Demand For Students

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A K LEO T H E

VOLUME 103 ISSUE 56

Fort Collins free-for-all

V O I C E

Rainbow Wahine square off with Purdue in regional semifinal Sports | Page 11

Ser ving the students of the University of Hawai‘i at Mānoa since 1922 HEAVY RAIN

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Commentary | Page 4

Mixed Plate | Page 6

Cartoons | Page 9

THURSDAY–SUNDAY DEC. 11–14, 2008

Demand for student loans reaches all-time high

By Taylor Hall

Ka Leo Editor-in-Chief

2008 will be remembered as a recessive year, with declining job opportunities and necessary changes to the nation’s spending habits. It was also the year that student loans became a necessity. There have been a record number of student-loan requests this semester, according to Ku‘ulei Feliciano, interim assistant director of the University of Hawai‘i Financial Aid Services office. The office has given out 6,000 loans this year, nearly double that of 2007. “More students have had to apply for financial aid,” Feliciano said. “The downside is that there is less money to give out.” According to Feliciano the large number of requests are filtered through a small pool of

companies still offering student loans. The loans offered through UH Mānoa’s financial aid office are financed through Sallie Mae. Outside of the UH system, American Savings Bank is the only FDIC bank that offers student loans in Hawai‘i. “If the bank makes 3 percent off each loan, that means they’ll make an average of a few hundred off of you. If you don’t pay (it) back,

then they’re out of that amount,” Feliciano said. Sallie Mae reported $6.8 billion in earnings in the third quarter, up 17 percent from last year; however, it still had a loss of $159 million. Without federal funding, Sallie Mae wouldn’t exist. The availability of

student loans follows the housing market, said Feliciano. And with the housing market in such decline, students have every reason to be worried. “More FAFSAs have come in than ever,” Feliciano said. “Nearly every student at UH Mānoa is using at least one form of financial aid.” With increased competition for financial aid,

INSIDE TODAY

The FAFSA form is available starting Jan. 1, but the process can extend into early summer. “The time frame is totally dependent on the student,” Feliciano said. While students can begin working on the application in January, it cannot be finished until the previous year’s tax information is received. “Simply applying is great, but you have to finish,” Feliciano said.

Banks have the downside of high interest rates, although they have the ability to lend larger amounts. Credit unions offer lower interest rates because each customer owns a part of the company, so the credit union can lend as much money as the customers provide.

1. Fill out the FAFSA online at fafsa. ed.gov 2. Be sure to include your school’s code in the designated section, so UH can receive your award information (UH code: 00161000). 4. UH sends your award information to your MyUHPortal account (myuhportal. hawaii.edu). 5. View your award offers and accept or decline each. 6. Sallie Mae sends the school your loan; you receive a letter in the mail with information about your new loan. 7. UH disburses any funds above the cost of tuition to you in the second week of school.

PLEASE RECYCLE MAHALO

Why does the FAFSA process take so long?

Bank or Credit Union?

Steps to getting a student loan

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students should begin the application process early. The deadline for FAFSA first priority for the 20092010 school year is March 1.

Need credit? The University of Hawai‘i Federal Credit Union offers a start-up plan for students with low cash flow who want to build their credit. The “Student Savings Plan” has a start-up cost of $5 and comes with a debit card and a credit card with a credit limit of $300 that can be increased. The plan was introduced this semester and has a low minimum, which is usually around $300 at banks. For more information, visit uhfcu.com

Students must navigate the pitfalls of financial aid, especially during tough economic times.

MCT CAMPUS

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T H U R S D A Y 6 HONOLULU TIDES HI 3:11 a.m. | 2:39 p.m. LO 10:32 a.m. | 8:16 p.m. 6 HALEʻIWA TIDES HI 2:09 a.m. | 1:37 p.m. LO 8:27 a.m. | 6:11 p.m.

NORTH SOUTH WEST EAST

S U R F 3–5+ 1–3 2–4 1–2

WINDS 15–25+ mph, S-SW

O U T L O O K Wave heights reported Hawaiian style, about half face heights.

Another northwest swell will build rapidly tonight, peak tomorrow, then gradually subside through the beginning of next week. SOURCE: NATIONAL WEATHER SERVICE

Special Advance Screening see page 11