Student Loan Information
Student Loans Overview
A college education may be the most important investment in a child’s life and has become one of the most costly, too. The publicly reported tuition charged by private colleges and universities for can reach $50,000 or more a year. The trends are alarming, too. And while tuition at public universities is generally lower, costs [...]
Types of Student Loans
Doing away with federally guaranteed private loans whittled the three basic types of loans undergraduate students should know about down to two: federal loans made by the government directly, and private or alternative loans from banks or other private lenders that carry no federal government guarantee. (Sometimes a college itself may make loans, too, usually [...]
Getting Help
In the wake of all the negative attention to financial aid offices in 2007, students might well be nervous about relying on advice they get from their colleges or about borrowing from a company on a college’s list of “preferred” or “recommended” lenders. While it is certainly the case that in 2007 investigators for Congress [...]
Private Loans: The Wild West
For those students who need to borrow more money than is available through a federal loan program, there are “private” or “alternative” loans. These are basically just like any other consumer loan from a bank or student loan company. The interest rates charged on private loans are almost always higher than those on federal loans, [...]
Direct PLUS Loans for Parents
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child’s education expenses as long as certain eligibility requirements are met. Graduate and professional students may apply for PLUS Loans for their own expenses; click here for details. To be eligible for a Direct PLUS Loan for Parents: The parent [...]
Federal Direct Student Loan Program
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at [...]
Filing the FAFSA
Where to begin? The first step is not so easy — filling out the Free Application for Federal Student Aid, or FAFSA. But Congress moved to simplify this form as part of the Higher Education Opportunity Act of 2008. More good news: it is still free and can be completed online. (www.fafsa.ed.gov/FOTWWebApp/fotw1011/FFOTWServlet?locale=en_us ) The reward [...]
List of State Agencies Administering Student Loan Programs
Listed below for each state are the agencies responsible for administering state financial aid programs. You should encourage students to apply for any available state aid as well as federal aid and private scholarships. There also is a list of state education agency contact information at www.ed.gov/Programs/bastmp/SHEA.htm (this URL is case-sensitive). Alabama Alabama Commission on [...]
Shopping for a Stafford
STUDENTS looking to take out federal Stafford loans, one of the most popular ways to finance higher education, can be forgiven for thinking it doesn’t matter which lender they use. After all, the interest rate no longer floats. Nearly all banks and loan companies charge the same rate, 6.8 percent, as set by Congress last [...]
Glossary
Ability-to-benefit (ATB): Basis on which a student without a high school diploma, a recognized equivalent, or a General Education Diploma (GED) may qualify for federal student financial assistance. The Department of Education maintains a list of approved tests for measuring a student’s ability to benefit from the educational program the student seeks. The test must [...]