Susan Ahern and Lynn Froleiks of the school's Office of Student Financial Services emphasize that it is not too soon to think about how you are going to pay next year's tuition and expenses. To maximize the possibility of your qualifying for a student loan for the 2009-10 academic year, they offer the following tips and advice:

• Before you apply for a loan, talk with a representative of the lending organization. He or she will tell you what criteria the institution applies in processing the applications it receives.
• Take advantage of the free credit reports that are offered each year by each of the three key credit repositories: TransUnion, Equifax, and Experian. The FACT Act entitles consumers to one free Personal Credit Report each year; for details, visit www.annualcreditreport.com . Once you receive the reports, look them over carefully and be sure to challenge any discrepancies you find.
• Increase your credit score through proper credit management. You can do this by paying your bills on time, reducing amounts that are owed, not applying for credit frequently, and avoiding over-borrowing.
• If you have a lackluster credit score, consider consulting a credit counseling service. For advice on finding and selecting an appropriate one, read "Finding a Good Credit Counseling Service."
• Have a Plan B. Be prepared to clean up any negative issues on your credit report. Sometimes though, this can take a few months. In that case, ask your lender if you are eligible to apply with a co-signer if you cannot qualify for credit on your own.

Ahern and Froleiks recommend not treating your financial aid award checks as a windfall. Instead, live like a student. This does not mean that you have to subsist entirely upon the free pizza served up at school meetings and seminars. But you should cut back on the extras without giving up all the little luxuries that get you through the day. One way to do this is to keep track of everything you buy in a single week, including your morning cup of coffee and the sodas you purchase from the vending machine at lunch. Odds are, you will be surprised at how easily and quickly the little things add up. Once you know where your money is going and where you can cut back, make a realistic budget and stick to it. However, do make sure to allow yourself a small reward every now and then.

For additional information on managing your finances, visit www.controlyourcredit.gov or visit the Pierce Law Office of Student Financial Services at 10 White Street.

Concerned about whether the loans you need to complete your education will be available when you need them? You're not alone. I sat down recently with Susan Ahern and Lynn Froleiks of the school's Office of Student Financial Services to discuss how the current financial market situation will — or will not — affect your ability to receive financial aid in the near future.

Even though the ongoing financial crisis has received considerable media attention recently, there is actually less uncertainty in the student loan market now than there was last spring, says Froleiks. This is good news for the 90% of Pierce Law students currently receiving some type of student loans through the school. If you have been awarded financial aid eligibility from Pierce Law for the 2008-09 academic year, the funds that you were offered this past summer will still be available in January to cover your spring semester expenses. Better yet, Ahern reports no anticipated changes in the way financial aid applications will be processed for the 2009-10 academic year.

Froleiks adds that the 5 or 6 big players in the student loan industry have all assured the school that federal funds will be available not only next spring but at least through the 2009-10 academic year as well. She shares the following communications she received from key loan providers:

"I can assure you the Access Group is currently having no federal funding issues and we have not had to put on hold any loan disbursements." —Lori Moore, School Services Rep, Access Group

"NHHELCO has entered the participation program (established through the Ensuring Continued Access to Student Loans Act in May 2008). This provides NHHELCO the liquidity it needs to assure that loans are available for student (and parent) borrowers. As you may know, the legislation allows for the Secretary of Education to purchase interests in a portfolio of loans by reimbursing NHHELCO when a disbursement has been made. This provides us the necessary liquidity to make all loans, as planned, as you and your students need."
—Tori Berube, Vice President, Product Marketing, NHHEAF

Froleiks points out that lenders are cautious but solid: they want to stay in the business. Consequently, she noted, several lenders no longer offer private loans for graduate students. Among the Pierce Law student body, this will primarily impact 3Ls who wish to obtain bar study loans, as this type of assistance is not offered by the federal government.

Two lenders still willing to offer private loans are Citizens Bank and Sallie Mae, although the availability of such loans from Sallie Mae is becoming more regulated. A note from Barry Feierstein, Executive Vice President, dated October 9, states, "Because of the continuing turmoil and uncertainty in the credit markets, Sallie Mae has made the difficult decision to tighten the underwriting on all our private student loan products...which will require applicants to meet higher credit standards...In addition, the unprecedented credit markets require us to adjust our private loan pricing." The pricing changes, he says, will be announced late in the month.

The Office of Student Financial Services cannot recommend one specific lender over another. For advice on choosing the lender that's right for you, visit www.elmselect.com. Although criteria may differ from vendor to vendor, if you qualify for financial assistance with one lender, you will generally qualify with another lender, as well. As a rule, Graduate PLUS loans have more stringent criteria than Stafford Loans. Unless you have a previous default, most students qualify for Stafford Loans.

Remember that if your lender does go out of the student loan business, you will not be absolved of liability from payment. You still have a contractual obligation to repay the loan as evidenced by the Master Promissory Note executed at the time of the issuance of your loan. Learn more > >

SAVE THIS DATE: Student Financial Services Office along with Lori Moore from the Access Group will be hosting a free workshop for Pierce Law students in Room 200 on Thursday, October 16 at noon. Topics will include budgeting, how to maintain good credit, wise borrowing habits, and an update on the status of the financial market. Spouses and significant others are also welcome to attend. Lunch will be provided. Watch your e-mail to RSVP.

Deadlines are fast approaching for applications for some scholarships sponsored by non-profits and agencies outside Pierce Law.  Check the details on the outside scholarships and writing competitions page in the financial aid section of the web site.

Two scholarships have January deadlines: the Mensa Education & Research Foundation Scholarship Essay Contest (1/15) and the Roscoe Hogan Environmental Law Essay Contest (1/31).