Finance Your College Education Wisely

Loans for Washington DC Students

In a sea of confusing college financial aid messages the one lifeboat you should stick closely to is the District of Columbia College Access Program, simply known as DC-CAP.

Student loan programs most meaningful to you should be the Federal Family Education Loan Program (FFELP) and reputable private loans when necessary. DC-CAP provides information on both and way-finding materials for programs it does not offer.

For example, you won’t find a state-sanctioned private loan, but DC-CAP recommends you check out the private loan options available through Sallie Mae, one of the most reputable student loan providers in the country.

But First, the Federal Loans

Before we explore private student loans, your first step is to apply for the federal loans. You’ll find a quick run-down of the federal loans on the DC-CAP website plus a link to the FAFSA, the Free Application for Federal Student Aid. This is a must-do step in the financial aid process. Why?

If you fail to complete the federal FAFSA application you also eliminate yourself from many other types of student loans that otherwise require your participation in the federal program. To sum it up: you lose big-time if you don’t file the FAFSA.

Learn more about the federal loan programs.

When Private Loans Make Sense

As a rule, private student loans are a last resort due in large part to their expense. In the short-term most promise to solve all your most immediate education cost woes, but in the long run you could run into some serious student loan debt problems. Here’s a good checklist to follow if your federal funds fall seriously short of covering your education at a DC college or university:

  • Borrow with a reputable lender; this could even be your hometown bank.
  • Finance only what you need.
  • Avoid penalties for early repayment.
  • Avoid loans with high borrowing minimums.
  • Know exactly what the full cost of your loan will be when all is said and done.
  • If the interest rate is variable, what is the cap?

Most importantly, be an informed and engaged borrower. Find out more about the DC-CAP program.