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