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student loans

GRANTS

by Student Loan Daddy
written by Student Loan Daddy

Grants, like scholarships, can provide free money for your education. Although the terms “scholarships” and “grants” are often used interchangeably, scholarships are really a type of grant.

The term “grant,” on its own, doesn’t necessarily refer to an education grant offered as college financial aid. Broadly speaking, grants represent any provision of money in exchange for a prescribed purpose. Besides education grants, there are also housing grants, farming grants, research grants, and so forth.

  • Scholarships usually refer to grants provided for the purposes of funding undergraduate studies.
  • Fellowships are another type of education grant and usually refer to grants awarded as funding for post-baccalaureate projects or for special undergraduate projects that lie outside the standard undergraduate curriculum.

All scholarships and fellowships are grants, but not all grants are scholarships or fellowships.

QUALIFYING FOR GRANTS

A large proportion of academic grants are merit-based, awarded to students with excellent academic credentials. Many of these grants are awarded not for general education purposes but specifically to finance a student’s pursuit of a certain research project or particular course of study.

Research grants are typically awarded at the graduate studies and professional level and generally require you to submit a formal proposal and application.

There are some need-based grants, however. The most common are the federal grants awarded to qualifying undergraduate students as federal financial aid.

FEDERAL GRANTS

Pell Grants

Federal Pell Grants are perhaps the most well-known federal financial aid grant. Pell Grants are awarded to eligible low-income undergraduate students.

The maximum Pell Grant award amount for the 2021–22 financial aid award year is $6,495. You’ll need to fill out the FAFSA in order to be considered for a Pell Grant.

Federal Supplemental Educational Opportunity Grants (FSEOGs)

Federal Supplemental Educational Opportunity Grants are awarded to undergraduates who demonstrate exceptional financial need. Among students who qualify for a Pell Grant, those who fall in the highest need bracket will be considered first for a FSEOG, which is available in annual award amounts ranging from $100 to $4,000.

Since FSEOG recipients are culled from students who qualify for the Pell Grant, you’ll need to fill out the FAFSA in order to be eligible for a Federal Supplemental Educational Opportunity Grant.

Academic Competitiveness Grants (ACGs)

Federal Academic Competitiveness Grants are combination merit-based and need-based grants available for undergraduate students entering their first or second year of college.

An Academic Competitiveness Grant provides you $750 for your first year of college studies and $1,300 for your second year.

To be eligible for an Academic Competitiveness Grant, you must be a Pell Grant recipient, and you must have completed a challenging high school academic program that meets federal requirements to be recognized as a “rigorous secondary school program of study.” If you’re entering your second year of college, you must have at least a cumulative 3.0 GPA after your first year of undergraduate studies.

National SMART Grants

National SMART Grants — Science & Mathematics Access to Retain Talent Grants — like Academic Competitiveness Grants, are combination merit-based and need-based grants.

SMART Grants provide up to $4,000 a year and are available to undergraduates in their third or fourth year of college who are majoring in math; technology, engineering; physical, life, or computer sciences; or a critical foreign language.

To be eligible for a SMART Grant, you must be a Pell Grant recipient, and you must be maintaining a 3.0 GPA.

Iraq And Afghanistan Service Grants

The federal Iraq and Afghanistan Service Grant, instituted with the 2010–11 award year, is available to students who aren’t eligible for a federal Pell Grant but whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after September 11, 2001.

The Iraq and Afghanistan Service Grant award amount is equal to the maximum available Pell Grant award amount — currently $6,195 for the 2021–22 award year.

To be eligible for an Iraq and Afghanistan Service Grant, you must have been enrolled in college at least part-time at the time of your parent’s or guardian’s death, and you must currently be under 24 years old.

TEACH Grants

Federal TEACH Grants are awarded through the government’s Teacher Education Assistance for College and Higher Education (TEACH) Grant Program. TEACH Grant awards provide up to $4,000 a year to both undergraduate and graduate students who intend to teach in a public or private high school or elementary school that serves students from low-income families.

To be eligible for a TEACH Grant, you’ll need to fill out a FAFSA and be enrolled at a college or university that participates in the TEACH Grant Program. You’ll need to be completing course work that prepares you to be a teacher and meet certain ongoing academic requirements.

As a TEACH Grant recipient, you’ll be required to serve as a full-time teacher for at least four academic years. If you don’t complete your TEACH service requirement, all your TEACH Grants will be converted to unsubsidized Stafford student loans, and you’ll be charged interested all the way back to the date that your TEACH Grants were disbursed to you.

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financial aid

Financial Aid

by Student Loan Daddy
written by Student Loan Daddy

Financial aid, also sometimes referred to as student aid, is financial assistance available to students to help pay for college, graduate school, and other post-secondary studies. Financial aid can be either need-based or non-need-based.

  • Need-based financial aid is awarded to students who demonstrate financial need, as measured by the income and financial thresholds established by whatever agency or entity is awarding the financial aid. Definitions of financial need can vary from agency to agency and may change from year to year based on certain economic indicators, such as the local or national poverty threshold, the federal cost-of-living adjustment, or the national inflation rate.
  • Non-need-based financial aid is available to students who request help with paying for college or graduate school, even if they don’t demonstrate financial need. Although non-need-based financial aid isn’t limited to students within lower income brackets, you’ll still generally need to show that you have outstanding college expenses or other school costs that yo威而鋼 u need to meet.

In general, financial aid, whether need-based or non-need-based, will not be awarded in excess of your cost of attendance, as determined by your school.

SOURCES OF FINANCIAL AID

Federal Financial Aid

Federal financial aid, provided by the U.S. government through the Department of Education, is the largest and best-known source of money for college. The federal financial aid program provides over $100 billion in financial aid to nearly 14 million college students, graduate students, and their families every year.

School & State Financial Aid

Financial aid may also be provided by state agencies and by colleges and universities themselves.

Like federal financial aid, state financial aid and institutional financial aid (student aid awarded by your school or school’s financial aid office) may take the form of scholarships, grants, or student loans.

TYPES OF FINANCIAL AID

Financial aid can take one of four basic forms:

  • Scholarships and grants
  • Work-study
  • Student loans
  • Parent loans

Scholarships & Grants

Scholarships and grants are financial aid awards that don’t need to be repaid. In essence, scholarships and grants provide you with free money to help pay for college or graduate school.

Any particular scholarship or grant award may be need-based, merit-based, or a combination of both.

The federal financial aid program provides a number of grants for low-income students and students who demonstrate financial need.

Work-Study

Work-study, a form of need-based federal financial aid available through the Federal Work-Study program, provides part-time jobs for undergraduate and graduate students, allowing you to earn money to help pay for college. The program encourages community service work and work related to your major or course of study.

A work-study job may involve assisting a professor, working at the university library, or doing administrative or research work on campus. You may also be able to get a work-study position off-campus at a nonprofit organization, public agency, or company that has an agreement with your school to provide work-study opportunities.

As an undergraduate in the Work-Study program, you’ll be paid by the hour, and your work-study hourly pay rate must be at least equal to the current federal minimum wage.

Student Loans

Student loans provide you with money for college or graduate school that, unlike scholarships and grants, will need to be repaid.

Although most student loan programs allow you to defer your repayment until after you’ve graduated or left school, that doesn’t mean the student loan money is free. While your payments are postponed, you’ll still be accruing interest on all your non-need-based student loans. (Interest charges on need-based federal student loans — referred to as subsidized student loans — are covered by the government while you’re in school.)

Student loans, like a credit card or any consumer loan, assess interest charges, so the amount you repay will almost always be more than the amount of money you were initially awarded.

Like scholarships and grants, student loans can be either need-based or non-need-based.

An additional consideration is that student loans may also be either credit-based or non-credit based.

  • Credit-based student loans require you to undergo a credit check and meet certain credit and/or income criteria. Federal Grad PLUS graduate student loans, for instance, have modest credit requirements that you’ll need to meet in order to qualify.The most common type of credit-based student loans are the private student loans offered by banks and private lenders as supplementary financial aid to your federal financial aid package. With private student loans, the interest rate you’re charged and the fees you pay are typically pegged to your credit rating: the better your credit, the lower your interest rate and fees.
  • Non-credit-based student loans are awarded without any regard for your credit history or credit rating. You won’t have to undergo a credit check or obtain a co-signer.Examples of non-credit-based student loans are federal Stafford student loans and federal Perkins student loans. Many state student loans awarded by state financial aid agencies may also be non-credit-based.

A note about student loan defaults and delinquencies: It’s important to keep in mind that, although you can’t be turned down for a non-credit-based student loan on the basis of a generally weak, unestablished, or spotty credit history — such as missed car payments or a large amount of credit card debt — late payments or defaults on federal student loans specifically can affect your ability to get any federal college loans or non-federal private student loans in the future.

Parent Loans

Parent loans are awarded to parents of dependent students who need additional financial aid to help pay for college. Whereas student loans are made in the student’s name, with the student as the primary borrower, parent loans are made in the parents’ name, and the parents will bear all responsibility for repaying the loan.

Parent loans are typically non-need-based, credit-based college loans.

Federal PLUS parent loans, available through the federal financial aid program, have modest credit requirements. Some lenders may also offer private parent loans.

APPLYING FOR FINANCIAL AID

Applying For Federal Financial Aid

In order to be considered for any federal financial aid, each year that you’re in school, you’ll need to submit the Free Application for Federal Student Aid, known more commonly as the FAFSA.

Unless you complete the FAFSA, you won’t be eligible for any federal grants, federal work-study, or federal student loans. (Only federal PLUS parent loans may be awarded without a FAFSA. However, although the Department of Education doesn’t require a FAFSA from PLUS loan applicants, your school might. Make sure to check with your financial aid office for your school’s specific financial aid guidelines.)

Applying For School & State Financial Aid

Many state financial aid agencies and university financial aid offices also use the FAFSA to determine eligibility for school or state financial aid.

Make sure, however, to research the exact financial aid forms and paperwork required by your own state and school. Some state financial aid agencies have their own financial aid form that must be submitted either in addition to or in lieu of the FAFSA. Many colleges and universities also have their own financial aid forms, which are designed to collect additional financial information not accounted for in the FAFSA.

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financial aidresource center

Financial Aid Glossary

by Student Loan Daddy
written by Student Loan Daddy

Academic Year 

September through May, when most schools are in session.

Accrual Date 

The date when a loan’s interest charges begin to accrue.

ACT 

Standardized multiple-choice test administered to high school students. Colleges may use ACT scores to determine admission eligibility. The ACT is administered five times a year and is designed to measure academic proficiency in English, math, reading, and science.

Adjusted Available Income 

The income remaining after taxes and basic living allowances have been subtracted.

Advanced Placement (AP) 

College Board program that offers students the opportunity to take college-level courses while they are enrolled in high school. Students may gain advanced standing and/or earn college credit through their performance on the Advanced Placement examinations given each year in May.

Amortization 

Payments made over a period of time on a loan’s principal and interest.

Assets 

When calculating the expected family contribution (EFC), all assets are considered, including: bonds, checking and savings accounts, stocks, trusts, other securities, real estate (this does not include a person’s home), income, business equipment, and inventory.

Asset Protection Allowance 

The formula used by the U.S. Department of Education and a financial aid office to determine which parental assets to exclude when calculating a parent’s financial contribution to a student’s education (expected family contribution).

Assistantship 

Student employment, usually referring to departmental research assistance or student teaching.

Associate’s Degree 

A two-year college degree.

Auto Debit 

Loan payments deducted automatically from checking or savings account on a monthly basis.

Award Letter 

Separate, official notices sent to each student from the financial aid office at (each) college(s) where the student has applied for admission. They detail the student’s financial need and the financial aid package awarded (amounts awarded and sources of the awards).

Bachelor’s Degree 

A four-year college degree.

Bursar’s Office 

The college or university office responsible for billing and collections.

Campus-Based Aid 

Financial aid funds provided to a college from the government. Each college determines financial aid applicants’ eligibility to receive the funding. Programs included in campus-based aid include federal work-study, Pell grants, and Federal Supplemental Education Opportunity Grants (FSEOG).

Central Processing System (CPS) 

The U.S. Department of Education’s computer system; matches and calculates the expected family contribution (EFC), and delivers the Student Aid Report (SAR).

Citizen (and Eligible Non-Citizen) 

To receive federal aid, an applicant must be a U.S. citizen, a U.S. national, or a permanent resident who has an I-151, I-551 or I-94.

Commercial Lender 

Commercial institutions that loan money, including banks, credit unions, mutual savings banks, savings and loan associations, stock savings banks, or trust companies.

Commuting Student 

A student who lives at home or off campus.

Compound Interest (Capitalization) 

Interest paid on a loan’s principal and on any unpaid interest. Compound interest (or capitalization) increases the amount of money the borrower must repay and increases monthly payments.

Cooperative Education (Co-Op) 

Colleges and universities pay students to work in a professional setting while attending school.

Co-signer (Co-applicant) 

An individual who co-signs on a loan; if the first borrower on a loan defaults, the co-signer (in most cases) is responsible for repayment on that loan.

Cost of Attendance (COA) 

A student’s total cost of attending college. This figure includes books, fees, room and board, supplies, transportation, tuition, and other miscellaneous personal expenses. The COA also depends on marital and residency status.

Credit Rating 

A numerical score based on credit limits, balances, and personal information assigned by credit bureaus and credit reporting agencies to measure individual’s creditworthiness. Federal Stafford loans do not require a credit score but credit checks are required for Federal PLUS loans and most private student loans.

CSS Profile

College Scholarship Service (CSS) is an application required by some private colleges and universities to determine eligibility for non-federal financial aid.

Custodial Parent 

The parent that the student lived with the prior 12 months, in situations of divorce or separation.

Default 

Non-payment or late payment of loan installments or failure to meet the terms and conditions of a loan. Typically, payments are considered in default after 270 days without payment. Lenders are entitled to all legal means necessary for debt recovery. This can include wage withholding (garnishing wages), withholding tax refunds, and even confiscation of collateral if any is attached to the loan. Defaulting on a government loan can eliminate future federal financial aid and will negatively affect credit rating.

Deferment 

When a lender allows a borrower to postpone loan payments. A borrower must usually satisfy specific eligibility requirements for a loan deferment. If a loan is in default, the lender will not allow deferments.

Delinquent 

A loan becomes delinquent when payments are not made on time. When delinquency occurs, the lender can add late fees to the loan payments.

Dependency Status 

Whether or not the student is financially Dependent on his or her parents based on federal guidelines. All students are considered Dependents unless they are 24 years of age as of January 1, married, graduate or professional students, responsible for a legal Dependent other than a spouse, Veterans of the U.S. Armed Forces, or orphans or wards of the court (currently or formerly).

Dependent 

Someone who depends on another for more than half of his or her financial support.

Direct Loans 

Federal government funds loaned to students through institutions. This is referred to as the Direct Loan Program. If a student attends a school that participates in the Direct Loan Program, the student may not apply for federal loans through private lenders.

Disbursement 

When a student’s federal loan funds are sent to the student. Loan payments are co-paid to both the student and the school. These funds cover educational costs (tuition, fees, etc.) and related living expenses. Any excess funds are released to the student or applied to the student’s account.

Eligible Program 

A course of study that leads to a degree or certificate and meets the U.S. Department of Education’s requirements for an eligible program.

Enrollment Status 

A student’s enrollment status indicates whether the student attends school full-, half-, or part-time. Full-time refers to a minimum of 12 credit hours. Half time usually refers to at least six credit hours. In most cases, a student must be enrolled at least half-time to qualify for financial aid.

Exit Counseling (or Exit Interview) 

Prior to graduating withdrawing, or dropping below half-time enrollment, borrowers are required to complete exit counseling to help prepare them for repayment. Exit counseling provides valuable information about borrower’s rights and responsibilities, as well as helpful money-saving ideas.

Expected Family
Contribution (EFC) 

The government determines the amount of money a student and their family must pay toward the student’s education costs. The EFC depends on a student’s dependency status, the size of the student’s family, whether or not there are other family members in school, taxable and nontaxable income, access to parent’s assets, and other factors.

FAFSA (Free Application for Federal Student Aid) 

The submission of the FAFSA is required to determine eligibility for virtually all forms of government financial aid. The FAFSA form is available from the U.S. Department of Education or any financial aid office. Find the FAFSA online by visiting the Education Department’s FAFSA website at http://www.fafsa.ed.gov/.

Federal Family Education Loan Program (FFELP) 

This federal program allows private lenders to offer federal loans including Federal Stafford loans (subsidized and unsubsidized) and Parent Loans for Undergraduate Students (PLUS). Since FFELP loans are guaranteed against default by the federal government, they usually have low interest rates.

Federal Direct Student Loan Program
(FDSLP) 

A federal program in which certain institutions (“direct lenders”) are provided federal government funds to loan to students.

Federal Loan 

A loan guaranteed by the federal government.

Federal Stafford Loan 

A low-interest federally guaranteed loan for students. Stafford loans are either subsidized (need-based) or unsubsidized (non-need-based). The government pays the interest on a subsidized loan while a student is in school plus a six-month grace period after leaving school. Interest accrues on unsubsidized Stafford loans from the disbursement date. A student can receive a subsidized loan and an unsubsidized loan for the same enrollment period.

Federal Supplemental Educational Opportunity Grant (FSEOG) 

A grant for undergraduates with exceptional financial need. Federal Pell Grants recipients often get priority for a FSEOG, which has no repayment requirement.

Federal Work-Study 

A federal program that provides jobs for undergraduate and graduate students with demonstrated financial need. The Federal Work-Study Program allows the student to earn money while encouraging community service work and often the employment relates to a student’s course of study.

Fellowship 

Free aid that covers full or partial tuition and reasonable living expenses, usually awarded to students who display proven potential in their field of study.

Financial Aid Administrator 

Responsible for advising and counseling students regarding financial aid, and overseeing their financial aid packages.

Financial Aid Package 

The total amount and sources of financial aid (federal and non-federal) a student receives.

Financial Need 

The cost of attendance (COA) minus the expected family contribution (EFC).

Fixed Interest 

Loan interest rates that do not change over the loan’s lifecycle.

Forbearance 

Temporarily allows a borrower to postpone principal payments on a loan due to financial hardship. However, the borrower is still responsible for the interest that accrues during the forbearance period.

Free Application for Federal Student Aid (FAFSA) 

The submission of the FAFSA is required to determine eligibility for virtually all forms of government financial aid. The FAFSA form is available from the U.S. Department of Education or from any campus financial aid office. Complete your FAFSA online at www.fafsa.ed.gov.

Grace Period 

The time lapsed between a student’s graduation (or termination) and the beginning of loan repayments (usually six to nine months).

Graduated Repayment 

When a borrower’s required monthly loan payments increase over time.

Grant 

Need-based financial aid requiring no repayment.

Guarantee Fee 

Usually 1% of the loan amount, paid to the guarantee agency to insure against loan default.

Guaranty Agency or Guarantor 

The fee paid to the loan guarantor to insure against loan default. For federal loans, it is usually one percent of the loan amount.

Half-Time Enrollment 

A student’s enrollment status indicates whether the student attends school full-, half-, or part-time. Half-time usually refers to at least six credit hours. In most cases, a student must be enrolled at least half-time to qualify for financial aid.

HEAL 

Health Education Assistance Loans are federally backed loans to students in approved health education programs. New loans to students were discontinued in 1998.

Home Equity 

A mortgage’s unpaid principal subtracted from the home’s current market value.

In-School Interest Rate 

Rate at which interest accrues on Federal Stafford Loans while students are enrolled at least half-time in school. The in-school rate is typically lower than the rate at which interest accrues when the loan is in repayment.

Income-Sensitive
Repayment 

Loan repayment plan under which the borrower’s monthly payment amount adjusts annually, based solely on the borrower’s expected total gross monthly income.

Independent Status 

A student is considered independent if he or she: is 24 years or older (as of Dec. 31 of the award year), is a graduate or professional student, is married, has legal dependents, is an orphan or ward of the court; or is a veteran of the U.S. Armed Forces.

Institutional Methodology 

The formula certain schools use in determining a student’s financial need for non-portable financial aid.

Interest 

The amount of money charged for borrowing from a lender. Interest charges are usually included in each month’s payments.

Interest Period 

The contractual period of time during which interest accrues or is charged.

Interest Rate

The percentage of a sum of money charged to the borrower for its use.

Internships 

Part- and/or full-time professional work opportunities for students. Interns are usually paid or they gain college credits.

Lender 

Any institution that loans money, such as banks, credit unions, savings and loans associations, organizations like NextStudent, and schools (under the Federal Direct Loan Program.)

LIBOR 

London Interbank Offered Rate. LIBOR is a financial index used as a basis for determining many private loan interest rates.

Line of Credit 

A source of credit with a predetermined limit that can serve as a loan. Once qualified, the lender allows the borrower to borrow up to that predetermined limit. Lines of credit are usually activated when the borrower writes a check against his/her line of credit.

Loan 

The temporary use of money provided by a lender.

Maturity Date 

The date a loan reaches its maximum payment period and must be paid in full.

Merit-Based Aid 

Financial aid based on special talent or ability instead of financial need. Money for education awarded through contests, competitions, or certain scholarships is an example of merit-based aid.

National
College Fair 

A free program that allow students to interact with admission representatives from a wide range of postsecondary institutions to discuss course offerings, admission and financial aid requirements, college life in general, and other information pertinent to the college selection process. National College Fairs are held in the spring and in the fall each year.

Need 

The expected family contribution (EFC) subtracted from the cost of attendance (COA).

Needs Analysis 

How much a student or a student’s family can afford to pay towards the student’s college education, as determined by the financial resources reported on the FAFSA form.

Need-Based Aid 

The cost of education compared to a student’s (or a student’s family’s) ability to meet those costs.

Need-Blind Admissions 

An admissions policy in which the ability or inability to pay college costs is not considered when determining a student’s eligibility for admission.

Non-Portable Funding 

College funding that can’t be transferred to another college or university. For example, many colleges have scholarship funds that are specific to that particular college. If a student leaves or transfers, the money remains at that school.

Origination Fee 

A fee paid by the borrower to the lender to cover administrative fees for his or her loan.

Parental Contribution 

An estimate of a parent’s ability to contribute to a student’s educational expenses.

Pell Grant 

Need-based financial aid awarded to undergraduate students completing a four-year bachelor’s degree. Repayment of these grants is not required.

Perkins Loan 

A low-interest federal loan available to both undergraduate- and graduate-level students demonstrating extreme financial need. To apply for the Perkins loan, a student must have already applied for the Federal Pell Grant. Perkins loans are administered by financial aid offices.

PLUS Loan (Parent Loan for Undergraduate Students) 

A federal loan made available to parents of dependent undergraduate students. The parent may borrow up to the cost of education less the student’s financial aid package to cover the student’s total educational expenses.

Portable Funding 

College funding that can be used at any college or university regardless of whether a student transfers or remains at his or her original school.

Prepaid Tuition Plan 

Savings plan that guarantees the same rate of increase on a student’s savings as college costs increase. Regardless of whether college costs increase at a faster rate, it is guaranteed that a student’s invested money will be sufficient for college costs when he or she enters college.

Prepayment 

Loan repayment ahead of schedule.

Principal 

The unpaid or original dollar amount on a loan.

Private Student Loan 

Sometimes called “alternative loans,” private student loans are non-government loans offered by banks, credit unions, and other private lenders. These loans are not based on financial need, but rather on your creditworthiness and ability to repay. Private student loans are designed to supplement federal education loans and can be used for a wide range of education purposes, including tuition, books, living expenses, and a computer.

Professional Judgment 

When a financial aid administrator adjusts the EFC, COA, or dependency status of a student or a family. It typically occurs in the event of extreme changes in the student’s personal situation, such as a death in the family, unemployment, disability, etc.

Promissory Note 

The legal binding contract the borrower signs. It states the terms, details, and obligations of the borrower to repay the lender.

PSAT 

The Preliminary SAT is a standardized test administered to high school juniors and seniors each October. The PSAT has the same format as the SAT, and serves as a rough predictor for SAT performance. PSAT scores from the junior year count toward National Merit Scholarship.

Renewable Scholarships 

Scholarships awarded over more than one year. Some renewable scholarships are automatically renewed, which means a student need not resubmit paperwork.

Repayment Schedule 

The designated term and payment amounts for a loan, including interest rates, monthly payments, and payment due dates. The repayment schedule is documented in the promissory note.

Research Assistantship 

A form of college funding typically reserved for graduate-level students that allows participants to perform research duties for their supervisors or professors. In exchange, students are usually awarded tuition reductions. These positions are administered by colleges.

Satisfactory Academic Progress 

Most federal aid requires satisfactory academic progress, which is based on maintaining a specific grade point average set forth by the institution. If the student does not show satisfactory academic progress, federal aid can be denied.

SAT 

The SAT is the standardized test that colleges and universities use to predict how well a student might do at their college. The SAT tests math and verbal reasoning abilities, and compares it to the abilities of students from other high schools.

Scholarships 

Free student aid based upon merit. Corporations, organizations, foundations, etc., will typically award scholarships to students based on grades, community involvement, extracurricular activities, athletics, and arts.

Secondary Market 

When the original lender sells an education loan to another lender, the purchaser of the loan is in the secondary market. The terms of the loan will not change in the secondary market and the borrower will be notified whenever a sale has occurred.

Secured Loan 

Loans secured by collateral such as houses, cars, or other assets. If the borrower defaults on this type of loan, the lender reserves the right to confiscate or sell the collateral used in acquiring the loan.

Servicer 

The party paid by the lender to oversee the status of a loan, distribute funds, collect payments, and handle deferments, forbearances, and other related issues.

Simple Interest 

Interest charged on the principal balance of a loan, but not charged on interest that has accrued over time.

State Student Incentive Grants 

Matching funds provided by the federal government to state governments to help state residents with financial aid.

Stipend 

Fixed or regular pay; salary often awarded to the student with a fellowship, scholarship, or grant.

Student Aid Report (SAR) 

The official summary of eligibility for financial aid sent to the student by the government after needs analysis is performed.

Student Consolidation Loan 

Allows the borrower to combine a number of existing loans into one loan. Borrowers typically consolidate student loans to lower monthly payments.

Student Loan Cancellation 

Dismissal of a student loan due to circumstances such as death or total and permanent disability.

Subsidized Loan 

A need-based loan with interest paid by the federal government while the student is in school, in the grace period and during authorized periods of deferment.

Teaching Assistantship (TA) 

A form of college funding that provides a partial/full tuition waiver and a small stipend to supplement the cost of living. Teaching assistantships are often reserved for graduate-level students.

Term of a Loan 

The length of time allowed for repayment.

TERI 

The Education Resources Institute is a private, nonprofit institution. All NextStudent Private Loans are guaranteed by The Education Resources Institute.

TERI-Approved

Educational institutions that have met the guidelines for participating in lending and informational programs offered through The Education Resources Institute.

Title IV Programs 

Programs created by Title IV of the Higher Education Act of 1965 (as amended), including federal Pell grants, Federal Supplemental Educational Opportunity Grants (FSEOGs), federal work-study, federal Perkins loans, federal Stafford loans, federal PLUS loans, direct Stafford loans, and direct PLUS loans.

Tuition 

The enrollment fee charged by an institution.

Undergraduate Student 

A student studying towards a four-year baccalaureate degree.

Unmet Need 

Funding needed in addition to scholarships, grants, loans, or other financial aid awards, to cover a student’s total cost of attendance.

Unsecured Loan 

A type of loan that does not require the borrower to provide the lender with collateral. Typically, unsecured loans carry higher interest rates and often require a co-signer.

Unsubsidized Loan 

A student is responsible for paying the interest on an unsubsidized loan while attending school or while the loan is in deferment.

Variable Interest 

Interest that can fluctuate. Most variable-interest loans have an annual or maximum cap, which prevents interest rates from exceeding a specified amount within a specified period of time.

Verification 

Proper documentation required by a financial aid officer to verify the accuracy of information reported on a financial aid application.

Weighted GPA 

A weighted GPA takes into account the credit hours of a class such that an A in a three-credit hour class counts more toward the total GPA than does an A in a one-credit course.

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student loans

Federal Student Loans

by Student Loan Daddy
written by Student Loan Daddy

Federal Student Loans

Student Loans

When free aid isn’t enough to pay for college, it’s time to take advantage of the Federal Student Loan Program.

Student loans are low-interest, federally guaranteed loans, most of which don’t have to be repaid until after graduation. The amount and type of student loans for which you’re eligible will be outlined in your Student Aid Report — the form that’s generated by the Department of Education in response to your Free Application for Federal Student Aid (FAFSA) — and could include:

Federal Stafford Student Loans

Federal Stafford student loan are taken out in the student’s name with no collateral, no credit checks, and no co-signers required.

Federal PLUS Parent Loans

If student loan aid doesn’t fill the gap, your parents could be eligible for a Federal Parent Loan for Undergraduate Students (PLUS). Under this program, creditworthy parents can borrow up to 100% of the total cost of a college education for dependent children, less other financial aid awarded.

Private Student Loans

When Federal student loans are not enough, unsecured, credit-based private student loans may be available to undergraduate, graduate, and continuing education students. If you don’t qualify for a private student loan on your own, your parent or guardian may be able to co-sign for you.

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financial aidresource centerstudent loans

Financial Aid Questions

by Student Loan Daddy
written by Student Loan Daddy

Financial Aid FAQs and Answers

Am I eligible for financial aid?

Just about everyone qualifies for some type of financial aid. In fact, over 8 million students receive financial aid every year. Even if you’re not a straight-A student or a star athlete, you may be eligible for more aid than you think. To see if you meet basic eligibility requirements, take our Financial Aid Eligibility Quiz. Then, complete the Free Application for Federal Student Aid to see how much aid you can get.

When do I start the process?

It’s never too soon to start. There are steps you can take beginning in high school to help you prepare both financially and academically. Otherwise, you should start the year before you go to college by completing the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1.

What is FAFSA and where do I find it?

The Free Application for Federal Student Aid (FAFSA) is used to determine how much aid you can receive and how much your family is expected to contribute toward your college costs. You must complete a FAFSA (or renewal FAFSA) each you wish to be considered for financial aid.

You can find the FAFSA form online at www.fafsa.ed.gov, or you can get a paper copy from your school’s financial aid office or your high school guidance counselor.

For help with completing your FAFSA, see our online Financial Aid Advisor, “Tips on Completing the FAFSA.”

How can I increase my chances of getting more aid?

The single most effective way to increase your chances of qualifying for more money is to apply as soon as possible after January 1 of the year you wish to receive financial aid. The aid pool at most institutions is limited, and is typically awarded on a first-come, first-served basis. For more information, see our financial aid tips for getting the most money for college.

How do I get the money?

Methods of distributing financial aid vary from campus to campus. Most financial aid will not be given directly to you. The majority of aid gets credited directly to your student account at the start of an academic term.

How do I know if I’m a dependent student?

If you are less than 24 years of age on December 31 of the school year, an undergraduate student, single, not in the military, have no dependents, and are not an orphan or ward of the court, then you are a Dependent student as far as the Department of Education is concerned.

Which loans require credit checks?

Federal Stafford loans do not require any credit checks. However, if your son or daughter has defaulted on a student loan or is not making satisfactory academic achievement, they may not be eligible to obtain a new federal loan. The PLUS loan (Parent Loan for Undergraduate Students) requires a credit check and may be denied if the parent has adverse credit history. All private student loans require credit checks.

When do I start repayment of my loans?

    • Federal Stafford loans: The borrower is not required to make any payments until six months after leaving school or going below half-time. For example, if the student receives a degree in May, but goes on to graduate school in the fall, no payments must be made because there was not a six-month lapse in schooling.
    • Federal PLUS loans: Repayment will start usually no later than 60 days after the last disbursement. All federal loans have at least two disbursements, typically one for each school term. At most schools, the last disbursement will take place in January, and the repayment will normally start between February and March.
    • Private student loans: The repayment terms may vary, depending on the type of private loan you have.

Is each loan separate, or do they just roll them all into one account? 

Each loan is considered a separate loan, but all federal loans under the same Social Security Number may be consolidated. In a federal student loan consolidation, your individual federal college loans are paid off to create one new consolidation loan. The repayment term may then be extended to minimize the monthly payment, while maintaining the benefits of the original, separate loans. Private student loans will not be included in a federal student loan consolidation. You would need to consolidate your private loans separately in a private consolidation loan.

Student Loan Consolidation FAQs and Responses

Why should I consolidate my student loans?

Consolidating student loans offers many benefits-even if you’re currently making your monthly student loan payments without any difficulty.

    • You can make monthly bill paying easier with one student loan payment to one lender.
    • The rate on a federal loan is fixed for the life of the loan. Federal student loans and parent loans issued prior to July 1 2006, carry variable interest rates that are adjusted annually.
    • Consolidating can help ease the pressure on your monthly budget by reducing your monthly student loan payment by 10% – 60%.
    • You can save money by using your student loan payment savings to pay off high-rate debt, such as credit cards.
    • Consolidation will help your credit scores and debt-to-income ratio, both key factors if you’re looking to qualify for a credit card, buy a car, rent an apartment, or purchase or refinance a home.

Won’t my total cost increase if I extend repayment to 30 years?

Extending the repayment period does increase total interest payments, since smaller payments are made over a longer period of time. However, there are no prepayment penalties for accelerating repayment, so you could pay off the loan in a shorter period of time and save on total interest payments.

Can my parents consolidate their federal parent loans with my student loans?

All loans must be under the same borrower’s Social Security Number, thus parents cannot consolidate their PLUS parent loans with their children’s Stafford student loans, or vice-versa.

How is the interest rate determined?

The interest rate is determined by taking a weighted average of the interest rates on all loans to be consolidated and rounding up to the nearest 0.125% or 8.25%, whichever is less.

Is the interest tax deductible?

Most people can deduct interest paid on federal student consolidation loans. Consult your tax advisor for more information.

How do I know what my payment will be?

Try our student loan consolidation calculator to get an idea of the lower payments you can expect from a student consolidation loan.

How do I apply?

Call the U.S. Department of Education at (800) 557-7392, or visit the Federal Direct Consolidation Loans Information Center.

Stafford Loan FAQs and Responses

What’s the difference between subsidized and unsubsidized Stafford loans?

It’s all about financial need.

Subsidized Stafford student loans are awarded to students with demonstrated financial need. While students are in school, Uncle Sam pays the interest on subsidized Stafford loans, and payment is deferred (delayed) until after graduation. Once out of school, though, the student assumes responsibility for the loan, including interest.

With unsubsidized Stafford student loans, you’re responsible for the interest from the time funds are disbursed. Unsubsidized federal college loans are not based on financial need; in fact, virtually every student is eligible for an unsubsidized Stafford loan. Although interest starts to accrue immediately, you can delay repayment until after graduation.

How much money can I get with a federal Stafford student loan?

Your maximum available Stafford loan amounts vary depending on your year in school, whether you’re considered a financial dependent of your parents, and whether your parents have qualified for a federal PLUS parent loan.

What if it isn’t enough?

If Stafford student loans are not enough to pay for school, your parents (if you’re a dependent student) may be able to borrow under the federal PLUS program (Parent Loans for Undergraduate Students). With the PLUS loan, parents can borrow up to the total cost of education at your school, less any other aid you are awarded.

If federal aid leaves you short, you may be able to get the money for college you need with a private education loan. Private student loans are credit-based, non-federal student loans available to undergraduate, graduate, and continuing education students that can cover up to 100% of the cost of your education.

How are loan funds disbursed?

Stafford loan funds are usually disbursed at the beginning of each semester. Funds for tuition and fees are paid direction to your school, and funds for living expenses and other costs are typically distributed in the form of a check or deposit to your bank.

What is the interest rate?

As of July 1, 2006, unsubsidized Stafford student loans and Stafford graduate student loans carry a fixed interest rate of 6.8%.

How do I apply for a Stafford loan?

You’ll need to complete and submit the FAFSA (the Free Application for Federal Student Aid) each academic year.

Private Student Loan FAQs and Responses

What’s the difference between federal and private student loans?

Federal student loans are guaranteed by the federal government, and offer attractive terms such as low fixed interest rates, deferred repayment, subsidized interest payments (for student who demonstrate financial need), and flexible repayment terms. Neither Stafford student loans nor Perkins student loans require a credit check or co-signer. The credit checks for PLUS parent loans and Grad PLUS graduate student loans are modest, much less stringent than for private student loans and other types of consumer loans. You must complete the FAFSA (the Free Application for Federal Student Aid) in order to be eligible for federal education loans.

Private student loans are non-government loans offered by banks, credit unions, and other private lenders. These loans are not based on financial need but rather on your creditworthiness and ability to repay. Private student loans are designed to supplement federal loan programs and can be used for a wide range of education purposes, including tuition, books, living expenses, and a computer. The rates and terms for private student loans vary by lender and borrower creditworthiness. If you don’t qualify for a private student loan on your own, you may need to get a co-signer.

Do I need a co-signer for a private student loan?

Not necessarily. You may be eligible for a private student loan if you have a satisfactory credit history, are employed full time, and are a U.S. citizen or permanent resident. If you don’t meet the minimum eligibility requirements for a private student loan, you can apply with a co-signer who does.

What are the rates for private student loans?

Rates on private student loans vary by lender, program, and the creditworthiness of the borrower.

What is TERI?

The Education Resources Institute (TERI) is a private, nonprofit institution that used to guarantee all NextStudent private student loans. Under previous private loan programs, to be eligible for a NextStudent private student loan, you were required to be enrolled at least halftime in a TERI-approved school.

How do I apply for a private student loan?

Just fill out this quick information form, or call our friendly Education Finance Advisors at (877) 680-9879.

Parents’ FrequentlyAsked Questions and Responses

How much should I save for my child’s education?

How much you need to save depends on the school your child attends. Tuition and fees at public colleges are generally lower than those at private schools. Regardless of the school, though, education costs have been rising, and are expected to continue increasing over the next decade.

Here’s how much college funding you’ll need to save to send one child to an average four-year private or public college. Don’t let these numbers frighten you. Start implementing your college savings plans today.

Child’s Age (Years) Average Cost
Private College		 Average Cost
Public College
One $257,543 $118,312
Four $222,475 $102,200
Eight $183,031 $84,080
Twelve $150,580 $69,173
Sixteen $123,884 $56,909

Which is better, a prepaid tuition plan or a college savings plan?

A prepaid tuition plan offers a conservative approach to investing for college, and can be right program for students planning to attend a state college. And, if tuition costs increase, you win-the number of credit hours you purchased remains the same, regardless of any changes in college costs.

The NextStudent Scholar’sEdge™ savings plan is more flexible, allowing you to save for any attendance at any college. The amount you invest, plus the accumulated return on your investment, may well exceed college costs-so you’ll come out ahead.

Both plans are tax-deferred, and allow tax-free withdrawals for education-related expenses.

If savings may impact my child’s federal aid eligibility, why should I save at all?

Whether you save or not, you will be expected to contribute to your child’s education to the extent possible. If you haven’t put away any money at all, then you may have to take out parent loans either as part of your financial aid package or to pay part or all of your expected family contribution, or both. Even though you and your child may be eligible for low-cost federal student loans, any type of college loans means paying interest, whereas saving money means earning interest.

How much will I be expected to contribute toward my child’s education?

To meet the cost of attendance, each school looks to the student and parents to make an expected family contribution (EFC). The EFC is based on your family’s ability to pay and is determined by need analysis derived from the information reported on your child’s FAFSA (the Free Application for Federal Student Aid. The EFC normally includes both a student’s share and the parents’ share, both of which take into account income and assets. The total EFC is calculated using a standard formula established by law so that, regardless of the college your child attends, your EFC will be the same.

How is EFC calculated?

The EFC calculation uses a standard formula based on the information reported on the FAFSA. This calculation considers family size, the number of family members attending college, whether the student is dependent or independent, and the family’s income and assets (both student’s and parents’), including cash, checking and savings accounts, real estate other than your family home, and investments. The difference between your EFC and the cost of admission (COA) determines your financial need.

Because both the cost of the school and your family finances are considered, your family may qualify for more financial aid than you think.

How will contributing to a 529 impact financial aid eligibility?

Although your savings will be considered in the EFC calculation, income is a bigger factor than assets. However, both types of 529 plans will impact your EFC. A college savings plan, such as the NextStudent Scholar’sEdge plan, is considered the parents’ assets and is factored into the EFC at 5.6% so that a portion of the assets are considered in the financial aid calculation. A prepaid tuition plan, on the other hand, is considered to be the student’s asset, and reduces financial aid dollar-for-dollar.

Who should save — me or my child?

While there are potential tax benefits to saving in your child’s name, there are also potential financial aid implications. Parent assets are factored into the EFC at low rate-5.6%, while student assets are assessed at 35% of assets and 50% of after-tax income over $1,750.

Who should borrow — me or my child?

You should definitely investigate federal college loans for your student first, such as Stafford student loans. These are the lowest-cost student loans available and offer significant benefits such as flexible repayment terms, deferment and forbearance options, and the perks of consolidation student loan consolidation.

How is a PLUS loan different from a Stafford loan?

Both loans are federally guaranteed, but federal PLUS loan are made to the parents of dependent undergraduates, while Stafford loans are available to both undergraduate and graduate students and are made directly to the student in her or his name.

PLUS loans and Stafford loans also differ in rate, maximum loan amount, and repayment terms:

    • Interest Rates: The interest rate on a Stafford loan disbursed after July 1, 2006, is a fixed 6.8%, generally among the lowest available student loan rates. The interest rate for a PLUS loan disbursed after July 1, 2006, is a fixed 7.9%, slightly higher than the Stafford loan rate, but still quite low compared to other types of consumer financing.
    • Repayment: Repayment on federal PLUS loans begins within 30–60 days after the final disbursement, although parents have the option to defer their payments until six months after their child has graduated or left school. Repayment on federal Stafford student loans can also be deferred until after the borrowing student has graduated, left school, or dropped below half-time enrollment.
    • Loan Amounts: PLUS borrowers can take out up to 100% of their child’s college cost of attendance, less any financial aid (such as student loans and work-study) their child has received. Students qualify for different maximum Stafford loan amounts depending on their year in school, their dependency status, and whether their parents qualified for a parent PLUS loan.

Is there a credit check required for a federal PLUS loan?

Yes, parents must pass federal guidelines for creditworthiness. These guidelines are generally less stringent than for other types of consumer credit, such as private student loans, home equity loans, and credit cards.

What if I’m not approved for a PLUS loan?

A student whose parent(s) have been turned down for a PLUS loan may be eligible to borrow additional funds in unsubsidized Stafford student loans, subject to the school’s approval.

How much does a federal PLUS loan cost?

The Federal PLUS loan has a 3% government origination fee and a 1% guarantee fee, which is normally waived. Fees are taken out of the proceeds of the loan, so there’s no upfront money required to obtain a PLUS loan.

How are federal PLUS loan funds disbursed?

The school’s financial aid office will distribute the funds directly to the student in scheduled payments over the course of the academic year. All federal college loans have at least two disbursements, typically one for each school term. At most schools, the last disbursement will take place in January, and the repayment will normally start between February and March.

Are there any prepayment penalties on the federal PLUS loan?

No.

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Parents

The Workaholic’s 4-Step Guide to a Balanced Life

by Student Loan Daddy
written by Student Loan Daddy

“There is nothing more tragic than a person who achieves wealth, fame, power or prestige only to find he’s lost the love of his family and friends, the respect of his colleagues, and above all has lost the ability to appreciate life for its own sake.”
~ Roger Dawson
The truth is, most companies reward workaholics — promotions, raises, additional responsibility — which can lead to a self-perpetuating cycle: The more success you have, the more you’re drawn to focusing on your career.
You may be your company’s star employee, but as a workaholic, you’ll have little time for family, friends, exercise, or even just small leisurely distractions. The big paychecks, professional prestige, and recognition may make you feel like those long hours, weekends, and holidays spent working are worth it, but do you ever imagine your last words on your deathbed being, “I wish I had spent more time at the office”?
Ten, 15, or 20 years from now, when you’re looking back and taking an inventory of how you spent your waking hours on this earth, don’t let one of your regrets be that you wish you had spent more time living and less time working.

Is there more to my life than work, really?

Not convinced that any of this applies to you? Start with these five sure signs you are a workaholic.
The good news is, even the most hardcore workaholics can start reclaiming their lives just by making small changes that will go a long way toward breaking the compulsive career cycle.
Here are four steps you can take to help you redefine your life as one that belongs to you, not the company you work for.
1. Establish boundaries, shift your priorities, and delegate.
Your first and most important goal: To re-assert your personal life.
This means learning to leave your work at the office, delegating what’s not of the highest importance, and cutting back the time you spend working to 40 hours a week.
It won’t be easy. You’ll feel like you’re slacking at first, like you have to be doing more. So take it slow, and cut back gradually:
If you’re working seven days and 70 hours a week, start by scaling back by one hour a weekday to 65 hours a week. Then work your way down to 60 hours. Then try taking Sundays off completely, and so on, until you’re at 40 hours and you’ve made your weekends your own.
As with any addiction, breaking your dependency on work will go easier if you can distract yourself from thinking about it. So as you cut down on your work hours, reward yourself by spending that extra time doing things you really enjoy.
2. Pay attention to your body.
Workaholism doesn’t just cost you a personal life, it can take a physical toll as well. Stress, fatigue, headaches, and insomnia can be just the beginning.
If you ignore what your body’s telling you as you work yourself into the ground, your symptoms may get worse and could lead to depression, high blood pressure, even a heart attack or stroke. Your work, when you let it run rampant enough, could literally kill you — the Japanese actually have a word for it: kroshi, “death by overwork.”
Make a commitment to stop prioritizing work over your health and well-being: When you’re tired, go to sleep. When you’re run down, take a break. When you get to the point where you’re feeling wrung out, go on vacation.
3. Find balance in your life.
Your mission here is to move from a life that’s work-centric to balanced living, where you allocate time for yourself — social outings, long-forgotten hobbies, even just time to relax — and for those things that matter most, your friends and family.
Start by scheduling your personal time, just as you would work. When you’re completely absorbed by your job, the only way you’re going to be able to kickstart your personal life is by managing it, at first, the same way you manage your work life.
Set aside appointment times in your calendar for movies, dinners, workouts, etc. No matter how small a thing it is, write it in. If one of your goals is to read more, schedule reading time. If you want to sleep an hour more a night, schedule your bedtime, and stick to it.
Eventually, as you force yourself to balance work with a personal life, you’ll be able to find time naturally for your non-work activities without needing to lay them out, hour by hour, in your calendar.
4. Get help if you need it.
Some mental health professionals believe workaholism is an addictive behavior, like compulsive gambling or alcoholism, that requires formal treatment for those who can’t conquer it on their own.
If your addiction to work has spiraled out of the range of your ability to rein it in, your first step is to admit that you have a problem. Your next step is to take action and get the support you need to overcome it.
The Workaholics International Network and Workaholics Anonymous are two good places to start if you need help. Both websites offer extensive resources, articles, and advice. Workaholics Anonymous has a 12-step recovery program and lists W.A. meetings by city and state.

Additional Resources

For more information and guidance on overcoming workaholism, try these books:

    • The Man Who Mistook His Job for a Life: A Chronic Overachiever Finds the Way Home by Jonathon Lazear (Crown, 2001)
    • Chained to the Desk: A Guidebook for Workaholics, Their Partners and Children, and the Clinicians Who Treat Them by Bryan Robinson (New York University Press, 2007)
    • Working Ourselves to Death: The High Cost of Workaholism and the Rewards of Recovery, second edition, by Diane Fassel (Backinprint.com, 2000)
  • Workaholics: The Respectable Addicts by Barbara Killinger (Firefly Books, 1997)




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Parents

Surviving the Economy: 5 Tips for Taking a Summer Staycation

by Student Loan Daddy
written by Student Loan Daddy

You and your kids have been looking forward to summer, and you want to get away. But with the cost of gas and plane so high, and the uncertainty surrounding COVID-19, any kind of travel may be just not in the cards this year.

But while you may have to cancel your plans that would’ve taken you across the country, across the border, or across the ocean, before you skip a summer break altogether, consider taking a “staycation,” where you can still enjoy an affordable summer vacation at home.

The idea behind a staycation is to look at your city through the eyes of a tourist. Discover those great hidden places, attractions, and small restaurants you never knew about, and take in the local sights you’ve always wanted to see but keep putting off as “things to do” with your out-of-town guests.

Playing the Tourist: Downtime in Your Hometown

1) Stay in a nearby hotel or resort. Tell the hotel you’re a local, and they might give you a break on a room rate to encourage you to recommend them to visiting friends and family. Hotels and resorts can be pricey, though, so look for summer deals and discount packages.

2) Rediscover the outdoors. Go hiking, biking, boating, camping. If a hotel is too expensive or seems to risky, pack up your car and some camping gear, and get away from it all with a couple nights’ sleep under the stars. Rent a boat, and spend a day out on the lake. Or keep it closer to home, and have a midday picnic in the park. Look up nearby nature trails online, and set out on a daylong hike, or take it a little more easy and just make it a leisurely morning or evening walk; buy a birdwatching book or field guide, and try to pick out the different birds, trees, flowers, and other plant and animal life along the way.

3) Check out local guidebooks. For ideas of places to visit, browse online guidebook sites like Frommer’s, Fodor’s, and Lonely Planet check out the hard-copy versions from your local library.

4) Find hole-in-the-wall restaurants. If you’re going to sightsee like a tourist, you should be eating like one. Steer away from your usual takeout and dine-in standbys, and find out what affordable restaurants food lovers recommend in your area that you’ve never been to. See if Epicurious offers an essential guide for places to eat in your h威而鋼 ometown, or check out other foodie websites like Chowhound and Roadfood.com.

5) Look for online events calendars. Many newspapers and alternative weeklies have already done the footwork for you, so take advantage — some of their listings will usually be free. Plan to attend at least one event or activity every couple days or so during your staycation — it’ll help you avoid the temptation to spend your time in front of the TV and slipping back into your usual day-to-day routine or checking your e-mail and getting sucked back into work.

 

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Parents

Surviving the Economy: Summer Savings on 5 Big-City Staycation Ideas

by Student Loan Daddy
written by Student Loan Daddy

Why overspend this year on a vacation that could cost you big in rising gas, airfare, and food prices?

Cut your costs and the hassle by staying close to home and playing tourist. Take a staycation, and you can plan an affordable summer getaway right there in your hometown or nearby. Break out of your household routine, check into a reasonably priced local hotel or resort, and make a point of seeking out all the sights and attractions you’d typically explore if you were an out-of-towner just visiting for the week.

Recommended by Fodor’s, here are staycation ideas and hotel packages for five major U.S. cities.

1) New York City

Where to stay: Jumeirah Essex House
What to do: Take advantage of the hotel’s Weekend Escape on the Park package, and stay at this recently renovated Art-Deco–style hotel located across from Central Park. Go window-shopping on Fifth Avenue, take in a Broadway show, and check out a concert during SummerStage ’08, a free performing arts festival held in the park each summer.
What you’ll spend: Room rates are $309 and up.

2) Scottsdale, Ariz.

Where to stay: Camelback Inn
What to do: Get a vacation package the whole family can enjoy. The resort’s Escape! Family Slumber Party, which runs through December, includes a casita room or a two-bedroom suite, pizza delivered to your room daily, one in-room movie a day, and unlimited soda and juice for the kids. Lounge in your room or by the pool while the kids take a cooking class, then spend some time together at family events like one of the city’s free ArtWalks held throughout the year.
What you’ll spend: Room rates start at $149.

3) Seattle

Where to stay: The Fairmont Olympic Hotel
hat to do: Start off your mornings with a cup of the city’s famous java, then try some of the local wines at night, paired with a four-course meal as part of the hotel’s Savor Seattle Package. This food-and-wine package includes a copy of the Savor Seattle cookbook, autographed by the hotel’s executive chef, Gavin Stephenson, and featuring his recipes, alongside those of other well-known chefs in the Northwest. You can also explore the Seattle Aquarium, or walk to Pike Place Market for some fresh seafood.
What you’ll spend: Package rates start at $499.

4) Dallas

Where to stay: The Ritz-Carlton, Dallas
What to do: Forget about exploring, and just relax. Book the Signature Spa package, available through December 27, and get pampered. Perfect for couples who need an escape from work or their college kids who are home for the summer, the package includes a 50-minute Signature Massage for two guests (tip included), deluxe accommodations and valet parking for one night, and breakfast for two in your room or the hotel restaurant.
What you’ll spend: Package rates start at $539.

5) San Francisco

Where to stay: The Orchard Hotel
What to do: Go green, and book the Eco-Getaway at this boutique hotel just 100 feet from the Powell Street Cable Car line and two blocks from Union Square. Hit the ground running with your Greenopia Guide, the urban dweller’s guide to green living in San Francisco, and get a hotel discount on tickets for Mr. Toad’s “Postcard San Francisco” three-hour tour. You’ll see San Francisco in a pre-1930s vintage car that runs on propane, and get to stop for photo ops at picture-postcard places like Alamo Square, Golden Gate Park, and Ocean Beach.
What you’ll spend: Book Mr. Toad’s tour for $38 ($48 without the hotel discount). Room rates vary and are subject to a 14-percent occupancy tax.



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