When it comes to paying for higher education, many students are finding that they are coming up short when they take a look at their tuition bill. The price of higher education continues to surge, far outpacing the cost of living at many institutions.

Lately, college students have received some good news when it was revealed that the interest rates for various college lending options has actually dropped. For example, the federal student loan program, called Stafford Loans, is leading the way by dropping from 6.8% to 6% effective July 1^st for their subsidized loans, a particular type of loan available for all students, but often favored by those with a low-income.

Over the next three years subsidized Stafford loan rates will continue to drop until they bottom out at a rate of 3.4%. These rates apply to newly written loans, but not for loans previously issued. Unsubsidized student loans will continue to carry the 6.8% rate.

Students who have already completed their education and are in the process of paying off their student loans have received some welcome news too. Specifically, those students with federally guaranteed student loans issued before July 2007 are learning that now is an excellent time to consider consolidating their loans under the government’s Direct Loan program.

If former students consolidate their loans before the next rate change kicks in, they’ll pay a fixed rate of just 4.2% for the life of the loan. This is down significantly from the most recent 7.2% figure thanks to rate cuts made the Federal Reserve Bank over the past year.

Grads who fail to take action will continue to see their rates adjusted annually, depending on market conditions. Clearly, for people who want to get a handle on their debt, consolidating now makes sense.

For students taking out private student loans, there is good news for them too. Annual borrowing limits have been raised to $45,000 and rates with various lenders remains competitive. Just as they are with Stafford Loans, payments are deferred until after you graduate, allowing you to concentrate on getting good grades and finding the right job.

Lastly, the amount of money qualifying students can get from a Pell Grant for the coming school year has been raised to $4731, a $421 boost over the previous year. Federal Pell Grants are based on a family’s financial need and because they are a grant, the monies are not paid back.

Yes, the cost of getting a higher education continues to rise, but thanks to changing market conditions loan plans and other assistance options is making college more affordable for millions of Americans.

(Source: Los Angeles Times)

Tags: college loans, Federal Pell Grant Program, federal student loans, private student loan, stafford loans, Student Loans

If you have a bachelor’s degree, the next logical step for some students is grad school. With an advanced degree your job opportunities can increase and you possibly can make much more money over the life of your career.

Have you started the steps necessary to obtain a graduate degree? If not, the following step-by-step instructions can guide you through the process:

Graduate Prep

• economic projections — how much more can you make per year if you have an advanced degree vs. not having one?
• career and job types — what doors will open to you through having a grad degree?
• best jobs for the future — long term, what types of jobs will be most popular?
• personal assessment — what do you want to do?

School Search

• graduate programs — what program parallels your course of study?
• colleges and universities — which schools offer the degree you need?
• distant learning programs — can you obtain a degree online?
• community colleges — grad classes are sometimes held at your local community college.

Admission

• what’s needed to get into school — your undergrad GPA could be a factor.
• admission tests and application form — will you need a GRE, GMAT, or other entrance test?
• essays and recommendations — work and school references.
• work experience and sponsor — your work history may be an important factor in helping you gain admittance into some programs.

Pay For School

• calculating program costs — cost per credit, fees, and books.
• review the financial aid process — do you qualify for assistance?
• financial aid options — what options are available to you for help?
• student loans, scholarships, other — should you get a federal or private student loan? Check out scholarships, grants, and employee tuition reimbursement.

Getting Ready

• developing study skills — do you time to study?
• moving to school checklist — will you be attending school on campus?
• building discipline — can you balance work, family, and studying?
• important credit skills — what financial choices can you make today to help you keep your credit intact while attending college?

Clearly, balancing work, study, and life issues is one of the biggest challenges for the student seeking an advanced degree, something thousands of students manage each year. By following the outlined steps, you can get a clear picture of what you expect during the time you are going for your advanced degree.

Resources

Getting Ready For School

Stuff For Your Dorm

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Tags: college, college loan, federal loan, GMAT, grad school, graduate degree, GRE, higher education, private student loan, student loan, university