Q: How do I get loans for school?

This depends on your school and family situation. There are several government and private loan programs that can help you cover college costs. Picking the best loan for you is important! While your school may provide you with a "Preferred" or "Recommended" Lender List, are those lenders (and loans) your best options? Talk to a specialist before you sign anything.

Q:  My parent/s just lost their job, what now?

A:   Contact your school's financial aid office and your state's student aid grant program. (For Pennsylvania residents this is PHEAA.) Explain your circumstances and ask for their help. While you should not be surprised if the school or grant program denies your hardship request, know that the next year's award will fully reflect this year's financial difficulties. Remember, these folks are here to help you. They are not your enemy.

Q:  I am paying for my college without my parent's assistance; how can I do this without joining the military?

A:  Americorps and other volunteer programs allow students to earn a stipend toward higher education, but don't expect them to cover all four years. You're going to need to consider student loans and institutional grants to help make up the difference. If you're a good student, consider some of the private schools - even elite private schools. These institutions have the resources to meet your financial needs. You're also going to need to know the rules on financial aid, independent and dependent students. Sign up for one of our seminars or contact us for more information.

Q:  Where can I find scholarship or grant money?

A:  Most of the financial aid you'll see will come for your school, state or federal government. There are many reputable and less-than-reputable scholarship programs out there, so knowing which ones are worth your time can be difficult. First, check with your high school's guidance department. Many local civic organizations sponsor small scholarships at local high schools. Usually ranging from $500 - $5,000, these scholarships might not cover a year at NYU, but they can add up fast! If you want to check out the big scholarship programs, check out www.fastweb.com and www.finaid.org for scholarship searches. Remember, look

Q:  What is the difference between a grant, loan and scholarship?

A:  Grants are free money that you do not have to pay back; usually need based.  Scholarships are free money that are awarded on either merit or need.  A loan is money that you borrow which will have to be paid back.

Q:  Do I borrow the same amount all four years?

A:  Rarely.  Tuition often goes up annually.  You will find your situation will change semester by semester.  You may move off campus or need a smaller meal plan etc...

Q:  Do I have to re-apply for my loans each semester?

A:  No.  You will receive bills each semester; however you can apply your loans based on an academic year (Aug-May).

Q:  What is financial aid?

A:  Money provided by a third party usually a bank, State entity or Federal Department for higher education.

Q:  How can I receive financial aid?

A: Federal aid can be applied for at www.fafsa.ed.gov and your financial aid office website may have additional instructions for their institutional aid.

Q:  What if the bank that my loans are with goes bankrupt?  Are they erased?

A:  No.  When a bank goes bankrupt, their assets (your loan) will be sold off to another lender to pay off their existing debt.  You will be notified in writing of the change.

Q:  Can I combine all of my Federal and Private loans into one consolidated loan?

A:  No.  Federal and Private loans have different loan terms and interest rates and must therefore be segregated for consolidation purposes.

Q:  Can I choose the bank that I get my Federal loans through?

A:   Yes and No.  Yes, if your school participates in FFELP (Federal Family Education Loan Program). No, if your school participates in the William D. Ford Direct Loan.

Q:  Can I get student loans for more than just my tuition, room and board?

A:  Yes; any reasonable expense associated with your education can be added to your loan.  Reasonable is relative to your financial aid officer's discretion.

Q:  Should I apply for Federal or Private first?

A:  Always apply for Federal first as they are low fixed interest rate loans with excellent terms.

Q:  Do I have to pay on my loans while in school?

A:   No; any Federal and almost all private student loans are fully defer-able until after you undergraduate is complete.  During this time interest will usually accrue and capitalize.

Q:  How much should I borrow?

A:  Always borrow the very minimum that you need as this is money you have to pay back.  Never borrow without a plan to repay.

Q:  How will I pay my loans back?

A:  Consolidate your loans to lower your payments.  There are different pay options to aid you as you start your life.  Some careers offer benefits of loan forgiveness on Federal loans. Other careers have sign on bonuses meant to help with your student loan burden. Once you land that post-graduate job, develop a budget and stick to it.

Q:  Do I need a co-signer for my loans?

A:   Again, yes and no.  Federal Stafford loans do not require any credit check or co-signer.  These loans are guaranteed eligibility upon successful submission of the FAFSA (Free Application for Federal Student Aid).  Federal PLUS (Parent Loan for Undergraduate Students) do require a credit check and may require a co-signer dependent upon credit.  Private loans may require one dependent upon credit and income.  A credit worthy co-signer WILL reduce your interest rate on private loans.

Q:  What is the difference between Subsidized and Unsubsidized?

A:  Subsidized means that the Federal Government is paying the interest on your student loan while you are enrolled at least half time.  Unsubsidized means that the interest will accrue and capitalize interest from disbursement on.

Q:  Do I still receive my financial aid if I continue for a post-graduate degree?

A:  Not usually.  The aid offered to you when you applied as a freshman is only good for your bachelor's degree (unless enrolled in a program that specifies otherwise).  Most aid for post-graduate education is either in the form of employer assistance or loans.

Q:  How can I be considered an independent?

A:  There are strict guidelines that one must meet in order to qualify as an independent.  You must be able to say yes to one of the questions on the following link (http://www.fafsa.ed.gov/FOTWWebApp/fotw0910/WorksheetServlet?locale=en_US&wstype=WSDEP).  Your only alternative is to directly contact your financial aid office and hope for professional discretion.

Q:  If my parent/s get remarried does my stepparent have to provide information even if they are not assisting?

A:  Yes, if your parent/s get remarried prior to filing the FAFSA then their information must be included.

Q:  Will I definitely have a job when I graduate?

A:  No. Most schools do have a job placement department to aid you in your search; however depending on your desired career path it may be very easy or difficult to locate a suitable job.