ProsperityHorizons Educational News

 

Scholarship Search – How to find free money for college

by Vanessa McHooley
 

College students receive billions of dollars in scholarship money every year. How can you get some of this money to fund your college education?

Start looking early.

 Start looking for scholarships at least by your sophomore or junior year in high school. Some scholarships are even awarded as early as junior high. Where to look? Your first stop should be your high school counseling office, followed by your college financial aid office. Other places to look include

- Civic and community organizations

 - Cultural institutions

- Your parents’ place of employment

 - Your state Department of Education

 - The internet

Keep looking

 Keep searching for new scholarships and renewing existing scholarships even after you begin college. Many scholarships need to be renewed annually, and you may qualify for new loans throughout your college years.

Develop your interests

 While some scholarships are based on financial need or academic achievement, others are based on particular interests, extracurricular achievements, ethnicity, or religious affiliation.

Meet deadlines

 Pay attention to the scholarship requirements – meet them in as creative a way as possible, and always be on time!

Diversify

 Apply for every scholarship that you qualify for. Even small scholarships can add up to big money if you win enough of them.

Beware of scams

 As you search for scholarships, especially on the internet, look out for scam artists who

- Charge application fees

 - Guarantee you will receive a scholarship

 - Ask for unnecessary personal information, such as your bank account number

There are plenty of free scholarship search sites on the web, so don’t pay for this service.

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This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to maximize your scholarship search at http://www.NextStudent.com  .

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What Students and Parents MUST Know about Student Loans

by John Williams
 

A student loan helps you get through college. Then you come out into a high-paying career. It's a great investment in your (or your sons/daughters) future.

Student loans generally give you a good deal. You get below-market interest rates, and you get a $2500 federal tax credit on interest paid over any period of time (previously first 60 months only)

It doesn't matter if the student, or parent takes out the loan; tax deduction remains the same.

* Did you know the federal government has a $50 billion student loan program ?

Not surprisingly, the federal government provides the largest percentage of student loans. Other student loans may come direct from colleges, private lenders or state governments.

One of the key advantages to a federal guaranteed loan is exactly that - it's guaranteed. That means you don't need collateral. It also means the terms are kinder than a typical lender might offer. Of course, your educational program has to be approved by the government.

Types of student loans

Federal Stafford Loan - for undergraduate or graduate students

• 
  A popular and cost-effective source of a student loan. Stafford loans provide low-interest, government guaranteed funds.

• 
  Stafford Loans come in two types, subsidized or unsubsidized. Whether or not you're eligible for subsidized depends on household income. The school ought to advise on this.

• 
  For subsidized, the government covers the interest right up to start of repayment i.e. they pay interest incurred during the course, in deferment and during the grace period before repayment begins. If you qualify for subsidized, it's a great deal

• 
  For unsubsidized, the student must pay all interest incurred at all times, though they don't start repaying until after grace period.

Federal PLUS Loan - for parents of undergraduates
 

• Parent Loan for Undergraduate Students (PLUS) allows parents to take a loan on their Childs behalf. They can contribute to their Childs future, and get a great low- interest loan with continuing future tax relief.

• 
  PLUS actually allows parents to borrow the total cost of their child's education, minus any grants or other financial aid awarded. All tuition fees, meals, books, transport etc. can be included in the loan.

• 
  This really is a great deal, and has no income or asset requirements. Even poor credit history may be overcome. Repayment is flexible, and can include zero payments for up to 4 years.

• 
  Only one drawback to the Federal Stafford and Federal Plus loan - your school must be approved to participate in these programs. If your school isn't approved, then you've got some other options...

Banks

• 
  Many banks offer unsubsidized Stafford loans. You still get the money, which you must have to attend college, but repayment options are more limited. Some deals offer you an interest rate reduction if you make payments on time.

 

 State Loans

• 
  Most states offer guaranteed student loans. Apply direct to Banks, who'll administer the State program. It's usually a more expensive way to borrow than Stafford.
   

 College Board Extra Credit Loan
 

• Administered by your college. Can be expensive, and best used only in an emergency e.g. your aid is withdrawn.
   

Other Loan Sources

• 
  A number of other sources may be worth trying if you get a problem with your first choice lenders. Academic Management Services affiliates with approx. 2000 schools. AMS pay your tuition fees if you repay them in less than a year. College Resource Center also has loans available.

• 
  If your parent served in the military, then a military loan should be investigated.

• 
  College can be the experience of a lifetime. A child starts college as a high school kid, and emerges a full grown adult with high-earning potential…

But he or she needs money to survive and thrive in college. This article looked at the main sources of student loan funding, and those sources should be ideal for most students and their parents.

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© DigiLectual Inc. 2004   http://studentloans.college--loans.com/

The right Student Loan makes all the difference to a successful college career. Discover important information on choosing the right student loan, and guaranteeing your future success.

Click ==> http://www.college--loans.com/

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