Student Financial Aid Question(s)

atx_newbie · April 30, 2009

Ok, so I'm getting ready to go back to school in January, when I'll be eligible for in-state tuition in Illinois. Originally I was hoping to work enough and save enough money that I could just pay cash for the remaining 2 years of school that I have, but I'm not sure that's an option now. So I have a couple questions about financial aid:

1) Student loans. A google search of student loans provides links to any number of websites offering student loans, none of which appear to be very credible. So, is it possible to just go to a Chase, Bank of America, etc. and get a student loan, or do you have to go through special banks for student loans?

2) FAFSFA. When I first went to school, I was a dependent of my parents, so I wasn't qualified to receive federal financial aid because my parents made too much. But now, I'm not a dependent of my parents anymore, so can I fill out a new one based on my new income and my new independent status?

Thanks!

drmnbig · April 30, 2009

ALWAYS apply for your FAFSA. You pay taxes when you work and the government is providing this for people who may not have the money up front to pay for school. My wife and I are both in college and we both are lucky enough that the government wants us to make something of ourselves and provides this little bit of relief. It probably won't pay for all your classes but it will get you started. Also check the financial aid office at your college as a lot of states have grants that they also hand out through the year.

The deadline has already passed but still apply TODAY! The sooner you apply the better the chance of getting something since it is first come first serve. Get your tax returns in front of you as you will need these to fill out your financial aid. Chances are good you will also be selected to send copies of the returns to your college financial aid office.

Check out your local credit union for student loans. My wife is in accounting at a local credit union here and can tell you many of the benefits of using one versus independent loan companies or banks.

Hope this helps!

jimmieO · April 30, 2009

1. FILL OUT YOUR FAFSA YESTERDAY! You have to do it every year if you even want to be considered for any type of financial aid, including federally subsidized student loans. These are the ones you want because you don't pay anything until after you graduate, and interest doesn't accrue until then.

2. I would 100% of the time go through the financial aid office. They will give you a list of preferred lenders and tell you the advantages of each's loan program. Each one has some type of incentive to counter the other guys. For some, its lower interest rates, some knock off a certain percentage of principle if you pay on time for a certain length, all kinds of stuff. I WOULD ABSOLUTELY GO THROUGH THE FINANCIAL AID OFFICE!

3. Bring your patience, be a stickler about getting some help. The people in the financial aid office are paid to do everything they can to get your tuition paid for and generate that University revenue. Make them tell you what you want to know. Make them hold your hand throughout the process because there are small mistakes that can be made that can end up costing you a lot of time and/or money.

Don't hesitate to PM me if you need any type of info or advice. GOOD LUCK, AND GREAT DECISION TO GET THAT EDUCATION FINISHED UP!

drmnbig · April 30, 2009

Good advice about being stern about what you want! I got awarded FA for last fall and this spring and asked them why that was all I got since it wasn't as much as last year and they went back in and came up with enough to pay for all my books for the semester. That was well worth the wait in their office as it paid for over $1000 just for my books for the year.