Going Back To School? Find Out About Student Loans

If you’ve finally decided it’s time to go back to school congratulations are in order. It’s a big step and financing your new adventure can be very stressful. It’s important you find out about student loans and other options available to you.

Going back to get a post secondary education requires both a time and financial commitment. Between the cost of tuition, books, and supporting yourself you can land up with a pretty big debt load before you even enter the work force. Student loans are an important part of getting you through your school years but there are other ways to also help keep your debt down.

Student loans are just like a loan you would receive at the bank, in fact many lending institutes are now offering their own private version of student loans. Once you complete your program you will have to start paying the student loan back regardless of your work status. This can create quite a burden as you may have taken a level entry job or may still be looking for a job in your field.

It’s important to consider other options that you can utilize with your student loans which will help keep the amount of money borrowed to a minimum.

Start by trying to save some cash. If you are currently working start putting at least 15% of each check away until classes start. If you receive cash gifts tuck them away in your education fund.

The Government student loan programs also expect your family to contribute towards your education. If you apply for a student loan and you live at home or have not been living independently for the specified number of years your parent’s income will be taken into account. So you need to sit down and talk with mom and dad to see how they can contribute.

If you are classified as an adult status student your parent’s income will not become an issue however your past income as well as your assets will be considered prior to your student loan being processed and accepted.

If you choose to use a lending institute that offers student loans they will have their own criteria but it generally includes your credit rating, an accredited program, and your assets.

You should consider working part-time while you attend university or college as this will help reduce your debt load. In your final year this may not be possible but generally most students can work at least 10 to 15 hours a week. At least it supplies their pocket money.

You should also check into Co-op programs, RESPs, and Bursary Programs. Bursaries are awarded based on financial need and are not required to be paid back. Also check for available scholarships. Scholarships are made available by many corporations and a search online will provide you with many opportunities. Each will have its own criteria. The wonderful thing about scholarships is that they do not have to be paid back.

To submit an application for a Government Student Loan program you must fill out an application. Remember there are federal, state, and provincial student loan programs. You will be required to provide a monthly budget of your expenses, documentation supporting your income and assets, and a variety of other documentation. Be sure to fill out the application “exactly” as requested or it will be returned and you’ll have to make corrections, delaying the process of finding out if you qualified.

Student loans combined with other sources of income will give you the maximum cash flow with the minimum debt load to acquire your degree.