Student Loans For 2012

Thinking about attending college in 2012, great choice! Now the next step is going to be “how are you going to fund your college education?” To start the new year off right we at StudentLoansForCollege.org are going to give you a “run down” of the steps you should take (in order) to obtain financial aid and other student loans for 2012. Please be sure to visit our other site resources, such as our student loan calculators and student loan lenders directory to help you with the process of funding your college education.

1. Scholarships, Grants, and Free Money Options for College
You should always check into your free money options for college before you consider taking out any student loans for the 2012 academic year. This can come in the forms of scholarships, grants, work study, saving for college, and/or working while in college. Though it make take some time and hard work to apply for scholarships and other free money for school sources, it will be worth it in the end (when you do not have student loans to pay back!).

2. Free Application For Federal Student Aid
FAFSA is your gateway to federal (and most state) financial aid and federal student loans for 2012. Students in need of money for college should complete a FAFSA application. FAFSA allows students to choose the type of financial assistance they desire ranging from work-study programs, federal student loans or federal grants.

3. Federal Student Loans, Grants, and Student Work-Study Programs
Now that you have applied for FAFSA, we can elaborate a bit more on federal financial aid.

Federal Student Loans: There are three main federal student loans offered to students. Stafford loans are offered to all students irrespective of their financial condition. Perkins are offered to students facing financial difficulties and are awarded on a case-by-case basis and PLUS loans that are used as supplementary loans will cover all remaining tuition expenses not covered by both Stafford and Perkins loans. Unlike the Stafford and Perkins loans, students must begin paying interest on their PLUS loans immediately after the loan has been disbursed.

Federal Grants: Under the financial stimulus package, the government has floated billions of dollars in grants for individuals who want to upgrade or retool to face the employment challenges that will arise when the economy recovers. These grants are paid directly to universities once accessed by students. Unlike student loans, students are not required to repay the amounts received from grants. Student grants are highly desired, so students must be proactive in their application as they are given on a first come first serve basis.

Work-Study Programs: In Work-Study Programs, students are given employment positions at their colleges or universities. All money that is earned from the student’s working hours will be largely credited to their tuition account. Some student-work programs can cover the entire cost of their tuition and even provide extra spending money.

4. Private Student Loans
Private Student Loans for 2012 should only be considered after ALL other options have been exhausted through the federal student loan system. Private Student Loan interest rates will fluctuate with market conditions, do not have as good of terms, and generally have higher interest rates then federal student loans.