Student Loan News, Updates and Blog Posts

If you are in school at a College or University, and you are not independently wealthy, then chances are you are familiar with the FAFSA, the Pell Grant and the Stafford loan. If your parents handle all your tuition bills, forward this blog to them, because in these tough times it is increasingly more difficult to get those bills paid.

Ok so here is the scenario:

• You fill out the FAFSA every year, and you are getting the maximum amount possible in the Stafford loan. If you aren’t sure what the max amounts are you can click here (and scroll down).
• You are not eligible for the Pell Grant because your parents make too much money, OR you do get the Pell Grant, which can range anywhere from a few hundred dollars a school year to $5350 a year (amount increased from last year because of the new Stimulus Bill).
• The school gives you institutional aid.

Now you add up all this aid, and what do you have left? A balance most likely, that is due to the school before you can register for classes. The reason for this is even with all this aid, the cost of attendance is so high now, that financial aid (in the forms of Federal loans and grants) is not usually enough to cover the tuition costs. So what are your options?

4 solutions/options for getting that bill paid:

1. Check with someone IN PERSON at the financial aid office and make sure there is no other federal loan or grant you could potentially be eligible for (Perkins, federal supplemental loan, more Stafford). Also check to see if there is any more institutional aid available. It does not hurt to ask. Seeing someone in person can make a difference as well.
2. Search for scholarships. There are scholarships out there for everyone, and most of them are not merit based (meaning you don’t need to have accomplishments under your belt, etc..)…Here is a good place to start: http://www.studentscholarshipsearch.com/ (If you want more information about winning scholarships, post a comment and I can point you in the right direction).
3. If your parent is willing to borrow a loan in their name to help with your tuition costs then the Parent Plus loan should be their first choice. It is a Federal loan in the Parent’s name used to cover tuition costs. Payments CAN BE deferred until the student is out of school. This loan can never be transferred to the students name, at any point in time.
4. If your parent is not willing to have a loan in their name, then look into a Private Student loan. Keep in mind that in order to get a Private student loan, you usually need a cosigner…especially with the tightened credit standards we are all experiencing.
5. If #3 and #4 are not an option for you, then I would suggest looking at state and community colleges around your home. I can’t stress enough how little it matters where your degree comes from. As long as you have one, it won’t matter what school you got it from (excluding the IVY League schools, and certain other elite schools). Check out the programs your community college has, you might be surprised. You have to ask yourself if it’s the degree you want, or the experience you have while you are getting that degree that is more important. Try and get a grasp on what a huge amount of student loans can do to your financial future.

Special Points Code: IAMTAPPED

For more information and more financial aid help from people who are experiencing the same issues you are, visit this Financial Aid Forum.