Are you worried about paying for college? 

You’re not alone. 

Nearly 43 million people have student loan debt, borrowing more than $1.6 trillion to finish their educational pursuits. Recent political decisions have changed the student loan landscape. Those changes are causing widespread panic and fear for millions of Americans who contend with hefty loan bills during an unsteady economic climate. 

We say that to say, it’s never been more important for you to be smart about navigating the new landscape of student loan borrowing to ensure your matriculation through higher education doesn’t leave you in financial ruin. 

So, if you’re heading to college and want to know options on how to get student loans, how to pay them, as well as how to repay when you’re finished, here’s what you need to know about managing student loans. 

Start With Free Money Before Student Loans

The first thing you need to do is fill out the FAFSA – Free Application for Federal Student Aid form. And, you need to be thorough. The FAFSA qualifies you for federal aid grants, work-study opportunities, and federal loans. October 1 is the key date to remember. It is generally the earliest date that you’re allowed to submit your application. 

FAFSA handles applications on a first-come, first-served basis. The earlier you apply, the more likely you are to access “free” money. 

Pell Grants Can Assist With Paying for College

The FAFSA is also a crucial step in determining your Pell Grant eligibility. According to the National College Attainment Network, the high school class of 2023 forfeited more than $4 billion in money by not submitting the FAFSA. 

That’s a lot of money to leave on the table. 

Pell Grants have a maximum award of $7,395 per academic year. Here’s what you need to qualify: 

• Be a U.S. citizen or an eligible non-citizen
• A valid Social Security number
• A high school diploma or GED
• Pursue an undergraduate degree 
• And demonstrate the financial need as determined by information on your FAFSA

You can receive Pell Grants for 12 semesters, which is roughly six years. And you must submit the FAFSA each year you’re in school to continue to receive the Pell Grant.

Don’t Forget to Apply for Scholarships

Applying for scholarships needs to be one of your highest priorities. A good place to start is with the Department of Labor’s Scholarship Finder. There are thousands of scholarships available. So much so that almost every year, available money isn’t rewarded because people aren’t applying. 

Don’t make that same mistake.  

Your school’s financial aid office is another good resource for scholarships. They not only have access to federal financial resources, but school-specific ones as well. Scholarships can offer a better alternative to student loans, as you usually won’t have to pay them back. This can help you finish your education with as little debt as possible. 

Use Work-Study To Your Advantage

In addition to scholarships and grants, you should also look into a work-study program. Your FAFSA form will have a “work-study” item on your financial aid award, but there’s a catch. This money isn’t “given” to you freely. You’ll have to find an eligible campus job and work the hours that will earn the aid you qualify for. 

Something to consider, though. Work-study won’t pay all of your school bills; however, it can help you with day-to-day living expenses. 

If All Else Fails, Take Out Student Loans

If you’ve exhausted all possibilities and still need financial assistance, it may be time to apply for student loans. There are two types of federal student loans available to undergrad students: Direct Subsidized Loans and Direct Unsubsidized Loans.

Direct Subsidized Loans are based on financial need. In terms of loan amounts, you can’t borrow more than you financially need (which is determined by your FAFSA application). The Department of Education pays the interest while you’re in school for at least half-time, for the first six months you leave school, and during a period of deferment. 

Direct Unsubsidized Loans are available to undergraduate and graduate students. These, however, aren’t need-based. If you take an unsubsidized loan, you’re responsible for paying the interest at all times. Even when you’re not required to make payments, the interest still accrues. As such, you can always choose to pay interest on the loan even when you’re not making a payment. 

Achieva’s Student Loan Options

There’s also the option to take out private student loans with a financial institution of your choice. Achieva partners with Sallie Mae for those attending and borrowing for a student attending a degree-granting institution. We offer competitive variable and fixed interest rates, no prepayment penalties, and multiple repayment options. 

Achieva’s student loan options cover undergraduate degrees, graduate school, MBAs, Medical School loans, & much more.  

Apply online or contact us to speak with a financial professional today as you head toward college!

How to Repay Student Loans or Get Student Loan Forgiveness

Several federal programs offer loan forgiveness: income-driven repayment plans (IDR), public service loan forgiveness, and teacher loan forgiveness. 

You can use an income-driven repayment forgiveness plan, which caps loan payments at a certain percentage of your gross income. These programs offer forgiveness after 30 years. 

Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with student loans. You can have the entirety of your student loans forgiven after making 120 loan payments and 10 years of public service work. 

Changes are expected to the program due to the new Presidential administration. 

Lastly, teachers who work full-time in low-income public schools may be eligible for loan forgiveness after working five consecutive years. They can have up to $17,500 on direct subsidized and unsubsidized loans. 

Now that you have all the necessary information, here’s something to keep in mind. 

You should be mindful when taking out student loans. The money taken could have longterm ramifications. In an uncertain economic landscape, paying student loans can be extremely difficult. 

Because interest accrues daily, borrowers across the country have shared stories about making on-time payments having little to no impact on paying down the debt. In some extreme cases, some borrowers have mentioned paying off loans for 10+ years, only to find the amount of money is HIGHER than what they borrowed, thanks to the high interest rates. 

How Achieva Can Help 

When it comes to paying for college, be thorough in your research. Exhaust all avenues for scholarships, grants, and “free-ish” money. When it comes to student loans, only take what you need. Borrowing money for your education could be a life-changing financial decision in one way or another. Choose the path that’s right for you. Achieva Credit Union is here to help guide you through those financial decisions. Open a checking account designed specifically for college students. Or take a look at our student loan options today!

Navigate your path to college with Achieva Credit Union today! Achieva is Banking for GOOD.

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