Everything About Financial Aid:

Show me the money!

Interest rates on variable-rate federal student loans dropped to historic lows. Now would be a good time to look into consolidating.

Financial Aid Editorial Note:

Everyone knows California is broke.

Seven states including California currently pay all or most of the education costs to provide illegals with a mostly free college education. Contrast this to the efforts of many Americans to finance their children's education, and the concerns about the long term debt this will require.

In California, we provide a free education for illegals and this costs taxpayers about $200 million per year. California is bankrupt, by the way, mostly because of foolish, idealogical decisions and legislation.

A movement is now afoot, lead by The College Board, for all states to provide this largess for illegals, and to make it easier for illegal to get into college. Contact your state and national representatives to express your viewpoint on this newest exercise in fiscal lunacy. And don't write me irate emails regarding my opinion; my concern is the education of our own students, and their parents' efforts to provide for that education.

Tuitions are up at many schools; grants are down, and many families are feeling the stress of wondering how they will pay for your education. It is a good idea to have a candid discussion with your parents before beginning the college search process. This way you will have a more realistic view of the role finances may play in your college search and eventual choices.

Minimize sticker shock from costs by considering financially safe colleges-ones your family can afford, and you feel comfortable attending. Two-year community colleges and four-year in-state public colleges are often financially safe choices. Another option is a college offering a three-year bachelor's program.

There are many outstanding colleges, providing excellent educations, that fit within reasonable economic boundaries. For instance, students in thirteen western states may participate in reciprocal agreements that allow reduced tuition at other states in the program.

Learn About College Student Loans

Government Sites for Aid information

Get Your Loans from the Government! They Cost Less.

Avoid Private Lenders.

September 2008: While I do not think the taxpayer should be bailing out private businesses, there is no doubt that right now is a great time to be looking at Fannie Mae and Freddie Mac Students Loans.

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 raising student loan rates.

Usually my advice is this:

While I almost never think that government bureaucracies can do anything better than private industry, especially cost-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: Government funding information

Aid Forms, FAFSA, CSS Profile

The CSS Profile: loan application, mostly for private schools, non-federal student aid

Don't forget about alternative sources of money, some of it earned, and some of it free.

Families with younger children and time on their side, may be interested in working with a certified financial planners who specialize in helping families prepare for college expenses. While the best time to contact an educational financial adviser is while their children are young, financial planners are also able to offer financial advice, flexibility and leverage for families with high school students. In the words of one planner: "Would you rather pay wholesale or retail for college?"

Be sure to investigate thoroughly, and ask for references, and proof of certification.

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Please Don't Leave Yet, But When You Do...

A vast amount of useful and necessary information can be found at U.S. Department of Education's huge Web site.

This is where you go to find out anything you'd want (well, more like need, actually,) to know about financial aid, colleges and higher education.

You'll find sites for students, parents, and educators. AND, the site has an awesome college search engine that searches 7,000 schools, allowing you to set a lengthly list of search criteria.

Also get acquainted with the financial aid terms. You'll learn, or at least know where to find, the meaning of all those boring acronyms that are essential for navigating the-paying-for-college stuff stuff, and they describe different types of loans and programs.

The page also has links to all our other comprehensive financial aid and scholarship pages.

All in all, it's a deal.

National Association of Student Financial Aid

PAYING FOR COLLEGE, MAIN PAGE

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Learn about scholarships here

College Student Loans

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