Do Stafford Student Loans Cover The Cost Of Education?

Stafford student loans are the most popular used aidYou may require multiple financial aid sources to help
package for financing college. It is available to allpay for school. So start by getting all of the stafford
students who attend accredited schools. Thestudent loan amounts that you can get. It may not be
advantage of stafford student loans is rate and terms:much, depending on your status and grade level. But
- stafford student loans rates are fixed and lower thanevery dollar counts.
other college aid packages3. Look for Other FREE Financial Aid Options
- stafford student loans do not require a credit checkThere are FREE financial aid options that can help pay
or collateralthe cost of education. The most popular FREE option
- stafford student loans have repayment terms of 10is scholarships. Another is work-study and other
years; under consolidation, terms can be extended tocollege aid. Another is community service. So complete
20 and 30 years depending on the amount beinga thorough search of ALL available aid options.
consolidated4. Keep Tally of Your Financial Aid Sources
The disadvantage of stafford student loans is the loanYou may be using scholarships, college aid, stafford
amounts available. The total amount available forstudent loans, work-study, and other aid sources to
undergraduate students in the 1st and 2nd year doespay the full cost of education. Keep track of that
not cover the cost of education. The loan amounts areinformation regarding aid amounts, sources of aid, aid
also subject to the student's dependency andprovider name and address, aid terms, etc. It will come
independency status. Dependent undergrad studentsin handy for successive years when you need new
get even less when they apply for stafford studentaid and when you need to consolidate loan amounts
loans:upon graduation.
Aggregate Annual Loan Amounts for Dependent5. Use Private Student Loans to Close the Gap
Undergraduate StudentsIf you need additional money to make up the
- First Year: $3,500difference between the costs and aid received,
- Second Year: $4,500consider using private student loans to close the gap.
- Third Year and Beyond: $5,500With most private student loan programs, you can
Aggregate Annual Loan Amounts for Independentborrow up to the cost of education (within limits) to
Undergraduate Studentspay tuition, housing, computer, and other related college
- First Year: $7,500expenses not covered by college aid and parent
- Second Year: $8,500contributions. You generally don't have to make
- Third Year and Beyond: $10,500payments until after graduation. Private student loans
The annual loan amounts will barely cover the cost ofare a great resource when you need extra money.
tuition, not to mention housing, food, transportation,Sometimes your college and personal aid will not cover
recreation and other related college expenses. Withthe full cost of education after your run your budgeting
the average costs for college ranging from $16,000 toanalysis. That is when you turn to private student loans
$35,000 per year (depending on which university youto make up the difference from the cost of education
attend), you can see why Stafford student loans payand the amount of student financial aid that you have.
for only a part of the total academic cost. So What6. Use Pre-Paid Credit to Manage Your Money
Should You Do:Pre-paid credit is one of the best money management
tools for students on tight budgets. Pre-paid credit
1. First Step: Start with a Budget Planworks exactly like credit cards except for one thing --
All students should have a budget plan for school. Thethe amount you can spend with the card is dependent
plan lists the financial aid options you have for theon the amount you load to the card. That is a key
academic period and the month-by-month spendingadvantage. You can budget what you want to spend
plan.by week or by month and load that amount from your
Budget plans help students understand where theystudent funds to the card. You can then use the card
need to save and reduce daily spends in order to stayto buy food, supplies, recreation, etc., and limit your
within limits.spend to the amount loaded.
You can estimate and budget these expenses byStafford student loans may not cover your full
month using budgeting worksheets and other onlineeducation costs. But they are a great source of aid to
budgeting forms.have in your pocket when considering the aid options
2. Get All of the Stafford Student Loan Money Youyou need to attend school.
Can Get