AlabamaMentor - Financial Aid - Financial Aid Overview

	Financial Aid Overview Scholarship Search PAIS/EFC Calculator SLOPE Calculator Financial Aid FAQs

Four Steps to Financial Aid
<<< STEP 1: WHAT IS FINANCIAL AID?

STEP 2: The Ins and Outs of Student Loans

So you're thinking, "Great. I know the sources to pay for education are available, but how much do I really need?"

This is a legitimate question and when it comes to possibly borrowing money, you need to budget and borrow sensibly.

ESTIMATE THE REAL COST OF COLLEGE

Financing your college education means much more than just paying tuition expenses. It's important to understand all of the costs involved, including room & board, books, lab fees, student membership fees, online access fees, spending money, etc.

Estimate a personalized college budget with the worksheet below. You can also calculate your Expected Family Contribution (EFC) or estimated repayment costs.

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ESTIMATE THE COST OF YOUR EDUCATION

Create a budget for the full school year.
Dorm or apartment? Meal plan or home cooking? New books or used books? Think about ways to keep your costs down. Then use the table below to realistically estimate what you'll need for the full school year.

*Based on a 9-month school year

Know your resources.
Discuss what your family can contribute and then aggressively go after "free money" options. Add up your total resources from savings, grants/scholarships and work.

How much more will you need?
Subtract total resources (Box B, above) from total expenses (Box A, above). Enter the total in Box C, below. If your resources can cover your expenses, you're all set. If not, you'll need a way to make up the difference from student loans and other sources.

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ESTIMATE YOUR EFC AND FINANCIAL AID

Knowing how much your family is expected to contribute is a primary determinant of financial aid. The Expected Family Contribution (EFC) is used by many loan vendors and the federal government in determining your loan eligibility.

Use the Financial Aid Calculator to determine how much your family is expected to contribute and estimate how much aid you could be eligible for.

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SOME IMPORTANT FACTS ABOUT BORROWING

Once you decide to borrow, borrow only what you need.
Estimate the amount of debt you may be able to afford and your monthly student loan payment before you borrow.

Borrow student loans base on your career choice.
It's obvious that different careers and professions do not pay the same wages or salaries. Higher paying jobs will make it easier to repay any student loans you take out. However, the loan limits are all the same. It is very wise to investigate what your possible careers will pay, especially for entry-level salaries. You have to start repaying your student loans after you graduate or drop below half-time attendance at the same time you will be entering the job market. You will be starting at the lower earnings range for your profession. This is not to say that you will not get raises and make a good living as years pass.

What you borrow now will affect you future lifestyle. If you borrow too much for your probable earnings, you will have to postpone some lifestyle choices, such as buying a new car, house, furnishings, and travel while you are repaying your loans. Student loans are a long time investment, and you will be happier later if you borrow lower amounts for an adequate lifestyle while in college, and refrain from taking out amounts to pursue the ideal college experience.

How much should be borrow based upon your career choice? Find out with the SLOPE Calculator.

Borrowing is a responsibility - take it seriously!
If a student loan is your first borrowing experience, consider this responsibility seriously - your ability to borrow in the future depends on it. Make sure you read and understand the terms and conditions on your promissory note. You are agreeing to repay the loan with all accrued and capitalized interest and deducted fees. You are obligated to repay your loan regardless whether you complete your education, are satisfied with your education, or are able to find a job. Read and keep all records relating to your loan.

Choose your lender wisely.
Most loans come from banks and there are differences from bank to bank. When choosing a lender consider:

Interest rates and costs
Interest rate savings options (e.g., reductions for consistently making on-time payments)
Variety of loans offered
Experience in student loan financing

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STEP 3: GET STARTED, NOW! >>>

In cooperation with the Alabama Commision on Higher Education