Got Student Loans?

Oregon Students: Find the Cash You Need for College

The State of Oregon provides access to a small number of trustworthy sources where financial aid is made available to college students. The Oregon Student Assistance Commission (OSAC) offers tons of general information on college planning, scholarships, and grants. The Northwest Education Loan Association (NELA) provides another layer of information relative to student loans, including guidance on choosing federal and private student loans.

Here’s the thing: it’s up to you to self-educate yourself on the various types of student loans, which generally include:

  • Federal student loan programs: Direct Federal Loans and the Federal Family Education Loan Program (FFELP)
  • State-based or alternative student loans
  • Private student loans advertised through commercial lenders

Choice of lenders is completely up to you, as well. So shop carefully. Tip: go with a reputable lender that offers the FFELP as well as a reasonable private loan option should you need it.

About Oregon Federal Student Loans

The Federal student loan program should be your first step in financial aid. Apply by filling out the FAFSA or Free Application for Federal Student Aid. File by the deadline to be considered. To file you don’t even have to understand all the federal programs, Uncle Sam will decide based on your application, for which loan programs you qualify. In the meantime, here is a brief description of the FFELP loans:

  • Stafford Loans are infamous, hugely popular—you’re not someone until you have a Stafford Loan. Subsidized and unsubsidized “flavors” are designed to meet the needs of both financially needy as well as students without significant need. The program is available to both undergrads and grads and does not require a credit check.
  • Parent PLUS Loans were developed to help cash-strapped parents of undergraduate college students whose education costs exceed their federal awards.
  • Grad PLUS Loans meet the needs of grad and professional students whose education costs escalate well beyond the lifetime borrowing limits of their Stafford Loans.

Educate yourself on the federal student loan programs.

About Private Student Loans – Avoid High Risk Borrowing

Many students’ federal student loans fail to meet their true education costs. This is where a private student loan often comes into play. If you chose well when you went with a FFELP lender you have immediate access to a quality and affordable private loan. At all costs avoid deals that are “too good to be true.” Truth is that no matter which private loan lender you borrow with your true cost of the loan will be significantly more than your federal loans. Here are a few tips for private loans:

  • Know exactly how much your loan will cost when all is said and done.
  • Don’t finance extras like computer and textbooks; try to pay those out-of-pocket.
  • Make sure there are no penalties for early repayment.
  • Are there options for refinancing?

Creating a solid financial plan with Oregon student loans usually includes utilizing a couple of strategies.

For more information on planning college in Oregon visit the OSAC website.