Mompreneur » Paying for College

Student Loan Options

admin — Thu, 04 Jun 2009 20:08:46 +0000

You have applied for all your scholarships and looked into all the student aid you can. Now it is time to look into bridging the gap with student loans. There are three major categories when it comes to education loans. They are:

Student loans

Stafford – Fixed-rate, low interest loans available to undergraduate students attending accredited schools at least half time. The most common source of college loan funds.
Perkins – A low interest loan for undergraduate and graduate students with “exceptional” financial need.

Parent loans

Parent PLUS – A low interest student loan for parents of undergraduate, dependent students. Families can fund the entire cost of a child’s education (less other financial aid).
Graduate PLUS – Federally sponsored loans for students attending graduate school. You may borrow up to the full cost of your education, less other financial aid received.

Private student loans – After you have pursued free money and federal loans, these may be available to cover the rest of your education costs.

There is a fourth type which is a consolidation loan this allows the borrower to lump all of their loans into the loan for simplified payment.

Federal student loans are the largest source of education loans. They have more favorable terms than private loans. The loans are guaranteed by the government and they set their interest rates low. Almost all students are eligible to receive federal student loan money. One of the biggest benefits is they have a grace period after school when no payments are due.

Very few students can afford to pay for college without some form of education financing. Almost two-thirds of 4-year undergraduate students graduate with some debt. The average student loan debt among graduating seniors is just over $19,000.

The Federal education loan programs offer lower interest rates and more flexible repayment plans than most regular consumer loans. In many cases, you can deduct some, if not all, of the student loan interest on your income tax return.

If your dream is to put yourself or your child(ren) through college. There are several ways you can do this. Hopefully the information I have provided over the last two weeks have helped you realize if there is a will, there most definitely is a way.

Am I Eligible for Federal Student Aid?

admin — Wed, 03 Jun 2009 18:22:50 +0000

You have applied for every scholarship you feel will be a good fit. Now what? Start looking into Federal Student Aid. The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis”.

The first thing you want to know is who is eligible to receive Federal Student Aid? From www.fafsa.ed.gov here is your answer.

· Be a U.S. citizen or eligible noncitizen.

· Have a valid Social Security Number.

· Be registered with Selective Service if you are male and 18 to 25 years of age (go to www.sss.gov for more information).

· Have a high school diploma or a General Education Development (GED) Certificate or pass an exam approved by the U.S. Department of Education.

· Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs.

· Not have a drug conviction for an offense that occurred while you were receiving federal student aid.

Also:

· You must not owe a refund on a federal grant or be in default on a federal student loan.

· You must demonstrate financial need (except for unsubsidized Stafford Loans).

You might be wondering how much financial aid you are eligible to receive. This all depends on your Expected Family Contribution (EFC), your year in school, your enrollment status, and your cost of attendance at the school you will be attending. You will want to contact your school’s financial aid office to get this information.

Don’t forget to look at state and school resources to help pay your school costs as well. The financial aid administrator at the school you plan on attending can help you with that.

Start researching non-federal aid early (ideally, start in the spring of your junior year of high school). Many states, colleges and universities have filing deadlines that are much earlier than federal deadlines. Find out all application deadlines and make sure you meet them.

Questions You Need to Ask When Looking for College Scholarships

admin — Mon, 01 Jun 2009 22:55:49 +0000

Finding college scholarships may be a daunting task, but there is no reason for you to not look. There are scholarships out there for almost everyone. When looking for scholarships, it really is as easy as going to Google and typing in something to the effect of “how to find scholarships for college”. You will probably have to register at some of the Web sites, but there are plenty out there ready, willing and able to help make some connections.

Remember, not every scholarship is going to be a perfect match for you and/or your family. From www.getreadyforcollege.org, here are some questions you may want to ask to see if you have found a good match.

· What is the maximum scholarship award? They can range from $100 to $10,000 or more.

· Is the scholarship based only on merit (no financial need requirement), or does it require both merit and need?

· How is financial need defined for scholarships that require need? Each program has its own definition of need. If you cannot find that information readily, check all the other eligibility criteria. If there is a good match overall, submit an application and your need will be assessed in the scholarship review process.

· How does the scholarship program define merit? Some scholarships are very strict, requiring a minimum grade point average of 3.0 to 3.5, along with other leadership skills that are highly competitive. Other scholarships have more flexible criteria.

· Does the scholarship require admission to a degree-granting program? This is a common requirement, but some scholarships offer flexibility.

· Does the scholarship require full-time enrollment? This, too, is a common requirement, but some are flexible and may fund students who are less than full-time.

· What are the other eligibility requirements? Is the scholarship targeted to a specific educational institution, specific field of study, resident’s of a specific geographic area?

· What is the application process? Many scholarship programs have their own application forms. Some you can apply for through the Free Application for Federal Student Aid (FAFSA) program.

· What is the application deadline? Scholarship deadlines can be six to nine months preceding the start of the academic year, while some may be closer to the start of the fall term.

For free and valuable information, visit www.Scholarshiphelp.org. Please don’t overlook resources out there to help you.