MyRichUncle(R) Introduces Online Tool with Built-In Voice-Over Technology to Take Families Through the FAFSA Form Quickly and Easily
NEW YORK, March 17 /PRNewswire-FirstCall/ -- Parents of soon-to-be college students will find that after the flurry of admissions applications subsides, they will enter the next phase of college planning: how to pay for it. The first financial aid form parents need to get on their radar screens is the FAFSA, or Free Application for Federal Student Aid, and today, MyRichUncle(R) launched its new online "FAFSA-Assistant," which includes a built-in assistant to aid in completing the form in an accurate manner that saves time as well. The FAFSA-Assistant is part of a growing suite of college planning tools MyRichUncle offers families as they prepare to pay for college.
Students cannot apply for the many types of aid they may be eligible for unless they file the FAFSA first, yet for many families of college-bound and current college students, the application brings on feelings of anxiety and concerns about completing the 10-page form. In a paper last year, "The Cost of Complexity in Federal Student Aid: Lessons from Optimal Tax Theory and Behavioral Economics" from researchers at Harvard University, the application was cited to be longer and more complicated than the federal tax form. To address the time and complexity concerns of families, the MyRichUncle "FAFSA-Assistant" is an online form that offers the benefits of:
-- A virtual FAFSA consultant in the form of voice-over technology, which
provides tips and information to clarify many of the questions that
often stump FAFSA filers, to get them through the form more quickly.
-- Populates the FAFSA in its entirety and submits it online directly to
the Department of Education.
-- Electronic confirmation sent directly to the filer that the application
has been received.
-- Being free, unlike many sites that charge families money for similar
assistance.
-- Immediate delivery of an estimate of their Expected Family Contribution
(EFC), the gap between anticipated aid and the total cost of
attendance.
"As the access point to many types of aid, the FAFSA application is a valuable first step for every family planning how they are going to pay for college. Yet, so many families we speak with experience everything from apprehension to panic over filling out the FAFSA properly," said Raza Khan, president and co-founder of MyRichUncle. "We felt it was important to introduce a meaningful tool that addresses families concerns as they embark on the financial aid process."
Among the many advantages that families using MyRichUncle's "FAFSA-Assistant" will realize is the voice-over technology, which is akin to having a FAFSA specialist at your side as you fill out the application. The voice-over provides answers to the questions that tend to confuse filers of the form, which can sometimes lead to inaccurate FAFSA applications. The tips serve to clarify questions, provide context and define specific details so that filers can answer precisely. The consequences of having faulty information on the FAFSA range from processing delays to ineligibility for all funds that the student may qualify for otherwise.
Another edge "FAFSA-Assistant" users will have is the early notification of an estimated EFC. While the amount of the EFC is generally a surprise for many families, who believe their ability to contribute is far less than the government estimates, an early estimation of this amount provides families with the opportunity to start planning and gathering information on the best funding solutions earlier than ever before.
One of the most common myths about financial aid for higher education is that it is limited to lower-income families, and therefore the FAFSA may be overlooked. The fact is that every student is eligible for an unsubsidized Stafford loan, which carries a maximum fixed rate of 6.8 percent. Many students beyond that will qualify for a subsidized Stafford loan, which means that there will be no interest charged while the student is enrolled. The subsidized Stafford loan also carries a maximum fixed rate of 6.8 percent, but is dropping to 6.0 percent on July 1, 2008. There are also federal grants and work-study, and most states and schools use information in the FAFSA to determine eligibility for non-federal aid.
MyRichUncle has just relaunched its new, information-rich website at http://www.myrichuncle.com/. Besides being the one-stop shop for borrowing for higher education, MyRichUncle has introduced several new tools that families are encouraged to use as they embark on the financial aid process. Designed to take the complexities out of college financing, the new suite of planning tools includes:
-- MyRichUncle Estimated Family Contribution (EFC) Calculator, which is
designed to help predict the amount that the student, and his/her
family will be expected to contribute to the cost of education for one
school year -- after grants, aid, scholarships, and federal Stafford
loans have been awarded to the individual.
-- Financial planning timeline, a scrollable calendar, populated with
actions families need to take throughout the year as they prepare to
pay for education
-- Monthly APR Repayment Calculator, which provides families with
straightforward information about the true cost of borrowing, as well
as real repayment scenarios for private student loans. Because many
borrowers are less than confident about choices they may make about
private student loan borrowing, the Monthly APR Calculator is a great
starting place for anyone not certain about the future obligation that
borrowing will bring.
-- Financial Aid 101, a presentation created to help families understand
the process of paying for college and associated costs that can be
surprising. This presentation was developed for and presented at
select Princeton Review planning for college events.
By providing tips, information and planning guidance, MyRichUncle hopes to help families in making prudent decisions when it comes to borrowing money to fund education. Families who have not yet filed their FAFSA are invited to use the free "FAFSA-Assistant". MyRichUncle believes families will find the "FAFSA-Assistant" to be a useful tool to provide them the help they need as they prepare for the financial aspects of college each year.
About MyRichUncle(R)
From its inception in 2000, MyRichUncle(R), the consumer brand of MRU Holdings, Inc. has been at the forefront of innovation for education finance, most recently focusing on the growth market of student loans. Since May of 2005, MyRichUncle has originated more than $400 million private and federal student loans using its breakthrough underwriting platforms and innovative technology to deliver competitively priced products and services to borrowers. In May 2006, the Company launched Preprime(TM), the first and only student loan that allows students to qualify for loans based on individual merit, rather than credit history alone. In June 2006, MyRichUncle launched its federal student loans with upfront interest rate reductions at repayment. Dedicated to reshaping the student loan industry to function in the best interests of students, founders Vishal Garg and Raza Khan and their team are committed to delivering the most innovative solutions for their customers. The Company and its founders have been recognized by Fast Company's Fast 50 (2006) and listed among BusinessWeek.com's Tech's Best Young Entrepreneurs (2006). For more information, visit http://www.myrichuncle.com/ .
Available Topic Expert(s): For information on the listed expert(s), click appropriate link. Raza Khan http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=59062
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