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Independent Student
Categories: Loan and Mortgage,
A classification of a student for the purposes of the federal financial aid application.The federal definition of an independent student is one who can answer yes to any of the following questions, for the 2008-2009 filing year:Were you born before January 1, 1985?Will you be working on a degree beyond a bachelor's degree, such as a master's or doctorate, in school year 2008-2009?As of the date you will be submitting the FAFSA, are you married? (Answer yes if you are separated, but not divorced.)Do you have children who receive more than half of their support from you, or do you have dependents (other than your children or spouse) who live with you and receive more than half of their support from you, now and through June 30, 2009?Are you an orphan or ward of the court or were you a ward of the court until age 18?Are you a veteran of the U.S. armed forces?Are you currently serving on active duty in the armed forces for other than training purposes?In unusual circumstances, a student who does not meet any of these criteria may still be considered independent if a compelling case can be made to override the dependent status. This can only be done by a qualified financial aid officer and is very rare.A common misconception is that by virtue of not being claimed on your parent's income tax for two years, you can become an "independent" student.See also dependent student.
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Fixed Annuity
Categories: Insurance, Legal, ,
A fixed annuity is a contract that allows you to accumulate earnings at a fixed rate during a build-up period. You pay the required premium, either in a lump sum or in installments. The insurance company invests its assets, including your premium, so it will be able to pay the rate of return that it has promised to pay.At a time you select, usually after you turn 59 1/2, you can choose to convert your account value to retirement income. Among the alternatives is receiving a fixed amount of income in regular payments for your lifetime or the lifetimes of yourself and a joint annuitant. That's called annuitization. Or, you may select some other payout method.The contract issuer assumes the risk that you could outlive your life expectancy and therefore collect income over a longer period than it anticipated. You take the risk that the insurance company will be able to meet its obligations to pay.Some variable annuities offer a fixed rate account with a guarantee of principal, such as an interest account.
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