Getting into college can be a very exciting time, but often it’s overshadowed by fears of funding college. This article is here to help you put your mind at ease.

There are two primary fears that I had in preparation for college; and I’ve found that most of my students had the same concerns. First getting loans for college and  what that will mean and secondly after college I was concerned about the repayment process.

To be honest, aside from getting accepted to College funding college with loans is a reality for most of us.

My parents didn’t have the funding set aside to help me with college, so I knew I was looking at college loans to help me. Loans typically conjure up the worst images in our minds, surrounded by fear and the unknown.

After you read this article some if not most of your fears will subside, you could even kick them to the curb.

My fears, I was so concerned that I’d be in an extreme amount of debt and that many years after college I’d feel trapped by a debt looming over my head. I discovered I was missing information; these fears didn’t need to be as big as I made them out to be. It’s good to have a voice of caution inside, but we can’t let that keep us from accomplishing our dreams.

I’m not a Financial Aid Advisor, so this is all based on years of  experience and research.

Needless to say it took me months to decide if college was right for me. I really wanted the education. I knew what it could do for me, and let me say that years later I’m so glad that I decided to go to college. It’s one of the best decisions I’ve ever made.

Getting the Funding for College

Financial Aid can seem a daunting process, but it doesn’t have to be. Who can you ask for help from?

1. Financial Aid Advisor at a college, this is an excellent resource after applying to your college often you’ll be working with a Financial Aid Advisor. However not all colleges have you working with a Financial Aid Advisor until after you’re accepted, since these Advisors work with so many prospective students. If this is the case use one of the other resources listed here.
2. Sallie Mae, this is one of the largest, if not the largest provider of student loans. Their website is full of tools and advice to help you in the planning and application process for college funding. Additionally you can call and speak to someone on their toll free number. I’ve personally found them to be extremely helpful. More on this in a minute. Now Salliemae is a lending institution, however, they have great resources to help you locate scholarships also. http://www.salliemae.com
3. Your Local Bank; several of my students want their local bank to help with college expenses. This is a great resource as well, take some time to speak to a banker and have them work with you to set up your college funding.
4. Friend or family member who’s worked in banking or who worked for a college in Financial Aid department. This friend can be an invaluable resource for you. Make some time to get together and talk about Financial Aid and college funding.

Loans can feel scary especially with the state of the economy right now. However, college loans are very different than other loans.

The Financial Aid Advisors I’ve worked with let me know that when you’re taking out loans for college this is reflected on your credit very differently because a college loan is seen as a positive investment in yourself. So it is a positive influence on your credit instead of a negative one such as a car loan.

It’s seen as you are making an investment in yourself that will help you earn more and thus contribute more to the economy. So this is seen as a positive impact on your credit. I’d not heard that until I spoke to the Financial Aid Advisor

Addressing the What if:

• What if I don’t qualify?

When I asked a Financial Aid Advisor about what income would disqualify a family for Financial Aid, if the family qualified in every other area? The income limit is generally well over the six figure mark.

Just after that I worked with someone who let me know that they had a household income  well over the six figure mark and she did qualify for Financial Aid.

• What if I can’t find a job?

The next what if concern was what if I cannot find a job and my loans come due. Often after graduation there is a grace period of time before you have to begin repaying college loans. This gives you the time you need to find a job.

• What if you don’t find a job during the grace period?

Make sure you contact your lenders and let them know. Often they’ll work with you perhaps giving you more time, or if you can make arrangements for some type of payment let them know. They want to work with you but if you don’t tell them what’s going on in your life they cannot help you.

Warning! Don’t wait until you are getting collections calls from your lender, this is a very bad thing! This means that they are getting ready to put your loan in default.

This is what will hurt you financially.

• What if I get laid off?

If you get laid off or otherwise find yourself out of work, immediately contact your lender and let them know what’s going on. This way they can work with you, they can help you put your loan payments on hold so that you are not required to make payments while you are out of work.

My story…

Once my fears were addressed, I attended college graduated and then began the loan repayment process.

Do you know what I really liked?

They worked with me to pay back the loans and made sure it fit in my budget! I was relieved, I thought that most of my income would go to paying back the loans and everything else would take a back seat in my life.

But they really wanted to work with me. They asked me how much money I was making what my bills looked like and they fit it in my budget. Some of my friends didn’t work with their lenders and they felt like all that they were doing was paying for college loans. I encouraged them to contact their lender and work out a payment plan that they were comfortable with.

Well a few years later I was laid off; I immediately called my lender and let them know. The first thing they did is to have me fill out a form stating that I wasn’t working and they give me a year to get back on my feet!

I was shocked…

I didn’t think that I’d need a year and I didn’t, but it was nice to get ahead financially before I had to begin making payments. Plus I could make payments when I could without worrying about it.

Another way to help yourself

Put your loans on hold. If you take six credit hours in a semester then you’ll be able to put your loans on hold while you are taking classes. So if you take a couple of class in college, say a community college for a semester then you can request to have your loan repayments put on hold while you’re in school also.

This can really help you get ahead.

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Sophie

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