Avoid Debt, Get Maximum Financial Aid, and Finish Fast

I was hoping this information regarding financial aid would be useful. The information is subjective and I am not trying to tell you what to do. If possible, please try to share this information. I hope the information is clear. Thank you and please take care.

1. Please only accept subsidized loans (accumulates interest AFTER graduation) and try to avoid unsubsidized loans (accumulates interests everyday while in school AND afterwards).

2. Negotiate with the financial aid office for more aid and subsidized loans by emailing or calling them. Show them proof of struggles (or your parent's if you are under 24): Bankruptcy, debt settlement, wage garnishment, foreclosure, repossession of automobile, failure to pay taxes, parent passes away, divorce, separation, unemployment, decrease in salary, incarceration, one or more of your parents have a baby, parent abused you (legal or police documentation), development of serious health conditions or illnesses, etc.

3. Please avoid 18% variable private student loans from Discover Loans, Sallie Mae, and banks. They function as credit cards and accumulate interest everyday beginning on the day you get the loan money (unsubsidized).

4. Make payments early on unsubsidized loans to save money on interest. Automatic payment plan can mean interest rate discount.

5. Take 1000/2000 level courses at a community college (if possible). Community colleges often offer online courses if you need them. They are regionally accredited, legitimate, and affordable.

6. Be careful going out of state for school because out-of-state tuition at some educational facilities can be very expensive.

7. Avoid colleges that lack regional accreditation (credits will not transfer to non-profit colleges in most cases). You must earn degrees from regionally accredited colleges to get admission into non-profit graduate schools. Some graduate schools and some employers may give you problems if you earned degrees or credits from a “nationally accredited” college such as Everest, ITT Technical Institute, or Anthem College.

Proof: http://www.admissions.graduate .ucf.edu/Admission_Requirement s/

“For admission to the university, students must have obtained the equivalent of a baccalaureate or higher degree, prior to the start of the term for which the student is admitted, from a regionally accredited U.S. institution or from a recognized foreign institution.”

8. Deduct the interest paid on All student loans from taxes. Keep track of the interest through statements. There is usually a limit to the amount of interest that can be deducted.

9. Please try not to withdraw from classes. Instead, talk to your professor about how you can improve your grade. This is because if you used a student loan to pay for your class and you withdraw from the course then the loan still accumulates with interest and you get into more debt = Lowers credit scores.

10. If you have unsubsidized loans (accumulates interest everyday) already then if possible, try to obtain subsidized loans (accumulates interest after graduation) and pay them off as much as possible. In doing so, you save money on interest.

11. Always ask your employer for tuition reimbursement. This is usually a feature of the employee benefits package with some organizations.

12. If you are buying physical textbooks for class, try to buy them online (can be cheaper than book stores).

13. If you need cheap 1000 and 2000 level courses then please check out Straighterline.com. http:// www.pearsonlearningsolutions. com/propero/ offers some 3000 and 4000 level courses. The courses of Propero and StraighterLine are approved by the American Council on Education and will be accepted by most colleges in the United States (from my experience). Please feel free to verify this information.

14. Try to apply for jobs at colleges where you want admission for undergraduate/graduate programs or are currently attending. If you get hired then you may get free or reduced tuition as part of your employee benefits package.

15. If you want, ask if you can use some Master’s degree courses to satisfy requirements towards your Bachelor’s degree (some programs may allow this).

16. Choose credit unions because they are non-profit. Banks are for-profit.

17. Do not drop out of college = Less likely to repay debts.

18. Please be careful how many times you defer the payment on a student loan or request for the minimum monthly payment to be lowered. These actions will usually cause for the student loan to grow more in interest. The interest alone causes for more interest to be imposed on the student loan.

19. Consolidate (combine) your student loans only if you can afford the new monthly minimum payment.

20. Be aware that student loans have interest rates higher than some mortgages and car loans. If possible, ask a credit union if you can be offered a loan with a lower interest rate compared to the interest rate that you are currently paying on your student loan.

 

How many sites have you posted this to?

 

Also, it's always proper to give citations.

 

Thank you for posting such a detailed information.

 

I'm all about avoiding debt. One of my favorite topics actually.
Why isn't "pay cash" on the list?