Student Loans

How to get Money for College
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   Just a reminder:  try to get grants and scholarships rather than taking out loans. As previously pointed out, loans have to be repaid, unlike grants and scholarships.  Also, you may qualify for some aid or a partial grant or scholarship, so don't just give up because your income or your family's income is "above the financial limits."

     For those who hesitate to take "government" (taxpayer funded) student aid:  Hopefully, when you get a job, your tax dollars  will help fund others like you when you couldn't afford to attend college on your own.  Perhaps you presently contribute with tax dollars.

     If you are sure that you need a loan, and cannot find a grant or scholarship after searching  this site, then you are ready to move on. 
Please check! This site is loaded with scholarship and grant information.  Make sure you read this before you take on a loan! (this is not a sales or gimmick website)
Things to think about:

    -Make your payments on time
    -Student loans are real loans-just as real as a car loans or a mortgages on a house.
    -You have to pay back your student loans.
    -If you don't, you could end up in default, which has serious consequences:

    * National credit bureaus can be notified of your default, which will harm your credit rating, making it hard to buy a car or a house.
    * You will be ineligible for additional federal student aid if you decide to return to school.
    * Loan payments can be deducted from your paycheck.
    * State and federal income tax refunds can be withheld and applied toward the amount you owe.
    * You will have to pay late fees and collection costs on top of what you already owe
    * You can be sued.

(to "College Money")
>>Need to meet financial guidelines
to qualify
>>Do NOT have to meet financial guidelines
to qualify
Plan Ahea

Direct Stafford Loans

are low-interest loans for eligible  students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

There are two types of direct loans: 


Direct Subsidized Loans

-Direct Subsidized Loans are for students with financial need.  Your school will review the results of your free application for Federal Student Aid (FAFSAsm)* and determine the amount  you can borrow. Note:  You are not charged interest while you are in school at least half-time and during grace periods and deferment periods.  Obviously, the better of the two.


Direct Unsubsidized Loans

-You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan.  Like subsidized loans, your school will determine the amount you can borrow.  Interest accrues  (accumulates) on an unsubsidized loan from the time it is first paid out.  You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized, i.e., the interest is added to the principal amount of your loan.

You can save money by paying on the interest as it accrues.  If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay  because you will be charged interest on a higher principal.

Note:  You may get both if you qualify.  For example:  $3,000 in DS Loans and another $2,000 in DU Loans.  Total Loan:  $5,000.        

Graduate School:

There are

Direct PLUS Loans

for parents and graduate/professional degree students and 

Direct Consolidation Loans

  that combine federal education loan debts into a single loan.


Are you willing to "give back" with some of your time?  It may mean more savings to you!

Cancellation/Deferment Options for Teachers

--If you're a teacher  serving in a low-income or subject-matter shortage area, it might be possible for you to cancel or defer  your student loans.

Public Service Loan Forgiveness (PSLF)

--You may qualify for forgiveness of the remaining balance  due on your eligible federal student loans after you have made 120 payments on loans under certain repayment plans while employed full time by certain public service employers.


Federal Perkins Loan

  is a low-interest loan for both undergraduate and graduate students with exceptional financial need.  
Questions that you might have:

How do I apply for a Stafford Loan?

How much can I borrow?

How will I get the loan money?

What are the current interest rates?

Other than interest, is there a charge for this loan?

How do I pay back my loans?

When do I begin repaying my loans?

What if I have trouble repaying the loan?

Can my loan be cancelled (discharged)?

For answers to the above questions, visit the site.
Related Books
~from the site
+ comments and suggestions
Student Financial Aid
     The Direct Loan  program by the federal government is the sole provider of federal student loans because of a law passed in 2010.  The website is thorough, but can get complicated.  I recommended that you go there, but first I will try to help you navigate through the system. 
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