Jeff Mictabor asked:


Hopefully by now your child has decided which college to attend this fall, and you are beginning to formulate your financial strategy for how you will fund the college experience. An excellent option is the PLUS Loan or Parent Loans for Undergraduate Students, recommended by NextStudent, a leading Phoenix-based education funding company.

As long as your child is enrolled in school at least half-time, this federally backed student loan allows parents to borrow funds to cover such things as tuition, housing and meals and even books and supplies, up to the total cost of the student’s education, minus any other aid.

In order to be eligible for the PLUS Loan, both students and their parents must complete the Free Application for Federal Student Aid (FAFSA). According to NextStudent, parents cannot be turned down for the PLUS Loan based on too high or too low an income, because the student loan is not based on financial need or how much money parents earn. However, parents can be turned down for an adverse credit history. Once the FAFSA is submitted and reviewed by the government, parents will receive a Student Aid Report, which will allow them to apply for the PLUS loan. Applying for a NextStudent PLUS Loan is simple and easy and may be done either over the phone in as few as five minutes, or it may be done online using E-Signature.

Availability after Tuition is Paid Makes PLUS Loans Convenient

A welcome feature of the PLUS Loan is that it is available even when parents already have paid for their child’s tuition and other related educational expenses. Although the maximum interest rate on the PLUS Loan is set by the federal government, NextStudent offers many opportunities for parents to save money through incentives.

For instance, when borrowers fund their PLUS Loan through NextStudent and pay via auto-debit, they will receive a .25 percent reduction on their interest rate. In addition, after making 12 consecutive on-time payments, borrowers will receive a 3 percent cash rebate on their remaining principal balance, and a 2 percent rate reduction after 48 consecutive on-time payments.

Grad PLUS Loans Offered by NextStudent

A similar federal student loan product called the Grad PLUS Loan is available for those individuals who decide to pursue graduate or further professional studies and enables students to fund their education themselves. Again, students may finance the entire cost of their graduate work (minus federal aid) and use the funds to pay for any associated costs such as supplies, books and other materials. While the Grad PLUS Loan Program’s maximum interest rates are set by the federal government, just like with the PLUS loan Program, NextStudent offers many money-saving competitive benefits for those pursuing postsecondary education. An additional incentive is that students have the option of postponing repayment until after graduation. Additionally, like PLUS Loan borrowers Grad PLUS borrowers may be eligible for a federal student loan consolidation.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans, and Student Loan Consolidation.

Kevin Ihrig asked:


To find money for college, you have choices - loans, grants, the lottery, scholarships, casinos, and your parents huge stash of cash for you to attend the college of your dreams. If you need cash and you are in school, this article has a few good ideas and a serious reminder for you.

Apply for Aid

You have to apply, of course, to get financial aid from the government. You will need to fill out a Free Application for Financial Student Aid, the good old FAFSA form. If you have done this, you likely already have a Student Aid Report (also called a SAR).

The aid report will provide you access - if you qualify - to a Pell grant, and a Stafford or Perkins loan, all based on financial need.

That FAFSA can be a bear to fill out, and mistakes happen. Or, if you filled it out last year and didn’t get any aid, you may think you don’t need to fill it out. I have a reminder for you in case you feel this way.

Students regularly feel the way you do “I didn’t qualify last year, so forget the FAFSA,” but maybe things have changed in your life that would make you eligible? Here I have the short list for eligibility without your parents on the form.

Are you a dependent?

Your birthday is the first possibility. If you turned 22 last year, then you can apply on your own, no parents. Next, if you recently married, even if you now find yourself separated, you can apply alone (or with your spouse) and find money for college. Have you joined the military and completed your initial training? Usually this qualifies as independent and will produce financial aid.

A couple of more obscure ones also qualify you: If you are a ward of the state, were in foster care until you turned 18, or adopted after 16 in some cases.

An idea to think about: If you can’t find enough money for college with money from home and from student aid, look at the school you attend. Are we talking about a very expensive school? That may be part of the problem. Consider a less expensive one, especially if you attend as an out of state student at a state school.

A couple of other obstacles to watch for: have you gone through a divorce recently? This may not be a problem if you are over 22. If under, then you have to look at alimony. If your spouse supports you with substantial payments, you may still not qualify as independent - but on the bright side, you may have plenty of money to get you through your 22nd birthday, and then you can apply on your own.

Likewise for military members in training. Until you complete training, you probably don’t qualify.

In any case, if you find you qualify for money for college, you will need to know how much you need. Seriously, you don’t want to take all the aid you qualify for unless you need it or it is free. Grants, scholarships, handouts, okay. Gifts, even better. But loans can do you in.

In the case of loans, college money can sink you. If you go to an expensive school, or you major in a low paid field, you may find that the degree doesn’t pay the bills. So be careful with loans. You can borrow up to $20,000 in the Stafford program, and another $20,000 in the Grad PLUS program. If you go private, the sky is the limit.

Don’t do it. You don’t need a new car during school. Get a used one, or learn the bus system - you’ll be glad you did later, when the bill comes due. Share an apartment or live at home. And worst of all, stay away from credit cards. They have got to be the worst student loan you can get.

Want a luxury that will serve you well in the future? Take a semester abroad or at sea. You’ll see the world before you have the responsibilities that prevent that kind of travel. Or get your graduate degree from a school in Europe. That kind of experience you’ll remember for the rest of your life. I rarely find anyone who regrets they found money for a semester of college abroad.

I had the chance to travel in Europe as a high school student, and in Mexico and Ecuador during my college years. The memories are priceless and add perspective every time I think of them.

Be sure to know your options, and spend the college money you find well.