Financing Your Degree in Higher Education: Control What You Can Control

By Paul Garrard

One of the keys to successful marathon running is to "control what you can control." Marathon runners cannot control the weather on the day of a race, but they can control their fluid intake and subsequent hydration level, something that is important regardless of weather conditions and runners' skill levels and goals.

The same holds true for financing your degree in higher education. There are some things you simply cannot control�tuition increases, reduced access to private education loans, and fewer personal financing options�due to recent challenges in the credit markets.

On the flip-side, there are some factors of the financial aid process that are within your control:

You can apply early and talk to your school's financial aid office about grants and scholarships.
You can exhaust all eligibility for federal loans before considering private loans.
You can stick to a budget while in school and live within your means.
You can maintain good credit, paying your bills on time and using available credit wisely (which will affect your FICO score and future borrowing ability).

Politics and Student Aid

Despite the economic downturn, recent legislation is helping to ensure that students and families who need assistance are able to find it. Barack Obama's presidential administration supports simplification of the application process for federal financial aid and creating a new American Opportunity Tax Credit, the receipt of which is tied to community service. Additionally, the passage of the 2008 Higher Education Opportunity Act provides for increased disclosure to consumers regarding items such as college costs and the terms and conditions on student loans.

Some other practical legislative changes include:

Interest rate reductions on Subsidized Stafford Loans for undergraduates.
Increased lending limits on federal loan programs, thereby helping reduce dependency on private loan programs that may be less accessible, more expensive, and more restrictive in terms of repayment options.
New post-enrollment deferment option for loans disbursed through the Parent Loans for Undergraduate Student (PLUS) program.
New repayment program based on income, including loan forgiveness provisions.

But regardless of the changes that have occurred in the past or may occur in the future regarding financial aid for higher education, be sure to "control what you can control," and do your part to secure the financial aid you need, when you need it.

Paul Garrard relies on his more than 25 years of experience in higher education financing to help borrowers manage their increasingly complex student loan portfolios. He started PGPresents, LLC in order to help promote responsible borrowing in students and graduates, schools, loan providers, and education associations around the country. Information on PGPresents is available at www.PGPresents.com.

Share this page:

ARTICLE TOOLS

RATE THIS ARTICLE