Parent PLUS Loans: The Hidden Costs and Smarter Alternatives
Parent plus loans look like a quick fix for tuition gaps, but their steep interest rates, origination fees, and lack of hardship protections can turn a parents’ safety net into a long-term financial trap. This piece breaks down the true costs, compares them to lower-rate private options, and walks you through strategies to keep both college and retirement on track.
FAFSA Is Only the First Step - A Practical Guide to Student Loans
FAFSA is only the door-opener. In this guide, you’ll learn exactly what to do next—how to stack grants, compare federal versus private loan offers, and build a repayment game plan that saves you money from day one.
The Silent Cost Escalator: Understanding Student Loan Interest Capitalization
Unpaid student loan interest can secretly add to your principal balance, a process called interest capitalization, leading to a higher overall debt and increased monthly payments. This article explains when and why interest capitalizes on federal student loans, particularly during grace periods, deferments, and certain repayment plan changes. Learn practical strategies to minimize this "silent cost escalator" and keep your student loan debt under control.
Federal vs. Private Student Loans: Decoding Your Borrowing Options
Choosing between federal and private student loans is a pivotal financial decision for college-bound individuals. This article clarifies the fundamental differences, highlighting federal loans' fixed interest rates, borrower protections like income-driven repayment and forgiveness programs, and their accessibility regardless of credit score. Conversely, it examines private loans' credit-based rates, variable interest options, and limited borrower safeguards, emphasizing the importance of prioritizing federal aid to build a secure financial future.
Beyond the Award Letter: Appealing for More College Financial Aid
Did your college financial aid offer fall short? Don't accept it as the final word. Many families can successfully appeal for more aid due to unforeseen circumstances or changes in income. This article explains the "professional judgment" process, guiding you through when and how to appeal your financial aid package, including what documentation to provide and how to write a compelling letter to secure the funding you need.