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• Register (if you haven’t already) with the Selective Service, if you’re a male between the ages of 18 and 25.
• Maintain satisfactory academic progress once in school (as determined by the school).
Once students apply for aid, many are surprised by the amount of aid they receive. A good rule of thumb is: Don’t assume you’re not eligible. Take the time to complete the Free Application for Federal Student Aid—the FAFSA. The U.S. Department of Education offers a variety of student financial aid programs. REMEMBER: the more you know about how to make your ambitions real, the closer you are to fulfilling them. It’s up to you to make it happen.
The Cost of Education
There are many things to consider before taking on education debt. While it is called Student Financial Aid, it is a loan that must be repaid with interest. Scholarships do not have to be repaid. As the previous chart indicates, here are three types of education loans: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private loans (alternative student loans). Federal laws established the maximum interest rates and fees that can be charged for federally guar- anteed loans. Lenders are free to charge lower fees, and so many offer some form of discount to attract borrowers.
Interest rates on federally guaranteed education loans are generally reasonable. For instance, Stafford Loans that were first granted after July 1, 2006 have a fixed interest rate of 6.8%. It’s important to know, however, that if you receive an Unsubsidized Stafford Loan, this rate applies while you’re still in school, too. Interest accrues even if you are not yet repaying the loan. If you are able to get a Subsidized Stafford Loan, interest will not begin accruing until you graduate.
The fixed interest rate on new PLUS loans granted after July 1, 2006
Student Loans and the Cost of a Good Education