Financial Aid Overview
<<< STEP 1: WHAT IS FINANCIAL AID?STEP 2: The Ins and Outs of Student Loans
This is a legitimate question and when it comes to possibly borrowing money, you need to budget and borrow sensibly.
ESTIMATE THE REAL COST OF COLLEGE
Financing your college education means much more than just paying tuition expenses. It's important to understand all of the costs involved, including room & board, books, lab fees, student membership fees, spending money, etc.Estimate a personalized college budget with the worksheet below. You can also calculate your Expected Family Contribution (EFC) or estimated repayment costs.
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ESTIMATE THE COST OF YOUR EDUCATION
Create a Budget for the Full School YearDorm or apartment? Meal plan or home cooking? New books or used books? Think about ways to keep your costs down. Then realistically estimate what you'll need for the full school year.
*Based on a 9-month school year
Know Your Resources
Discuss what your family can contribute and then aggressively go after "free money" options. Add up your total resources from savings, grants/scholarships, and work.
How Much More Will You Need?
Subtract total resources (Box B, above) from total expenses (Box A, above). Enter the total in Box C, below. If your resources can cover your expenses, you're all set. If not, you'll need a way to make up the difference from student loans and other sources.
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ESTIMATE YOUR EFC AND FINANCIAL AID
Knowing how much your family is expected to contribute is a primary determinant of financial aid. The Expected Family Contribution (EFC) is used by many loan vendors and the federal government in determining your loan eligibility.Use the Financial Aid Calculator to determine how much your family is expected to contribute and estimate how much aid you could be eligible for.
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SOME IMPORTANT FACTS ABOUT BORROWING
Once You Decide to Borrow, Borrow Only What You NeedSince you will one day have to pay back the loan, plus interest, estimate the debt you can afford before borrowing. Estimate the amount of debt you may be able to afford and your monthly student loan payment before you borrow.
Borrowing Is a Responsibility — Take It Seriously!
If a student loan is your first borrowing experience, consider this responsibility seriously - your ability to borrow in the future depends on it. Make sure you read and understand the terms and conditions on your promissory note. You are agreeing to repay the loan with all accrued and capitalized interest and deducted fees. You are obligated to repay your loan regardless of whether you complete your education, are satisfied with your education, or are able to find a job. Read and keep all records relating to your loan.
Choose Your Lender Wisely
Most loans come from banks and there are differences from bank to bank. When choosing a lender consider:
- Interest rates and costs
- Interest rate savings options (e.g., reductions for consistently making on-time payments)
- Variety of loans offered
- Experience in student loan financing
Make sure the lender you select is a Partner Lender that will sell your loan to UHEAA (Utah Higher Education Assistance Authority) before it enters in-repayment status, so that you will be eligible for all of UHEAA's outstanding Borrower Benefits. UHEAA's borrower benefits can save you substantial amounts of money. You'll have access to the best student loan deal available.
Avoid Credit Card Debt
You don't want to be a casualty of debt. More students drop out of college because of credit card debt than for academic failure. According to an online poll conducted by the National Association of Colleges and Employers (NACE), nearly 50% of college students responding owed between $3,000 and $7,500 to credit card companies. Some 22% owed over $7,500. Not included are student loans, car loans, phone bills, and so on.
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