One of the most popular ways many students have said that they pay for college is through loans. Excluding tuition, many of these students must concern themselves with how to pay for room and board fees, book fees, school supplies and personal expenses. This means some of them must take on student loans to share the financial burden.
Some students said that they have filled out the Free Application for Federal Student Aid (FAFSA) at one point or another. The FAFSA is an important and necessary starting point many students have said they used to find out what federal aid they were eligible for.
However the amount awarded through grants, federal loans or scholarships simply wasn’t enough for some students who said that when this happened, they had to turn to private student loans as a way to bridge the financial gap and finish their education.
The Office of Financial Aid provides support in making sure students are getting the help and information they need to pay for their education. Winthrop’s Assistant Director of Financial Aid, Michelle Hare, shared her opinions on what exactly comprises a private loan and what to consider before applying for one.
Hare emphasized the importance of filling out the FAFSA form before turning to private loans. She also discussed the many benefits to federal loans such as lower interest rates and subsidized loans in which the government pays the interest while the student is in school.
“My best advice for students who need additional money after filling out the FAFSA is to compare lenders….pick the loan that is best for you because they all have different options,” Hare said.
The list of lenders Winthrop has worked with in the past three years can be found on the Winthrop website under the Financial Aid tab.
According to Hare comparing lenders is essential because there are many different options for loan repayment. As Hare said, it depends on what the student is seeking.
Some private loan lenders require monthly payments which many students have said would not fit into their current college budgets. Another thing to consider when seeking private loans is whether or not the parent or the student should be the borrower.
One private loan that has become a commonality among many students at Winthrop is the SC Teacher Loan. This loan was created for those planning to teach in South Carolina, because twenty percent of the loan is forgiven each year the graduate teachers in a critical needs area.
Once a student applies for a private loan the lender will look over the application and send the approval of the loan to Winthrop.
“Don’t wait until the day before payments are due to apply for a private loan. It takes the Financial Aid Office two to three weeks to process the private loans from outside lenders,” Hare said.
Private loans are just one of many options for students who are contemplating whether or not they can finish their degree due to the financial burden they carry throughout college.
Hare said that talking with a financial aid officer and a parent or guardian will help you to more easily explore the different paths of financial aid offered at Winthrop. Hare also said that students should never borrow more money than they need.