How a letter can wreck your emotional stability

By Ginny Estupinian

The Associated Press and other news organizations reported that at least 1800 veterans across the country mistakenly received a letter from the Department of Veterans Affairs telling them that they had Lou Gerhrig’s disease. The letter was intended to notify the recipients of the benefits that they were now entitled to as a result of having this disease. Evidently the letters were sent by mistake due to a coding error.

Lou Gerhring’s disease is officially know as Amyotrophic lateral sclerosis (ALS). It is a progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord. The progressive degeneration of the motor neurons in ALS eventually leads to their death. When the motor neurons die, the ability of the brain to initiate and control muscle movement is lost. With voluntary muscle action progressively affected, patients in the later stages of the disease may become totally paralyzed.

Half of all people affected with ALS live at least three or more years after diagnosis. Statistics show that twenty percent live five years or more; up to ten percent will live more than ten years.

So how can a letter affect someone psychologically?

Well a lot depends on the individual who receives this type of letter. Some will receive it and think there must be a mistake and for all intensive purposes just move on with their lives. For others, it may be a whole different experience. Those veterans who are dealing with trust issues and may not be as strong mentally, receiving this kind of notification can put them under a great deal of stress. After all the letter is coming from a recognized and trusted source of medicine. For many veterans their only health treatment comes through the VA. Therefore, receiving something like this with this authority has some serious weight.

The important thing here to stress is that any veteran who has been affected by this type of error, or similar errors, and feels stress should not ignore their feelings. Getting help is important and should be done sooner than later. There are many resources through the VA and other agencies that can help any veteran get the support and treatment they need.

What is New in Student Financial Aid This Fall

By Ginny Estupinian

As we approach the beginning of the new academic  year,  it is good to know what has changed in the world of financial aid so that you can be best prepared to make the most out of it. Here is a brief overview:

Pell Grant Changes

 The maximum annual Pell Grant will increase to $5,350 from $4,731. These are federal awards that don’t need to be repaid. In order to qualify for these grants the applicants income must not exceed $50,000 annually. In order to apply for this grant simply fill out the Application for Federal Student Aid.

 Student Loans

 The good news for those taking out a new subsidized Stafford undergraduate loan, is that the interest rate will now be 5.6% instead of 6.0%.  These loans are need based and have different amounts available base on the year you are in. For example: a maximum loan amount of $3,500 per year for Freshman, $4,500 per year for Sophomores, $5,500 per year for Juniors and Seniors. 

 In these types of loans the government pays the interest on these loans while the student is in school.  Students with unsubsidized loans, available regardless of financial need, must pay their own interest or ask to defer it. 

 Student loan interest rates have been dropping since the 2007-2008 academic year and will fall to 3.4% by the 2011-2012 year.  The rates are only applicable to loans originated in that given academic year. It Is important to note that you cannot retroactively apply this rate to loans from the previous school year.

 What About Graduate Student Loans?

 Interest rates for Graduate and Parent PLUS loans, loans that graduate students take out for themselves or parents take out for their undergraduate children, remain at 7.9% in the direct lending program and 8.5% in the Federal Family Education Loan Program.

 Subsidized loans for graduate students remain at 6.8%.

 What If You Have Old Loans?

 People who borrowed from federal sources between July 1, 1998, and June 30, 2006, have variable interest rates pegged to the May 91-day T Bill auction.  The rate is at a historic low of 2.48% versus 4.21% last year, during the repayment period and 1.88% versus 3.61% while the student is in school and during the six-month post-graduation grace period. If you are concern that interest rates may rise again in July 2010, you may want to look into consolidating those loans that you got before 2006.

As always, this is just a brief overview to give you a heads-up of what is available. Make sure that you look over all your options with a qualified financial aid counselor.