Last-Minute College Financing Options for Undergraduates Still Available

RESTON, Va., July 13  /PRNewswire/ -- In a matter of weeks, college campuses across the country will become filled with activity as the new academic year gets under way.  For many undergraduate students and families, the start-up of college also will be accompanied by last-minute financing needs.

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Families should first consider funding options that do not need to be repaid, such as scholarships and grants, says Martha Holler, spokesperson for Sallie Mae, the nation's leading provider of education funding. Once those options are exhausted, they may consider an education loan to cover their education expenses. The Federal Stafford Loan is the most common type of student loan for undergraduate and graduate borrowers. However, students are limited by what they can borrow.

A Federal PLUS loan can help to bridge the financial aid gap. PLUS Loans are the lowest-cost way for parents to finance their child's education, allowing them to borrow as they need, including money for tuition, room, board, books, supplies even travel, to cover the cost of attendance at their child's college of choice.

"Parents can borrow for college, but they cannot borrow to pay for their retirement," explains Holler. "Most families qualify for PLUS Loans, and everyone gets the same low interest rate regardless of their credit history."

PLUS Loans are not based on income or assets and do not require collateral. Moreover, parents can take up to 10 years to repay the loan using a wide variety of repayment options, from delaying repayment for up to five years while their child is in school or once their child leaves school. Sallie Mae offers free, no obligation credit decisions regarding PLUS loans when parents visit http://www.parentanswer.com/ (or call 1-800-891-1410).

Many lenders, including Sallie Mae, offer private education loans, which can address last-minute college-financing needs. Sallie Mae's Signature Student Loan, for example, is designed for undergraduate, graduate and health profession students attending four-or-five-year schools at least half time. Interest rates and fees are based on credit history, so the better the student's or co-signer's credit, the lower the interest rates and fees. To learn more about the Signature Student Loan and use Sallie Mae's online pre- approval feature to receive credit results, go to http://www.salliemae.com/.

Students and families are advised to investigate whether their school offers the option of making monthly tuition payments over the course of the school year. This is an interest-free alternative to making large, one-time payments due at bill time. For a small fee, families can reduce the amount they need to borrow to cover the cost of college. Students and their families should ask their campus bursar or financial aid office for more information.

"Finding last-minute money to pay for college is doable, and parents don't have to take a second job or another mortgage on their home to accomplish it," said Holler.

For more information on last-minute college-financing options, visit http://www.collegeanswer.com/. Students and families will find a number of resources on planning and paying for higher education, as well as tips on reducing college costs. 

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DATASOURCE: Sallie Mae



CONTACT:  Erin Korsvall of Sallie Mae, [phone]



Web site:  http://www.salliemae.com/

http://www.parentanswer.com/

http://www.collegeanswer.com/ 



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