WSJ says:

A Sallie Mae spokesperson told me that you can use money earned through Upromise rewards to help pay off your student loans. You can even have the funds earned withdrawn as a check. Then, the options are limitless. Roll it over to a charity of your choice. Give it in lieu of a gift card. Cushion your rainy-day savings fund — or get one started. Or, if you’re feeling brave, really put it to work by tossing the extra cash in an IRA or your 401(k).

Neat.

Some Help For Paying Student Loans [WSJ]
UPromise.com

In the wake of the Credit Freeze, I’m a student who needs some private loans for my schooling starting in the Spring. I’m an older student with established credit. I’ve seen a lot of student loan organizations close their doors lately and now that I’m in a position to apply, I need to know where to turn…Is there a list of who’s still lending privately and who is “frozen”? Any suggestions?

According to a recent AP article, there is some cause for concern. A survey by the National Association of Independent Colleges shows that students are being forced to drop out — and one in five colleges reported a smaller incoming class than expected, despite the largest crop of 18-year-olds since the Baby Boom.

According to the website FinAid.org, 36 lenders have stopped providing private student loans, says the AP, and the rest have upped their standards. This is actually good news for you — because the article says that the number one barrier to obtaining a loan in this environment is a lack of a credit history or a poor credit history.

John E. Dean, special counsel to the Consumer Bankers Association, which represents for-profit student lenders, told the AP:

"The easiest step... is to bring in a creditworthy co-signer," he said. "That will make a difference on the availability of loans and the price."

If your credit history is established, it's time to shop around for the best deal. FinAid.org provides a list of lenders (in alphabetical order) that you may want to start with.

Before you even consider a private loan, however, you should make sure you read up on how they are different from federal loans. Here's some information from the Student Borrowers Assistance Project, which is program of the National Consumer Law Center.

Anyone else looking for student loans in this market? Do you have advice for Michael?

(Photo: rmgustaf )

Highest Total Cost 2008-2009

College | Total Cost
1. Sarah Lawrence College | $53,166
2. George Washington University | $50,312
3. New York University | $50,182
4. Georgetown University | $49,689
5. Connecticut College | $49,385
6. Bates College | $49,350
7. Johns Hopkins University | $49,278
8. Skidmore College | $49,266
9. Scripps College | $49,236
10. Middlebury College | $49,210
11. Carnegie Mellon University | $49,200
12. Boston College | $49,020
13. Wesleyan University | $49,000
14. Colgate University | $48,900
15. Claremont McKenna College | $48,755
16. Vassar College | $48,675
17. Haverford College | $48,625
18. University of Chicago | $48,588
19. Union College (NY) | $48,552
20. Colby College | $48,520
21. Mount Holyoke College | $48,500
22. Tufts University | $48,470
23. Bard College at Simon's Rock | $48,460
24. Franklin & Marshall College | $48,450
25. Bard College | $48,438

No thanks, I prefer my in-state tuition and debt-free-at-25 method of matriculation. But if you do have to go into debt, there's an educated way to go about. This post talks about how you to maximize the lower-interest, i.e. federal, ones first before you go into those private student loans. Incidentally, if you do get a federal student loan and you end up having a problem or question about it, the FSA ombudsman is a good place to start to get it resolved.

However, if you, like many, get a private student loan, be sure to shop around first. Don't just go with the list of "preferred lenders" provided by your bursar's office. Sometimes, as State Attorneys General have discovered, banks and lenders will essentially pay colleges to get on those lists, and placement isn't for those with the best terms for students, but those with the best goodies for the administrators printing out those lists.

Most Expensive Colleges for 2008-2009 [CampusGrotto] (Photo: Getty)

My brother went to the bank last Friday to talk to the branch manager about his situation which I emailed you about 2 weeks ago. The bank reported the check as fraud, not my brother. His account was cancelled because it was opened with a bad check, and he was charged $10 for depositing a bounced check. There was nothing that was entered as a negative mark on his credit report, and the case is pretty much closed.

The manager even went so far as to type up and sign a memo explaining that it was not my brothers fault and that there should be nothing against him on his credit report.

The Wachovia branch manager also offered to open a new account for him.

So, phew! None of the bad things that could have happened to Fred's brother actually happened, like:

• The bank could have pressed fraud charges against him.
• He could have been reported to the FBI.
• A report could have been sent to Chexsystems and made it hard for him to get a new bank account or keep his new one.

PREVIOUSLY: Always Look A Gift Check In The Mouth (Photo: Getty)

My brother who is a junior at college sent out a bunch of applications for college grants and other sources of funding to pay for his education. Late this summer he received a check in the mail sent to him from one of the organizations that he sent an application to. The check wasn't huge, but the $3500 would come in handy, and certainly would have been a huge help in paying for his books, and housing. When the check actually came in the mail it was just a check, nothing else, no letter of congratulations, explanation or anything else telling him why he had received the money...

I told him he should open up a new bank account so that if it was a fake check, any possible thief's would not get his information and take the rest of the money from his account. He just found out that I was right. He got a phone call from the bank (Wachovia) letting him know that the check was a fake, and that his account (which only contained the money from that one check) was closed due to fraud. They also told him that he has been reported to the FBI, and that the information would be noted on his credit report.

He wasn't really able to get any clear answers from the bank which more or less gave him a corporate run around by not answering anything. I was wondering if it would be a negative thing on his credit report, or if it is just a fraud notice that was placed there. If it is a negative mark against him what can he do to get it removed. Also what are the possible
damages he could face if it was actually fraud.

First off, I hope your brother didn't take any money out of the account, otherwise he's going to have to pay it back.

He should check out his credit report to see what if anything got reported - annualcreditreport.com lets you check all your credit reports for free. I think the only thing they would put there is that his account was closed. If money was taken out, then the report will show that the account was closed in the negative. That will be a "minus" on the credit report, and not something that your brother will be able to dispute and get taken off.

I'm surprised the check didn't come with a letter requesting that a portion of it be mailed somewhere else. That's usually how the scam that this sounds like, advance fee fraud, operates. Maybe that part got lost in the mail.

Opening a new account just for the check was half-smart, and all stupid. It would have been better to have just asked the organization for more information and make the determination from that, rather than open a checking account for a check that the two of you had a pretty decent idea could be bogus. Provided he didn't take out any money from the account, your brother was protected in case the check turned out to be fake, but if the bank decided to be hardasses, they can press charges for check fraud against your brother. Hopefully it doesn't come to that.

(Photo: Getty)

This summer, I joined Bally in what I was told was a month-to-month membership. I let the membership run out, and just discovered that not only have they been automatically renewing my membership, they put me in a 36-month contract that can't be cancelled. I felt incredibly stupid - had I not read the contract carefully enough? Etc. etc.

The copy of the contract that they gave me does indeed say that it is for 36 months, but this contract is not the same as the one I signed, and it is blank.

One of the places I would have signed, had this been the same contract, is immediately preceded by "The length of the term of this contract is 36 months...by signing below, you acknowledge [this]" in a large bold font. Even if I hadn't read the contract at all, I would have noticed that. But because memory can always fail, and I am astounded by the stupid things I do sometimes, I checked online, and apparently this is standard business practice for them.

Bally sucks. I'm pissed. In true college-student style, I've handed it off to my father, who will hopefully get this mess fixed, because if not, I, along with many other people who apparently have been similarly scammed, will be out a few thousand bucks.

Chanda, if they can't provide the contract you signed, they won't be able to hold you to that 36-month agreement. It will be awesome if your father can resolve this for you, but it will be awesomer if you handle it yourself, because you'll help teach this Bally Total Fitness to not assume college students are easy marks. You might want to try cheryls50's suggestions on this Bally post from April—she recommends you send a certified letter to Bally's corporate office and copy your state's Attorney General on it as well. Bringing the AG into the situation should help put some weight behind your demands that Bally cancel this fraudulent 36 month membership. Be sure you make it clear that Bally must agree in writing to not report anything negative on your credit history, too.

Here's some contact info we were able to find for mailing a letter. If you need help drafting a good letter to these guys, check out our tips on this post. (It's for email letters, but will work for snail mail too.)

Bally Total Fitness
Don R. Kornstein, Interim Chairman
John H. Wildman, SVP Sales and Interim Chief Marketing Officer
8700 W. Bryn Mawr Ave.
Chicago, IL 60631
773-380-3000 (Phone)
773-693-2982 (Fax)

And remember to always make a copy of any contract you sign, so that in the future you can put an end to this sort of con as soon as someone tries to pull it on you.

I recently finished law school and accepted a fellowship with the Department of Homeland Security. As part of my compensation package, DHS graciously offered to repay some of my student loans under a federal recruiting program. I was thrilled and immediately set about filling out the required paperwork. The last item I needed to supply was an Electronic Funds Transfer Number and Tax ID for my lender, EdSouth/EdFinancial. That, as it turns out was easier said than done.

I’ll spare you the details, but suffice it to say that I went round and round with EdSouth’s phone goons for more than three weeks, repeatedly explaining my situation and faxing documents which (they said) would make it possible for me to get the information I needed. After a final marathon phone call in which I spoke with three reps and two supervisors of ever-escalating grade, I finally got so frustrated that I threw my phone across the room.

At this point I was shaking with anger. I called three different lenders to try and just move the loans to another servicer that might be more receptive. As I was looking, I came across a webpage for the Federal Student Aid Ombudsman, a kind of Mr.-Fixit for disputes with lenders. I ran down their “Before You Call” list and found that I’d already taken all the steps necessary before contacting the Ombudsman’s office. I sent a brief e-mail explaining my situation and got a receipt a short time later.

Today, less than 24-hours later, I got a response from Thad Bartkowiak, an Ombudsman Specialist. He’d already investigated my situation, spoken with EdSouth, and obtained the federal payment number DHS will need to process my loan payments. The Ombudsman’s Office is a GREAT resource for anyone with student loans. Their website, www.ombudsman.ed.gov, has self-resolution tools as well as the complaint form that I used.

The Office Of The Ombudsman [Official Site]

Two websites are making saving for college almost as easy as using PayPal.

• Upromise allows you to contribute to any of their 529 savings plans.
• FreshmanFund allows you to contribute to any plan, including those hosted elsewhere.

The Gift of College Savings, Now Made Easy Online [The Washington Post]
RELATED: 529 College Savings Plans By State

With all the talk of a credit crisis, you would think that a bank would welcome a customer trying to pay down his high-interest student loans. Not So. Like many people in my position, I went deeply into debt in order to attend law school. Since graduating in December, I've been actively attempting to pay-down my debt. Student loans come in different shapes and sizes, and your average indebted student has many different types of loans. The most common is a Federal Stafford Loan; these typically have lower interest rates and longer deferment periods than their counterparts, but they only go so far. Another type of loan is the "graduate plus" loan; these often have much higher interest rates. And when your tuition is $20,000 per year, you typically need a graduate plus loan in addition to your Stafford Loan.

I took my student loans through Wells Fargo, which, in retrospect, was a bad move. My loans have entered repayment, and when you have extra money left over after paying your minimum loan payment at the end of the month, and you want to pay down your debt, the savvy debtor will spend that money on his high-interest Graduate Plus Loan (8.25%), rather than his low interest Federal Stafford Loan (4%). Simple right?

Well, all these different loans are under a single account number so when you pay extra, there is no way to tell where you want that money to go. As a result, I called Wells Fargo in January, and I let them know that any extra payments above my minimum payments were to be directed towards my highest interest loans. "No problem," said the CSR, "in fact, it is Wells Fargo policy to direct any extra funds we receive towards the loans that are hurting you the most." This system worked great for months; I would take any surplus funds I had left over at the end of each month and make an online payment which was automatically directed against my Graduate plus Loans.

But then, one day, it stopped. Wells Fargo began directing my extra payments either evenly over all my loans (high interest and low interest) or, in some cases, entirely to my lowest interest loans. Every month for the last three months this has happened, and every month I would call and inform them of the problem. Every time they would apologize profusely for the error, insist it was an isolated incident, reverse the payment and wish me a nice day. Every month, that is, except this one. This month I called up and was told that Wells Fargo simply couldn't direct my funds the way I requested. "If you want your extra payments to go to your highest interest loans, you will have to pay by check, and you will have to send a letter with your payment telling us how you want it apportioned... every month." I pressed on, explaining that this system had been in place for months and that I had been assured this was company policy. They had no response. I asked to speak with a manager and got the same answer. I asked if I could set up a separate account, one account for my high interest loans and one account for my low interest loans. "No," they said, "Wells Fargo policy: one debtor one account."

Then I tried to get clever. I asked Wells Fargo to set up two different due dates for my loan payments. One due date (the 20th) for my low interest loans, one due date (the 19th) for my high interest loans. That way, when I went online to make a payment, there would be two different payment options. That way, I figured, I could pay extra for my payment due on the 19th, and achieve my goal. But Wells Fargo was one step ahead. Unlike in the past, when I could choose whatever amount I wanted when making my payments, Wells Fargo would only let me pay the minimum balance for my high interest loans. But, of course, I could pay as much as I liked on my low interest loans.

SCREENSHOTS OF CALEB'S ACCOUNT:

I next called the Department of Education Federal Student Aid Ombudsman; this entity is supposed to be the watchdog for these kind of shenanigans. They were totally impotent. "There's nothing we can do," they told me, "but if it makes you feel any better, we've been getting a lot of these types of complaints."

No ma'am, actually that doesn't make me feel any better.

Now, maybe its just me, and maybe I'm just being paranoid, but it looks like Wells Fargo has engineered its system to make it as hard has possible for former students to pay down their high interest loans. They're determined to squeeze every last cent from these high interest rate loans.

-Caleb F

That really, really doesn't sound right. Instead of the Department of Education, you might want to try talking to your bank's regulator. In this case, that's the Comptroller of the Currency. You can call them at 1-800-613-6743 or email Customer.Assistance@occ.treas.gov. Other ways of contacting them are here.

Has this been happening to anyone else?

We've sent an inquiry to Wells Fargo media relations and eagerly await their reply. UPDATE: We've put Caleb in contact with Wells Fargo so they can investigate his issue.

From the Wall Street Journal:

John McCardell, a history professor and former president of Middlebury College in Vermont, is leading the effort. His group, Choose Responsibility, a nonprofit unaffiliated with the college, has received financial backing from money manger Julian Robertson. Mr. McCardell says he receives no money from the alcohol industry.

He argues current laws drive drinking underground, causing more problems than they solve. "The law is out of step with reality," he says. "The law is so obviously unjust and discriminatory. It ought to at least be the subject of debate."

But he and the college presidents are taking on powerful constituencies, including some of their colleagues, the top government traffic-safety agency, the insurance industry and public-health authorities, all of which say the higher drinking age saves lives. Even representatives of the alcohol industry say they support current laws.

A college student interviewed for the piece says she cut back on her drinking once it was no longer forbidden:

Elizabeth Pogust, a 21-year-old senior at Middlebury, says she felt pressured to drink as a freshman. Classmates would quaff alcohol in their rooms before roaming the campus on weekends, she recalls. As they got older, she says, she and her peers learned their lessons. "I've noticed a definite change in my attitude once it was no longer forbidden," she says.

What do you think? Is the 21-year-old drinking age part of the problem — or the solution?

Bid to Reconsider Drinking Age Taps Unlikely Supporters [WSJ]
List of College Presidents Who Signed The Petition [Amethyst Initiative]

Kiplinger's has put together a list of 6 back-to-school money lessons for every stage of your child's development. Does it work? Well, my parents did this stuff with me and I don't live under a bridge or anything, so it certainly can't hurt.

Remember: teaching your kids about how the financial world works is more valuable to them than just giving them money. They'll thank you when they're 25 and don't have credit card debt!

Kiplinger's Back-To-School Money Lessons:

• Ages 3-5: Big-Picture Years. Keep things simple and don't expect too much. Encourage kids to put coins in a vending machine or pay the ice-cream man. They can play with fun savings banks, learn the difference between pennies, nickels and dimes, or collect state quarters. The more hands-on the activity, the better.

• Ages 6-7: Time to Start an Allowance. How much to give? Start with a basic weekly allowance equal to half the child's age. Tie the allowance to "financial chores"—spending responsibilities that the kids take over from you. To make the connection between work and pay, give your children the opportunity to earn money by doing extra jobs such as vacuuming or raking leaves.
• Ages 8-10: Bank on It. Help your kids open their own savings account. Should you require your kids to save? Not necessarily—but you can have them divvy up their allowance into pots of money for spending, saving, charitable giving, even investing. Have your children save toward a goal, whether it's a toy or a new baseball glove. And you can always encourage kids to save by matching what they put aside—for your very own family 401(k).
• Ages 11-13: Parent Power. As you head into the difficult 'tween years, remember that parents have power. Kids will listen to you if you have a clear message and deliver it consistently. Expand their allowance money to include more discretionary purchases such as video games and movie tickets. Kids shouldn't hit you up for 20 bucks every time they head to the mall. Having to chip in their own money puts a natural brake on spending. If you're an investor, introduce them to the stock market with small purchases of stock through sites such as www.ShareBuilder.com and www.MyStockDirect.com.
• Ages 14-15: Stick With Cash. Parents should decline prepaid debit cards which banks aim squarely at this age group. Stick with cash. Even at this age, plastic of any kind isn't as real to kids as money they can see and feel. Expand their allowance to include clothing, concerts and other high-school entertainment. Encourage them to get a job—at least over the summer.
• Ages 16-18 and Into College: Hold the Plastic. Teens don't realize that a credit card is not free money. They need to know that when you use a card, you're borrowing from the card issuer, which will charge you a high rate of interest. Cash is still king. Help your kids open a checking account (and get a debit card) so they can learn how to balance a checkbook—either by using a check register or online entry—before they head off to college.

The only thing we'd add is that you should custom tailor this list to suit your child. Janet Bodnar, who wrote the article summarized here, strongly believes that no one should have a credit card until they're a senior in college, and based on the statistics we read about college students it's almost impossible to argue. However, if you take the time to really and truly educate your child about the benefits of using a credit card wisely (as in, not ever, ever, ever carrying a balance, etc.) then we think you as parents could consider adding your college student as an authorized user on your credit card so you can monitor their expenses and offer guidance. Maybe even consider a charge card where the balance must be paid in full each month.

Again, you know your kid better than a list does, and if you are a kid and you're reading this list... Congratulations. Maybe you can use this list to teach your parents about money!

The Last Word on Kids and Cash [Kiplingers]
(Photo: Sa_Steve )

7 reasons to review term life coverage [Bankrate] "There are several life events that may modify your need for term life insurance coverage."

Seven Tips for the Newly Unemployed [Wise Bread] "Here are some tips that could be helpful for those [facing unemployment]."

Four Habits of Financially Peaceful People [Yahoo Finance] "Some people who have found financial peace — and the habits they share."

4 Ways to Save on College Textbooks [Smart Money] "Here are some other ways students can save [on textbooks]."

— FREE MONEY FINANCE
(Photo: balotto)

Buying a Refurbished Computer [Smart Money] "Here's how to make sure the refurbished computer you buy doesn't turn out to be a lemon."

Your Essential Emergency Kit [Kiplinger] "These nine steps will protect your family and finances against disaster, whether natural or personal."

Savings yardstick [MarketWatch] "How to tell if your 401(k) is living up to the best standards."

Ivy Leaguers' Big Edge: Starting Pay [Wall Street Journal] "Where people go to college can make a big difference in starting pay, and that difference is largely sustained into midcareer"

— FREE MONEY FINANCE
(Photo: balmes)

Jennifer and 7 other students at the University of California San Diego went through a ticket broker at lastminutefares.net to purchase their airfare for a volunteer trip to Ghana. Their broker, "Michelle Shaw," turned out to be a scammer who took their money and disappeared—but not before she sent two of the seven tickets to the students as a "you can trust me" gesture. Despite repeated assurances by Northwest that at least the two tickets in their possession were still valid and couldn't be tampered with, Michelle Shaw managed to cash one in for a refund sometime in the past few weeks, which Jennifer discovered this weekend when she double-checked their status. Now Northwest is saying they can't help her, and that no matter what their CSRs told her before, this Michelle Shaw woman technically owns the tickets.

I don't know if this is your typical fraud story, but I've read the success stories on your site so I thought I would seek out your advice.

In December, 8 other students and I purchased round trip tickets from San Diego,CA to Accra, Ghana departing July 10th from lastminutefares.net representative Michelle Shaw. This is for a three week volunteer trip we are all taking through Alternative Breaks, UCSD. She was an awful travel agent and after we had all paid, she kept putting off sending us e-tickets with various excuses. Naturally, we were suspicious and demanded our tickets or a refund. She responded by sending us two confirmed tickets through Northwest which, when we checked with a Northwest agent, were valid. After further pressure for the other tickets she failed to send them and we contacted our credit card agencies to report fraud. Seven students were able to get refunds through their credit cards.

I, because at the time I had a valid ticket, was told by my credit card that I couldn't claim fraud because I had technically received the goods promised to me. My friend, Caitlin, was in the same boat. In the meantime Michelle Shaw (a terrible woman and also a very bad speller) disappeared.

Caitlin and I were at a loss and contacted Northwest to find out if we could block our tickets from being tampered with by the scammer. We were assured verbally several times that it was secure, but were refused written confirmations (this was after we both contacted Northwest separately). After being shuffled through several agents we finally reached someone who agreed to notate on our account that our tickets could not be altered by the agent (oh ya I forgot to mention Michelle got my name wrong-Jennier instead of Jennifer- and Northwest repeatedly told me the agent had to change this mistake despite the fact I said OVER AND OVER AGAIN THAT SHE NO LONGER EXISTED AND HAD SCAMMED 7 OF OUR MEMBERS! Sorry, too much yelling there, but come on!). They promised me that I would not have a problem with the minor name change, but still refused to change it.

Unsatisfied, I had a friend who works at the UCSD Res Life office with me call and pretend to be my concierge (Ha! We're staying in hostels!) to doubly check that my ticket was safe and to try to get my name changed. After talking to several different people over the course of the week she was unable to get my name corrected, but confirmed with two different agents that my ticket was safe.

Stupidly, I relaxed. This is my first major trip and I thought everything was now ok (this is the end of January/beginning of February). Tonight, on a whim, I double checked my ticket through Northwest and saw that it had been REFUNDED! Amid hiccups and sobs I spoke to a Northwest agent supervisor, Sandra Dee (no, really, Grease lightening!) from the Seattle office, who confirmed that this was in fact true, the agent had filed for a refund on February 20th! I should have checked my ticket earlier, but since "the incident" I had checked it about every week and (again, stupidly) stopped around the end of February/beginning of March. I called Caitlin, but her ticket is still there and not refunded, so she doesn't know what to do.

I explained my situation to Sandra (this whole time looking ridiculous because I couldn't stop crying) and how I had been promised by at least three agents that this would not happen. In a very, very nice, appeasing way she said tough shit. Apparently, because I bought a consolidated ticket through an agency, the agency has sole control of the ticket and Northwest has no control if they ask for a refund. The ticket essentially belongs to the agent. This made no sense to me and I asked Sandra to explain further and she tried, but it still made no sense to me. I asked about the notation that had been made on my account and she read it back to me as "Northwest cannot make changes to this ticket made on Jan. 27th by C." I was shocked. I told her that I had been told the notation said "the booking agent cannot make changes." She had no reply, other than they should not have promised me that. When I asked why this system would be in place if it allows blatant fraud like this to happen and why I had been explicitly told it would not happen she said that "This doesn't usually happen." Well, that helps!

She clearly felt bad for me because at this point I had run out of tears ans was dry heaving and snotting all over the phone. She suggested I immediately call my credit card company and report the charge (I already called Visa, I have to wait until my bank opens tomorrow to dispute the charge). She offered to sell me the ticket for the original lowest price offered despite it being sold out. I had payed $1980 for the original ticket (b/c it was the cheaper consolidated price) and she offered it to me for $2500. I wailed that I didn't have an extra $500, but she claimed there was no way to offer me the ticket at the agency price.

I'm not trying to be a matyr, but I work two jobs (around 40 hours a week) in addition to school in order to pay for tuition and this trip. Before this I was going to have JUST enough money to pay the program fee for our volunteer trip, but now with the ticket mix up even if I get my money refunded through the credit card I can no longer afford to go on a trip that I have been working towards all year (we have done a bunch of fundraisers and have spent all year learning about Ghanaian culture, plus the anticipation has just, in general, been building since October).

I just don't know what to do. I read the Guide to Fighting back and it says to get in touch with executives. I saw that Delta and Northwest merged, so should I try to find Delta CEO Richard Anderson information? Do I just get screwed and not go on the trip? I'm graduating, which is part of why this was such a great opportunity for me—Caitlin and my plane tickets had been for an extra month after the volunteer trip so we could stay in Ghana and spend some time at Liberian refugee camp and volunteer a week at WWOOF. This is also the first time I won't have to work in the summer in order to save for tuition.

Also, should Caitlin risk having the same thing happen to her ticket or get the refund and re-purchase a new ticket at a loss of $500 (she's barely squeezing by too, but might be able to get the extra money)?

I'm sorry to harass you with such a long email, if you are too inundated with other emails I totally understand, but if you can offer any advice/help I would appreciate it so much.

We suspect you're a person who trusts more easily than we do, Jennifer, what with the volunteering and the trusting Michelle Shaw and the fact that you think calling her a "very bad speller" is an adequate insult. She's a common criminal.

The sad fact is, you got scammed. It's a criminal issue, not a customer service issue.

Northwest should have never promised you that the tickets were yours, and they obviously lied to you about the notes in your account. You should still escalate your complaint up Northwest's chain as well as Delta's, and ask them why they didn't help protect you from further abuse by this scammer as soon as you called them the first time.

Your bigger issue at this point, however, is making sure you file a criminal complaint with the police. Call your local police station or dial 911 and say you need to file a criminal complaint.

You should also contact your credit card's fraud division and explain that the ticket was refunded without your permission, and that now you do NOT have the goods that were promised to you. That should put it back into fraud qualification.

You should also request a new credit card number, as should anyone else who gave that sort of info over to Ms. Shaw.

As far as getting to Ghana, the sad fact is you're probably going to have to come up with more money for new tickets now. No, it's not fair, but that's crime for ya. We suggest you hit up any organizations you're a member of for a short-term volunteer loan (or better yet, gift) to cover the additional cost if you really have your mind set on volunteering in Ghana this summer.

(Photo: Getty Images)

More than 50 lenders have stopped making student loans in the past few months as the credit crunch continues to make student lending unprofitable. Sallie Mae recently warned that it could no longer make profitable student loans at all.

Bank of America to Direct Student Loans to Federal Program [WSJ]
(Photo:Meghann Marco)

As for the 1.5% loan origination fee, students will no longer enjoy having that waived by Sallie Mae. The magazine says you should now start shopping around for lenders who are still willing to pay them (they suggest J.P. Morgan Chase).

"Sallie Mae Halts Student-Loan Consolidation" [SmartMoney]
(Photo: Getty)

The bill would also ban textbook makers from jacking up prices by bundling unnecessary CDs and other extras. Finally, schools would be required to publish a list of required books long before the start of classes so students could avail themselves of the free market and ferret out the cheapest prices.

Faculty should also be doing their part. Instead of assigning two expensive books and using just a few chapters of each, professors should order custom books with only the chapters they intend to assign.

Congress, though, should do what it can, because mounting textbook prices are one of a number of factors that are pushing higher education further out of reach of many young people.

That Textbook Costs How Much? $200? [NYT]
Make Textbooks Affordable [Campaign to Reduce College Textbook Costs]
H.R. 4137 - The College Opportunity and Affordability Act of 2007 [THOMAS]
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Not only are some lenders closing up their student loan programs, but the home equity that many parents counted on as a college tuition "ATM" has dried up.

Last week, Sen. Edward Kennedy, D-Mass., introduced legislation that would raise loan limits for federal student loans. Similar legislation was introduced in the House. But the limits are unlikely to be increased by the time students start college this fall.

Families that are worrying about paying the cost of the college their child wants to attend should talk with the financial aid office as soon as possible, says Phil Day, president of the National Association of Student Financial Aid Administrators. Financial aid administrators may be able to help families find other sources of funding.

"If there are going to be some gaps," Day says, "you want to know what those gaps will be."

Credit woes may hinder college-bound [USAToday]
(Photo:CAP)

Angry anti-corporate long-haired hippie Ryan Klute had this to say of the arrangements:

"I'm not an angry long-haired hippie against corporations, but it's a bad idea when the university and the company have a vested interest in you spending your money so they can make money off you."

The schools benefit from the exclusive agreements whenever students swipe the cards. They also receive annual payoffs that can reach $1 million. The banks cash-in when students like Brad Vehafric, a Portland State junior, accidently overcharge their account and get hit with $150 in fees for buying a cup of coffee.

In 2007, 127 schools had joined with banks to issue ID cards that double as debit cards, a 144% jump from 2002, according to CR80News, an industry publication.

A USA TODAY survey of the nation's 15 largest universities by enrollment reveals that more than half now have bank card relationships with financial institutions. In most cases, that means the student ID card doubles as a debit card.

"If the big universities are doing it, then it's likely the small ones will follow," says Margaret Reed, an associate accounting professor at the University of Cincinnati. "If I were a student, I wouldn't be happy" that colleges are pushing a product that earns them money.

Students shouldn't assume the bank account and debit card promoted by the university will be a good deal for them, says Greg McBride, a senior financial analyst at Bankrate.com.

"In life, you're going to pay for convenience," McBride says. "If the goal is to get the most out of your money, it pays to shop around."

Students should stay away from anyone hocking freebies or offering curiously convenient deals. Instead, find a credit card with a low APR and ideally, rewards, and pay it off in full every single month.

Colleges' debit-card deals draw scrutiny [USA Today]
(Photo: Getty)

Adobe has been promising a Leopard-friendly version since at least November 13th of last year, but as of today they've still released nothing. In the meantime, students who've spent considerable amounts on e-textbooks are out of luck and money.

The forum notes that there are a couple of potential workarounds that have seen some success, but the truly astounding aspect to this is that Adobe hasn't stepped up to help ensure refunds for those who weren't told their purchases would be useless—and that e-book sellers aren't making it clear at check-out that Leopard won't work.

(Thanks to Tyler!)

"Digital Editions in Mac OS X Leopard" [Adobe Forums]

It said the College Cost Reduction and Access Act of 2007 "could possibly eliminate the profitability of new FFELP (Federal Family Education Loan Program) loan originations, while increasing our risk sharing from our FFELP loan portfolio."

The year 2008 looks much bleaker for Sallie May after its earnings forecast was lowered by more than 13 percent. That is a huge cut in earnings and the blame goes to a new law in effect which requires subsidies of the federal government to have more cash on hand to counterbalance defaulted loans.

Stock prices had already been falling since last July, so the cut in the forecasted earnings did nothing to help this student loan company. The falling prices initially began when a buyout of $25 million worth of stock fell through last July.

• 56% of all undergraduates report obtaining their first credit card when they were 18
• 83% of all undergraduates in 2001 had at least one credit card.
• The average student has four credit cards.
• College students' balances have gone up 134% in the last decade.
• Three out of five students with credit cards maxed them out during their freshman year.
• 71% of young adult cardholders do not pay their balance off in full each month.
• The average undergraduate credit card balance is $2,169.
• College seniors graduate with an average of $4,000 in credit card debt.

If you can teach your kids to beware "stranger danger," you can tell them about the APR bogeyman finance fee fiend.

Ars Technica speculates:

There may be another factor at work here: hostility towards the RIAA's campaign on the part of Harvard Law School professors Charles Nesson and John Palfrey, who run the law school's Berkman Center for Internet & Society. Responding to the RIAA's claim that its litigation strategy has "invigorated a meaningful conversation on college campuses about music theft, its consequences and the numerous ways to enjoy legal music," the profs called on Harvard to not betray the "trust and privacy" of its students.

"The university has no legal obligation to deliver the RIAA's messages. It should do so only if it believes that's consonant with the university's mission," wrote Nesson and Palfrey. "[The RIAA seems] to be engaging in a classic tactic of the bully facing someone much weaker: threatening such dire consequences that the students settle without the issue going to court. The issue is that the university should not be carrying the industry's water in bringing lawsuits."

Morris insists there wasn't a thing he or anyone else could have done differently. "There's no one in the record company that's a technologist," Morris explains. "That's a misconception writers make all the time, that the record industry missed this. They didn't. They just didn't know what to do. It's like if you were suddenly asked to operate on your dog to remove his kidney. What would you do?"

Personally, I would hire a vet. But to Morris, even that wasn't an option. "We didn't know who to hire," he says, becoming more agitated. "I wouldn't be able to recognize a good technology person — anyone with a good bullshit story would have gotten past me." Morris' almost willful cluelessness is telling. "He wasn't prepared for a business that was going to be so totally disrupted by technology," says a longtime industry insider who has worked with Morris. "He just doesn't have that kind of mind."

Why the RIAA may be afraid of targeting Harvard students [Ars Technica]
Universal's CEO Once Called iPod Users Thieves. Now He's Giving Songs Away. [Wired via BoingBoing]
(Photo:Joe Shlabotnik)

They range from an urban college like the Cooper Union in New York's East Village to Deep Springs College, a remote, all-male school deep in the California desert. Many are specialized institutions, often focusing on engineering, such as the F.W. Olin College of Engineering in Needham, Mass.; or on music, like the Curtis Institute in Pennsylvania. A handful—the College of the Ozarks or Berea College in Kentucky—have mandatory work-study programs. Perhaps the most well-known of them is the U.S. Military Academy in West Point, N.Y., which offers free college tuition in exchange for five years of service after graduation.

RELATED
Slideshow of tuition-free colleges [BusinessWeek]
(Photo: BusinessWeek)

From Ars Technica:

Under the terms of the act, which is cosponsored by Rep. George Miller (D-CA) and Rep. Ruben Hinojosa (D-TX), schools will have to inform students of their official policies about copyright infringement during the financial aid application and disbursement process. In addition, students will be warned about the possible civil and criminal penalties for file-sharing as well as the steps the schools take to prevent and detect illicit P2P traffic.

That's not all: schools would have to give students an alternative to file-sharing while evaluating technological measures (i.e., traffic shaping, deep packet inspection) that they could deploy to thwart P2P traffic on campus networks. Many—if not most—schools already closely monitor traffic on their networks, with some (e.g., Ohio University) blocking it altogether, and the bill would provide grants to colleges so they could evaluate different technological solutions.

The most objectionable part of the bill is the part that could force schools into signing up for music subscription services. In order to keep that beloved federal aid money flowing, universities would have to "develop a plan for offering alternatives to illegal downloading or peer-to-peer distribution of intellectual property."

MPAA chairman and CEO Dan Glickman is:

"Intellectual property theft is a worldwide problem that hurts our economy and costs more than 140,000 American jobs every year," said Glickman in a statement. "We are pleased to see that Congress is taking this step to help keep our economy strong by protecting copyrighted material on college campuses."

This is the funding that allows low-income students who would not otherwise have been able to afford college (like me, for example) to get a higher education. In a letter to Congress, the Association of American Universities wrote:

Such an extraordinarily inappropriate and punitive outcome would result in all students on that campus losing their Federal financial aid-including Pell grants and student loans that are essential to their ability to attend college, advance their education and acquire the skills necessary to compete in the 21st century economy. Lower income students, those most in need of Federal financial aid, would be harmed most under the entertainment industry's proposal.

New bill would punish colleges, students who don't become copyright cops [Ars Technica]
LETTER OPPOSING THE INCLUSION OF THE ENTERTAINMENT INDUSTRY PROPOSAL ON ILLEGAL FILE SHARING IN THE HEA (PDF) [AAU]
(Photo:George Miller [D-California, 7th Congressional District])

In return, CaféScribe will be paying for Mr. Ditto's daughter's textbooks for a year. We've always considered running marathons to be insane behavior (even without carrying a backpack full of books) but Andre is confident that he can do it.

According to the press release that came sailing into our inbox, Andre will be carrying (among others) the world's heaviest textbook: Art History by Marilyn Stokstad. We have a degree in Art History. Good luck, Andre. You're going to need it to defeat Stokstad.

(Photo: Susannah Dambmann)

Looks Chase is shifting tactics since giving kids burritos and tshirts in exchange for signing up for a crappy credit card is drawing media fire.

From the NYT:

Tuition and other costs, not including room and board, rose to $6,185 at public four-year colleges this year, up 6.6 percent from last year, while tuition at private colleges hit $23,712, an increase of 6.3 percent. At public two-year institutions, average tuition and fees rose 4.2 percent to $2,361.

Last year, tuition and fees at public institution rose by 5.7 percent; at private ones, by 6.3 percent and at public two-year institutions, by 3.8 percent.

"The average price of college is continuing to rise more rapidly than the consumer price index, more rapidly than prices in the economy," Sandy Baum, a co-author of the report who is a senior policy analyst for the College Board and a professor at Skidmore College, told reporters at a news conference this morning. She added that the prices "are probably higher than most of us want them to be."

The numbers seem to indicate that families are making up the difference by taking out more loans, with private loans continuing to be the fastest growing form of borrowing.

College Costs Rising at Double the Inflation Rate [NYT]
(Photo:nautical2k)

Countering Credit-Card Pushers [BusinessWeek]
(Photo: Tamara Dib/Daily Californian)

A variety of factors could be at play, including the rising cost of college and more people going to college. But consider the cost increases thanks to the aggressive marketing of private student loans (a practice for which the NY AG sued several colleges and banks), which often carry higher interest rates than federal student aid. Many students turning to private loans haven't used of their full quotient of federal Stafford, Perkins, and PLUS loans, which have capped interest rates and are guaranteed against default.

Student Debt [GOOD]
RELATED: Shop Around for Student Loans

"Even if you apply, you can always cut up the card," and "It's easy to pay off your balance once you graduate and get a great job."

Confessions of a credit card pusher [Businessweek]

The Crimson speculates that the Coop may be reacting this way because of Crimsonreading.org, an online database that lets students search for the lowest prices by using ISBN. Harvard's Undergraduate Council President says he's spoken with an intellectual property lawyer and confirms that the ISBN-ownership claim is hogwash.

We understand taking severe measures to protect your business against cost-cutting competitors—especially when they have a business model that potentially gives them the upper hand against your traditional brick-and-mortar establishment. But we think it's pretty hilarious to invent copyright law. And we wonder, do they own the ISBNs of all books, or just the ones in their inventory? Does the publisher have any ISBN ownership rights? Maybe we should create some sort of international, standardized book numbering system so we can replace this proprietary one.

Anyway, so yeah, don't use ISBNs without writing to the Coop first and asking for permission.

"Coop Discourages Notetaking in Bookstore" [The Harvard Crimson, submitted by Joe—thanks, Joe!)

Then when the kids go off-campus to redeem their pita, they're told they have to fill out a form allowing a credit card application to be mailed to them, which also got around the school's prohibition against gift-giving in exchange for apps.

You might chalk this up to "rogue marketers," except that Ohio just sued Citi marketers for their "free burrito" event. A tasty pattern begins to emerge.

Free pitas come with a catch [Daily Orange] (Thanks to Jodi!)
RELATED: Ohio Attorney General Sues Credit Card Marketers Over Ohio State "Free Burrito" Event
(Photo: Morton Fox)

Fliers pasted around Ohio State's campus offered students a "free burrito" for showing their Ohio State ID at the restaurant. The fliers made no mention that filling out a credit card application was required. Ohio is arguing that this violates the definition of "free" in Ohio's consumer protection laws because the terms of the offer were not disclosed on the fliers.

Similar fliers were posted luring students to Potbelly Sandwich Works. Delicious, but deceptive.

State Of Ohio vs. Campus Dimensions, INC. (PDF) [State of Ohio]
Editorial: Citibank's credit card come-on proves there's no such thing as a free lunch [The Plain Dealer]

"It's hilarious because I had a class with 200+ people, and there were 3 to 4 copies of the current edition of the textbook in the library, but no one borrowed the books except for me... I just kept on renewing the books until the end of the semester and kept them in my locker."

Not all your books might be in the school library but it's certainly the first place to check, and after that, the used books on Amazon.

How I Saved Over $30,000 While In College and What I Did with the Money [The Baglady via Frugal For Life]
(Photo: Lisa Pisa)

"The start of the school year is a good time to remind parents, students and teachers to save all receipts related to tax-advantaged education expenses," said IRS Acting Commissioner Linda Stiff. "Good recordkeeping makes sense because it can help avoid missing a deduction or credit at tax time."

We'd just like to point out the awesomeness of someone called "Stiff" running the IRS.

Anyhow, to learn more about education related tax deductions and credits, check out IRS publication 970. No, it's not the most awesomely compelling literature you'll ever read, but it might save you some money.

Tax Benefits For Education (PDF) [IRS]
(Photo:puroticorico)

The article goes on to describe how some states are trying to limit the amount of marketing credit card companies can deliver to college students, and how the companies in return are coming up with alternative ways of getting new student customers. The techniques run from blatant—at Columbia University in NYC, banned companies set up tables right on the other side of the school property line—to creatively sneaky—JPMorgan Chase offers free taxi rides to students, then assaults them with recorded Chase card ads.

Citibank responds to BusinessWeek by writing that "Citi does not conduct direct sales marketing on college campuses," which is such a carefully constructed non-answer that it could have come from a politician.

"Confessions of a Credit-Card Pusher" [BusinessWeek]
(Photo: Getty)