You’ve been accepted–and you were awarded money!  From more than one school!  So who has the best offer?  Who provides the most financial aid? Now you have another factor– money–to consider when deciding on your best-fit college. Reviewing award letters can be confusing, so I’ve outlined the key steps to take to determine your best award package:

First Things First
When you receive your award letter, be sure to read it carefully and call the school’s financial aid office if you have questions or if your personal information–like your name, address, Social Security number–is incorrect.  If your Expected Family Contribution is listed, check it against your Student Aid Report and ensure the numbers match. Read the rest of this entry »

Tags: award letter analysis, college award letters, college financial aid, cost of college, student loans
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It’s hard for me to write about my personal experiences with college financial aid without turning into a depressing cautionary tale, but such is my story, and I know I am not alone.

The first undergraduate school I attended was a private university, and although I was awarded an academic scholarship for several thousand dollars, that didn’t really put a dent in the overall expense of the school.  With me in college and my younger sister still in private high school, my parents took out some federal loans to help with my tuition.  Read the rest of this entry »

Tags: college financial aid, federal loans, student loans
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Jump ahead to May. You’re all set for college.  You got in to your dream school, you filled out your FAFSA long ago, and now you’re ready to get your financing in order.  Except that your tuition and room and board and other costs add up to more than the amount of federal loans you are eligible for… Wait, what?!

There are maximum limits placed on federal loans (generally, $5,500 as a freshman, $6,500 as a sophomore, and $7,500 as a junior and senior).  So what are you supposed to do to cover the rest of your costs?  Enter private loans.

Private loans are student loans but the lender is a bank (or credit union or a student loan provider company*) rather than the government.  They are based on your credit rating so you will usually need an adult co-borrower.  The downside to private loans is that the interest rate is usually higher than on federal loans.   I understand that it’s hard to even conceptualize the difference in interest rates right now, but believe me, once you start paying back your loans, it will matter.  Read the rest of this entry »

Tags: borrow for college, college private loans, student loans
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