Paying for College?

[Algophiliac]

Could anyone explain the various loans used to pay for college education? I am aware of only Stafford loans, but still have no idea what subsidized vs. unsubsidized even means, or which one is the better option.

Aside from these loans offered by the college, are there private loans I can use, without parental consent, to fund my education?

Also, if I choose to take on a job, most likely part-time, how much can I expect to make a year? Which jobs would you recommend? I am attending college primarly for the education and don't want to cut it short, so please keep that in mind.

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[DrYoda]

Subsidized= the goverment pays the interest on your loans while you are in school.

Unsubsidized= they don't pay it and it acrues while you are in school.

So subsidized is definetly better, I don't know much about loans beyond this as I've never taken any out.

How much you can make during college is dependent on how many hours you are willing to work and at what job.

I was a lifeguard in HS, I'd recommend it. Pretty decent pay (where I worked $9.50-12/hr.) and the hours were flexible. Early mornings, fairly late nights and weekends were all available.

I also I recommend working in the summers. That's where you have the most time to work and build up some savings.

 

[GoodmanBrown]

I have a bit of experience with loans, and can provide a bit of insight. Yoda is correct that there are two types of federal loans. Subsidized are interest paid (only while you're in school) and unsubsidized are not. Both are government backed though, so the interest rate is locked when you make the loan. I got mine at 6.5%, but that may have gone lower since.

The other major loan type is private. This is where Sallie Mae, BoA, etc. just loan you money expressly for university. Typically, they send the check directly to the university and then the university gives you any left over for your living expenses, etc. I have a private student loan at 3.5% right now. However, it's a variable rate, so it could change that amount at any time. It's locked to the Libor rate which is the interest rate at which banks loan each other money. Right now, it's low, but if it goes up, I could see a rise in my interest rates.

 

[Algophiliac]

Subsidized= the goverment pays the interest on your loans while you are in school.

Unsubsidized= they don't pay it and it acrues while you are in school.

So subsidized is definetly better, I don't know much about loans beyond this as I've never taken any out.

How much you can make during college is dependent on how many hours you are willing to work and at what job.

I was a lifeguard in HS, I'd recommend it. Pretty decent pay (where I worked $9.50-12/hr.) and the hours were flexible. Early mornings, fairly late nights and weekends were all available.

Wow! I am actually a competitive high school swimmer, so thank you for that idea! Sheesh, you always have the me-applicable ones. I suppose I will have to take a few courses this summer in order to achieve certification? Or perhaps I should find out if my college even has any pools nearby that require lifeguards. Fairly late nights and weekends sounds perfect, since those are my worst study times, and early mornings (hello, 6 AM) are when I'm used to getting up and swimming laps. How many hours would you say you worked on average per week?

Well, I am being offered only unsubsidized unfortunately, which means a job is now pretty much a must. Any information on private loans will be helpful!

 

[Algophiliac]

I have a bit of experience with loans, and can provide a bit of insight. Yoda is correct that there are two types of federal loans. Subsidized are interest paid (only while you're in school) and unsubsidized are not. Both are government backed though, so the interest rate is locked when you make the loan. I got mine at 6.5%, but that may have gone lower since.

The other major loan type is private. This is where Sallie Mae, BoA, etc. just loan you money expressly for university. Typically, they send the check directly to the university and then the university gives you any left over for your living expenses, etc. I have a private student loan at 3.5% right now. However, it's a variable rate, so it could change that amount at any time. It's locked to the Libor rate which is the interest rate at which banks loan each other money. Right now, it's low, but if it goes up, I could see a rise in my interest rates.

Thank you, GoodmanBrown! So, would it not make more sense to take out private loans only, if they have a lower interest rate? And do you mean that both tuition and cost of living can be covered by just private loans, or is there a limit to how much can be borrowed?

 

[DrYoda]

I suppose I will have to take a few courses this summer in order to achieve certification?

Just one class. The place I worked at actually hired me and then trained me for free, but not everywhere does that.

How many hours would you say you worked on average per week?

When I was lifeguarding I worked 15-20 hours a week during the school year, closer to 30 during the summer. There was pretty much the whole spectrum where I worked, some people just did one 5 hour shift, some worked 40 hours year round.

 

[Algophiliac]

Just one class. The place I worked at actually hired me and then trained me for free, but not everywhere does that.

When I was lifeguarding I worked 15-20 hours a week during the school year, closer to 30 during the summer. There was pretty much the whole spectrum where I worked, some people just did one 5 hour shift, some worked 40 hours year round.

Thanks! I'll get to researching my options and see what they offer. The hours are the most flexible I've ever seen--can't really go wrong with that.

 

[Maygyver]

Also, TAing is a good idea because you get paid and you get something to put down on an application. Or paid research.

 

[Gallix23]

Just one class. The place I worked at actually hired me and then trained me for free, but not everywhere does that.



When I was lifeguarding I worked 15-20 hours a week during the school year, closer to 30 during the summer. There was pretty much the whole spectrum where I worked, some people just did one 5 hour shift, some worked 40 hours year round.

Wow one class? I was looking into becoming a lifeguard (was captain of the swim team at one point) but the courses were like 3 weeks long at like 350 bucks, so it deterred me a little bit.

I might pursue it in college though, keeps you in good shape and you get CPR certified and everything which is always handy.