| Research has revealed that Student loans make up | | | | to repay a little money on the loan.. Also, consider |
| 54 percent of aid for college tuition, making them the | | | | setting aside some of your earnings to pay for the |
| largest form of loans awarded to students. With the | | | | next semester, thus avoiding the need to borrow as |
| increase in student loans, the rate of defaults are on | | | | much. |
| the rise, this could be the attributed to the | | | | 3. Only Consider Student Loans with The Best Terms |
| high-unemployment rate or other financial factors. | | | | - Remember, the lower the interest rates the lower |
| Student loans continue to be an albatross around the | | | | the loan, which means the less you have to repay: |
| neck of many students, every year there is a | | | | Federal Perkins Loans, Stafford Loans: Federal Family |
| marked increase in student borrowers. The rise in the | | | | Education Loan Program (FFELD) and Federal Direct |
| increase of students loans coupled with the overall | | | | Student Loan Program (FDSLP), Free Application for |
| expenses for college has grown faster than inflation. | | | | Federal Student Aid (FAFSA), The Federal Parent |
| Why is this? Experts contend that more and more | | | | PLUS Loans for Undergraduates Students (PLUS) |
| students are increasingly taking out a series of | | | | Program, Graduate and Professional Student PLUS |
| student loans, thus compounding the debt ratio. | | | | Loans (PLUS). |
| Taking on new student loans only increases your | | | | 4. Scholarships and Grants - Undergraduate |
| debt, thereby, sinking you further and further into | | | | scholarship and graduate fellowships are excellent aids |
| financial crisis. It is straightforward, the more debt | | | | to assist students in paying for their education. Unlike |
| you incur, the deeper the debt spiral. | | | | loans, scholarships and fellowships can be considered |
| Student loans will always be with us, unfortunately, | | | | free money since it does not have to be repaid. |
| borrowing to achieve a higher education is the only | | | | Thousands of scholarships and fellowships from |
| way the majority of Americans will reach their goal | | | | thousands of sponsors give out every year. Here are |
| of earning a college degree. Because we know that | | | | some resources to get you started: FastWeb |
| borrowing to attend college is not going away, steps | | | | Scholarship Search, College Board Fund Finder, LLC, |
| to offset the bite of borrowing to attend college | | | | and Scholarship Search Sites Owned by Education |
| should be taken as far in advance as possible to | | | | Lenders, scholarship central, Award Database, Next |
| reduce and manage your debt. Here are some steps | | | | Student Scholarship Experts, Broke Scholar, College |
| to you can take to ensure you are borrowing | | | | Data, Wintergreen/Orchard House Scholarship |
| responsibly. | | | | Database, College NET Mach25 and College View |
| 1. Avoid Falling into The Loan Trap - If at all possible, | | | | scholarship directory. |
| avoid borrowing; however, if you are like most | | | | 5. Military Student Aid is another valuable resource |
| students attending college, you have no other choice | | | | that offers exceptional scholarship opportunities: US |
| but to do so. When it comes time to borrow, do not | | | | Armed Forces Recruiting Programs, Financial Aid for |
| be tempted to borrow the full sum available to you | | | | Veterans and their Dependents, Veterans and the |
| personally on the loan, loan, of the loan, doing so can | | | | FAFSA, HEROES Act of 2003, Books about Military |
| give you a false sense of financial security. Often | | | | Scholarships and Financial Aid for Veterans. Additional |
| when you get the maximum amount of a student | | | | information can be found in the Education section of |
| loan, it is usually more than you can afford to repay. | | | | the web site. |
| This usually happens when students take out a | | | | 6. Lastly, Private Loans or Alternative Loans - These |
| need-based loan. These loans are easy to get, and | | | | loans should be your last resort and if at all possible |
| no repayment is required until after you leave school. | | | | choose another source. You will find loads of |
| If you borrow responsibly in the beginning of your | | | | information when you start your research, the key is |
| student loan process, the back-end repayment period | | | | not to let it frustrate and make you give up. Stay |
| will be manageable. | | | | focused, persevere and follow through with the |
| 2. Know Exactly How Much You Need to Borrow - | | | | mountains of paperwork in a timely manner. If you |
| Know before you go is my motto! When you receive | | | | wait until the last minute, you might find you have to |
| your loan award letter, and the maximum amount it | | | | put your dreams on hold until the next semester, and |
| states because you will know in advance exactly | | | | I am sure you do not want that to happen. Make |
| how much you need for a given school semester. If | | | | these resources your primary go to for information |
| you participate in the student work study program or | | | | and you will always up-to-date-information at your |
| maybe you work full time during the summer. The | | | | fingertips: FastWeb Scholarship Search, Local Public |
| salary earned from your part time work can be used | | | | Library and your local College's Aid Office. |