Student Loans Well Worth the Cost

[Jun 14, 2007.]

 

At a time when you may be feeling as if you need to take out a loan in order to pay the costs of your daily commute, you may be wondering whether it's worth it to go to the trouble and expense of taking out student loans. If a loan may mean the difference between attending college and not attending, the decision can be particularly momentous.

Experts now say that today's college graduates can expect to earn as much as 60 percent more than workers who lack an undergraduate degree. Your earnings potential can also rise considerably if you opt to obtain a Master's Degree. As a result, experts say that student loans are well worth the cost when you consider the long-term financial benefits of a college education.

Still, it's important to exercise some financial savvy when going through the student loan process. Your first step should be to fill out a Free Application for Federal Student Aid, or FAFSA. You can actually find the form online, which should save you some time and trouble. The application will be sent to the Department of Education for processing.

After you complete the application for aid, a Student Aid Report, or SAR, will be sent to you and all the colleges you're interested in, up to a maximum of six. After that, it's up to the individual college or university to mail you an Awards letter which specifies which grants, scholarships, and federal loans you can qualify for.

If it's determined that you qualify for a Stafford loan, you'll have to locate a lender to finance it. If you go online to www.staffordloan.com, one will be assigned to you. If, however, you are not eligible for a Stafford loan, you might want to look into private loans. You can find more information about such loans at www.acteducationloans.com .

Julie Ann Amos
June 14th 2007

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• Student Loan Consolidation an Attractive Option This Summer
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