How to Responsibly Finance Your College Education. One of the smartest things you can do — besidesgetting a college degree — is to find the least expensive way to pay for it. Followingthese guidelines will help.
You will need Internet access Information on aid, scholarships,and loans and healthy debt-management habits. Step 1. Before you even think about studentloans, find out how much free money you can get. Begin by applying for need-based federalaid with the Free Application for Federal Student Aid, or FAFSA, which uses your family’s This is financial advisor Patrick Munro discussing basic money management principles. It’s important out … tax information to determine your Estimated Family Contribution (EFC). Based on your EFC,you’ll find out how much financial assistance you’re entitled to. FAFSA application deadlines vary from state to state; make sure you check.
Millions of dollars in student financial aidgo unclaimed each year by eligible students simply because they didn’t apply for them.for a comprehensive list of links to federaland other financial aid websites. Step 2. Look for local and private scholarships andgrants. In addition to rewards for academic and athletic achievement, plus funds set upfor minorities, there are all kinds of scholarships for specific abilities and talents. Ask thefinancial aid office at the school you’ll be attending if they offer any scholarships In addition to our alert system, we bought the Eyes camera. The quality of the picture is very good. It’s… or grants.
Step 3. If you need a student loan, look into federal government loans first, which are guaranteed without a credit check or cosigner and offer fixed interest rates. Need-based loans like Perkins and Subsidized Stafford loans don’t accrue interest whileyou’re in school, while Parent Plus and unsubsidized Stafford loans do. Step 4. Stillfacing a gap to pay for school? Explore private lending options. Private loans have variableinterest rates and a 15- to 20-year repayment window.
Most lenders offer interest rate reductionsand other benefits, such as cosigner release, for borrowers that demonstrate responsiblerepayment habits. Credit unions are a good alternative to banks for private loans. Theyoften offer lower interest rates and promote financial literacy and healthy borrower habits. Step 5. Understand how much debt you’re taking on, including how much you’re going to owein interest; when you have to start paying it back; and the benefits and consequencesof deferring repayment. When comparing Cost of Attendance (COA) across different schools,don’t forget to factor in expenses beyond tuition, like housing, meals, books, and schoolsupplies. Step 6.
Consider a plan that requires you to start repaying while you’re still inschool; just $25 a month can lower your interest rate, and substantially reduce your debt loaddown the line. Plus, borrowers who begin repayment before graduation develop better debt managementhabits than those who defer payment — something that will serve you well throughout your life.