| So you're thinking about college. Maybe you're just | | | | the school year, usually nine, and then add in the |
| out of high school getting out in the world for the | | | | costs of tuition and other college related fees. This |
| first time, or maybe you're an adult considering | | | | will give you a good idea of the total financing you'll |
| college for the first time or even grad school. When I | | | | need for the year. |
| decided to go back to school to finish my B.A., my | | | | 2 - Are you going to work? |
| main question was how I would fund it. Of course, I | | | | This is a critical factor in deciding how much you'll |
| had a job, but it's difficult to both work full-time and | | | | need and working will allow you to take out much |
| go to school full-time. My only option was student | | | | less in student loans decreasing your debt when you |
| loans, at least at the beginning. | | | | are finished. Additionally, for undergraduates, unless |
| Now, student loans are not the only way to fund | | | | you take out private loans, student loan funding is |
| college. There are scholarships you may be eligible | | | | limited and may not always cover all your expenses |
| for; some of you may be lucky enough to have | | | | depending on the college you decide to go to. You |
| parents that can assist in stemming the costs you | | | | might also qualify for work-study, which also gives |
| might incur; or you might have been diligent about | | | | you valuable work experience. Unless you're planning |
| saving for just an occasion. Many of us aren't that | | | | on only going to school part-time, I don't suggest |
| fortunate and the costs of paying for tuition, books | | | | working full-time. Your main goal in going to college is |
| and other school related fees on top of rent, utilities | | | | to get a good education and working full-time |
| and other living expenses can be a little overwhelming | | | | detracts from this opportunity. |
| to deal with. When all else fails, student loans are a | | | | So you've figured out your approximate expenses |
| good option, but there are some key issues you | | | | for the school year. Here's what you need to do in |
| need to know before going this route. | | | | order to get student loans: |
| Federal student loans are designed to assist students | | | | File a Free Application for Financial Student Aid |
| in paying for tuition and other expenses. Additionally, | | | | Filing the FAFSA should not be put off. While the |
| they have many advantages over other loans. One | | | | deadline for student loans isn't terribly strict, most |
| advantage is that student loans do not need to be | | | | schools have a February 15th deadline to qualify for |
| paid back until you're done with school. This takes | | | | grants and other types of non-loan aid such as |
| away much of the stress of taking out a loan and | | | | work-study, which may significantly decrease the |
| not knowing whether you'll be able to pay it back or | | | | amount of debt you owe when you're finished with |
| not. Even when you do enter repayment, there are | | | | school. I suggest getting an application for the next |
| several repayment options that student loans allow | | | | year as soon as they become available. This is usually |
| you to choose from that can be changed with some | | | | right around the end of the year. Fill it out right after |
| restrictions based on what might suit your financial | | | | you get your tax documents, usually around the end |
| situation. Another advantage student loans have over | | | | of January. Your financial information on your form |
| other loans is that the rates and terms are much | | | | needs to match what you file with your tax return |
| more lenient. First of all, the interest rates for | | | | and sometimes your school's financial aid office will |
| student loans are variable, much lower than other | | | | need a signed copy of your tax return as well if |
| loans and at the moment there is a cap on the | | | | anything is questionable, so be sure to make a copy |
| maximum interest you will pay. Secondly, depending | | | | after you sign it. One thing you don't want to do on |
| on the repayment plan you choose, you can also | | | | the form is provide inaccurate information. This could |
| take as much as 30 years to pay back your loans. | | | | prevent you from getting any aid at all in the present |
| Additionally, if your financial situation takes a | | | | and in the future. |
| nose-dive, you may also be eligible to defer | | | | Soon after you send it in, the Department of |
| repayment on your student loans up to three years | | | | Education will send out your student aid report (SAR) |
| and depending on what you do after school, some of | | | | with all the information you provided as well as the |
| the loan may be forgiven. | | | | information the school takes into consideration. If |
| One of the first decisions you have to make is how | | | | they ask for additional information, don't wait to send |
| much you will need to take out in student loans. | | | | it to them. Doing so could prevent you from getting |
| Here are the key issues you should consider when | | | | aid of any type. How much you'll be able to take out |
| making this decision: | | | | will depend on your information, the school and the |
| 1 - What are your living expenses? | | | | budget they assume for the academic year. |
| This question involves making a budget that includes | | | | Student loans are like any other loan. You need to be |
| all the expenses you incur on a monthly basis. | | | | cautious of how much you borrow and how much |
| Included in this should be rent, utilities, car payments, | | | | you'll need to pay back. Weigh the costs and the |
| insurance, gas, food, child care if needed, other loan | | | | benefits just as you would any loan, but don't let it |
| payments and any expense that you think you might | | | | keep you from returning to college or just starting |
| need on a monthly basis. You'll then need to multiple | | | | out. The cost of not going is always much greater. |
| your monthly budget by the number of months in | | | | |