What Future Undergrads Ought to Know About Student Loans and Online Resources

Navigating the student loan process can be athrough the campus financial aid office can be found
challenge, starting from ground zero. Since the federalat It's going to ask you to go through a registration
government got in the student loan business in 1965,process but it's probably worth your time. Putting
something like 65 million Americans have takentogether education money is often a process of
advantage of it. There have been several bills runassembling a number of working parts. For many
through Congress over the years, creating a varietystudents, that includes camping outside the campus
of loan programs - for students, vets, returningfinancial aid office and getting to know the
students, and so forth. The primary governmentcounselors inside. It pays to know what they have to
online resource for information on governmentoffer. Don't be shy: they expect to see you coming.
student aid isThere are many online sites that offer a combination
For basic information on what is available throughof information and loan applications. Many of these
federal programs, perhaps the most basic resource issites address issues such as loan consolidation and
the Department of Education's site entitled "Fundingother debt considerations. One site that is highly
Education Beyond High School: The Guide to Federalinformative about the loan process and the programs
Student Aid". It is a comprehensive resource onavailable and that includes a list of potential private
grants, loans, and work-study programs which arelenders is [ This is a non-profit site that can break
the three major forms of aid available through thedown some of the detailed components in the loan
Department's Federal Student Aid office. This materialprocess; it helps to be able to sort through the
tells you about the programs and how to apply fordetails on a non-governmental site.
them.To their credit, the Federal Government has
In order to qualify for any sort of federal assistancerecognized that the cost of education and the
and for most privately underwritten financial support,subsequent debt has overwhelmed millions of
including that which comes through the school'sgraduates. The Department of Education has a loan
financial aid office, you're going to need a FAFSAconsolidation program with a variety of payment
score. This ranking is produced through the processplans, a lot of flexibility, and the ability to avoid using
of filling out a FAFSA application and submitting it toa commercial lender. They have a website devoted
the U.S. Department of Education, which returns ato their services at The Department develops a
valuation that shows how much loan money you willweighted interest rate based on any commercial
be eligible for and how much your parents areloans you have outstanding, caps it at 8.25 percent
expected to provide in support. So the best place toand offers four different payment plans.
begin your application process is through the FAFSAThere are also a multitude of commercial lenders that
site: You can make an electronic application from theiroffer student consolidation loans, but be careful of
website.artificially low interest rates that can accelerate
Apart from the standard federal student loans, therethrough an adjustable rate program much like a
are several campus-based federally financedmortgage. Before you venture into the commercial
opportunities for students. Extensive information onrefinancing arena, see what the Department of
work-study and other federal money availableEducation has to offer.