Blog Post
Where is my student loan forgiveness?
Kailash Mathur • Jan 11, 2023
Timeline of student loan forgiveness. What we know today 1/6/2023.
Federal student loan forgiveness
As of 1/6/2023, student loan forgiveness is HALTED and pending a ruling by SCOTUS.
How did we get here and why is this taking so long?
Let’s look at student loan forgiveness:
Many politicians over the last “forever” years have been promising student loan forgiveness. Mainly to pull in the younger vote and promise relief to parents paying on the PLUS loan program and maybe still on their own student loans.
It is estimated 43 million Americans have student loan debt.
1.7 trillion in debt. Second only to mortgage debt.
Current state of affairs:
3/2020 Emergency declaration to pause payments on all Federal loans due to the Pandemic.
2020-2021 Joe Biden promises forgiveness during his campaign form President of the United States.
11/2021 Joe Biden wins election and starts working on a forgiveness plan.
8/2022 Administration announcement that tens of millions of American borrowers would be eligible for up to $20,000, for borrowers who received a Pell Grant, and $10,000 for everyone else subject to income limits, $125,000 for an individual and $250,000 for a household.
Applications for forgiveness opened. Approximately 26 million Borrowers have applied for forgiveness and 16 million have been approved. Applications have been halted due to pending legal challenges.
2022-2023 Two major legal challenges: (six lawsuits have been filed to stop forgiveness)
8th Circuit federal appeals court. Allowed a nationwide injunction that halted the program. A group of Republican led states argue that the plan would reduce revenue to state treasuries.
5th Circuit Court of Appeals followed a lower court ruling striking down the program. A conservative leaning group argue that the administration does not have the authority to enact the program.
1/4/2023 Biden Administration filed legal brief with the U.S. Supreme Court.
1/27/2023 Challengers must file legal briefs.
2/15/2023 Biden Administration deadline to reply to challenger briefs.
2/28/2023 tentative date set for Oral arguments.
Major Supreme Court decisions are usually released in June.
Payment pause is extended until 6/30/2023 or 60 days after the ruling.
Hold on, it is going to be a bumpy road!
Some things to keep in mind:
Private student loans are not included in this forgiveness or any federal forgiveness.
You can refinance your private loans now and then consolidate or refinance your federal loans after a resolution is decided. See our article on repayment programs.
How to pay for school
1/1/2023 repayment options. The programs are subject to chnage.
We are happy to announce our new international student loan solutions. You will be able to find solutions here to attend school and potentially refinance those higher rate loans. We know that international students have limited resources to attend school. Many of the loans must be cosigned or collateralized. Most lenders require a U.S. citizen or permanent resident to cosign. We found some lenders that do not and are more flexible. You can learn more here Are you an international student that has graduated? Want to potentially save some money? Who doesn't? Refinance Loans International students often have student loans that are cosigned and collateralized by their families with a home country bank. MPOWER is the leading lender in the world for international students and will refinance international student loans with no cosigner or collateral required while also offering competitive fixed rate loans. For non-U.S. citizens living and working in the U.S., no-cosigner and no-collateral loans can replace cosigned student loans, helping young professionals reduce their payments significantly in both the short and long term. MPOWER refinancing loans allow young, professional, non-U.S. citizens to: ● Release a cosigner and collateral ● Reduce their interest rate and lower monthly payments ● Eliminate the need to wire money internationally every month ● Potentially qualify for employer benefit programs that pay up to $5,250/year toward student loans tax-free ● Build U.S. credit history You can learn more here
Hopefully, you know you can get a free credit report annually at https://www.annualcreditreport.com/index.action What I didn't know was that due to covid, you can now get them free weekly until April 2021. I just found out about this and wanted to get the word out. Please share with your friends and family. The process is easy and it's free, as long as you do not add on your score. Just get your report and review it for any inaccuracies or fraudulent activity. Money is tight and people are worried and we have seen stories of folks getting desperate. Stay informed and stay safe. #freecreditreport #sharetheinfo
College Aid Direct wants to take a moment to thank all of the Health Care Professionals for their amazing efforts during the Covid-19 pandemic. We are moved by the never-ending stories of your compassion, long hours, and sacrifice. You rose to the occasion when humanity needed you most. We know we aren't out of the woods yet but hopefully, you are able to take a moment to catch your breath. We are here to help you. If you have any questions on your Student Loans, getting new student loans, or how to refinance your loans and potentially save money, we will try our best to help you. As a thank you for your service, no fees will be charged. Learn more at www.collegeaiddirect.com You can email us with questions. For any Nurses and allied health professionals displaced during these crazy days, we would like to introduce you to Kamana. Kamana may be able to help you find the next or better career. Learn more at www.kamanahealth.com . Kamana: Kamana is an online platform for nurses, allied health professionals, and healthcare staffing agencies to eliminate the inefficient and expensive processes used to fill jobs and find work. Kamana launched in 2019 with a focus on solving problems for the travel and per diem workforce, but the technology they are bringing to the industry is on track to modernize how healthcare credentials are managed and shared across the entire nursing and allied health community. The company was born out of the personal frustrations one of their founders, John Modica, experienced throughout his travel and per diem nursing career. Having spent more than five years working travel contracts across the country, John witnessed first-hand how the inefficient technology being used to attract, onboard, and manage healthcare professionals is resulting in missed opportunities and financial waste for him, his staffing agency, and the hospitals that they work for. For healthcare staffing agencies, Kamana provides a secure and mobile-friendly candidate portal that offers real-time talent collaboration, efficient onboarding and profile management, automated credential management, streamlined communication, rapid candidate submissions, and more. Kamana brings operational efficiency into the day-to-day workflows of a staffing agency and brings a much needed improvement to the candidate experience a healthcare staffing agency is able to offer to the nurses and allied health professionals they seek to employ. For nurses and allied health professionals, Kamana provides a single, secure, profile that can be used to manage credentials, onboarding, and relationships throughout every aspect of their career. A Kamana profile can be used directly in conjunction with, or completely independent of, a staffing agency that is using Kamana’s staffing software. The ability to efficiently use the same profile to manage relationships, onboarding, and documentation with multiple staffing agencies saves time and money on both sides. With Kamana, nursing and allied health professionals can put an end to repetitive and data-insecure applications and onboarding, and focus on the aspects of their career and life that matter most. Learn more at www.kamanahealth.com .
2020, what a year so far? We hope you are all well and safe. So how are you to pay for school safely during the pandemic? No need to go visit any loan officers or leave your house. Wash your hands and check out our tips below. APPLY EARLY! Good News: Due to the economic conditions, rates are at historic lows. Bad News: Due to the economic conditions, some companies have limited funds to lend this year. Navigating the process to pay for college can be confusing. We are here to help. If you have a few minutes, we can show you how to pay off that tuition bill. Watch our free video here: WATCH ME Then visit us here for options: SHOW ME THE MONEY You can apply to multiple lenders to shop for rates. We recommend you do. A few extra minutes could save you money in interest over the life of the loan. Just do it within 30 days so it doesn't affect your credit score. Rates are not going to stay this low. Carefully consider Fixed rates versus Variable rates. You may be able to lock in a great rate now. Most undergraduate private student loans require a cosigner. This varies by lender but 75-90% of undergraduate loans are cosigned. Using a cosigner may get you a better interest rate also. If you visit other websites or lenders, watch out for origination fees and any hidden repayment fees. Or you can email us with questions here: HELP If you need to fill out the FAFSA : https://studentaid.ed.gov/sa/fafsa Remember it is free. DO NOT PAY ANYONE TO FILL OUT THE FORM !!!
Are private student loans right for you? We hope to help educate you to decide if a private student loan is right for you. Knowledge is power and we hope to help educate you. College is one of the best decisions you can make for your future. Expenses and tuition are both extremely important to consider, but the benefits of having a degree will be well worth the cost and demanding work. There are many ways to get financial aid, such as from your school, your family, private institutions, and the government. Another option to add to the list is private student loans. While there are numerous options out there for free and “cheap” money, most families are still left with an unmet need, money to pay out of pocket. Most families find that they don’t have the money saved to pay these costs. College isn’t getting cheaper; in fact most tuitions rise each year outpacing both inflation rates and savings rates. Private student loans can help cover the total cost of attendance or costs still left over after other forms of aid have been applied. With numerous types of financial aid out there, it can be hard to know which one works best for you. A good rule of thumb is to get as much free money as possible in grants and scholarship. Please see our scholarship articles and free scholarship tool to learn more about scholarships. Grants are usually a result of the FAFSA, please see our articles on the FAFSA. Then most students use Federal loans. Private student loans are typically used to bridge the gap between other financial resources and the total cost of attendance (COA). Private student loans are just how they sound-- they are offered by private institutions. These lenders can include credit unions, national banks, or online lenders. Private loans are a very common method of financial aid. Not many people can pay for school and all the expenses out of pocket, so private student loans can be a smart choice for you and your family. Most people apply for private student loans after they have applied for federal loans. This is because the federal government has loan limits in place and these limits usually do not cover the full cost of attendance. These federal limits are decided by the government and have not kept up with the cost of education. It is extremely important to be educated and responsible when looking into a student loan. You should not just look at the loan Tips: Federal loans charge an origination fee, most private lenders do not. Spend some time and compare the fees, rates and benefits. You MAY be able to get a lower cost loan from a private lender. Look at the total cost of the loan and what your payments will be after you graduate. 4-5 years of interest accrual will increase your payments. BORROW RESPONSIBLE – Will you be able to make the payments after you graduate? How do you qualify for a private loan? So, what do you need to get a private loan? Each lender has their own criteria, but in general most look at similar criteria to manage risk and decide who to lend to. Well, it may be hard to qualify for a private student loan on your own. Check your eligibility: Before you apply for a private loan, make sure you are eligible: Enrollment: You must be enrolled as at least half time at an eligible school. If you are enrolled less than half time, you may not be eligible. Your school may not be eligible. Most lenders do not lend to for-profit schools. Income and debt to income levels: There are certain income requirements that must be met and specific debt-to-income ratios. Credit: Lenders usually look for 3 open trade lines, length of the history and a credit score. You will need to have a good credit score to qualify. Most students do NOT have the credit history or score to get approved on their own. Do not be surprised if you are not approved on your own and must add a cosigner Since private loans are credit based and most college age students have little or poor credit, you may need your parent or credit worthy individual as a cosigner. Their credit can help you in qualifying and getting approved for the loan. If your co-signer has good credit, you may also be eligible for a lower interest rate. This is because good credit creates trust with your lender that you will be able to pay back the loan. However, make sure your co-signer is well informed on what exactly they are signing onto. Cosigners are equally responsible for the loan. Many people think they are secondarily responsible, but that is not true. If you are late on a payment, it will affect both of your credit histories and scores. Tips: Always apply with a credit worthy cosigner. The better their credit, the lower the rate. The cosigner does NOT have to be a parent. Borrow responsible - Only borrow what you need. It may be tempting to borrow as much as possible. But you will need to pay it back with interest. What is the application process for a private loan? You can usually apply online and get a decision in a few minutes. The application usually takes a few minutes and having your cosigner ready to apply can help speed the process. There are a few things you will need to apply for a private loan. The first step is eligibility. Eligibility is determined by income, credit, enrollment and more. Later, you will usually need to provide required documentation to prove: You and your cosigners ID. Proof of income., usually the last two pay stubs. The faster you get these to your lender, the faster your loan will get approved. Have the required personal and financial documentation prepared to make applying easier. Each lender has a different process, with some online applications getting results back in minutes. Others may require further documentation before your application is complete. School Certification: After approving your application, your lender will contact your school about the amount you requested and verification of your eligibility and enrollment status. This can be the longest part of the application process as some schools can take more than a month to respond. You can check in with your school to insure they do not need anything from you. Some schools will want confirmation from you on the amount being borrowed and that you want the loan. Check your account on your lender’s online portal. Many times, they may need something from you or your cosigner or need you to sign online documents. Disbursement: Private loans will be sent directly to your school, it is the school who sets your disbursement dates. If the amount of your loan exceeds the costs you need in a semester, you will be sent a refund for the extra amount. This will come from your school, not the lender and can take a few weeks. So, plan ahead you may need some short-term cash until you receive your refund. Tips: You will need to decide on your interest rate type, and your repayment plan. Take some time and think about this and speak to your cosigner. This can make a dramatic difference in your payment amount. Shop around. You can apply to multiple lenders. This will let you see which lender will offer you the best deal. Once you decide on a lender, cancel the other applications or your loan may get stuck at your school since they will have multiple certification and need you to decide which one you want. Are there benefits to a private loan? Yes. Private loans include high borrowing limits There usually is no origination fee for this type of loan. That means there are no up-front costs. But read the fine print. Another benefit of private loans has to do with your expected family contribution (EFC). This number comes from your federal application for student aid. It is the amount your family is expected to pay towards your education based on the financial information you provided. However, many families don’t have the money to pay this amount.. That’s where private student loans come in. You can use a private student loan to borrow your expected family contribution if your family does not have it saved, as most don’t. There are loan minimums and maximums. You may not be able to get a loan for the amount you need if it falls below a minimum or above a maximum. Though each lender is different, loan minimums are usually around $1000. Maximums are connected to the cost of your tuition, with higher costs meaning higher limits. Knowing about loan maximums and minimums is important because you may not need that much aid, or maybe need more than what is offered. Private loans can also have a few benefits that other loans do not. For instance, some lenders lower interest rate for good grades by college students or for setting up ACH payments, instead of check payments. Be smart about taking out a private loan. The idea of borrowing money can seem like a quick and easy fix to financial troubles. However, all loans must be paid back. This means that you must be responsible in your borrowing. Interest Rates The interest rate is important because it can dramatically affect your payment amount. The interest rate will be a percentage rate charged against the amount you are borrowing. This is what the lender charges you for lending you the money. The type of interest rate is also incredibly important for private loans. There are two types of interest rates- fixed rates and variable interest rates. Fixed interest rates do not change for the life of the loan. It will always be the same amount from day one until you pay off the loan. Variable interest rates do change. These rates depend on the market, among other factors. That means your interest rate could be higher than expected or lower than expected based on market trends. You should consider that it may increase over time and your payment could change dramatically. If you choose a variable rate, read the fine print and verify if there is a cap on the rate. If your 5% rate goes to 15%, your payment may become unmanageable. If you or your cosigner have good credit, private loans can have lower interest rates than federal loans. Repayment Plans Another major factor in deciding on a private loan is your repayment plan. Loans have a minimum payment that must be made monthly towards the loan. It is important to consider when you will have to start paying towards the loan. You might have to start your repayment plan while in college, or some loans let you defer payment. Either way, you will have to consider how the payment on the loan will affect your budget during and after college. Tips: Making a small payment, $25 or $50, or interest payments while in school, may count as a positive towards your credit report and score. Ask your lender. Typically, repayment terms for private student loans can be anywhere between 5 to 20 years. The repayment term is important in how much your payment is and how much you back over the life of the loan. Longer terms mean lower monthly payments but higher interest rates and a higher total cost. Short term loans have higher monthly payments but lower interest rates and lower total cost. Basically, the quicker you pay back your loan, the lower your total loan cost will be. However, it all depends on your budget and what you can afford. College is one of the biggest costs you will ever face. It also is one of the best investments you can make for your future. There are many options out there for student aid, but you may not qualify or the amount you are eligible for still may not be enough to cover the total cost of attendance. Private loans can be a helpful resource in filling the gaps. Remember to carefully consider, the interest rates, repayment plans, and qualifications for your private student loan. You should borrow responsibly since you must pay back every dollar with interest. This can be one of your largest payments besides rent or a mortgage. Only borrow what you need.
Starting today, you can submit your Free Application for Federal Student Aid (FAFSA). Why is this important? Many states offer Grants on a first come, first served basis . Need we say more? Why do I need a FAFSA? The FAFSA is a free online application for financial aid eligibility. It is used by the government and schools to determine your eligibility for financial aid, including grants, work study and federal student loans and some state programs. Many of the state programs have limited funds, so the early bird gets the “funds”. Tips: This is a free application located at https://studentaid.ed.gov/sa/fafsa or on the myStudentAid mobile app. Do NOT pay anyone to fill out the form for you. Free is in the title. You must fill this out annually. Add it to your calendar for October 1st. Let’s get started: Information you will need. • Your driver's license • Your Social Security number • Your parents' Social Security numbers and birthdates • Your family’s latest federal income tax returns. • W-2 forms or other income information • Bank statements • Information on investments • FSA ID Submit your FAFSA and you can check your status online or in the app. Processing time varies but is usually 5-7 days. How is your financial eligibility calculated from your FAFSA? When you fill out your FAFSA, you provide personal demographic information and financial information about yourself and your family This information is used to determine your Expected Family Contribution (EFC). Your EFC is calculated according to a formula established by the Department of Education and the information you provide on your FAFSA. The calculation considers many factors including enrollment status, year in school and the cost of attendance at your school. The results of the FAFSA are provided to you on a Student Aid Report (SAR) from the office of Federal Student Aid. Your SAR is a document that gives you basic information about the FAFSA data you submitted. You should receive your SAR within a few days of filing. After you receive your SAR, you should receive a financial award letter from the school or schools that you added in the FAFSA. Award letters tell you how much aid you’re eligible for at that school and can vary from school to school. You school look at this information and discuss it with your family before making the final decision of what school to attend. Financial aid award letters information: • The total Cost of attendance (COA). This is the current estimate of what you can expect to pay for one year of school. This includes tuition, fees, room and board (TFRB) and potentially even personal expenses. If you have extra expenses, speak to your financial aid office to see if they can be included. • Expected Family Contribution (EFC) is a calculated amount that your school uses to determine financial aid eligibility • Grants are need-based and can be state or federal grants. • Scholarships can be need or merit based and are awarded by a schools, companies, or private organization. • Federal Work Study is a program where you work at your school to earn your financial aid. • Federal Direct Student Loans. You borrow money directly from the federal government. • Private Student Loans. Your eligibility may or may not be listed here. It may show a Private loan or show an amount still due. Do your homework and compare Lenders. You can compare some popular Lenders Here . Financial Aid Myths: • My parents make too much to get aid. • I have a college fund, 529 or money saved for college, so I am not eligible. • My friends didn’t get aid, so I will not. • I can apply anytime. This is true but you may miss out on state grants. List of state deadline . https://studentaid.ed.gov/sa/fafsa/deadlines#2020-21-state-deadlines Apply, you never know what you are eligible for until you do. It’s free and usually required by your school. The Federal Student Aid site, An Office of the U.S. Department of Education, oversees the process and is the definitive source of answers on eligibility. Your financial aid office will be able to answer most of your questions. Here is a link to how aid is determined : https://studentaid.ed.gov/sa/fafsa/next-steps/how-calculated#cost-of-attendance EFC definition according to Federal Student Aid: Your EFC is an index number that college financial aid staff use to determine how much financial aid you would receive if you were to attend their school. The information you report on your FAFSA form is used to calculate your EFC. The EFC is calculated according to a formula established by law. Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year. The EFC Formula guide shows exactly how an EFC is calculated.
New Federal Data on Job and Career outlooks. Free information from the federal government on new job growth. If you are are a high school student looking at college, a college student deciding on a major or just sitting there frustrated at work pondering a new direction. Do your research first!!!! Remember we can help you pay for that degree. Federal Occupational Outlook Handbook
College is a time for you to learn and grow, and so much transformation can occur in those short years. By the time you walk across that stage at graduation, it feels like you’ve blinked and changed into a completely different person. Money shouldn’t be the thing that prevents you from getting an education, and that is why we have compiled this list of 8 tips to help you survive the financial aid process and fund your college experience. Tip 1: FAFSA The Free Application for Federal Student Aid (FAFSA) is your best friend for getting help funding higher education In most cases, it is a requirement for universities when considering your financial aid package. It takes a bit of time to fill out, but it’s worth it. The FAFSA determines the amount of federal aid you receive by calculating (among other things) your Estimated Family Contribution (EFC), or in other words, the approximate amount of money that your family will need to contribute to your education. This number is impacted by your family’s income level, how many people live in your household, and the number of dependents supported by your parents. Unfortunately for some, the EFC reported by FAFSA is much higher than reality. Make sure you file as soon as possible. You can now file the FAFSA as early as October 1st. Filing early will give you priority in the allocation of financial aid. With the FASFA, the early bird truly does get the aid. Thankfully, though, there are many more options than just federal aid to help you pay for college. Tip 2: Scholarships, and Grants - Find Free Money Who doesn’t love free money? Free money comes in all shapes and sizes, and you can find free money in some of the wildest places. Free money comes in the forms of scholarships, grants, and stipends, which are all different forms of funding given to students who meet certain requirements (determined by the person/institution offering the money), all of which does not have to be paid back. Some free money is completely free, and some free money is more so “free” than free, in the sense that you may be required to enroll in a program at your university, do volunteer work, complete specific tasks, like an essay or work study. But hey, free money is free money. When you have a big bill from your university, anything and everything helps. Scholarships, grants, and stipends aren’t just for one type of student, there are so many options out there that can help you pay for college, some big, and others small. There are scholarships that are need-based, merit based, and even some through contests. Scholarship contests are usually essay-based, and the rewards are oftentimes small, so don’t expect to pay off your entire schooling with the small scholarships, but don’t shy away from them, either, because as mentioned previously, any help is better than no help. Tip 3: School Choice - Choose the University that Chooses You College, just like Pokémon, is a “You choose, me, and I choose you” relationship. Remember when applying for college that you have just as much to offer that university as that university has to offer you. Make sure you apply to a decently wide variety of universities, and work on your resume and interview skills in preparation. Some universities are more willing to give out aid, and each university bases the amount of aid they offer you on various factors, so make sure you know your own worth before choosing a university that undervalues you. In today’s job market, school prestige and reputation are important, but it’s not everything. It’s better for you to have a degree from a school that offered you a better aid package a than to pay an arm and a leg to attend the best “reputational” school that undervalues you and increase your student loan debt. Additionally, keep in mind how you apply to your universities. You can contact their admissions office and discuss getting an application fee waiver, and sometimes you may qualify for fee waivers through other means. There are three main ways to apply to a university: Regular Decision, Early Action, and Early Decision. It is recommended that you apply Early Action, which means that you apply well before the end of their application deadline, and this application status will help you get priority consideration for financial aid. Early Decision is not recommended in most cases for applications, as Early Decision applications are usually binding agreements, which means that if they accept you, you must attend that university, and they admit you on the assumption that you are not as in need of financial aid as other applicants. Early Decision is not necessarily a bad option, as it will increase your odds of getting accepted to your university, however, if you need aid, Early Action is probably your best bet. Tip 4: Financial Planning - Think Ahead and Save Parents, students, grandparents, aunts, uncles, anyone can help you fund college, but make sure you start early. If you are currently in high school, the earlier you can start saving money for college, the better. If you are lucky, your parents started a college fund, a 529 program or a Coverdell Education Savings account also known as an Educational IRA or Coverdell IRA for you at an early age. Even if they have, it may not be enough to cover the cost of attendance, since the cost of tuition has outpaced inflation and most savings rates over the past 20 years. So, start as early as possible, because when you are eating ramen in your room, you will regret all those trips you made to the coffee shops and fast food restaurants when you were in high school. Set up a savings plan for yourself and take out a percentage of your check each week to put in a college fund for yourself, maybe put a lump sum in a Certificate of Deposit. The theme of funding higher education is that anything is better than nothing, and with hard work and dedication, you can assemble an army of funding sources to help you win the battle with your tuition bill. Tip 5: Parents - The Parent’s Role While previously it was mentioned that parents can’t or won’t cover everything, it’s important to have conversations with your parents about their role in your college experience, because parents help in different ways. Having these conversations as early as High School Freshman year will help clarify where everyone stands in the process and there will not be any surprises when the tuition bill arrives. It also allows a few years for you to work and save to avoid taking out student loans. Many families must turn to student loans for college, which will be discussed later. Many parents will cosign loans for their kids, which will help lower the interest rates of the loan, to ensure that you pay the smallest amount of money as possible for your education. Consider applying to colleges near your parent’s house and consider living at home through college and commuting if finances really get in the way. Sometimes just having a free place to stay is the best help you could receive from your parents, as campus housing can come with a large price, and living with roommates off campus can be a risky investment, because they may not be financially reliable. Living at home for the first two years or your whole school adventure may not be exciting to you. But saving 10,000- 15000 per year in living expenses might make it well worth it and prevent you from having to move into the basement after graduation. In a lot of cases, parents are the ones that encourage their children to go to college, so they will be willing to offer as much help as they can, but in the event, they aren’t, make sure that you take that initiative. Remember, paying for college is your responsibility in most cases families help. Tip 6: Work Study - Get a Job (or Jobs) Jobs are so important. Work study programs through college are helpful to students in paying for college expenses. Don’t forget that once you pay off your college bill, there are other expenses that you will have. These include, but are not limited to: Textbooks lab fees parking passes recreation food and any other bills you may accrue. Financial planning and budgeting are super important. There are so many opportunities for jobs on campus, and if you apply to enough places, you’ll find something that fits you. Pros: On-campus jobs are that they will work around your class schedule. The experience is invaluable for your resume. Cons: You are limited to how much money you can make. Wages are usually low, and raises don’t exist. So, there are pros and cons to working on campus, but campus jobs are usually easy and not labor intense, so you may be able to get homework done or study while you are working. Off campus jobs are usually a bit higher paying, and although some are less willing to cooperate with your schedule, a lot of them still will be flexible, because you’re likely not the first college student to work with them. Also, it’s nice to get off campus and have a break from the hecticness of your campus. Make sure that you don’t put too much on your plate, but if you’re able to have an easy on campus job that lets you do your homework, you may have time to add on an additional job. Make sure that you look at your personal finances and your ability to manage time before you go off getting multiple jobs Tip 7: Student Loans - Federal Student Loans Federal Student Loans are usually the first step in the loan process for the most part they have better interest rates than any other type of loan you can get, however, federal loans have low borrowing limits and charge an origination fee, so make sure you take that into consideration when calculating how to pay your cost of attendance and budget.. There are two types of interest rates on federal loans: subsidized and unsubsidized. The type or types of loans received will be based on the results of the FAFSA. Subsidized loans are interest free while you are in college, as the government will cover the interest cost while you are pursuing your education. Unsubsidized are those that accrue interest while you are in college and you must pay the interest. These loans are based on the results of your FAFSA and usually will not pay all of your educational costs. You may need to find other means by which to fund the remainder of your educational costs. Tip 8: Student Loans - Private Loans Private loans are generally the last step in paying for college. They are not uncommon at all. Most families cannot write a check to pay off the bill for college, so private loans are what help bridge the gap. Private loans are credit based, most do not charge an origination fee, and they have high borrowing limits. In many cases you can use a Private loan to borrow the expected family contribution, if your parent or you do not have the EFC saved. It is imperative that you borrow responsibly, since you will have to pay back the loan with interest. Make sure you check out all your available resources before going into a private loan, but don’t be scared to get one. If you and your parents have good credit, the private loan may have a better interest rate than the federal loans. One of the most crucial factors to consider when finding a good private lender is the interest rate of the loan, and the type of interest rate. Some loans have fixed interest rates, and other loans have variable interest rates. Which one you choose is up to you and what level of risk you are willing to take. Variable rates change based on the market among other factors. You should seriously consider what happens to your payment amount if rates increase dramatically. Fixed rates are the safer way to go, because if you get a good fixed interest rate of your loan, then you will never be surprised by a spike in the interest rate. Also keep in mind your minimum payment, and whether you must pay while you are in college, or whether you can defer the payments until afterwards. Loans are somewhat complex but are incredibly helpful for helping to cover the cost of college, so don’t shy away from them, but also make sure that you are a smart shopper for loans. You should consider the payment amount of your loan after you graduate and how that will fit into your budget. College is the gateway to a great life, and while the costs of education may be high, the benefits are certainly well worth it. There are so many options out there for you to get aid, from your family, outside institutions, the government and private lenders. While there are all these options out there for free and cheap money, most families are still left with money to pay out of pocket that they don’t have. Private loans are the solution to fill that gap. Remember, finances shouldn’t be the thing that stops you from pursuing an education, all you must do is be a smart shopper, and you can find the resources you need to pay for your education.