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