How to Obtain College Tuition Assistance
Obtaining college tuition assistance can be a daunting task. This researched outline aims to provide some guidance in this process. We suggest you visit http://withfrank.org for additional help with this process.
The first step in obtaining any kind of college financial assistance is to complete the federal form called the Free Application for Federal Student Aid (FAFSA). The FAFSA is also required by most private lenders. After you have collected all the grant aid you can find (i.e., funds that do not require repayment), you will need to borrow money to pay the remainder of your college expenses. Always apply for federal loans first because they have lower interest rates than private student loans.
The State of Maryland itself does not make student loans. Loans are issued by a national guarantor called Strada Education Network. Strada contracts many of its services out to the nation’s largest provider of private student loans, Sallie Mae, but the two are completely separate entities. In addition to loan assistance, Strada awards select tuition grants. For more information, they invite you to send an email to [email protected].
There are both annual and total limits on the amount you can borrow under the Federal Direct Loan (sometimes called the Stafford Loan) program in both subsidized and unsubsidized loans. The annual limits range from $5,500 for a freshman in college to $20,500 for a graduate or professional degree student, and the total limits are $57,500 (undergraduate) and $138,500 (graduate or professional student). This means that if your college expenses exceed those levels, you will have to apply for alternative or supplemental student loans.
For supplemental student loan assistance, Wake Forest University has assembled a very helpful list of national providers with a comparison of various companies’ student loan products (check linked sites to make sure details are current). You may find this comparison at http://financialaid.wfu.edu/supplemental-loans-from-private-vendors/.
You will need good credit to obtain a supplemental loan or you will need a creditworthy cosigner. For example, Wells Fargo’s 2012 information states that students must have annual income of at least $12,000, a good established credit history, and a suitable ratio of debt to income. If you are unable to meet those criteria, you will need a cosigner on your student loan.
The first step in obtaining any kind of college financial assistance is to complete the federal form called the Free Application for Federal Student Aid (FAFSA). The FAFSA is also required by most private lenders. After you have collected all the grant aid you can find (i.e., funds that do not require repayment), you will need to borrow money to pay the remainder of your college expenses. Always apply for federal loans first because they have lower interest rates than private student loans.
The State of Maryland itself does not make student loans. Loans are issued by a national guarantor called Strada Education Network. Strada contracts many of its services out to the nation’s largest provider of private student loans, Sallie Mae, but the two are completely separate entities. In addition to loan assistance, Strada awards select tuition grants. For more information, they invite you to send an email to [email protected].
There are both annual and total limits on the amount you can borrow under the Federal Direct Loan (sometimes called the Stafford Loan) program in both subsidized and unsubsidized loans. The annual limits range from $5,500 for a freshman in college to $20,500 for a graduate or professional degree student, and the total limits are $57,500 (undergraduate) and $138,500 (graduate or professional student). This means that if your college expenses exceed those levels, you will have to apply for alternative or supplemental student loans.
For supplemental student loan assistance, Wake Forest University has assembled a very helpful list of national providers with a comparison of various companies’ student loan products (check linked sites to make sure details are current). You may find this comparison at http://financialaid.wfu.edu/supplemental-loans-from-private-vendors/.
You will need good credit to obtain a supplemental loan or you will need a creditworthy cosigner. For example, Wells Fargo’s 2012 information states that students must have annual income of at least $12,000, a good established credit history, and a suitable ratio of debt to income. If you are unable to meet those criteria, you will need a cosigner on your student loan.
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