Early Application is Critical to Securing the Best Aid Package

San Diego, CA – December 20, 2007 – January 1st is an important date for college students and their parents: it marks the beginning of the 2008-2009 financial aid season and means they should get moving with their financial aid applications. With college enrollment at a record high and tuition prices continuing to rise at double the rate of inflation, it is critical for students and families to apply as early as possible to secure the best college financial aid package. To begin the financial aid process, families must complete the Free Application for Federal Student Aid (FAFSA).

"All students and families seeking financial aid for next year should be marking January 1 on their calendars as the date they can apply for aid," said Joanna Acocella, executive vice president for College Loan Corporation. "Submitting the FAFSA as early as possible provides the best opportunity to secure much-needed federal financial aid."

Submitting the FAFSA is the first step in the financial aid process and helps the U.S. Department of Education determine the types of financial aid that families are eligible for, including government grants, scholarships, work-study programs and student loans. Families are advised to apply soon because, after financial or other qualifications are met, institutional aid is usually awarded on a first-come, first-served basis.

Congress has also made changes to federal financial aid this year with the passage of the College Cost Reduction and Access Act of 2007. The changes include:

Pell Grants: The new legislation increases funding for the Federal Pell Grant Program by $11.4 billion over the next five years, raising the maximum annual award to $5,400 by 2012. This year, the maximum Pell grant available to qualifying students is $4,800. Pell grants benefit over 5 million low-income students annually.

Stafford Loan Interest Rates: As part of the new legislation, interest rates on all Subsidized Stafford Loans will be cut in half over the next five years. The interest rate carried by all Stafford Loans disbursed after July 1, 2008 will be 5.44%, down from 6.8% in 2007. Additionally, the legislation ensures that students will not have to pay more than 15% of their discretionary income during loan repayment.More details links.....