Not sure where to begin with Student Loans

[Anonymous]

Im an adult student just finishing Associates at a Community College paid for out of pocket. (approx 1600 a semester)  Ive applied to and been accepted into a few colleges in the area and will not be able to pay out of pocket (approx 8000 a semester). Im looking into every scholarship and grant possible. The schools keep suggesting loans and I was hoping I wont have to go the loan route. BUT, if I do what is the best way to go? I havent even started to shop and hoped you guys can point me in the least stressful, student loan direction.

[beutiful5678]

Your best bet are federal student loans through your school's financial aid office. Each year file your FAFSA as quickly as you possibly can because those who file sooner get more grants and subsidized loans as there is a finite amount to be awarded among all students (at least, this is what my university financial aid office told me). Subsidized student loans are better than unsubsidized because subsidized loans do not accrue interest while you're in school.

Avoid private loans if at all possible. If you must get private loans try to get them through a local credit union (if a credit union local to you offers student loans). When I was in school I got a private student loan from my local credit union for $7k for 5.5% which is a very low interest rate for a private student loan.

[Anonymous]

Exactly what beutiful5678 said.

I generally advise people to stay away from private and PLUS loans if they are sizeable because federal student loans are so much more flexible in terms of repayment plans (especially Income-drivrn repayment) and forgiving if you need a deferment or forbearance.
They can also be forgiven after a certain number of years depending on the plan.

The student aid website it a great place to check out your options for repayment and compare with anywhere else before you decide.

The FAFSA is also often used to give out school scholarships. Check out each school's financial aid department because they can often give you extra guidance toward finding aid.

[Anonymous]

First of all, congratulations and huge kudos to you for making it through community college without taking out loans. You are already ahead of the pack! 

I agree that you should go for Federal Direct Subsidized Loans first, Unsubsidized if you absolutely have to.  They do have lower interest rates and more versatility in payment plans. And there is a 6 month grace period, i.e. you won't have to start making payments until you've been out of school for 6 months.

And, while I agree you should do your FAFSA as early as possible, your chances of getting Federal Pell Grant and Federal Direct Loans does not depend on this as there is not a limited amount of funding for those particular programs. However, doing your FAFSA earlier can affect your chances of being awarded state grant money (like the Cal Grant in California), institutional aid or scholarship.

Also, just to add, I am a big advocate for working at least part time while you are in school. Either privately or through the Federal Work Study program. Doing your FAFSA and completing any documents required by your school will give you a better chance at work study. Be sure to mark you are interested on your FAFSA. You can always say no if you don't want it. 

[Anonymous]

I do not advise asking for work study for several reasons. (And I may by wrong about any of this but this has been my experience.) First, the convenience for those hiring work study students is that they are subsidized by the gov. They end up making a limited number special positions available to these work study eligible students. Whatever the total aid you need for school will be partially covered with work study hours. This does not guarantee that you will get those hours though or even a work study position at all! I've seen people at colleges scramble to cover the gap in aid due to not being able to find adequate work study positions. My suggestion would simply be getting a reqular job, even one on campus. They often pay better and that pay will be in addition to aid in your financial aid package. Better to get more loans than you need and pay back the excess early imo.