Finding funding for your child’s education can be a stressful task, but believe it or not, getting money is not nearly as confusing as you might think. Because the financial aid process is a little bit different for each family, eStudentLoan has customized our web site. The best way to learn more is to select the type of student you will be enrolling from our home page or by reading one of our financial aid guides.
Parents have a lot of financing options to pay for higher education. Some (or all) of the financing of an education can be borne by the student. The first option to consider is the Federal PLUS loan. The Federal PLUS is a low, fixed interest rate loan which carries federal benefits, such as death and disability forgiveness benefits. PLUS loans are made to parents through the Department of Education’s Direct Loan Program. You might be able to postpone payments until 6 months after your child graduates or attends less than half-time. If you do not wish to borrow on your child’s behalf, you might consider a private student loan. The rates offered are competitive and repayment can generally be completely deferred (although interest will accrue) while your child attends college half-time or more. Your child may also borrow a Federal Stafford loan in his or her name. In general, the order in which you borrow should be: Stafford first, PLUS second and private only if you need additional funding.
A great source for scholarship information is ScholarshipExperts. Their goal is to provide students with the opportunity to complete their education regardless of their financial situation. It’s a good resource to use to research and apply for scholarships that you qualify for.
And most important, take a deep breath and relax. You have options!