According to an article on WallStreetJournal.org, despite the current credit crunch, students may have an easier time finding sufficient funding for their educational goals. The article highlights often overlooked yet effective ways to get the loans you need to pursue your education.
Ask & You Will Receive
Even the most stubborn students should recognize when they need help financially and ask for assistance from the right people. Before applying for either private or federal student loans, individuals should contact their schools first. Finacial aid personnel at institutions work around the clock with current and potential students, enabling many of whom without aid could not reach their educational goals. A school's financial aid office quickly determines who is qualified for federal and private loans and works to negotiate a fair, managable repayment plan.
Make An Offer
For many potential students, securing a loan on your own can be difficult, if not impossible. In order to expediate the loan process, many loan institutions recommend applying with a creditworthy co-signer. As an alternative to federal PLUS loans, students are encouraged to draft an official document stating the student will split or repay all of the loan with their co-signer.
Work Hard for the Money
Though it is a less desireable option for many, students should consider applying for a federal work-study program at their educational institution or an outside part time job. Beginning a job while still in school will alleviate much of the financial burden awaiting a student upon graduation. However, students must devote enough time to their studies.
If you've found our tips helpful, or if you have your own tips on financial aid, let us know! Post your comments below.
The federal government annually evaluates the rates for federal loans. Despite this year's dismal economy, the government has cut interest rates and fees for federal loans, putting more money back into the pockets of student borrowers. New rulings for specific loans and grants include the following:
Stafford Loans (subsidized):
New loans (the first pay out between July 1, 2008 and June 30, 2009) are offered with 6.0% interest.
Pre-exisiting Stafford loans taken out prior to July 1, 2006 and not yet entered into a loan consolidation program are offered a 4.1% interest rate, 3 points lower than its original 7.22% interest rate.
Stafford Loans (unsubsidized):
The maximum amount that an undergraduate can borrow in any one year is now $2,000.
Stafford Loans (both):
Total maxmimum loan limits for both unsubsidized and subsidized Stafford loans is $31,000 for students who claim dependent on a parent or guardian's tax return. For independent students, the loan amount has increased to $57,000.
TEACH Program:
The 2008-2009 Teacher Education Assistance for College and Higher Education program offers $4,000 to eligible students who teach
after graduation in schools serving low-income students.
Loan Forgiveness:
For
college graduates entering the public service industry, the government
has instituted a new loan forgiveness plan. Employment in this industry must be by one of the following: federal, state, local, or tribal government; the
military; the public school system; or non-for-profit organizations.
Find out more about student loans!