Educational loan solutions for students

Forms of financial aid

Not just loans!

As you already know, financial aid comes in many forms. Scholarships and grants are the least expensive route to financing an education. Work-study is a great way to get work experience while decreasing the amount you are borrowing. Loans are available for those who cannot find other ways of financing educational expenses.

Scholarships

Even if you've been away from school for a while, don't forget to look for scholarships. Scholarships are awarded by public and private institutions. Your college may offer scholarships also. There is no single listing of scholarships and finding them requires energy and research. Major public libraries are good sources and so are financial aid offices. They may have books or brochures with valuable Web sites or other listings. Be very careful about paying for a list of scholarships, particularly from vendors who make extravagant promises implying guaranteed results.

Even if you don't have an outstanding academic record, don't skip this search. Many scholarships are awarded for other reasons, such as a particular talent, participation in extra-curricular activities or community service.

Hunting for scholarships may be time-consuming, but rewarding. Start early - many schools require applications the year before the scholarship is to be awarded and almost all like to have them by March. Early application increases your chances of winning the money!

Grants

Similar to scholarships, grants do not require repayment and can significantly reduce borrowing. The largest and most common of these is the Federal Pell Grant, which may be awarded during the financial aid process to families of relatively limited means.

Other grant programs available to you may include Supplemental Educational Opportunity Grant, State Need Grant programs or Institutional Grant programs. These grant programs are determined by the financial aid office and are usually based on your financial need. School financial aid offices can advise you of other opportunities.

Work-study

Many schools participate in subsidized work-study programs that are either state or federally funded. These programs allow schools to provide paid work to a portion of their students.

You can usually find a variety of on-campus and off-campus work-study positions. Typically, off-campus positions give you the opportunity for valuable experience in a professional environment. Studies show that students generally perform better academically when they work 10-15 hours weekly.

Visit the financial aid office at your potential school to inquire about available work-study positions.

Loans

Federally-insured loans make up a substantial portion of postsecondary education funds each year. Chief among these are the Perkins Loan, popular Stafford Loans (both subsidized and unsubsidized) and PLUS (parent) Loans. Recent regulatory changes make it possible for virtually every student or family to borrow for an education at an accredited school. Also available are a growing number of "alternative" or "private" loans, not insured by the government, and usually subject to credit considerations.