Synopsis on College Loans
I have a wonderful friend who offers the most complete information on college loans, Steve Sterling of www.mycollegecalendar.org He wrote me the following when I asked him a personal question… Where does a young person start, especially a student interested in the teaching profession? So, here is Steve…
First, here’s a summary table of available loans:
http://www.mycollegecalendar.org/explore/pdf/student-loans-summary-table.pdf. This summary table is up-to-date for the 2009-2010 academic year and is a good starting point for understanding loan options. Another helpful summary table published by the Feds is http://studentaid.ed.gov/students/attachments/siteresources/Loan_Programs_Fact_Sheet_04_2009.pdf.
Your student should pursue the Federal Gov’t. Loans first (of course!); they have the best interest rates and repayment options. IMPORTANT: the student probably will have to enroll at least as a half-time student (minimum 6+ credits each semester) to be eligible for the loans (check the loan eligibility criteria). The student also should research loans/grants/scholarships given by his/her state gov’t (To find a state agency go to: http://wdcrobcolp01.ed.gov/Programs/EROD/org_list.cfm?category_ID=SHE ).
Regarding private loans, the largest (and easiest to use) lender for private loans is Sallie Mae ( http://www.salliemae.com/ ). Also, your student should call the financial aid office at the college he/she will attend to ask for a list of preferred private lenders and ask for suggestions/advice.
Also, your student may be eligible for future teacher-type grants from the Feds ( http://studentaid.ed.gov/students/attachments/siteresources/Grant_Programs_Fact_Sheet_04_2009.pdf ).
Lastly, if your student is planning to enroll in college in fall 2009, he/she should immediately complete the online FAFSA ( http://www.mycollegecalendar.org/explore/seniors/FAFSA-get-started.aspx). If he/she doesn’t complete the FAFSA he/she won’t be eligible for government (Federal and State) loans.
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