Everything you Need to Know about Paying for College from Nine Year Mortgage

Finding Loans to Finance Higher Education

Funding college, whether for yourself or for your children, can seem a bit daunting. Especially if you’ve already taken advantage of available grants and scholarships, but still have a gap in your costs. Rest assured that it is possible for almost anyone to afford college—and keep in mind that you don’t have to pay every penny up front. Nine Year Mortgage experts suggest that student debt, under the right circumstances, is worth it.

Loans can be an excellent way to help finance your education. You can borrow money at a low interest rate and pay it back after your studies are over. Even though a loan can be intimidating, especially in these economic times, keep in mind that a college education will increase your earning power—making it possible for you to repay your loans while also improving your quality of life. And, while Nine Year Mortgage generally advises against debt, loans for educational experiences are considered a “good debt.” So, if they’re necessary, go for it—just remember to borrow wisely and live within your means!

Here is some information regarding student loans and how to get them:

Most students qualify for some form of financial aid, whether it is in the form of money loaned or given to you. To find out what you are eligible for when it comes to student loans, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA). Your college will then give you an offer of financial aid, detailing what percentage of the Award, if any, is “gift aid” (grants and scholarships) and what percentage, if any, is a loan. Generally it’s better to receive a grant or scholarship than a loan, but don’t be surprised if your award includes loans—most aid packages contain them.

There are three main types of loans you can get from the government for college:

• Stafford – A loan to students which may be subsidized (if student demonstrates need) or unsubsidized. If subsidized the government pays the interest on the loan while the student is in college.
• PLUS – A federal loan to parents to cover college costs not met by financial aid. It is not subsidized.
• Perkins – A subsidized loan to students with exceptional need. Note that Perkins-loan debt may be forgiven if the borrower enters a career in the public service.

Points to consider from Nine Year Mortgage

Be sure to consider the subsidized Stafford loans, Perkins loans and need-based state loans offered in your aid package first—the repayment terms are good and the government pays the interest while you’re in school. Unsubsidized loans, such as unsubsidized Stafford and PLUS loans, as well as private loans from a bank, should be considered more carefully since interest must be paid from the time the loan is disbursed. When considering a loan always be sure to understand the specific terms of each loan, including the interest rate, origination fee, the term of the loan and the grace period before repayment begins.

Many banks, credit unions and other organizations offer their own education loans. These usually have slightly higher interest rates than federal loans, but they have lower interest rates than other consumer borrowing options and may have attractive features, such as deferred repayment while in school. A good place to start looking for these types of loans would be your own bank or financial institution.

Nine Year Mortgage on Where to Turn for Help

If you still have questions there are many places you can get free help and information. The Federal Student Aid Information Center (FSAIC) can be contacted at 1-800-4-FED-AID (1-800-433-3243). They can answer questions about Pell Grants, Stafford and Perkins Loans, the Free Application for Federal Student Aid (FAFSA) and other things related to getting money for college.  As Forrest M. Stuart, the director of financial aid at Rhodes College in Memphis, Tenn. put it: “The primary responsibility of paying for the student’s education lies with the student and his or her parents. Financial aid comes in to fill that gap, if you will, between what they can afford and what the college costs.” Remember there are many sources out there to help you find money to fund your education, but one of the key elements to a successful educational experience is financial well-being. So be accountable for how and where you spend your money—and if you need help planning your budget around school, your Nine Year Mortgage representative is only a phone call away!

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