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