Student Loan Help

October is the opening month for college-bound students to apply for federal loans. If you have a student headed to college, it’s important to talk to them about this major financial move. Here are some ways you can help your kid deal with and understand their loans.

Talk It Out

The first thing you need to do is sit down and discuss the costs of college, including the following:

• Tuition
• Room and Board
• Food
• Books
• Fees
• Other costs

Paying for college can seem almost too big of a concept for some kids, so dealing with discrepancies in costs between schools can be helpful.

Split It Up

Talk about what you are willing to pay or borrow for and what your child is responsible for while getting as granular as possible.

Check for Help

There are many sources of financial assistance for higher education outside of loans.

Scholarships and Grants. You should both research grants and scholarships that can help ease the burden of paying for school.

Check with the University. Contact the college financial aid center to ask about available offers. You’d be surprised by how many grants exist. If you do some work, you’ll likely find something that applies to your kid.

Consider Federal 

When applying for loans, you will likely want to stick with federal loans first. Federal loans almost always have lower interest rates than private student loans. After you’ve exhausted your federal loans, look into private ones if necessary.

Make Payments

Discuss how making payments during school will help your kid immensely. By getting ahead of payments before they’re due, you can reduce the total cost of the loan.

Do One Thing: Check out research grants and scholarships to make college more affordable.