Before You Accept Any Student Aid - Know This!

Before you accept any student aid, you should

• get a breakdown of the direct expenses (tuition, room, board, and fees) and estimates of indirect expenses (travel, books, etc.) for one year of college;
• know the actual net amount (cost of attendance minus financial aid) that you’ll have to pay to attend one year of college;
• know what amount of awarded financial aid that doesn’t have to be repaid such as scholarships and grants and the conditions under which they are renewable each year;
• know the amount of work-study and the conditions under which one has to fulfill the work-study;
• find out which loans you’re eligible for;
• find out which loans your parents can get to help pay for your education;
• know the interest rates, loan terms, monthly repayment amounts, and total repayment amounts of your loans;
• know where you can get additional information or have your loan questions answered.

Remember that student loans have to be paid after your leave school, attend less than half time or graduate. When you receive your award letter, start by accepting scholarships and grants you’re eligible for—be sure you understand any conditions/requirements to receiving these “free funds.”

Then accept the loans with the most comfortable terms; that is, federal student loans (subsidized and unsubsidized federal student loans from the federal government or guaranteed by the federal government), and state aid.

If you see private or commercial loans in your award letter ask why this type of loan was included, find out the terms, and reject the private loan if the terms aren’t favorable. Exhaust all options before looking into private loans. Private loans and credit cards should be your last resort.

Here is a video I think everyone planning on applying for student aid should watch so you can be aware of some of the pitfalls that you can run into.

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