| One of the first concerns I hear about when people | | | | I've heard more recently, is that the repayment |
| are considering returning to school is "How can I afford | | | | structure of student loans is changing in our favor. To |
| it?" Many people, especially those struggling with bills, | | | | keep students from suffering under too heavy a debt |
| are more concerned with the immediate need of debt | | | | burden, in around 2014, they will only have to pay pack |
| relief or debt consolidation, rather than taking on more | | | | ten percent of their income per year, regardless of the |
| debt. While there are student loans available through | | | | debt owed, and they will only have to pay for twenty |
| FAFSA (Financial Aid), there is also the possibility of | | | | years. After that, all debt will be forgiven. |
| getting the Pell Grant or a number of scholarships | | | | Beyond the FAFSA route of Pell Grants and student |
| available to those of modest means. | | | | loans, there is the scholarship route to consider. I |
| Let's talk about FAFSA and the Pell Grant first. When | | | | reviewed a number of scholarships that were |
| you fill out your application for Financial Aid through the | | | | designed essentially for single parents in poverty. While |
| FAFSA.org website, you are automatically applying for | | | | they were well-meaning, they all required year-by-year |
| the Pell Grant. When the FAFSA determination for the | | | | grade point average statistics on the applicants. If you |
| amount of your student loans is complete, they will also | | | | are on the fast track to a college degree, you will |
| tell you what amount you qualify for under the Pell | | | | never have year-by-year statistics to submit! After |
| Grant. What's nice about the Pell Grant, and | | | | reviewing a dozen scholarship programs at my |
| scholarships for that matter, is that you don't have to | | | | counselor's request, I found that I could not qualify for |
| pay them back. A Pell Grant award can be anywhere | | | | any of them. The resulting debt accumulated from |
| from the $800 mark to about $5000, which will pay for | | | | staying in school long enough to qualify would have |
| a significant amount of your tuition. If you make less | | | | amounted to much more than the amount of the |
| than $60,000 per year, you have an excellent chance | | | | scholarship! I didn't intend my degree to result in a debt |
| of benefiting from this grant. | | | | relief or debt consolidation plan. Wrong direction... |
| On the other side of FAFSA, student loans of course | | | | Ultimately, I'd say don't be worried as to whether or not |
| do have to be paid back. What's nice about student | | | | you can afford to return to school. Just do it. It is my |
| loans is that the interest rate charged is very | | | | optimistic view that tells me-and should tell you--that |
| reasonable, and repayment doesn't start until six | | | | your financial circumstances will vastly improve when |
| months after you finish school. One caveat is that you | | | | school is done. Best of luck! |
| must carry a certain number of credits per semester | | | | Copyright 2010 Ronald E. |
| in order not to trigger the repayment schedule. What | | | | |