Student Loan Help

If I could make two suggestions to anyone applying for financial aid, they would be:

• Complete the FAFSA Form EARLY, and
• Search for and Apply for scholarships as often as possible

Why?  The two biggest mis-perceptions are:

• The FAFSA Form is too complicated (so I will put it off until later)
• There are no scholarship I will qualify for

The FAFSA Form is not easy.  However, it can be done and most people will have to complete it anyway.  The Student Loan Network has created a guide to help you with this challenging task: www.FAFSAonline.com.   Use the guide to help you complete the FAFSA.

Get it done early to qualify for more aid.  Most federal and school financial aid programs will require that you have completed the FAFSA.  If you have it done early, there will be more financial aid available for you to qualify for.  The longer you wait, the less aid there will be left for you to apply for…

Finally, there are thousands of scholarships designed for all types of people - even you.  We have created a useful tool with an ebook on searching the internet and applying for scholarships.  Search our database and/or download your free ebook online at: Student Scholarship Search Guide.  Again, apply early as many awards won’t be there if you wait too long.

As we all know debt is a liability or obligation to pay or render something. Unfortunately many of us find ourselves biting off more than we can chew in this regard. In fact, some friends told me recently they are so far in debt with their student loans they have just stopped paying them all together, because in their words, “It was hopeless.” I can’t image feeling that level of despair, although I have my fair share of debt as well. I don’t want anyone to feel that way.

If you’re considering going to school, and I believe you should, than you should have an entrance and exit strategy so not to end up like my friends. And contrary to popular belief entrance and exit strategies do work, the key is actually having one to begin with.

Did you know the average cost of tuition, over a 4-year span, ranges from $12,500 in public schools to $27,000 for private institutions per year? That’s a lot or debt one can amass in a relatively short period of time. Can you handle a $100K student loan repayment? I know I couldn’t swing it, nor would I want to. So let’s come up with a creative solution to help you avoid an insurmountable mountain of student loan debt on graduation day. This article will focus on an entrance strategy.

Consider a Community College for the first couple of years. Why? It is far more economical. I am currently attending Massasoit Community College in Brockton, Massachusetts and the cost is $111.00 per credit. I am taking two three credit courses this semester which is costing me $666.00. Next year I will be transferring over to Bridgewater State College to finish my degree program and earn my Bachelors degree. The current cost at BSC is $333.00 per credit hour. Simple arithmetic shows I would have been spending $1,998.00 for the same amount of credit hours this semester if I took them at BSC. That is a 3:1 ratio and a savings of $1,332. You don’t need to be an economics major to appreciate that savings. In addition, many of the professors which teach at my college also teach at BSC. The only disclaimer is that you will want to make sure the classes you are taking are transferable; so check with your school’s Admissions office.

If you fore fill your core requirements at a Community college, like I did, you may save yourself thousands of dollars by graduation day.

Just remember each individual needs to chart his or her own course. What is right for you isn’t always right for someone else. But one thing we can all agree on is money.  We all need it.  They say money talks, and it’s true.  When it talks to me it says, “David, you are wise and practical.” What does your money say to you?

Your college or university will generally publish on its Web site or in its financial aid office the college’s cost of attendance. This is an estimate of how much money will be required to attend school for one year at that college, including all reasonable expenses. Most people, when budgeting for college, look at the tuition and assume that tuition is more or less the “price tag” for that school, when the reality is that tuition may be as little as 50% of the overall budget.

Click Here to Read more - Determining EFC and Cost of Attendance 

Ever since I was a teenager my father, Stephen E. Bonvie, spoke these eloquent words, “The power of disciple the rewards of time.” He spoke these words in context of saving money. Of course I was caught in the age old conundrum of having the knowledge and game plan at age 15, but not having the means by which to execute these words. As you get older you tend to possess the income, but have already let valuable years pass you by. It’s a tough paradox. Honestly, most of us struggle just to keep our heads above water, and loans serve as the perfect bridge to get what we want. We are a buy now pay later society. We take out loans for everything these days. We take out loans for automobiles, homes, computers, and education; just to name a few. The key is to take out loans on assets you forecast will appreciate over time - like education.

When you make the decision to go to school you are making an investment in yourself and your future. You yourself become an appreciating asset. Knowledge after all is power and school is certainly a wise investment. Of course you still need to make the right decision when it comes to taking out loans for school (assuming you don’t have the means by which to pay for tuition up front). It is critical that you make intelligent decisions before you enroll in school or you will be looking at a mountain of debt that would make Mt. Everest look like a leisurely Saturday afternoon climb with the kids.

The first thing you should do is complete your Free Application for Federal Student Aid (FAFSA). Once completed you will be sent an awards letter from your school outlining which federal loans and grants you qualify for. It’s usually best to take out federal loans over private as they provide a more generous fixed interest rate and have better borrower benefits. It’s also important to note that Federal loans, such as the Stafford loan, do have yearly and aggregate maximum allotments. In the event you have met your maximum federal allotments and still need additional funds for school I would then recommend private loans.

I hope these student loan tips will help guide you in the right direction. I think we all need a little direction in this fast pace world from time to time. I have been fortunate to have my Dad guide and teach me many of lives lessons; lessons I will be passing on to my son Barrett, and lessons I will be passing on to you the reader in the coming months. Just think of me as your student loan father. I will not steer you wrong. After all, father knows best.

Students and bad credit… Well, there is some help. The parent of the Student Loan Network, Edvisors, has created a student credit education resource - StudentPlatinum.com. The site offers a number of good articles on how to build and maintain good credit or fix your bad (”poor”) credit. Check it out when you have some free time - it might help.

In the meantime -what loans are available for students with poor credit? First, consider the Federal Stafford Loan - there is no credit component to it so you should qualify. Learn more at www.StaffordLoan.com The amount you can borrow from the Stafford Loan is limited and, of course, you need more money.

Private Student Loans, taken out in the student’s name, do require a credit check. We always recommend you apply for a private student loan with a cosigner who has good - or even better - great credit. Applying with a cosigner improves your chances of getting approved and getting a better interest rate.

The Federal PLUS Loan is another option. The PLUS Loan (or Parent Loan for Undergraduate Students) will be in your parent’s name - your credit is not a factor. If your parent has bad credit and gets denied for the PLUS Loan, you can then talk with your financial aid office and get additional funds through the Unsubsidized Stafford loan. Learn more at www.ParentPLUSLoan.com

The details for all these loan programs are available on our site, StudentLoanNetwork.com. Do your research and work on improving your credit. It will save you a lot of time and money in the long run.