No, it wasn’t the Fighting Illini’s 47-21 Saturday gridiron thrashing of in-state rival, EIU, rather it was the Sunday decision by eight credit unions to join with two state agencies to create a $100 million aid fund for students.

Overcoming The Current Credit Crunch

The fund was established to help students who are currently having difficulty getting credit to obtain student loans in the face of tougher borrowing restrictions imposed by lenders as a result of the current economic climate. As many as 20,000 students are expected to be helped through the fund, especially those with low incomes.

In a prepared statement, Illinois Governor Rod Blagojevick said, “This financing package will enable thousands of students to attend college this year, knowing they can pay their tuition.”

Students who need additional funding assistance can also ask their parents to apply for a PLUS loan or apply for help from Sallie Mae. PLUS loans allow parents to borrow as much as 100% of college costs which includes tuition, room and board, books, and related fees.

Speaking of Football…

Getting back to football, Illinois’ pounding of EIU was just the right medicine the team needed following its 52-42 opening week loss to #6 Missouri.

Last week, Illinois was able to keep pace with Missouri, but they still yielded 549 yards, not quite as bad as the 633 ceded to USC in a 49-17 Rose Bowl drubbing last year, but still a major concern. On Saturday, the Illini still gave up well over 400 all purpose yards to EIU, but with Louisiana-Lafayette next up, the team will have an extra week to pound a weaker opponent, letting Juice Williams rack up additional yardage and scores while giving the defense a chance to get everything right before the team embarks to Happy Valley on September 27th to take on the Nittany Lions.

(Source: State of Illinois)

Even the age-old fall back, home equity, has fallen on hard times as housing prices plunge and parents find that what little money is available to them won’t pay for tuition or the interest rates being charged are causing some to pause.

Worse yet, are those lenders who’ve you dealt with in the past who are no longer writing student loans or have ceased business altogether. This has been especially challenging year for families looking to renew a relationship with a lender they like only to learn that it isn’t business as usual for them.

Searching For Student Aid

Even as classes get ready to start, it might not be too late to secure funding for the 2008-2009 academic year. You’ll have to move quickly though as the number of applicants is up while the number of lenders is down — private student loan lenders are definitely being stretched. Here are some tips to help you secure financing this year:

Search Around – Our sister site, SayStudent.com, offers excellent tips and advice on how to find private student loans. Download a free copy of the free Student Loan Aid Booklet to help you get organized and track what you need.

Consider PLUS Loans — PLUS loans or Parent Loan for Undergraduate Students allow you to borrow up to the full amount of college tuition minus any financial assistance. With a fixed APR of 8.5%, this rate is much lower than a credit card and slightly below what some private student loan lenders are charging. With a PLUS loan, just remember that you are responsible to repay it, not your student.

Contact Financial Aid — Your college’s financial aid office can help you out by sharing with you a list of recommended lenders. Be careful as some schools work closely with lenders receiving contributions from them in order to be included on their list. Shop around!

Payment Plans — Some schools will allow you to make payments over the coming academic year, understanding that students might be very limited when it comes to paying for their education. Usually offered interest fee, you may have to pay an administrative fee which is typically set at $50.

It certainly is a tough year for some families, requiring parents and students to work together to find a way to pay for education. If your financial condition has worsened since your child first entered school, you could be eligible for additional relief. Contact the college’s financial aid department to find what your options are.

You just completed college and have your degree in hand, you’ve accepted the job offer and are planning to begin work in July or August, after a much needed break. Soon, you’ll be putting on your best clothes, heading off to work, and beginning the climb up the corporate ladder.

You’ll also be expected to start paying back your student loans no later than six months after graduation.

Yes, it is that time of year again — grad season, but also debt review time. If things worked out well, you have little to no debt to deal with. However, if you are in that vast group of middle class borrowers — too rich to qualify for aid, too poor to pay for education completely — then you’re possibly looking at paying off tens of thousands of dollars in student loans over the next twenty years.

Should You Consolidate Your Student Loans?

One way grads are looking to reduce their costs is by consolidating their student loans. In some cases you may benefit from consolidation, while in other cases you will not.

Changes made by the U.S. Congress a few years ago will determine what is the best course of action for you to take. Specifically, if your loan(s) originated prior to July 1, 2006, then you could benefit from consolidation, while loans originating after that date probably won’t. The key difference for these dates is the interest rate, which Congress established for Stafford and PLUS loans for the later loans. These newer loans must have a fixed interest rate while earlier loans do not.

Perhaps you have both kind of loans. In that case, you may still benefit from consolidation.

Why You Should Think About Your Student Loans Now

Since you just graduated, you may not be in the mood to look at your student loan contracts now. After all, the beach beckons and that new job takes precedence, right?

Not so fast!

July 1st looms as an important date in the student loan calendar because that is when the rate for federal student loans changes next. Based on a formula derived from the May treasury auction, the new rate will kick in. Of course, the rate change applies only to earlier loans as the newer loan rates will stay fixed.

Just One Chance To Consolidate

You will only be able to consolidate your student loans once. If you have variable and fixed loans, you’d probably be better off consolidating the variable rate loans only. Right now, rates are at some of their lowest levels ever, so explore your options carefully — you could save thousands of dollars over the life of the loan.

In conclusion, ignore the bright sun and warm weather and pull out your student loan documentation today. The links which follow will give you more information about the steps you should take next.

Resources

College Financial Aid Center

Private Student Loans

Student Aid Center