| Paying for college is no easy matter
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| | Undergraduate Students) are also
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| nowadays and this brief article provides
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| | available nowadays and these were not
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| an introduction to the world of financial
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| | around a few years ago. PLUS loans are
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| aid
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| | given to parents rather than students to
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| As with everything else the cost of
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| | assist parents to pay for their child's
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| education has gone up significantly.
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| | education. Interest rates for PLUS loans
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| Average tuition increases in excess of 6%
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| | are average and there are a few
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| a year are commonplace today. Just as one
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| | restrictions and fees to pay but they
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| example, back in 1973 the cost to
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| | often form part of the student's overall
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| register at UCLA (University of
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| | package of funding.
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| California) was round about $200 a
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| | One quick note on the subject of fees.
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| quarter and today it is well over $2,000
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| | Most loans are for a specified sum of
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| a quarter.
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| | money such as $6,000 a year to be
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| This ten times increase is not at all
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| | disbursed in several payments (often once
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| unusual and lots of things cost ten times
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| | per semester). However it is not uncommon
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| more than they cost back in the 1970s. On
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| | for fees of up to 4% to be deducted from
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| the other hand, incomes have increased
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| | the loan amount before the funds are
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| approximately threefold in the same
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| | distributed. That 4% fee on your $6,000
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| period from about $15,000 - $30,000 a
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| | represents $240 that you not see but that
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| year to approximately $39,000 - $42,000 a
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| | you must repay. When you are looking for
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| year. These numbers vary according to
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| | a loan make sure that you do your
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| age, gender and a great deal more but as
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| | homework and look for a low or no-fee
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| a guide a three times increase is just
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| | loan.
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| about right.
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| | Despite the fact that Federal loan
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| Fortunately there is some good news.
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| | programs such as the subsidized Stafford
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| There are a lot more forms of financial
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| | loan program charge low fees and the
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| assistance available nowadays to parents
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| | government pays the interest, they are
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| and students than there has ever been. As
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| | not the only type of financial assistance
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| its name implies, financial assistance is
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| | today and are not necessarily the best
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| money which parents and students get from
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| | option.
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| grants, scholarships and loans issued by
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| | Meeting the cost of a college education
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| Federal and private lenders to help
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| | today is a complex operation and most
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| students to pay for their education.
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| | students will have to assemble a package
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| A few years ago, students could depend
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| | of funding that includes scholarships,
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| almost completely on Stafford loans and
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| | grants, government loans and private
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| Pell grants to finance their education
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| | financing.
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| costs and living expenses. These days
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| | Luckily, there are now a lot more more
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| Pell grants are still issued but they are
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| | funding options available than we have
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| need based and represent a small
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| | seen for a long time and competition in
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| proportion of the education cost today.
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| | the open market from private financial
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| Stafford loans are similarly need based
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| | institutions especially means that you
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| but can meet 25% to 40% of the average
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| | can find funds at a price that is not
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| cost of financing school these days.
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| | necessarily going to break the bank.
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| Another form of aid is Perkins loans that
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| | You are also lucky to be living at a time
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| are similar to Stafford loans but that
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| | when finding the information that you
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| are issued only to the lowest income
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| | need to make good decisions about the
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| families.
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| | choices available to you is also
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| Luckily, PLUS loans (Parent Loans for
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| | relatively easy.
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