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From Students to Students

Advice on Getting Financial Aid in College

By Brittany Shultz, The Ohio State University Senior

It’s very exciting to get that acceptance letter from college, but then you have to figure out how to pay for it all. Your letter may have said that you were eligible to apply for student loans or that you received a scholarship. The scholarship you received may not pay for everything, though. You also may not know exactly what having that student loan entails. Here are some details to help you figure out how to pay for college.

Scholarships

There are a number of places that you can use to try to get scholarships for college. Many Web sites have scholarship searches, but there are other places to look for scholarships as well.

Some places to look for scholarships:

Check your local newspaper. Many times, especially around application season, newspapers will write about different scholarship opportunities.

Find out if your high school has scholarship opportunities for their graduates.  Not all schools do, but many offer scholarships for high grades and such in the first year of college.

Look at your future college for scholarships.  You will probably have to apply for many of them, but some of them will automatically be given to you. Some scholarships are offered based on where you live, what your grades are, or what your major is, so be sure to exhaust all options from your college.

Here are some Web sites that offer scholarship searches:

http://www.collegeboard.com/student/pay/

http://www.princetonreview.com/scholarships-financial-aid.aspx

http://www.finaid.org/scholarships/

http://scholarshipmillionaire.wordpress.com/

If you cannot find enough in the way of scholarships to fund your education, you will have to consider student loans. There is a lot to know about student loans and the information below is the most relevant as an incoming student. If you would like a comprehensive guide to student loans, the following link will get you to the government booklet: http://studentaid.ed.gov/students/attachments/siteresources/YourFederalStudentLoansApril2009.pdf

One of the first things you have to figure out is whether you will be taking out government student loans or private loans. Your school will let you know if you are eligible for student loans once you have filled out the FAFSA. (FAFSA is the Free Application for Federal Student Aid. Find out more at: http://www.fafsa.ed.gov/index.htm.) The FAFSA will give you an idea of what you and/or your parents are expected to pay and then what your need is. Not all colleges have a program with the government to give out student loans. You will have to check to determine if your college has a program and how much you are able to receive in federal student loans. If you do not receive enough money to cover the full cost of tuition, then you may have to consider private loans as well.

Here is a breakdown of government loans versus private loans:

 

 

There are a number of different kinds of government student loans, which are listed below.  The school will let you know what is available to you.

 

Federal Perkins Loans:  Offered through participating schools to students that demonstrate financial need.  This loan is repaid to your school.

Direct Loan Program: Offered to participating schools to students in need from the U.S. Department of Education.

Federal Family Education (FFEL) Program: Again, offered through participating schools. The federal government guarantees these loans, but you will have to choose a lender (either through your own bank, financial institution, or private lender that participates in the program). Some schools have preferred lender lists, but you are not limited to these options.

Private Loans

There are many different places you can look to acquire a private loan. Your bank may offer private student loans, and there are also companies that specialize in private student loans. You want to make sure you look for the loan with the lowest interest rate possible. You will also need to read all the fine print with each potential loan. Some loans let you wait six months after graduation to begin payment, while others will require you to start paying while you are still in school. These are the types of things you need to be aware of when looking for a private student loan.

Interest

Interest accumulates on your loan, no matter what type of loan (private or federal) you have.  Interest is a percentage of the original loan amount that is added up to determine what you have to pay. The higher your interest rate, the more you will have to pay on the loan after you graduate.

 

Source: All the loans information that I used came from this government booklet. http://studentaid.ed.gov/students/attachments/siteresources/YourFederalStudentLoansApril2009.pdf




From Students to Students

Advice on Getting Financial Aid in College

By Brittany Shultz, The Ohio State University Senior

It’s very exciting to get that acceptance letter from college, but then you have to figure out how to pay for it all. Your letter may have said that you were eligible to apply for student loans or that you received a scholarship. The scholarship you received may not pay for everything, though. You also may not know exactly what having that student loan entails. Here are some details to help you figure out how to pay for college.

Scholarships

There are a number of places that you can use to try to get scholarships for college. Many Web sites have scholarship searches, but there are other places to look for scholarships as well.

Some places to look for scholarships:

Check your local newspaper. Many times, especially around application season, newspapers will write about different scholarship opportunities.

Find out if your high school has scholarship opportunities for their graduates.  Not all schools do, but many offer scholarships for high grades and such in the first year of college.

Look at your future college for scholarships.  You will probably have to apply for many of them, but some of them will automatically be given to you. Some scholarships are offered based on where you live, what your grades are, or what your major is, so be sure to exhaust all options from your college.

Here are some Web sites that offer scholarship searches:

http://www.collegeboard.com/student/pay/

http://www.princetonreview.com/scholarships-financial-aid.aspx

http://www.finaid.org/scholarships/

http://scholarshipmillionaire.wordpress.com/

If you cannot find enough in the way of scholarships to fund your education, you will have to consider student loans. There is a lot to know about student loans and the information below is the most relevant as an incoming student. If you would like a comprehensive guide to student loans, the following link will get you to the government booklet: http://studentaid.ed.gov/students/attachments/siteresources/YourFederalStudentLoansApril2009.pdf

One of the first things you have to figure out is whether you will be taking out government student loans or private loans. Your school will let you know if you are eligible for student loans once you have filled out the FAFSA. (FAFSA is the Free Application for Federal Student Aid. Find out more at: http://www.fafsa.ed.gov/index.htm.) The FAFSA will give you an idea of what you and/or your parents are expected to pay and then what your need is. Not all colleges have a program with the government to give out student loans. You will have to check to determine if your college has a program and how much you are able to receive in federal student loans. If you do not receive enough money to cover the full cost of tuition, then you may have to consider private loans as well.

Here is a breakdown of government loans versus private loans:

 

 

There are a number of different kinds of government student loans, which are listed below.  The school will let you know what is available to you.

 

Federal Perkins Loans:  Offered through participating schools to students that demonstrate financial need.  This loan is repaid to your school.

Direct Loan Program: Offered to participating schools to students in need from the U.S. Department of Education.

Federal Family Education (FFEL) Program: Again, offered through participating schools. The federal government guarantees these loans, but you will have to choose a lender (either through your own bank, financial institution, or private lender that participates in the program). Some schools have preferred lender lists, but you are not limited to these options.

Private Loans

There are many different places you can look to acquire a private loan. Your bank may offer private student loans, and there are also companies that specialize in private student loans. You want to make sure you look for the loan with the lowest interest rate possible. You will also need to read all the fine print with each potential loan. Some loans let you wait six months after graduation to begin payment, while others will require you to start paying while you are still in school. These are the types of things you need to be aware of when looking for a private student loan.

Interest

Interest accumulates on your loan, no matter what type of loan (private or federal) you have.  Interest is a percentage of the original loan amount that is added up to determine what you have to pay. The higher your interest rate, the more you will have to pay on the loan after you graduate.

 

Source: All the loans information that I used came from this government booklet. http://studentaid.ed.gov/students/attachments/siteresources/YourFederalStudentLoansApril2009.pdf

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