This just in: more bad news from the front lines of the recession. According to the U.S. Department of Education, the student loan default rate has climbed from 4.6 percent in 2005 to 5.2 percent in 2006 to a preliminary figure of 6.9 percent for 2007. The 2007 rate is based on recent grads who began repaying their loans between October 2006 and September 2007 and defaulted before October 2008.

Of course, the recession is to blame:

The new rates “are from the early recession period, so that is the likely explanation for the increase,” Robert Shireman, a senior adviser to Education Secretary Arne Duncan, said in a statement.

So how can current and future students sidestep these sad loan statistics? Some tips on avoiding loan default:

>> Consolidate your cashola.
Consolidating your student loans enables you to combine all your loans into a single loan so you can reduce your number of monthly payments. This makes repayment more manageable and it can also lower the amount of your monthly payment.

>> Make a new plan.
You can also lower your payments by changing your payment plan. Extended repayment, for example, enables those with more than $30,000 in student loan debt to lower their monthly payment by extending the loan over 25 years instead of 10 years. Other options include graduated, income-contingent, income-sensitive, and income-based repayment.

>> Defer the question.
Deferring your loan just means postponing payment. The nice part is that if you have a subsidized Direct Stafford or Consolidation loan, the government will pay the interest while the loan is in deferment. For all other loans, unpaid interest capitalizes (is added to the principal balance) when you enter repayment. There are several types of deferment, including programs for current students, military personnel, and new parents. Click here to determine your eligibility for deferment.

>> Grin and forbear it.
Forbearance is an arrangement to postpone or reduce your monthly payment for a specific period of time, during which you are charged interest. You may request forbearance of principal, interest, or both. But even if you receive a forbearance of interest, it will continue to accumulate and it will be capitalized when the forbearance ends. Click here to determine your eligibility for forbearance.

And the most vital tip for avoiding loan default:

>> Communicate your concerns.
Lenders will do everything in their power to help you avoid defaulting on your loan – as long as you keep them in the loop about your financial situation. Contact them at the first sign of trouble, and you can make arrangements to keep your loan (and your credit rating) in good standing.

–Robyn Tellefsen

Got any more tips on effectively managing your student loans? Post away!

Welcome to the 6th edition of the Carnival of College Admissions, and the first one hosted here at CollegeSurfing! Thanks to Mark Montgomery, the Great College Advice guru, for passing the torch. I’m under pressure to live up to the first five installments, and so I do my best to present to you: The Six Degrees of College Admissions. I apologize in advance for a blizzard of puns, plays on words, or metaphorical musings.

Nevertheless, December is a huge month in the cool world of college for at least six reasons I can think of:

1. The most competitive colleges and universities have admissions application deadlines this month
2. The SAT — every collegebounder’s rite of passage — was this past weekend
3. Juniors are getting cracking on their research after seeing their frenzied upperclassmen scramble
4. College students are taking their semester finals and looking forward to winter break
5. The economic climate has been pretty cold as of late, too, making it primetime to get a jump on financial aid (January is Financial Aid Month!)
6. Maybe not college-related exactly, but have you noticed it’s getting to be quite nippy, at least in my neck of the woods? In fact, at times, it feels like it’s six degrees outside! Brrrr….

Hence why it’s the perfect time to get warm and fuzzy. First, by thanking all of the wonderful participants featured below, both regulars and newcomers — welcome! And next, by encouraging you, my dear readers, to learn from these great posts as your college admissions process, campus life, or post-graduate world of work heats up. Get clickin’…

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** Admissions ** The Long Road to a Degree

Mark Montgomery presents Elements of a Good College Fit, Part One: Academics posted at Great College Advice. “Finding the right college is like finding a good pair of shoes,” he says. “You have to know what you need. You have to know what you like. And you have to take the time to shop around.”

Genevieve Blaber ponders college admissions testing abroad in If Only the SATs Were Held in South Korea, posted at College – U. Got It?. Talk about serious degrees of exam pressure!

While the weather outside might be frightful, the winter holiday can be productive for boarding school students looking ahead to college. Peter Baron’s Holidays Are A Good Time to Work On Private School Applications at AdmissionsQuest explains why.

Wondering how college football is like college admissions? Adam Epstein throws a blog touchdown with this cold-weather sport analogy. Check out College Admissions and the BCS posted at Adamissions.

Get some cold, hard advice when it comes to friends and your college decision from Robin Levinson’s Campus Compare: Dear Babs Q&A blog: Should I make my college selection based on my friends?

Mark Truman won’t leave you out in the cold, confusing world of “too good to be true” college application officers. His post Northern Arizona University’s Personal Advantage Application Is NOT a Scam at Omniac Attack! clears the air and teaches a lesson in how colleges are marketing to you.

To what degree should colleges try to recruit students in the future? Brad J. Ward poses the question, “”Do you need a social media strategy?” in his post Social Media Strategy in Higher Ed at SquaredPeg.com.

Ernest Koe presents another degree of discussion — a great breakdown of Web 2.0 tidbits — on the topic of Social media and school Admissions at edSocialMedia.

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** College Life ** Fun and Survival Beyond the Degree

Want to stand out from your college peers in this frozen economy? Dan Schawbel offers expert insight on how to promote yourself online and beyond. Consider this required reading: College Students Require Personal Branding Classes at the Personal Branding Blog.

Don’t hibernate this winter semester or fall victim to the Freshman 15. Instead, feel the burn, says Tom Tessin. Check out his post Exercise and College Students at the FCC Student Blog.

Can you feel the credit crunch chill in the air? College students should warm up to good credit habits now, says Raymond. Click into Why College Students Should Apply For Student Credit Cards posted at Money Blue Book.

“You know that internal alarm that we all too often ignore?” asks Brett J. Callahan. Before you break into a cold sweat, it’s called intuition, and guest blogger Laura Kowalski discusses why every college student needs it here: Intu-what? at 2East: The College Living Blog.

Working toward your degree should include some actual work on campus, says TJ Hanson. You’ll get even more from your college experience, according to his post, On-Campus Jobs for College Students – It’s Not All About Money at The Digital Student Blog.

Six feet under? Khan asks Is the Internship Dead? at the Higher Education and Career Blog. “Despite a small school of naysayers, most career counselors and workplace consultants believe internships are alive and well.”

Craving a game of Six Degrees of Kevin Bacon? Or actually, just some bacon? Hungry college students listen up: Shae’s offering a big college Cookbook Contest at The Collegiate Gourmet.

Especially for education or psychology majors interested in the cold, hard facts on learning styles, Daniel Willingham presents Education Reporting of Research: Buyer Beware posted at Britannica Blog. “While most teachers progress from easier topics to more advanced ones, that may not always be the best approach, according to a new study.”

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** Financial Aid ** Fight the Frigid Pay-for-your-degree Forecast

Christopher Penn, Financial Aid Podcast crunches some chilly numbers for you, and offers lots of smart advice in his post The Coming Financial Aid Crisis, Part 2 in a Series posted at Financial Aid Podcast Free MP3 Internet Radio.

You’ve been accepted, now what? Brandon Mendelson answers the chill-down-your-spine question of how to afford college in Planning For The Financial Aid Crisis posted at The Graduate Student Survival Blog.

Wondering to what degree colleges are feeling the recession? O. Daille Nation-Ashley breaks it down in Credit Crunch – College Challenge posted at CEOmum. Read through for some encouraging news, too!

If financing college is a struggle, why not head to the chilly North? Todd Johnson explores college savings in Canada in A Great Way to Save on the Cost of College posted at College Admissions Counseling.

Winter holidays and gift giving go hand in hand, so don’t miss this unique idea with a college twist. Save Up For College With FreshmanFund’s 529 College Savings Plan Gift Registry posted at Savings Toolbox tells you how to get Aunt Edna and Grandpa Harry to help pay for college.

If you thought financing college was fun, look ahead to Student Loan Options For Graduate Students posted by Don at Student Loan Guru. “With student loan lenders become more strict with their lending requirements, some graduate students are finding their options dwindling.” Chilling, indeed, but this list offers hope.

Like a warm winter coat, government protection for private student loans may be on the way, says the Student Loan Guru in his post, Support for Private Student Loans coming from the US Treasury at Student Loans 101.

When traditional loans don’t cut it, don’t give up on the degree. As Eric says, Try Borrowing from an Innovative Loan Program. Learn more at Dream Strategy.

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** The Post-College Grind ** Life and Work After the Degree

Don’t put a freeze on your job hunt just yet. Hiring trends for college grads are still quite toasty, hence my recent CollegeSurfing Insider post, Stop Worrying About Jobs, Young Whippersnappers.

Jessica Daniels from The Fletcher School at Tufts, A Graduate School of International Affairs, delves into the cool-as-ice gigs of former alumni, and how their kids are growing up globally in her post, Second Generation Internationalists. Read closely for a mention of the Carnival’s very own Mark Montgomery!

“Have you graduated from, or will soon graduate from, a degree program? Do you know what you’re going to say in response to job interviewer’s questions?” Put your worries on ice at the Degree Talk Blog with these tips on what NOT to share with your prospective employer: Got your Online Degree? Ready for a Job Interview?

Did you ever sit with a cold stare at your professor, wondering if anything you’re learning is relevant? Dr. Delaney Kirk thinks the answer may surprise you. See why in You’re Really Going To Have To Know This Stuff! posted at Ask-Dr-Kirk.

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** Other Cool Stuff ** Not counting the wind chill factor!

How cool are iPhone apps, especially when they have an educational component? Heather Johnson presents Top 50 iPhone Apps for Educators posted at OEDb: Online Education Database.

Which gender do you think is more cool and calculating? Get to the (square) root of the issue in Are Boys Really More Hard-Wired for Math than Girls? posted at Brain Blogger.

If you want to avoid brain freeze, you need to eat brain food. Brigid helps map out a nutritional plan with her post Brain Fitness at New York Public Library. She says: “After attending a recent staff training session offered by the library’s Office of Staff Development, I decided to return to a habit of my childhood — eating sardines.”

Alvaro Fernandez explains “why attention is a critical component of learning” in his post Torkel Klingberg helps with Overflowing Brain & Information Overload posted at SharpBrains. Pretty cool stuff!

“If you’re talented at art, you might want to consider going to an art college,” says A. Lee. Learn how to select a cool art school in the post Why Bother With Art Colleges? posted at eArtFair.com.

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Hope you enjoyed the Six Degrees of College Admissions Carnival! Have fun clicking around, and please, share the love: Stumble it, Digg it, Blog it, Tweet it, Share it and help us grow! After all, ’tis the season of giving!

Bloggers, don’t forget to submit a post to the December 24th Carnival of College Admissions, hosted by Mark Truman, using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Warmest regards,
Dawn Papandrea

Today, CollegeSurfing Insider welcomes writer and financial aid expert Christina Couch to offer some secrets to scoring financial aid…

If Uncle Sam left you high and dry, take heart!  There are literally millions of dollars in financial aid – including grants, scholarships, and alternative programs that won’t require a financial aid application at all – beyond awards administered by the federal government.  Here are seven ways to pay for school without getting a government hand-out.

#1. State Aid
If the feds won’t pony up the cash, maybe your state will.  Armed with both need and merit-based aid programs state-administered awards typically aren’t overwhelmingly large, but they can certainly defray tuition sticker shock.  In addition to offering traditional scholarship and grant programs, many states including California, Virginia, and Maryland also offer grant and loan forgiveness programs for students majoring in critical needs fields like nursing, teaching, and child care. Award programs vary tremendously from state to state.  For a list of what programs are available in both the state you live in as well as the state of the school you’re attending, contact each state’s higher education department.

#2: School-Based Aid
After checking with the feds and the state, it’s time to hit up your future school for free money.  From sports awards to memorial scholarships, schools, especially those with large endowments, frequently provide sizeable scholarships to students who wouldn’t qualify for aid anywhere else. Finding out what awards are available is as simple as a visit to your school’s financial aid office.

#3: Local Scholarships
After tapping out the feds, families searching for a reduced tuition tag frequently turn their attention to large national scholarship awards offered by well-known corporations and non-profit organizations.  While a select handful of students do land generous awards doled out by companies like Target and Coca-Cola, most students (especially those with less-than-perfect transcripts) have a significantly better shot of winning smaller local awards.  Before applying for awards given by national organizations, check out scholarships available through local civic, religious, and community organizations as well as your high school.

#4: Graduate Early
The easiest way to avoid debt is to graduate before getting into it. Thanks to AP, IB, dual enrollment classes, and placement tests, students can cut a semester or even a year off of their college tenure before they begin.  Adult students can test out of courses via CLEP exams or earn credit for their life and work experience through portfolio assessment programs. The trick to getting your college sentence reduced is to plan early (as in several years before you apply to college).

#5: Do Some Time
Specifically in federally funded programs that offer educational rewards.  Through Americorps, the Peacecorps, and Teach For America, students can earn up to $9,450 in financial aid after completing two years of service.  Students may also qualify for hefty loan forgiveness or loan reduction depending on the program and the amount of time served. This is especially helpful to adult students or career changers who wish to leave their jobs and start over in a new field.

#6: Make an Agreement
Students attending an out of state school may be able to score some fast cash simply by majoring in the right subject.  Enter the Academic Common Market – a conglomeration of 16 southern states that allow undergrad and graduate students to attend college outside their home state while paying in-state prices.  The catch is that the program is limited to students majoring in a subject that’s not offered in their home state.  Click here for more information on member states as well as what degree programs qualify.

#7:  Write It Off
If you do end up ponying up for school, don’t forget that you can write a portion of your educational expenses off when tax time rolls around. The US government currently offers two tax credits for tuition-paying families.  The Hope Scholarship provides up to a $1,650 tax break for students in their first two years of post-secondary education and the Lifetime Learning Credit allows families to deduct up to $2,000 a year for all education expenses (including undergraduate, graduate, and professional development classes) incurred in the household. Though each tax credit has income limitations and assumes that the student is spending a certain amount out of pocket for their education – $2,200 for the Hope Scholarship and $10,000 for the Lifetime Learning Credit – both tax credits are available to students of all ages.

Christina Couch is the author of Virginia Colleges 101: The Ultimate Guide for Students of All Ages.

Q: How do I know if an educational program is worth the cost?

As coincidence would have it, I just finished logging out of SallieMae’s bill pay area to make my monthly “donation,” the one I’ve been making every month for the last seven years. If you’re not familiar with SallieMae, they’re one of the largest educational loan providers, and I — along with millions of other former students — feel like I work to pay them. Or at least that was the case in the year or two immediately following graduation during which I paid my proverbial dues like my CS buddy Amanda in the industry. (Nothing against good ol’ Sallie, of course. Without her, no grad school for me.)

But yes, dear readers, making an educational commitment may very well involve a looming debt burden. What you need to determine for your own situation, is if you’ll eventually get a return on your educational investment, an ROEI, if you will. Whether it’s increased earnings, better job opportunities, or simply learning for its own sake, you have to decide if earning a degree, certificate, or diploma will help you professionally.

Worth noting: As reported by the U.S. Census Bureau, your expected lifetime earnings increases with each degree level you complete:

High school degree = $1.2 million
Bachelor’s degrees = $2.1 million
Master’s degrees = $2.5 million
Doctoral degrees = $3.4 million
Professional degrees = $4.4 million

Well that makes you feel better about shelling out the bucks, right? But there are still some other factors to consider when weighing the worth of a particular program:

The point here? Your education is an investment in yourself, and you want to be sure you get the most for your money, time, and hard work. When I received my first loan payment schedule booklet, I have to admit I was pretty scared, pissed really, realizing most of my paycheck would be going toward that piece of paper hanging in my computer/junk room.

Now that I’m more than halfway through paying off my loan debt (has it been seven years already?!), I can say that pursuing a master’s degree was worth it for me. It provided me with skills that I literally use every day in my job, great contacts and networking opportunities, and a pretty cool addendum to my resume.

Do you think paying for an education pays off? Any tips on cutting school costs? Fire away some comments…