Online Schools Offer Work Flexibility and Faster College Loan Repayment

In an attempt to stimulate the economy, the Obamaearly April. Students (or their parents) who submit their
administration just launched several initiatives to helpmaterials ASAP will increase their chances of
defray the cost of getting college degrees and landreceiving the greatest amount of funding.
high-paying jobs. The latest initiative was signed as partWhile student loans are a way for students to raise
of the Health Care and Education Reconciliation Actthe tuition for either campus-based or online degree
last March. A big portion of this had to do with onlineprograms, they really are only a quick fix. What many
schools.don't realize is sooner or later, they have to pay the
Prospective students of all manner, and at bothloans back. While Obama getting the interest rates
campus-based and online colleges, who requirereduced is a help, this repayment is something else
financial assistance to pursue higher education, have along-range thinking kids should consider. That or get
great deal of government-funded options. It includesready for some true sticker shock when the first bill
increased grants, tax credits and other features ascomes.
Obama sincerely believes the true strength of a nationOne thing lenders have started doing is letting students
is by its populaces' level of education.begin paying off the interest on their loans while they
One of the biggest changes is that Congressare still in school. Further, they will get to do it without
eliminated student loans that originate from privatepenalty. As a result, not only will the students reduce
lenders. The savings this produces will be used totheir monthly payments when the inevitable comes,
boost the Pell Grant program. This benefits studentsthey can start attacking the principle on the loans much
two different ways. The first is that college loans willsooner than those who don't start paying before the
now have a considerably lower interest rate, droppingbill is due.
as much as 6%. Further, the money will be plowedAnother thing students worry about is being able to
back into the Pell, which should go as high as $5,950also have a part-time job while trying to keep up with
by 2011.their course load. Fortunately, many online colleges
Applicants for the Pell must realize one thing, theallow students to complete their coursework on their
money will be handed out on a first come, first servedown time, leaving them more open for jobs. In turn,
basis. Also, the amount each student receives isthey can use some of that new income to begin
determined by tax information, so one is probablypaying off their loans.
talking a tight window of between late January and