THE Cambridge Connection - Episode 5

1-800-CAMBRIDGE. Welcome back. This is Gordon Oliver, host of The Cambridge Connection, to discuss what’s in the news. Today’s show is all about filing for federal student aid and the process. So Arianne, what kind of headlines do we have to talk about?

So we’ve got this article from The New York Times titled, What’s Changing in the New FAFSA and What’s Not? So the latest version of the Federal Form for College Aid has just become available on October 1st for the 22-23 academic year, but a planned major overhaul of the form may not take effect for several years. Go figure. Wah, wah, wah. No.

Yet people are still, even though there are changes to this process, we know very, very clearly that people have no idea how to go about this process. Yeah, for sure, because no one really talks about it. They just say go to college, apply, apply, get the scholarships, and they don’t really tell you how. I personally have been through the process, as my son recently is going to college. So I’ve been through this, and I can tell you it’s not very straightforward.

So what are these changes that are going to take place? So there’s going to be at least two notable changes. So one, having a drug conviction while receiving student aid or failing to register with the Selective Service System is the second one. So if you fail to register for the draft, it no longer affects the applicant’s eligibility for financial aid. So in the FAFSA process, it’s important to understand what that means is anybody that’s eligible for that, when they do the form, they’re not going to have the option to be accepted because it’s not going to be changed yet.

So in a case like that, whatever college that you’re seeking going to for education, the financial aid office is really the next place to go to make changes. Because once you send that form in, you can’t really make changes. There are processes where you can make edits and changes if your lifestyle has changed or if your income has changed. But through this process, it’s very cut and dry, so you’ll have to take next steps. gov, those are the people to contact as well as it results to FAFSA, especially in the early going when you don’t really know what school you’re going to.

So what’s next? So going back to the Federal Student Aid Office, they said in an announcement in June that the changes approved late last year by Congress came, quote, too late, unquote, to remove the questions. But the office said it had advised college financial aid offices on how to process FAFSA forms to eliminate the effect of the questions. So the office said it had emailed about 400,000 students who were found to be ineligible for aid based on their answers to those two questions, instructing them to contact the financial aid office at their school for reconsideration. OK.

Like many things when dealing with future debt, aid, whatever you want to call it, when there’s notifications that are going to be sent out, maybe it doesn’t get to you and you don’t know that this is happening. gov. When you go to their website, you get a login, you create a profile, and then there’s numbers to call for various different things. And you cannot communicate enough with those offices to get the proper information that you need. gov?

That all depends. It’s really, really day by day. And if it’s during a point such as in February when loans start coming due and payments start coming due again, you can better believe that wait times are going to be high. And right now, since yesterday, October 1st, was the first day that you can file, many people really don’t know that. But this is going to be a time where activity really starts and the phone times will probably be longer.

Yeah, for sure. So the sooner the better. And it said that it emailed about 400,000 students. So how many of those students are getting those emails? How many of those students are really understanding what they’re reading, too?

How many are rolling their eyes saying, oh no, federal loans again? Right. So is it true that one of the reasons why they had postponed repayments for student loans is because they just really didn’t have the ability to handle all of the new loans? Or do you think that it is truly the pandemic relief that they had used to hold this back? I think it’s both.

And I think on both occasions, those that chose not to pay money to their loans at 0% interest are going to have gotten comfortable with not having to pay it. And that’s going to be coming due again. So it’s important to know what the options are. And we’ll get into that in a whole other segment. So if you’re just joining us, this is Gordon Oliver with The Cambridge Connection.

Introducing Ariane and real people segment

And we’re going to turn to our Real People, Real Problems segment with Ariane. And if you don’t know about Ariane, she’s my co-pilot. And she is the resident digital maven at Cambridge Credit Counseling. She’s an education enthusiast and Cambridge Credit hype woman. Ariane has been at Cambridge since 2016, and she’s quickly cemented herself as not only the digital brand specialist, but the financial education coordinator.

Oh, and by the way, if you’re wondering if she’s qualified, she’s a licensed educator with her master’s in education from Boston University. Welcome again, Ariane. So I know we’ve got a guest on from STIC, Springfield Technical Community College. And I do want to say to the listeners that I did start at STIC and ended up at Boston University. So community colleges are really, I think, a great opportunity for people who are just starting.

How the universe pulls us together. I know. So I’m really excited to talk turkey about higher education. So I actually work very closely with Cambridge Credit’s student loan department. And I even passed their certified counseling test.

And honestly, as someone with an advanced degree and several thousand dollars in student loans, I look forward to educating people on them. So now because of the messages you folks send in are jam-packed with good questions, we’ve decided to only discuss one question in each of our Real People, Real Problems segment. I want to make sure that you are all getting your questions answered and you can listen in and at the end of each show feel more confident about your financial wellness options. So let’s dive in. Ashley R.

Listener question on federal grants and dependency

org, which you can all do. And she wants to know about federal grants. Hello there. I’m applying to college shortly. I’m going to be working towards a bachelor’s in criminal justice at a local college.

I’m living on my own, well, with a roommate. Unfortunately, I have no financial support from my parents. Firstly, will their income be factored into my financial aid application? So let’s pause. That’s part of her question.

So Gordon, what’s your expert answer here? Okay. So as you know, I’ve done seminars and counseling to people with student loan debt. The student loan front part of the process has developed over time. Years ago, people were using techniques like renting an apartment to get financial aid.

And now they’ve kind of done a lot of things to tighten things up. So unfortunately, the short answer is if you are under age 24, you are only considered to be independent for federal student aid purposes. If you’re married, you have dependents, you’re working on a master’s or doctorate program during that award year, which that may be a path you go on, but right now you’re in the bachelor’s stage. At the time you turn 13, your parents were deceased. You were in foster care or were awarded of the court.

You have an emancipated or someone other than a parent or step parent that’s been appointed their legal guardian. Or you are determined to be unaccompanied as a youth, either homeless or at the risk of being homeless. So unfortunately, if you are under 24, unless those things exist, your parents’ income is included. There are a lot of hoops to jump through for kids that are just trying to go to college. gov, log in.

There are numbers there to have these questions answered. So if you have special circumstances, just like the FAFSA process, you have to call and see how you can get the information to the student aid office of the college that you’re going to, to try and have a look and see if you can avoid that criteria. If you’re just joining us, this is The Cambridge Connection with your host, Gordon Oliver. And I’m here with Arianne with our Real People, Real Problems segment. So Ashley, just to circle back, it sounds like we would need more information, but Gordon’s right.

gov is where you want to go. So let’s go back to the question. Let’s see what else she has. She says, I also hope that I get grants. gov.

And it says that if I show, quote, financial need, unquote, that I could be awarded one to apply, I, quote, should start by submitting the FAFSA form, unquote. But it doesn’t say what else I need to do. I understand that I need to fill it out every year. But where do I go to apply for the Pell Grant? It says that my school will apply the grant, if I get it, to my school costs, or they’ll pay me directly, or both.

I can’t be the only one confused here. Sorry if these are ignorant inquiries, which they aren’t, Ashley. But I’m not sure who else to ask. I hope you’ll answer this on your radio show so it will be like talking to a real person. Thank you in advance.

Pell grant repayment rules explained

Another great question. I probably could spend a lot of time here because there’s a little different ways this could go. But in reality, the Pell Grant is exactly what it says it is. It’s a grant. So it’s money given by the government to help you afford tuition.

Examples of why you might have to repay part or all of that federal grant would be you withdrew early from your program, which the grant was given to you for, so you didn’t follow through. Your enrollment status changed in a way that reduced your eligibility for your grant. For instance, if you switch from full-time enrollment to part-time enrollment, your grant amount could be reduced or eliminated. Or you received outside scholarships or grants that reduced your need for federal student aid. Important to understand too, some people that we’ve run across have made mistakes of combining grants into consolidating their loans, which is why it’s important to speak to a loan servicer when you have loans about these things or a counselor at Cambridge Credit Counseling at 1-800-CAMBRIDGE to understand how all of that works before you make a decision that you can’t turn away from.

And just to let everybody know again that Cambridge Credit Counseling is a non-profit, so they’re really here to help you and answer your questions. Takeaways from this segment, big important takeaways. Number one, as of yesterday, you can file for your FAFSA, so start the process. gov and work through the questions with the people that know what you’re supposed to do filing for aid. And then lastly, the financial aid offices at the schools also have information to help you because once you fill this information out, they will get the information.

You’re going to get what’s called a student aid report that tells you what your expected family contribution is, which means what you’re going to have to pay above and beyond grants and aid. All right, thank you so much, Gordon. It’s been a pleasure, as always, on our Real People, Real Problems segment. com, like Miss Ashley did, with questions that we could answer right here on the air. So please, folks, don’t hesitate to reach out to us.

And I’ll see you all next Saturday. So thank you again, Ariane. Amazing that we have these Real People, Real Problems segments. Stick around. We’re going to take a short break.

And then we’ll be back with Tina Marie and the Cambridge Credit Success Moment. Hi, everyone. This is Christopher Viale, president of Cambridge Credit Counseling. My staff and I are proud of our accomplishments over the past 25 years, including being named the Nonprofit of the Year by the BBB and earning our high rankings from financial websites. We work hard for our clients.

But our expertise is limited, which is why we work with lots of other great businesses and service providers to help you get where you want to be. If you need financial help, Cambridge and our friends will help you find solutions. Call us today. 1-800-CAMBRIDGE. Welcome back.

Cambridge credit success story of Erica

This is Gordon Oliver with the Cambridge Connection. And every week, we have the Cambridge Credit Success Moment. And I’m here with Tina Marie, the rock star credit counselor that has about 25 years of experience to tell us about another story where a consumer was having some trouble financially, sought help from Cambridge, and then was able to see a solution that was helpful. Good morning, Gordon. How are you today?

I’m great, and you? Great, great, great, great. I’m so excited to be here once again. Today, I want to talk about Erica from Ohio. Erica, single mother of one.

Unfortunately, like many Americans or like many people, lost her job in 2020 due to COVID. She owed over $9,000 in credit card debt, contacted her credit card companies. If everybody remembers about a year or so ago, some of the banks were extending a three-month deferment, which she obviously took advantage of. But unfortunately, three months comes up. She was not able to make her monthly payments, so she began to fall behind.

Very devastated, didn’t know how to stay afloat, but realized that her mortgage and food on the table was obviously much more important than her credit card debt. So she kind of let it slip up. Luckily, in July of this year, 2021, she was able to become gainfully employed. At that point, she contacted her creditors to try to work out an agreement with them. And lo and behold, they gave her our number, 1-800-CAMBRIDGE.

So wait, the creditor gave 1-800-CAMBRIDGE? Absolutely. Excellent. Yes, the bank actually referred her right over to us. So after speaking with her and going through a free financial assessment, she owed $9,940 in debt.

At that time, you figure the average interest rate was around 24%. So now she’s paying $198 a month just in interest. Let’s not even forget the late fees. Nine creditors, $39 per late fee. You’re looking at another $351 right out the window.

So after we went through it, what we were able to do, and this is amazing, we were able to put her on a consolidation program called a debt management program. Average interest rate, 10%. Now we’re looking at $82 a month versus $198. Not only that, $351 in fees discontinued. So we got the fees discontinued.

We got the interest rates reduced. And overall, we were able to get her accounts re-aged, which means after three consecutive payments, the creditors will bring her accounts back to a current status. She’s on her road to financial freedom. So for a tight budget and having to make up hundreds and hundreds of dollars in fees and back payments, she did not have to do that on that program. Well, the fees that were already assessed were already on the balance.

Future late fees would be eliminated. Interest was eliminated moving forward. But she didn’t have to come up with all that money just to get the accounts up to date. Oh gosh, no. No, she made her monthly payments.

48 months, she should be debt free. Wow. So if you’re just joining us, this is Gordon Oliver with The Cambridge Connection, here with the Cambridge Credit Success Moment. So Tina Marie, Rockstar Credit Counselor, we only have a couple of minutes here. We’re getting new listeners and new followers all the time.

For the people listening, this is a real situation. What’s the process when someone calls for this free counseling session? Well, they give us a call. We go over all the income and expenses, assets and debts, get a better understanding of exactly what’s going on, and then look into some options to help. It’s amazing what you do.

It’s amazing how long you’ve been helping people. And we’re here to share these stories, because it’s important to people that are out there that might feel that there’s no hope, that the best they can do is just call 1-800-CAMBRIDGE and talk to a counselor and see what the options are if they’re having trouble figuring it out. There’s nothing to lose. Nothing to lose. 1-800-CAMBRIDGE for your free counseling session.

Introducing STCC financial aid guest

Coming up, we’ll be joined by our special guest, Amy Bellina, from Springfield Technical Community College, to discuss FAFSA, which is a free application for student aid and the financial aid process. This is Gordon Oliver, right here on The Cambridge Connection on WHMP. What’s your next move? There’s a place where you belong. Hey, Western Mass.

Springfield Technical Community College was recently named the number four community college in the US. And Stick’s online business degree was named the second best in New England, with national championship sports teams and one of the largest medical simulation labs in the country. Supporting students and transforming lives is what Stick does best. edu. Welcome back, everyone.

This is Gordon Oliver, your host of The Cambridge Connection, and very excited to have our guest, Amy Bellina, the Associate Director of Financial Aid at Springfield Technical Community College, also known as Stick. Today’s topic is going to be about the FAFSA, which is a free application for financial student aid. And Amy, if you could just give us a minute and tell us a little bit about what you do at Stick in the financial aid office, that would be great. Sure. First of all, thanks so much for having me on such an important topic.

Our role in financial aid is to be able to help students and families go through the process from start to finish. That being said, we do offer services at STCC to help families actually complete the FAFSA process. We will work with students and families on payment. The nice thing about STCC is that we review the FAFSA applications. We collect data.

We determine awards. Awards can be in the form of grants, student loans, and federal work study. So all of that is taken into consideration in our office. gov and the Department of Education’s engine, and then in every college there’s a financial aid office like yours that has to deal with people that are looking to apply to try to help them get the most aid that they can get to keep the cost of attendance down. That’s correct.

So the cost of attendance is something that the college will actually figure once we receive the student’s financial aid application. The cost of attendance is actually made up of tuition and fees. We do take into account living expenses, transportation costs, and books and supplies. Huge. It’s awesome because it can’t just be as cut and dry as income.

And while it seems like it is, there’s other factors that would affect people from being able to make payments or get financing. Absolutely. Absolutely. So for example, STCC, if financial aid is not enough to cover a student’s tuition and fee bill, we do offer a payment plan where students can make payments on a monthly basis. And we do also help with students to obtain any student loans outside of the financial aid office in the form of a private student loan.

We at STCC, though, we pride ourselves on the fact that we are a low-cost institution. So for many of our students, the financial aid that they do receive is enough to cover their tuition and fee bill. That’s one of the perks of the community college system is that we are a low-cost institution. Well, if you’re just joining us, this is Gordon Oliver with The Cambridge Connection here with Amy Bellina from STCC, the financial aid office. Let’s focus on seniors right now.

Filing early and financial aid office role

The date you could start to file for the FAFSA was October 1, which was yesterday. Why is it important that they fill this information out as early as possible? Yeah, so definitely as early as possible, because it’s not just a cut-and-dry process. There are certain requirements that the federal government may impose, such as selecting a student’s application for verification, where a student has to then provide more financial information to their financial aid office, such as tax returns, various other worksheets that may be provided. So the earlier a student can do this, the more convenient it’s going to be for them in the fact that they’ll have an answer from their financial aid office sooner rather than later.

So for seniors, let’s say they want to go to five schools. And they fill the FAFSA out, and the five schools are listed. Obviously, you’re going to have information and an offering or information that they need to provide to know what it will cost. But that happens with all of the colleges. Is that correct?

That’s correct. So each school that the student is interested in, they want to provide their federal school code for each individual school that they’re interested in going to. That way, each school will get the information from the FAFSA. What will happen then is that the school will get that information sent electronically, and then the family will get a report from the federal government, which is the student aid report. So even though the student may not attend your college, they still can call you for information to work through the process so they can really understand what it’s going to cost?

Absolutely. I would strongly recommend any student and their families to always be in touch with the financial aid office at each school that the student is planning on attending. We’re a wealth of information, and we’re here to help students. I couldn’t agree with the wealth of information more because, again, the difference between going through the government, the Department of Education for information, versus the people that are on the ground that actually know at their facility what can and cannot be done, it’s important for listeners that are going through the process to know that there’s two things you need to worry about. gov for the FAFSA information, the application is not easy to fill out.

It is pretty daunting. And I’m so thankful that you’re giving this information that it’s OK to call you because sometimes people feel, well, I’m not at the college yet, so I don’t know whether I can talk to somebody. But your office specifically in every college is the one to call to try to get assistance with the process. Absolutely. We understand that it is a complicated process for students and families.

Breaking down federal loans and work study

At STCC, we see many first-generational students, and we are always happy to help those students and their families go through the process. OK, as you heard earlier in our segment, there was a borrower that was wondering about grants, and how they work, and how they’re paying back. Is there a way to quickly break down the federal loan types and the grants to be able to cover what the cost of college would be? Yeah, absolutely. So the federal Pell Grant, that’s money that does not have to be paid back.

Those are going to students who demonstrate the most financial need. So certainly when you file for financial aid, you’re going to be putting in your income and asset information. You’re going to be using tax information from the 2020 tax year, which will determine your expected family contribution, or your EFC, and I think you mentioned that actually in an earlier segment. So students will use that figure from their cost of attendance also to determine how much need a student actually has. So for example, if a student is in a needier category, the student very well may be eligible for the Pell Grant, which again, does not have to be paid back.

There are also the student loans that you’ve been talking about. Those do have to be paid back, and there are two forms of student loans. There is a subsidized loan and an unsubsidized loan. The subsidized loan is the better loan to have because the government is actually paying for the interest while the student is in school. The unsubsidized loan, the student can actually start paying back on the interest if they wanted to while they’re in school, but certainly they do not have to.

Also through the FAFSA, there is the Federal Work Study, which is students can actually get a job on campus and earn a paycheck. They would get paid every two weeks. So certainly a nice plus, especially in the current economic environment we find ourselves in. Students are certainly looking for jobs, and Federal Work Study is one way to have those resources. So when someone is looking to minimize the cost of college, your role in helping people is tremendous.

gov to get as much information. All of the things that we’re talking about, they have as frequently asked questions. And lastly, if you could give advice to our listeners from your experience, what would the number one thing be that you would advise to someone that’s looking? to the process of going to college. Sure.

I would say do everything early. Again, the application has just been open for the 22-23 academic year. Don’t delay. Do yourself the favor and start the process early. Also be in touch with your financial aid offices.

We are a wealth of knowledge and we’re here to help students and families navigate the process. Cannot thank you enough for your time today and this great information that you have helped us provide. Thank you so much, Amy. You’re very welcome. Thank you for having me.

That’s a wrap for this week. Thank you to my co-pilot, Ariane, Tina Marie with the Cambridge Credit Success Story, and my special guest, Amy Bellina from Springfield Technical Community College. 5 FM and 1400 AM at 930 AM. org. Follow me on Twitter at GordonOCares.

That’s G-O-R-D-O-N-O-C-A-R-E-S and Facebook forward slash GordonOCares. If you’d like a free consultation with a counselor from Cambridge Credit Counseling, just call 1-800-CAMBRIDGE. And again, seriously people, it is a free call to 1-800-CAMBRIDGE. Hey everyone, Gordon Oliver here and I’m the host of the brand new Saturday morning show The Cambridge Connection. Every Saturday at 930 AM, we’ll spend 28 minutes together that will change your relationship with money for the better.

I’ve been a financial counselor for 20 years and I’m here to get you excited about being in financial control. Join me next Saturday right here on The Cambridge Connection. Join Gordon, Ariane, and Tina Marie for more financial solutions and successes. Next Saturday, 930 AM, right here on WHMP.