Ways to Pay for Your College Education

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Ways to Pay for Your College Education

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522

Summary:
Many of us dream of obtaining a higher education in order to fulfill our
dreams; however the financial reality is that obtaining a college
education can be difficult.


Keywords:
college, school, pay, funds, credit, loan, loans, student, graduate,
education, debt


Article Body:
Many of us dream of obtaining a higher education in order to fulfill our
dreams; however the financial reality is that obtaining a college
education can be difficult. While there are myths commonly circulating
that there are a number of scholarships available to help defray the
costs of college, the truth is that while you may be eligible for one or
more scholarships these generally won’t cover the entire cost of your
education. Even in the event that you obtain a full ride scholarship
covering the duration of your college there are other expenses that won’t
be covered. Therefore, it is imperative to look at all the ways you can
utilize to fund your college education.

It’s always a good idea to begin exploring financial aid as quickly as
possible. Depending on your parent’s income you may or may not be
eligible for federal financial aid; however, you never know unless you
try. As soon as your parents have their income tax return information it
is important to go ahead and fill out your FAFSA application and get it
into the system. If you are eligible for financial aid you may qualify
for grants, which do not have to be repaid once you graduate.

You should also begin exploring various scholarships for which you might
qualify and start getting the applications filled out. Ideally, you
should start this as soon as you begin your senior year because some
deadlines may arrive sooner than others.

While most people would prefer not to end their college education by
being in debt the reality is that it may be quite necessary, particularly
if you are attending a private college or you plan on completing post-
graduate work. When it comes to student loans, there are a number of
options.

One such option is a federal student loan. This type of loan has a number
of advantages, including lower interest rates and being able to defer the
loan until after you graduate. A federal student loan can be either
subsidized or unsubsidized. If the loan is subsidized then the government
will cover the interest on the loan until about six months after you
graduate, at which time you become responsible for the loan. An
unsubsidized loan is not covered for the interest and you may need to
pick up the tab for the interest before graduation. The amount of money
you can borrow with either type of loan varies based on how far you are
in school and whether you live at home or independently. Federal student
loans are not based on income or credit guidelines.

Another option would be to take out a private student loan. You will be
susceptible to credit and income guidelines with this type of loan and
there may also be maximum loan amounts that apply as well. In addition,
interest rates may be higher and repayment terms may not be as flexible
as with a federal student loan. Still, if funds from other sources
including federal student loans are not enough to cover all of your
education costs, a private student loan may be a good option.

				
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posted:1/23/2011
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