Affording College – Options Beyond Scholarships & Savings

Different kinds of college loans and when to apply – Tips

From the Pros

From Alison Mills, Director, Financial Aid, Lincoln Land Community College:

• Lincoln Land Community College participates in the Federal Direct Loan program. Under this program, there are two types of loans: subsidized and unsubsidized.
• Parents of dependent undergraduate students can apply for a PLUS loan if their child needs additional loan funding.
• The application process for the Federal Direct and Parent PLUS loans begins with the FAFSA. Complete the FAFSA as early as possible after October 1 of each year. 
• Private Education Loans are available to students and parents as well and closely resemble personal loans. Deadlines for private loans would vary based on each individual lender.

From Mary Beth Stephens, MBS College Coaching, LLC: When you are reviewing a financial aid package, loans are often included in the “award.” Then, at the bottom will be the amount you still have to pay for your child to attend. Either you write a check to cover that additional amount, or you take out yet another loan. Financial aid “awards” are confusing and make several assumptions about your child’s expenses. You do NOT have to accept the loans offered.

From a Mom

From Angela Try: Only consider loans after accepting admission to the college. They’ll send you all of that information. We threw away all other “student loan” mailers that came.