Real People, Real Issues - Help With Student Loans
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Reported by: Jason Frazer
Wednesday, Nov 12, 2008 @04:21pm EST
Student loans have become a lifeline for families needing help to pay for college. However, it can be confusing trying to figure out how the financial aid offices determine what your financial aid package will look like and how much in loans you will have to take out.
First, all families applying for financial aid need to complete a Free Application for Federal Student Aid or (FAFSA) form. After completing it, you will get a Expected Family Contribution number of an EFC which the colleges use to determine how much money your family gets in aid.
Each college has different guidelines in determining how much money your family will receive in aid. Unfortunately, because the cost of college has skyrocketed so has the amount of debt students graduate with each year. On average, students graduate with $19,000 worth of student loans.
So what can you do?
First - Always visit your financial aid office to see if you can petition for additional grant/scholarship money. Maybe your situation has changed since you filed your FAFSA form or maybe another scholarship has been made available for students with similar financial needs.
Second - Search for scholarships. There are billions of dollars offered each year to aspiring or current college students. One of the best websites is Fastweb (www.fastweb.com ) which automatically email you updates on new scholarships available. In addition, think of places where you shop, worship or work. Chances are they also offer scholarships. Your local library also has free books available that have lists of scholarships.
Third - Max out your work study. Work study programs are free money the government gives you to apply to college costs. You have to contact your school for approved Work Study programs but it's a great way to earn some money without possibly affecting your financial aid package next year.
Fourth - Before approaching private student loan providers, always maximize your government loan programs through your college. They will always provide the lowest interest rates available to finance your Education.
Finally - if you have exhausted all of the above options try applying for a private student loan through Sallie Mae, Citibank or Chase. Unfortunately, the loans will have a higher interest rate.
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