When applying to college or professional school it is important to seek out the financial aid office at the institution you are wishing to attend for guidance regarding deadlines for aid assistance and scholarships. Other places to look for scholarships include the U.S. Department of Labor’s free scholarship search tool, federal agencies, employers, state grant agencies, and organizations just to name a few. Studentaid.gov is a terrific resource to offer more information regarding the aforementioned topics. The less you have to pay for the price of admission the better off you will be. When possible, seek out subsidized student loans vs unsubsidized student loans. The reason for this is that the US Department of Education will pay the interest on the loan as long as you go to school at least half the time, during periods of deferment, and for a grace period of 6 months. Now in addition to the cost of admission, you must also have to figure in room and board and day-to-day expenses. Forming good habits at a young age to minimize expenses will be crucial.
Currently, all federal direct undergrad student loan interest rate is 3.73% which is up from 2.75% just a year ago. Unsubsidized direct graduate student loan rates are 5.28%, up from 4.30, and PLUS loans which are for graduate students and parents, are 6.28%, up from 5.30%. These rates are far greater than most car and house loans. Student loans are paid back with significant interest and for your financial future, it is imperative to minimize this debt.
In the next article, we will discuss ways to minimize expenses in school and plan towards finding your first job vs continuing your education.
