| The cost of attending a public university has | | | | |
| skyrocketed in the past twenty years. Many | | | | It is not uncommon for the Department of |
| schools attempt to combat this problem with a | | | | Education to offer students an amount of |
| variety of need-based and academically based | | | | money above the cost of tuition, fees, and |
| scholarships. However, this is rarely enough | | | | textbooks. In this situation, the student |
| to cover the expenses for the average | | | | can either accept the excess funds or decline |
| low-income student. For those who need | | | | them. It is important to remember that the |
| additional financial aid, there is the Free | | | | loan amount borrowed is the loan amount to be |
| Application for Federal School Aid (FAFSA) | | | | repaid, so this decision should be considered |
| program. The United States government values | | | | carefully. Borrowing more money than is |
| the education of its young people; thus, a | | | | actually needed could result in financial |
| student loan financial aid program has been | | | | hardships once the repayment period begins. |
| implemented to help students and their | | | | |
| parents with college expenses. | | | | There are a few ways that student loan |
| | | | repayment can be deferred after graduation. |
| It is important to note that the FAFSA | | | | If the student re-enrolls in school at least |
| program is only available for students | | | | half time, the payment will again be deferred |
| attending or planning to attend a public | | | | until the student is out of school. Students |
| university. Those who are enrolled in | | | | who decide to attend graduate, law, or |
| private colleges or universities are not | | | | medical schools often utilize this option. |
| eligible for this type of aid. Students can | | | | Certain military personnel, teachers or the |
| find the FAFSA forms in their high school | | | | unemployed may also qualify for deferment. |
| guidance counselor's office, their | | | | Eligibility for this plan must be determined |
| university's financial aid office, or even | | | | and approved by the lender. |
| online. | | | | |
| | | | If a student is having financial difficulties |
| For those students who qualify, the FAFSA | | | | and does not qualify for a deferred payment |
| application is free and relatively simple to | | | | plan, it is important they do not fall behind |
| complete. The application will request | | | | on their payments. Debt consolidation may be |
| personal and financial information about the | | | | a good solution for anyone having trouble |
| student and his/her parents (if the child is | | | | making their student loan payments, or for |
| still a dependent). The government does not | | | | someone who wants to simplify the process of |
| perform credit checks on either party; | | | | repaying them. |
| however, income tax information from the | | | | |
| preceding year is needed to complete the | | | | A debt consolidation loan combines various |
| application. After the student loan process | | | | student loan bills into a single, affordable |
| has been completed, the student will be | | | | monthly payment. Like the FAFSA program, the |
| notified of their eligibility and (hopefully) | | | | loan approval process is not affected by |
| offered a financial aid package. | | | | "bad" credit. In addition, the interest rate |
| | | | on a consolidated loan is fixed and usually |
| The type of student loan financial aid the | | | | lower than the variable rate the government |
| government can offer varies. Sometimes a | | | | offers. This lower interest rate could mean |
| student will be eligible for grants that do | | | | a great deal of savings for the borrower. |
| not have to be paid back. However, most of | | | | Also, transferring student loans to a |
| the aid the government offers comes in the | | | | consolidation program can lower monthly |
| form of federal student loans. These loans | | | | payments considerably. For these reasons, |
| are dispersed on a first come, first serve | | | | consolidating student loans makes good |
| basis, so filing the FAFSA application early | | | | financial sense to a lot of recent graduates. |
| is very important. | | | | |
| | | | A college education is not cheap, but |
| It is also important that students understand | | | | investing in one can have its advantages in |
| that college loans must be repaid. With | | | | the work place. However, not everyone has |
| federal subsidized or unsubsidized student | | | | the ability to pay cash up front for his or |
| loans, the first monthly payment will be due | | | | her education. Student loans can be a great |
| six months after graduation. Like any other | | | | way to pay for this otherwise unaffordable |
| loan, a student loan accrues interest; | | | | experience. Take advantage of this wonderful |
| however, the interest rate is significantly | | | | opportunity, but handle it responsibly, and |
| lower than that of a credit card or personal | | | | hopefully, your expensive college education |
| loan. Lower interest rates combined with | | | | will be worth every penny borrowed on your |
| delayed repayment schedules make federal | | | | student loan. |
| student loans appealing to many families. | | | | |