is determined by the Free Application for Federal Student Aid (FAFSA), which
can be completed online, as the name suggests, for free! Need-based loans are
available as a Federal Perkins Loan, awarded to students with the highest need, or
a Federal Direct Subsidized Loan, provided interest-free while in college.
If FAFSA determines that a student is ineligible for a need-based loan, non-
need-based loan options are available as a Federal Direct Unsubsidized Loan or
Federal Direct PLUS Loan. Unsubsidized loans allow the borrower to add interest
to the total amount borrowed after graduation, but beware, as this leads to owing
even more money when it comes time to start paying off the loan. Direct PLUS
Loans provide graduate students or parents the opportunity to borrow the total
cost of attending college, minus other financial aid received.
Unlike the loans mentioned above that are sponsored by the federal
government, state and private loans are sponsored by banks, colleges,
foundations, and state agencies. The U.S. Department of Education manages
all college loans available by state and requires students to be in-state residents
or enrolled in a college in that state. Private loans are an option for borrowers
but come with terms and conditions that may not be as favorable as federal loans.
Private loans also require a cosigner who is responsible for repaying the money if
the student fails to do so.
MANAGING DEBT POST-COLLEGE
VOLLEYBALL
Want to play
some volleyball?
FALL PROGRAMS
Fall Ball Gr. 5-12
Fall Ball Junior Gr. K-4
Volley Tots Age 2-4
Programs, Clinics and More Gr. K-12
REGISTRATION IS OPEN!!
For more information contact us
[email protected]
www.pittsburghelite.org
26
724.942.0940 TO ADVERTISE
❘
icmags.com
Student loan debt continues to increase and has become a burden on both
graduates and the U.S. economy. There are a variety of loan repayment options for
students. Here are some tips on how to approach repayment.
• Figure out what you’ll owe and start to save early – Creating a budget early
will allow you to build a solid foundation for repayment after graduation.
Setting aside money each month toward future savings for repayment will set
you up for success come graduation day.
• Understand your repayment options – There are several different options
available to start paying off student loans based on the type of loan you
received. Common federal loan plans include standard, graduated, extended,
or income-based. Standard plans are payments in fixed amounts that ensure
loans are paid off in 10-30 years (these payments are often very high for new
graduates). Graduated plans are payments that start out lower and increase
every two years, also ensuring loans are paid off within 10-30 years (based on
loan). This plan assumes you’ll continue to make more money as you continue
your career path, so additional money is allotted to repayment as you go.
Extended plans may be made in a fixed amount or a graduated amount and
ensure payment in full within 25 years. Income-based plans take 10-15 percent
of your discretionary income and are recalculated each year. Once you are