Money Talk Tip #10: Financing Options for College
As the cost of college tuition continues to rise, financial institutions like Royal Credit Union are working to make college possible for anyone. If you’re in need of aid and not sure where to turn, watch this video for advice and read below for more information about a couple of things you can do.
Apply for Federal Student Aid
Your first step should be to apply for financial aid by completing the Free Application for Federal Student Aid, or FAFSA, as it’s commonly called. The application period opens every October for the following school year. If you qualify, you may receive grants, which is money that you don’t have to pay back, and federal student loans.
If you qualify for a federal student loan, here are a few things you should understand about them. First, with the exception of PLUS loans, you don't need to undergo a credit check to get a federal student loan. Additionally, the rate on federal student loans is fixed throughout the life of the loan and often lower than that of a private student loan. If you qualify for a Direct Subsidized Loan, the government may cover the interest on your loan until you have graduated. You don't have to start repaying the loan until after you graduate or otherwise leave school or switch to less than half-time enrollment status.
Apply for a Private Student Loan at Royal
If you don’t qualify for financial aid or don’t receive enough to cover your tuition, you should consider applying for a private student loan through Royal Credit Union. Our student loan program offers benefits like delayed payments until after graduation and highly competitive interest rates. Additionally, there are no processing or origination fees and automatic payment deductions may qualify you for a reduced rate.
Whichever route you take to finance college, set yourself up for success by following this rule of thumb: if you choose to take out a loan, only borrow as much as you need and choose a loan with terms you can afford. Be assured that there are several options available to make your college dreams a reality!
Knowledge is power. Be informed and thrive. Royal Credit Union is always here to help!