credit-based products not guaranteed by the government.

Federal Pell Grants

The Federal Pell Grant Program provides need-based grants to primarily low-income undergraduate and certain graduate students (those pursuing teaching certifications) to promote access to postsecondary education. President Obama’s budget proposes a $5,350 Pell Grant maximum award for 2009-10 and $5,500 for the 2010-2011 school years. This is up from $4,731 for 2008-2009.

Focus on College Completion

With the proposal of a new five-year, $2.5 billion Access and Completion Incentive Fund, the Administration aims to support innovative efforts by states to help low-income students succeed and complete their college education. Further, according to the proposal, “the program will include a rigorous evaluation component to ensure that we learn from what works.”

Federal Perkins Loans

The budget proposes to completely overhaul the Perkins program, which it describes as “inefficient and inequitable.” The new updated Perkins Loan program “makes campus-based, low-interest loans more widely available.” The fund that will support this program will be operated federally instead of the current campus-based current administration.

Filed under: AP Courses, College Financing, Consultants, Graduate School, Graduation, Major, Scholarship, Students, Tuition, Universities, , , , , , , , , , ,


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