When I first started to plan for college I knew that I would have to apply for a good amount of student loans so that I could afford the price of tuition, and the associated costs of living. This was mostly due to the fact that I didn’t really have any unique athletic, or academic talents that would allow me to get a scholarship, and because my parents didn’t have the cash to put towards my education. I ended up concluding that I would have to turn to an exorbitant amount of private student loan funding in combination with any aid I got from the government to pay for school. This plan of turning to private loans first before any federal aid I though was a smart idea, boy was I wrong!
My main issue revolved around my inability to get approved for a private student loan at all due to my bad credit. The only way around my bad credit was getting my parents to cosign, and because they weren’t willing to do so, I couldn’t get approved for any private loan funding. This worried me quite a bit, and I started to contemplate my ability to attend college at all. I intended on going to an expensive private university that cost over forty thousand dollars per year, and immediately knew that without the aid that would be provided via a private student loan funding I would not be able to attend any kind of university that cost that much.
After I had my panic attack, I gathered myself and began to regain focus. I reassessed my plans, and decided that it would be best to go to one of my backup schools, which would cost much less than the private university I was planning to attend. I would commute instead of living on-campus, and I would try and budget as closely as possible.
My primary issue was still getting the funding I would need to pay for my full tuition costs. In January I filled out a FAFSA application, to make myself eligible to receive federal aid, and I received my award letter in June. To my surprise, federal student loans are non credit based student loans that aren’t based off of your credit like private loans are. Because I was living in-state, and commuting, the federal student loans I received would easily pay for the costs of attending my backup school of choice. The point I tried to get across with this story is that you should never discount the kind of funding you can receive from federal, non credit based student loans, as these loans came to my rescue when I was in my darkest hour.
Well the politicians are at it again. This time they’re parading money out in front of us (the stimulus bills) and saying that they’re going to help everyone, especially those needing financial aid to attend college. They say they’re worried about student loan increases, yet all they do is pay it lip service and through more taxpayer money at it.
You would think that the Politicians could figure out that if they helped students by curbing the actual cost of College, then they wouldn’t have to hold us hostage with student loans! Geez people, just help limit the increase in College itself and then you won’t have to increase spending!
But since common sense is in short demand in Washington, here are some tips to help you cut your cost so Washington doesn’t have to cut theirs. This will help you offset some of the upcoming student loan increases.
First, get rid of your credit card. When money is hard to find, too many of you College students want to run up your credit card. It’s not a good idea. Living without credit is entirely doable and once you get the hang of a cash only lifestyle, it’s really satisfying to know credit card companies don’t have you over a barrel.
Limit your lifestyle. Yeah, I said limit your lifestyle. There’s no need for you to go to Daytona Beach or the Hamptons for spring break. While you’re at it, learn to cook inside the dorm. You don’t need a Chef’s kitchen to fix simple, healthy meals. Stop eating out so much and you’ll soon find out that you have a lot more money available.
Get a job. Yeah, you read right. I know you think you don’t have time to get a job and go to school at the same time, but really, a few less kegger parties and you’ll have plenty of time to pick up a part time job and help pay your way through college. This little student loan advice alone will help you offset any increase that comes down the pipe.
When looking at starting your education in a college or university, one of the first things that comes to mind is the debt that you are about to accumulate. The great part for you as a student is that the government reconigizes that you need all the help you can get and can offer you a Federal Student Loan. If you must go into debt, this is the best kind to be in.
Because the government knows what your needs are and realizes that colleges and universities are raising tuition prices almost every semester, they also understand your needs. We are all encouraged to further our education and get the most out of it that we can, but at the same time it can be so expensive that for many people it is not even an option.
Though the best advice to give would be to try not to get any debt. Summers are still a good time to work hard and earn money to be spent during the school year. If you can really budget your money you may be able to earn summer money to provide during your school year. But if that really isn´t an option for you, then student loans may just be your best bet.
If you feel like you need to get some sort of loan, the best kind out there are those federal student loans. These are designed for you and they even give you a 6 month period after graduating to find that good, new job that will help you to pay for payments. The interest is lower then any other type of loan that you are going to find and they are a great way to build good credit.
If you need a bad credit private school loan, have a look at this article.
I was discussing student loans with a friend the other day when they mentioned a guaranteed student loan. We didn’t have time to get into it at the time, but I was intrigued – who was guaranteeing what?
An hour or 2 of research later, and it appears that Guaranteed student loan is really just another term for a subsidized Stafford loan – the kind we talk about in this article about Federal Student Loan Payback. The short explanation is this: Subsidized Stafford loans are backed with money from approved private institutions, and as long as you are in school, the Government pays that institution interest on your loan amount as well as the fees associated with managing a loan. Sounds like a good deal to me.
Anyone who is not a first time student knows what a pain it can be to wait for your federal loan refund. Those who are getting to experience the wait for the first time here is an explanation to why it takes so long.
One of the most common student loans to apply for is the Stafford Loan. Applying for this loan is the best place to start if you are looking for finical help. There are four requirements to be considered as a candidate for the loan. The first requirement is that you must be a U.S citizen, permanent resident or eligible non citizen. Another requirement is that you must at least be enrolled in school half time. If you apply for a subsidized Stafford loan you have to meet finical need as determined by your school. To apply for the loan you can not be in default on any education loans or owe a refund on an education grant.
One of the most important requirements is that you must submit a FAFSA before anything can be processed. To file for a FAFSA it is a free process, it can be done electronically online. When filling out this application it is very important to remember to include the codes to the school you’re attending or wish to attend, so your finical information can be sent to those schools. Once your FASA is filled out in about three to four weeks you will receive in the mail a copy of your student aid report and then it will be sent your school. Once this process is complete a Financial Aid Reward Letter will be sent form your school directly to you. At this time you have to make the decision on which parts of the loan you want to accept. For example work study, personal loans, parent loans etc… Once the reward letter is returned to your school you will have to fill out a mastery Promissory note and return to your school.
Once all this paperwork is completed you are now able to receive your student loan money. The federal loan refund will not come right away or go directly to you. First your school will be able to use the loan to pay for tuition and all other school enrolment expenses like a dorm room if necessary. Once everything is paid if you have any extra funds you will receive a refund in the form of a check which can be used just like cash or applied back toward your loans. When this federal loan is refunded to a student it will occur usually right before classes begin or soon after the first week. Most schools will have their own personal set dates when the refunds will be released this can be found on most Universities websites. It is most likely you should have your refund in time to buy school books.
Understanding Your Loans | admin, 26 Jan 10 | 
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