Last-Minute College Financing Options for Undergraduates Still Available
13 July 2006 - 8:15PM
PR Newswire (US)
RESTON, Va., July 13 /PRNewswire/ -- In a matter of weeks, college
campuses across the country will become filled with activity as the
new academic year gets under way. For many undergraduate students
and families, the start-up of college also will be accompanied by
last-minute financing needs. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) Families
should first consider funding options that do not need to be
repaid, such as scholarships and grants, says Martha Holler,
spokesperson for Sallie Mae, the nation's leading provider of
education funding. Once those options are exhausted, they may
consider an education loan to cover their education expenses. The
Federal Stafford Loan is the most common type of student loan for
undergraduate and graduate borrowers. However, students are limited
by what they can borrow. A Federal PLUS loan can help to bridge the
financial aid gap. PLUS Loans are the lowest-cost way for parents
to finance their child's education, allowing them to borrow as they
need, including money for tuition, room, board, books, supplies
even travel, to cover the cost of attendance at their child's
college of choice. "Parents can borrow for college, but they cannot
borrow to pay for their retirement," explains Holler. "Most
families qualify for PLUS Loans, and everyone gets the same low
interest rate regardless of their credit history." PLUS Loans are
not based on income or assets and do not require collateral.
Moreover, parents can take up to 10 years to repay the loan using a
wide variety of repayment options, from delaying repayment for up
to five years while their child is in school or once their child
leaves school. Sallie Mae offers free, no obligation credit
decisions regarding PLUS loans when parents visit
http://www.parentanswer.com/ (or call 1-800-891-1410). Many
lenders, including Sallie Mae, offer private education loans, which
can address last-minute college-financing needs. Sallie Mae's
Signature Student Loan, for example, is designed for undergraduate,
graduate and health profession students attending four-or-five-year
schools at least half time. Interest rates and fees are based on
credit history, so the better the student's or co-signer's credit,
the lower the interest rates and fees. To learn more about the
Signature Student Loan and use Sallie Mae's online pre- approval
feature to receive credit results, go to http://www.salliemae.com/.
Students and families are advised to investigate whether their
school offers the option of making monthly tuition payments over
the course of the school year. This is an interest-free alternative
to making large, one-time payments due at bill time. For a small
fee, families can reduce the amount they need to borrow to cover
the cost of college. Students and their families should ask their
campus bursar or financial aid office for more information.
"Finding last-minute money to pay for college is doable, and
parents don't have to take a second job or another mortgage on
their home to accomplish it," said Holler. For more information on
last-minute college-financing options, visit
http://www.collegeanswer.com/. Students and families will find a
number of resources on planning and paying for higher education, as
well as tips on reducing college costs.
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
http://photoarchive.ap.org/ DATASOURCE: Sallie Mae CONTACT: Erin
Korsvall of Sallie Mae, +1-703-984-5136 Web site:
http://www.salliemae.com/ http://www.parentanswer.com/
http://www.collegeanswer.com/ Company News On-Call:
http://www.prnewswire.com/comp/827187.html
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