I’ve enrolled in FAFSA. My son isn’t getting a scholarship for school. I’m resigned to the fact that’ll I have to get a loan. My question is there a student loans out there that are better than others? I see a lot of options but before I make a decision I’d like input from someone who has already been down this road.
First…you don’t “enroll” in FAFSA. The FAFSA is a financial aid application form that you complete and submit to the colleges your kid applies to. It is primarily used to determine eligibility for federally funded need based aid, but some schools also use that info for institutional awards as well.
- When is your son starting college?
- How much of a loan do you need for him to attend?
- Is he taking the federally funded Direct Loan of $5500?
- How much does this college cost?
- Think ahead...will you qualify for loans for all four years of college? If not, maybe this school is not affordable.
- Did he have other more affordable options in his Acceptances?
- How were you anticipating paying his college costs?
He’s starting in the Fall. He’s going to a Tech school with hopes of transferring to a 4 year school next year. The tech school is affordable; the 4 year school isn’t. I applied for a Sallie Mae loan and got quick approval. After approval I decided that I was leaping before looking. I don’t think anyone has looked into the federally funded Direct Loan yet- I’m doing that tonight. I just started looking into this this week. A lot of information to sort through. Thanks for your help.
Did your son indicate on the tech school application that he was applying for financial aid? Direct federal loans are usually awarded through the school.
I don’t know. I will check. Thanks
the direct student loans (also called Ford or Stafford) to the student are the best so should be taken first. If the tech school participates, they will be $5500 for the freshman year.
After that, some people like the Parent Plus loan as there are some options for reduced repayment plans and consolidation of several years. There are also private loans (like Sallie Mae) which may be at a lower rate but may not be. Check with the school about Parent Plus loans and see which program works better for you. Some parents have been able to get private loans from their own banks or credit unions at a lower rate than a private student loans like Sallie Mae.
Checking for clarity.
Your son will be at a tech school which is affordable this fall. Is that correct?
If so, why are you looking for loans at all for this academic year?
Some students DO take the Direct Loan and bank it for future years. Is that what you are planning to do?
What tech school, and do credits transfer?
You need to check with the four-year university to see if the tech school credits will transfer. Very likely they will not
Avoid Sally Mae.
Your son should take his federal loans - if they are not needed, he can bank them to pay for the 4-year school.
What tech school? Do you mean a community college or something like IvyTech, or do you mean a for-profit?
Your best bet is a public community college, with an AA-T (T= transfer) degree that has a guaranteed transfer acceptance to a public university in your state.
If he transfers later, would he be eligible for merit scholarships?
Could he attend another more affordable school for all 4 years, or a community college he can commute to with guaranteed transfer agreement to a 4 year school, to save money?