Planning on a two-year degree program? These student loan options can help cover the costs. (iStock) Getting an associate’s degree can be a good way to get a leg up career-wise, while also reducing your overall educational costs. In fact, according to the Bureau of Labor Statistics, an associate’s degree equals about $132 more per week in earnings when compared with those with only a high school diploma. Unemployment rates are lower, too. Continue Reading Below Still, earning that degree doesn’t come for free. And while the costs of associate’s programs may be lower than four-year bachelor’s options, many students still need financial aid to foot the bill. If you’re looking for help covering the costs of your associate’s degree program, it all starts with the FAFSA. The Free Application for Federal Student Aid is the first step toward getting a student loan — at least a federal one. There are two types of loans you might be eligible for: subsidized and unsubsidized. Subsidized loans are distributed based on financial need, while unsubsidized ones are not need-based. CORONAVIRUS MAY AFFECT YOUR STUDENT LOANS — WHAT YOU NEED TO KNOW To fill out your FAFSA, go to StudentAid.gov. You’ll need the following information on hand: The FAFSA is also how you apply for work-study programs and federal grants which, unlike student loans, do not need to be repaid. Once your FAFSA is reviewed, you’ll receive your award letter, which will detail the grants and loans you’re eligible for. Turn to these options before considering a private loan, as federal loans are often more affordable in the long run (they have lower interest rates). Federal aid also comes with a slew of benefits, including income-based payment plans, deferment, and other options if you find yourself unable to repay. WHAT IS A FEDERALLY GUARANTEED STUDENT LOAN? Only once you’ve maxed out your federal aid options should you seek out private options. These require a cosigner, and your terms and interest rate will be based on credit score, so make sure you choose someone with a good credit history. Keep in mind that cosigning your loan also puts them on the hook for the balance. If you fail to make your payments as agreed, they could be held liable for them. It could also hurt your cosigner’s credit score or lead to financial difficulties. Because not all private lenders offer loans for associate’s degrees or community college programs, you’ll need to shop around if going this route. Additionally, rates and terms vary by lender. Shopping around could save you serious money in the long run. HOW TO GET MORE MONEY FROM FAFSA To shop around, you’ll need to compare: You should also take reviews and ratings into account. You want a lender who has a record of good service and satisfied customers. Once you’ve found the best deal, fill out the lender’s application and move forward with your loan. Try to resist the urge to take out too large a balance right off the bat. Borrowing too much will mean paying more in interest — especially if you’re using private loans. Only take out what you need, and borrow more later on if your situation calls for it. Source: Read Full ArticleStep 1: Fill out your FAFSA
Step 2: Max out your federal options
Step 3: Consider private loans
Step 4: Shop around to save money
Step 5: Take out only what you need