COLLEGE STUDENT LOANS What are they? Where are they? What do I have to do?
That the term college student loans refers to money you borrow for your college education is probably not just-in-time-news to you. You still might want to take a look at a complete glossary of financial aid terms
College Student Loans Student loans can be a good thing, and a wise investment, however if possible, one should not rely solely on them to finance a college education.They have to be repaid, with interest, and can mount up if not judiciously used.
Are there alternatives to borrowing money for college?
There are. They take time, effort and motivation. In the end they are worth it because you finish school owing less (or no) money.
Alternative Sources for College Funding
If you have read my
Earn-Money-in-College Site
you already know that I am not in favor of you shouldering a heavy work schedule while trying to get a college education, if you can avoid it.I am more in favor of borrowing the money, at least for the big expenses, and if you must, perhaps earning a little money with some sort of job that does not become your primary focus, in either time or emotion. If you take the time to search for scholarships, both those that require essays and those that don't, you will end up with some free money. You need to treat it like a project, but it's a game of numbers, and you can prevail.
Watch out for the Scholarship Scammers!
Innovative jobs for college, some from businesses you start in your dorm room
Save money painlessly, with our (if I do say so myself), clever ideas
Loans for college are either subsidized or unsubsidized. Subsidized loans are granted to those who demonstrate financial need: they have low interest rates, or an interest exemption while the student is enrolled in college. An unsubsidized loan does not have these benefits. In addition there are Plus Loans that are available to parents.
The strongest applicants to a college often receive the most desirable need-based financial aid packages-ones with more scholarships and grants, and fewer loans. This is one reason merit based scholarships can sometimes help you find a larger number of need-based grant money.
First Thing To Do: - To apply for financial aid, each college will ask you to complete one or more forms. Details are available at each school’s website. By filling out these pesky forms, Free Application for Student Aid (FAFSA), and the CSS Profile, you will have applied for about 90% of the available federal funds you may need.
- Don’t wait to fill out those forms after you have done your taxes for the year. For instance, for many schools the due date for the FAFSA form (see glossary) is February 1-March 1, too early for most filers. Estimate the numbers based on the previous year’s return and adjust them later if necessary.
- Remember to pay attention to deadlines for financial aid forms and applications.
- Money should be saved in the parent’s name, not the student’s name. A visit to an accountant is a good idea; he or she can give you advice based on your family’s financial picture.
- Your financial aid package may include work-study. If this is so, your first stop on campus should be the student employment office. The better jobs go fast. Check out any work study very carefully. Sometimes the pay is low, and you may be able to find a better job on your own.
- There are other things a student can do to lower college costs. These include not purchasing a textbook until you are sure the professor plans to have you use it! Wait a couple of weeks to see if two trips to the library during the semester/quarter will be all the access you need to the text. They are very expensive.
- Another idea is to check your college invoice to be sure it includes all the federal aid you were promised. Learn to stick to a budget, and open a free checking account that you keep track of. Wells Fargo, for instance, provides free checking for the children of customers. Learn to manage any credit cards you have--sticking to just one card is better--and keeps your debt down. Don’t respond to every application that comes your way.
Private and Government sites for financial aid information and loans
Learn more, go to Financial Aid Main Page
Student Loan Consolidation Programs.
Another important part of being informed about college student loans is student loan consolidation, and federal student loan consolidation. This Google search result gives you plenty of ways to learn about this topic so you can manage any loans you receive in a way that is beneficial to you, and that may save you money.
June 16, 2006, article in the Washington Post on Student Loan Debt Consolidation
by Michelle Singletary, demystifies student loan consolidation
Avoid Private Lenders, Get Your Loan from the U.S. Government - Cheaper.
Don't borrow from private lenders. I have, at least for now, removed Sallie Mae, and Fannie Mae loan information from my site. It would be bad advice for you were I to reccomend them (especially either of those two companies), or any other private lenders. Forget Fannie Mae and Sallie Mae, you'll suffer long and needlessly by using ANY private lenders instead of the government. Heard on 60 Minutes: Most universities guide their students to private lenders...One reason is that they offer incentives to some of the schools."(Kickbacks, big time.) Politicians receive contributions from the finance and banking industry in exchange for rasing student loan rates. What I wrote on my main Financial Aid page is so important that I am reproducing that text here: "While I almost never think that government can do anything better than private industry, especially costs-wise, there are exceptions, and this is a big one: WHEN YOU TAKE OUT A STUDENT LOAN, GO DIRECTLY TO THE GOVERNMENT AND BORROW FROM THE U.S. DEPARTMENT OF EDUCATION. Don't be influenced by your college financial aid department representative into using private lenders. GO TO THE U.S. DEPARTMENT OF EDUCATION SITE:"
Student Aid - U.S. Department of Education
National Student Loan Data System-Student Access System -Great Site!
Another great resource operated by the U.S. Department of Education. It is their central database for student loans and contains information about all government based loans and a glossary of loan terms.On this site, students can keep track of their own loans, and update contact information. In addition, they can learn about payment options. Site requires free registration.
National Student Loan Data System
Government Grants
National Association of Student Financial Aid
United Negro College Fund
Minority Students, Main Page
Minorities and College Financing
LEAP - Leveraging Educational Assistance Partnership (State Program
The LEAP program was formerly known as the State Student Incentive Grant (SSIG). Educational Financing It is a state run financial aid program, which allows states to receive matching funds for state residents from the U.S. Department of Education. You can contact the program (for your state) here: Policy Development DivisionPolicy Training and Analysis ServiceOffice of Student Financial AssistanceDepartment of Education, Grants Division400 Maryland Avenue, SWWashington, DC 20202-5447Phone: 202-708-8242 I know, no Web site. Seems impossible, doesn't it? As soon as I find one, I'll put it up. So far, no luck.
*NOTE:The above list represents only a fraction of the resources available for college funding and information about financial aid. There are too many to list, and any search on the web will bring back thousands of hits. Our pages give you numerous resources, and help you learn about the process ofo financial aid, and about countless resources and databases for grants, loans, scholarships and other sources of funds for college. We add to our pages all the time, and try to have each entry bring you useful information. It is not possible to prevent repetition, but we continually update this site with information and resources we hope will be of value to you.
More Targeted Financial Aid Web Sites
Everything-about-college Scholarship Home Page
Get Acquainted with Financial Aid Terms
To learn more about college student loans, go to Financial Aid Main Page
Free textbooks-Save thousands while in college
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