| When deciding to attend a college or university, there | | | | loan within a given amount of time. |
| are several financial factors that play a part in the | | | | You may also consider alternative student loans. |
| amount of money it will take to attend. These include | | | | Some alternate types of loans that students may |
| tuition, fees, room and board, books and incidental | | | | qualify for are campus-based aid programs, also know |
| costs for personal items such as Internet access, dry | | | | as a Perkins loan. These types of college sponsored |
| cleaning and laundry, entertainment, and transportation. | | | | programs are either direct loans or cash grants, and |
| According to the College Board, the total cost of | | | | are administered by the university or college. Federal |
| college for this past year (2005-2006) was an | | | | funds are made available to the schools and the |
| average of $11,000 for a two year college and $14,000 | | | | schools are then authorized to divide the money in |
| for a four year college. Private universities cost an | | | | loans or grants, according to the schools best |
| average of $30,000 per year. There is also an | | | | judgment, based on the needs of their students. If you |
| expected 5-8% increase each year because of the | | | | receive one of these types of student loans, you will |
| inflation rate. Scholarships and loans are often the | | | | be eligible for a work-study program which will allow |
| most important key to ensure a successful education. | | | | you to have a job on campus, a cash grant, or a |
| Indeed, there are several resources to find student | | | | federal Perkins Loan. These types of loans are strictly |
| loans that will help you to get the money you need to | | | | dependent on a student's needs as well as the amount |
| attend the college of your choice and to get on with | | | | of money that was allotted to the school. |
| your future. | | | | All government loans can be applied for online through |
| One of the more common ways to get a college | | | | the Free Application For Student Aid (FAFSA) website |
| student loan is through government aid. These types | | | | at Applications for student loans must always be filed |
| of loans are available through the federal and state | | | | at the beginning of March in order to be considered. |
| governments, as opposed to private lenders. Most | | | | Your application will begin the process to determine |
| government federal aid is awarded after determining | | | | which type or types of government student loans you |
| the needs of the student. The US DEP (Department of | | | | are eligible for. As soon as a determination is made as |
| Education) makes more than $67,000,000.00 (billion) | | | | to your eligibility, you will be notified by mail stating what |
| available in loans, cash grants, and college based | | | | types of student loans are available for you, and in |
| student loans each year to help millions of students | | | | what amounts. You then have the option to accept or |
| and their families pay for postsecondary education. | | | | decline each of these offers which sets the amount |
| Receiving a loan from the federal government often | | | | which you can borrow for the year. |
| includes completion of several different forms in an | | | | There are also other types of loans for which one can |
| application package, the number depending on the | | | | apply that are not government based or funded. |
| needs of the applicant. Once you complete the | | | | These are private loans that are offered to students |
| applications, you begin the process that will eventually | | | | attending college or university. Most of the time, these |
| approve your request for a loan or cash grant. This | | | | loans will carry higher interest rates in the later years |
| approval is only good for one year, beginning with the | | | | of the loan, but if there is not enough money coming |
| next year. In order to qualify for financial aid, you must | | | | from a federal loan for which you have applied, these |
| have a high school diploma, be enrolled in college for a | | | | loans may be a viable option and enable you to get |
| specified number of hours, show that you are | | | | through school. These types of loans will require some |
| maintaining an established GPA (grade point average) | | | | research and you will have to fill out additional |
| in your classes, and be an U.S citizen. | | | | application forms because they will be coming from a |
| One type of loan offered through the federal student | | | | private lender. Note: Never submit an application to |
| loan program is the Federal Stafford Loan. This will | | | | anyone without keeping a copy for your own files. This |
| allow a given amount to the student, which will then | | | | is not only a good business practice, it also gives you a |
| begin to be paid back six months after the student | | | | ready reference for your personal information should |
| graduates from his college or university. Another | | | | you have to fill out more forms in the future. |
| popular loan is the subsidized loan. These loans are | | | | The loans that are offered through the government |
| available but are dependent upon the financial needs | | | | and private sectors are an excellent way for you to |
| of the student. As long as the student continues to be | | | | get a college education without having to worry about |
| enrolled at least half time in his college or university and | | | | the high costs of education or the limiting effects of |
| can demonstrate that he has financial needs, he will | | | | inflation. For up to date information you contact your |
| continue to qualify for a subsidized loan. Another type | | | | college's financial aid office or the originator of your |
| of student loan is the unsubsidized loan. This student | | | | student loan. |
| loan is not dependent on financial need and requires | | | | Scholarships and loans are often the most important |
| that the student's parents pay a certain amount of the | | | | key to ensure a successful education. |