Module 3 of College Afforability Project: A Tutorial for College Aid Pro™"-Handout #4: How to Pay and Creating a Smart Lending Strategy

Handout #4: How to Pay and Creating a Smart Lending Strategy

Pdf Summary

The given document from College Aid Pro® titled "A framework to navigate the college funding maze - 5 Critical things" discusses important factors to consider when it comes to college affordability and funding. The document mentions the college funding gap and resulting student loans as one of the critical things to consider. It also highlights the importance of understanding the "out of pocket" cost at each institution through a 1-year and 4-year net cost comparison.<br /><br />In terms of smart lending strategies, the document provides information on Federal Direct Student Loans, including subsidized and unsubsidized options. It mentions the fees and fixed interest rates for these loans and explains that interest accrues immediately for unsubsidized loans. The document also mentions the maximum amount that can be borrowed over 4 years and emphasizes the "use it or lose it" aspect of these loans.<br /><br />The document further discusses the Federal Direct Parent PLUS Loan, which is not need-based and has fees and fixed interest rates. It states that this loan is borrowed by the parent and can cover the full cost of attendance, but it is non-transferrable.<br /><br />Additionally, the document briefly mentions private student loans as an option, which are not need-based and typically require a co-signer.<br /><br />Overall, the document provides a framework for navigating the complexities of college funding and emphasizes the importance of understanding the college funding gap, net cost comparisons, and various loan options like Federal Direct Student Loans and Private Student Loans.

Keywords

college funding maze

student loans

net cost comparison

Federal Direct Student Loans

subsidized loans

unsubsidized loans

fees

fixed interest rates

Federal Direct Parent PLUS Loan

private student loans