education.com

5 Things Every Parent Should Know About Student Loans

by Paul Simino

As any parent knows, helping your children get into the college of their choice is no picnic. But then comes what may be an even bigger headache: paying for it. And with tuition outpacing inflation, this will only get harder. Fortunately, with a little planning and patience, you and your children should be able to fund all four years (and maybe even grad school!) without going bankrupt.

Here are five major things to keep in mind:

1) Don't wait! Almost anything on earth is more fun to think about than how to pay for college, but the sooner you get a handle on the whens and hows of funding it, the better. For example, consider that January 1 is the first day to apply online, at no cost, for federal student loans. And while July 2 is the deadline, aid is awarded on a first come, first served basis – so the sooner you apply, the more likely you'll be approved.

2) Begin your search for sources of funding with free money. By free money, I mean scholarships and grants. Check to see if your employer, your professional association, or a specific educational institution has any to offer. Then get busy. Search the web – both for private money and for funds from federal and state governments. Some grants and scholarships are based on financial need, others are awarded based on achievement, religious affiliation, ethnicity, memberships, hobbies, or special interests. A great place to start is the book How to Go to College Almost for Free by Ben Kaplan. This guy knows what he's talking about – he snagged more than $90,000 in merit scholarships as a high school senior.