| As with everything else the cost of college education | | | | are loans given to parents and not students to assist |
| has increased greatly. Increases in tuition in excess of | | | | parents to pay for their child's college education. |
| 6% per year are common nowadays. Just as one | | | | Interest rates on PLUS loans are average and there |
| example, back in 1973 the price to register at The | | | | are certain restrictions and fees charged but they |
| University of California, Los Angeles (UCLA) was | | | | often form an important part of the student's overall |
| about $200 per quarter and now it is well over | | | | package of college funding. |
| $2,000 per quarter. | | | | A quick note about fees. Many loans are for a |
| This tenfold increase in cost is not too unusual and | | | | specified sum such as $6,000 per year disbursed in |
| lots of things now cost ten times more than they did | | | | several payments (normally one payment per |
| back in the 1970s. Incomes, on the other hand have | | | | semester). But it's not uncommon for fees of up to |
| risen about three times in this same time period from | | | | 4% to be deducted from the loan amount before |
| about $15,000 - $30,000 per year to about $39,000 - | | | | the funds are disbursed. This 4% fee on a $6,000 |
| $42,000 per year. The numbers vary by age, gender | | | | equates to $240 that you will not see but that you |
| and a great deal more although as a rough guide a | | | | must repay. When you are searching for a loan |
| threefold increase is about right. | | | | ensure that you do your homework and try to find a |
| Now there is some good news. There are many | | | | low-fee or no-fee loan. |
| more types of financial aid available today to both | | | | Although Federal loan programs like the subsidized |
| students and parents than there has ever been. As | | | | Stafford loan program carry low fees and interest is |
| the name implies, financial assistance is money that | | | | paid by the government, they are not the only |
| parents and students receive from grants, loans and | | | | source of financial assistance nowadays and are not |
| scholarships granted by both Federal and private | | | | necessarily the best choice. |
| lenders to help students to pay for their college | | | | Meeting the cost of college nowadays is a complex |
| education. | | | | operation and the majority of students will have to |
| Once upon a time, students were dependent almost | | | | put together a funding package that includes |
| totally on Stafford loans and Pell grants to finance | | | | scholarships, grants, Federal loans and private |
| the cost of their education and college living | | | | borrowing. |
| expenses. Nowadays Pell grants are still issued | | | | Happily, there are now many more sources of |
| although they're needs based and meet a small | | | | finance available than ever before and market |
| proportion of the education cost today. Stafford | | | | competition from private lenders especially means |
| loans are similarly needs based but can range from | | | | that it is possible to find funds at a price that will not |
| 25% to 40% of the average cost of school these | | | | necessarily run you into unmanageable debt. |
| days. Another type of aid is Perkins loans that are | | | | You are also lucky to be living at a time when finding |
| similar to Stafford loans but that are reserved for | | | | the information that you need to make reasoned |
| the lowest income families. | | | | decisions about the choices available to you is also |
| Fortunately, PLUS loans are also available now and | | | | quite easy. |
| these loans were not around a few years ago. These | | | | |