Looking for More Ways to Save?
In the past two posts, we’ve talked about getting money for college from the federal government, your state government, and the colleges and universities themselves.
But let’s say you’ve wrung the last dollar out of those possibilities and still don’t have enough money. What do you do?
This is where loans come in.
Like most things related to financial aid, loans start with the Free Application for Federal Student Aid, the FAFSA, which essentially is the student’s and parents’ request for money. After your aid award is figured, you’ll find out how much is left that will either come out of your pocket or in the form of a loan.
There are four kinds of student loans:
The way it works is the schools offer the loans; the parents must accept or decline. If they accept, both they and the student must go to counseling through the U.S. Department of Education where it is impressed upon parents and students that the loan must be paid back.
When it comes to federal loans, undergraduate students can borrow between $5,500 to $12,500 per year, depending on the year of school they are in and dependency status. The rest of the debt is on the parents.
So here are my suggestions:
Jamie Dickenson, MBA, CEP
Independent Educational Consultant specializing in college admissions and financial aid, motivational speaker, business coach and owner of Jamie Dickenson, LLC., IEC Advisors, and Yoga Power, LLC.
Jamie Dickenson is not affiliated with Hartford Funds. Hartford Funds has separately contracted with Ms. Dickenson to provide additional insight about college savings issues.