| The school loan consolidation program streamlines | | | | Work Study provides jobs to undergraduate and |
| repayment by eliminating different terms, repayment | | | | graduate students, allowing them to earn money to |
| schedules, and lenders. "Hey Dad!", my son screamed | | | | pay education expenses. These are the major federal |
| from our front door, "I did it, I was accepted to | | | | sources of loan money for college. |
| Boston University.". My momentary exhilaration was | | | | Private education loans are also available from a |
| overshadowed by the financial realities of college, | | | | variety of sources to provide supplemental funding |
| especially private college. A quick calculation of my | | | | when other financial aid does not cover costs. These |
| costs for 4 years of tuition, and expenses came to | | | | loans are not sponsored by government agencies, |
| roughly $250,000, a very intimidating figure. | | | | and are offered by banks or other financial |
| Overwhelmed I thought, how could I possibly afford | | | | institutions. Sallie Mae is a unique loan that consists of |
| to send him to college? Fortunately, there are various | | | | a comprehensive package of both private and federal |
| options available to finance this academic endeavor. | | | | loans. |
| Federal programs are the single, largest source of | | | | After accumulating 4 years of undergraduate |
| school loan consolidation. The first step in applying for | | | | education loans, it is best to consider a School Loan |
| this type of aid is going on the Free Application for | | | | Consolidation Program. Very simply, you can elect to |
| Federal Student Aid (FAFSA) website, at and fill out a | | | | combine all your outstanding loans into one student |
| comprehensive questionnaire. It generally takes | | | | consolidated loan, which may create more favorable |
| around 7 days to process, at which point you will | | | | terms and simplify repayment, benefiting both the |
| receive a Data Release Number, and Estimated | | | | borrower, and the lending agency. Major benefits |
| Financial Contribution. It is important to find out if the | | | | include the convenience of lower monthly payments, |
| school you will be attending participates in the federal | | | | a single fixed rate, and one payment per month. |
| student aid programs, most do. | | | | There is a minor downside, however, students who |
| There are several federal programs available for | | | | do not consolidate their Stafford loans will have a |
| student aid, assuming school participation. The Federal | | | | 6-month grace period after graduation to begin |
| Stafford Loans, are available to both undergraduate | | | | making payments. Students who consolidate must |
| and graduate students. First-year undergraduates are | | | | begin making payments within 60 days of their |
| eligible for loans up to $2,625. Amounts increase for | | | | consolidation. Both parents and students are eligible to |
| subsequent years of study, with higher amounts for | | | | consolidate student loans. The school loan |
| graduate students. The interest rate is variable, but | | | | consolidation program streamlines repayment by |
| never exceeds 8.25 percent. The Federal PLUS Loans | | | | eliminating different terms, repayment schedules, and |
| are unsubsidized loans made to parents; the interest | | | | lenders. |
| rate is variable, but never exceeds 9 percent. Federal | | | | |