We’ve all got money on our minds these days, so that’s why it’s so important that you are well-informed about the process of applying for and paying off your student loans. CampusCompare wants to fill you in on the basic details of the student loan procedure!

You can apply for two federal student loans—the Perkins Loan and the Stafford Loan. Both loans offer a six to nine month grace period after graduation for you to have time to get a job before you begin full loan repayment.

You will be approved for either a subsidized or unsubsidized loan. The difference between subsidized and unsubsidized lies in who pays the interest while you are in school. For a subsidized loan, your interest is paid by the government until you graduate. Subsidized loans are usually given to lower-income students. With an unsubsidized loan, the student is responsible to pay the interest during school.

Remember, it is absolutely essential that you begin paying off your loans on time—not doing so can be detrimental to your financial future! So you must be prepared, and finding yourself a good financial aid calculator is a good start. Also, take the time to consider going to a public college rather than a private. For example, the cost of going to the public school University of Massachusetts at Amherst is less than half that of going to Boston University, a private college.

But don’t let your dreams die over the dollar—there is still hope yet that you can afford your dream school. To learn more about the student loan process, check out sites like the College Loan Corporation, a top 10 private student loan provider who has helps students and families pay for college with their expert loan advice. Hope that helps you on your way to your ideal fiscal future!

Dear Babs,

I think I need to stop watching the news; all this terrible talk about the economy is really getting to me. I’m heading off to college next year, and I’m afraid I won’t be able to afford it. Should I delay school a year to work and save money? Should I give up my expensive dream school for a cheaper one? Help!

Signed,
Financially Frustrated

Dear Frustrated,

It’s definitely a scary time in our economy, but that should not stop you from pursuing a college education. Your education is an investment, and it’s one that will pay off down the road. Still, there are some ways that you can relieve the burden.

I know it’s far off, but if you are thinking about graduate school one day, then perhaps one option is to choose a less expensive school for undergrad. While prestigious schools are often associated with high price tags, keep in mind that there are excellent public schools that are bargains in comparison.

If you’re a good student, scholarships are always an option. Don’t give up hope if you don’t get one for freshman year; many schools are known to give scholarships to high-achieving students as they progress through their four years.

Don’t rely on the government to offer a whole lot of assistance at this point, but do take what you can get. Send in your FAFSA early so that you have the best chance of getting funding. Also, be a frequent and friendly visitor to your Financial Aid office on campus so that you are never in the dark with what your financial situation or tuition bill is like.

There are many online resources, like CampusCompare, that offer financial aid calculators and other resources to help you through this stressful time. You are definitely not alone in this, so don’t be afraid to ask questions!

Financially yours,
Babs

Does thinking about financial aid make your head spin? We here at CampusCompare feel your pain, and we’ve got the cure—our financial aid calculator.

Your math teacher might have tried to get you to stop relying on your calculator, but we hope you’ll use ours as often as you like. You can tote up the bill at your dream school, compare costs at a few different schools, or weigh your options of living at home versus living on campus.

After you try out our calculator, why not take a look at our other nifty tool, What Are My Chances? It can help you figure out the odds of your getting into school; sadly, it won’t help you determine the odds of finding a date for prom.