| A School Loan Consolidation Primer |
| By: Jay B Stockman |
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Hey Dad!, my son screamed from our front door, "I did it, I was accepted to Boston University.". My momentary exhilaration was overshadowed by the financial realities of college, especially private college. A quick calculation of my costs for 4 years of tuition, and expenses came to roughly $250,000, a very intimidating figure. Overwhelmed I thought, how could I possibly afford to send him to college? Fortunately, there are various options available to finance this academic endeavor.
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Federal programs are the single, largest source of school loan consolidation. The first step in applying for this type of aid is going on the Free Application for Federal Student Aid (FAFSA) website, at http://www.fafsa.ed.gov/, and fill out a comprehensive questionnaire. It generally takes around 7 days to process, at which point you will receive a Data Release Number, and Estimated Financial Contribution. It is important to find out if the school you will be attending participates in the federal student aid programs, most do.
There are several federal programs available for student aid, assuming school participation. The Federal Stafford Loans, are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $2,625. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent. The Federal PLUS Loans are unsubsidized loans made to parents; the interest rate is variable,
but never exceeds 9 percent. Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. These are the major federal sources of loan money for college.
Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by government agencies, and are offered by banks or other financial institutions. Sallie Mae is a unique loan that consists of a comprehensive package of both private and federal loans.
After accumulating 4 years of undergraduate education loans, it is best to consider a School Loan Consolidation Program.
Very simply, you can elect to combine all your outstanding loans into one student consolidated loan, which may create more favorable terms and simplify repayment, benefiting both the borrower, and the lending agency. Major benefits include the convenience of lower monthly payments, a single fixed rate, and one payment per month. There is a minor downside, however, students who do not consolidate their Stafford loans will have a 6-month grace period after graduation to begin making payments. Students who consolidate must begin making payments within 60 days of their consolidation. Both parents and students are eligible to consolidate student loans. The school loan consolidation program streamlines repayment by eliminating different terms, repayment schedules, and lenders.
Will I be able to afford my son’s college education? Careful financial planning, and research should make this endeavor a reality. While it is true that college tuitions continue to rise, there is more financial aid available to compensate for the increases. Ultimately, a good education is your best investment.
Jay B Stockman is a contributing editor for Online College Loan Refinance Resource Visit http://www.online-college-usa.com/ for more information.
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| Online College Programs - How to Apply |
| By: Katie Robbins |
The first step to getting your online degree is to apply to colleges. Research several colleges offering the degree program you need. Once you have decided on a school, you are ready to begin the application process. While the requirements may vary slightly, most colleges have similar processes. You will need to fill out an application, either online or on paper. Check with the university for application deadlines. Just about all schools charge an application fee; these fees are usually small.
You will need to include any supporting documentation required by the school where you are applying. You will find this information included with the application. All schools require original transcripts from all schools previously attended. This will include both high school and college transcripts. A few schools look for college preparatory courses in high school. Send your requests early to allow enough time for transcripts to arrive at the college. Some schools will require SAT test scores and immunization records as well.
You will have to meet the admission requirements of the college you will be attending. The requirements vary by school and in some cases can be different based on your major. Be sure to check with the university to determine the requirements. Many schools have a minimum SAT score requirement for admission, although some waive this for some programs or for non traditional students. Non traditional students are defined as older students who have been out of high school for at least five years and have work experience. Students transferring from other institutions are in this category as well.
Many schools require students pass placement tests prior to registering for classes. These tests usually have English, math and writing components. This is to determine if potential students have the reading, writing and math skills necessary to succeed in college. If you don't pass one of the placement tests, you may be required to take remedial courses prior to starting your degree; this is not unusual for people returning to school after many years. Graduate programs will usually require additional testing, such as the Graduate Record Exam (GRE).
When you apply to the school, you can also apply for financial aid. Talk to a representative about programs available to students in the form of financial aid and scholarships. Start the process by filling out the Free Application for Federal Student Aid (FAFSA). Complete the application even if you don't think you will qualify for federal aid. Most other student loan programs use the same application. To be able to accept federal financial aid, the school must be regionally accredited. Accreditation is a voluntary process and matters mainly for financial aid and transferring credit to other universities. Check with an admissions counselor if you're not sure about accreditation.
Once you have completed all applications and testing, you will find out if you have been accepted into the program. Once you have been accepted, you will be eligible to register for classes and begin the journey toward your college degree. The admissions counselor at your university can assist you in scheduling your courses. There is often an order in which classes should be taken. Once you have registered, you pay for your classes, get your books and attend orientation, if required.
About the Author
Katie Robbins is a professional writer, providing content to help the online student. Check out her other articles, including accredited online universities, education master degree online and criminal justice online degrees. |
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