When you decide its time for a career change, or in some cases, a career start, many people turn to college to help them get started. The enrollment process can be scary and often times confusing. You are faced with a big decision and most of all a huge investment. Starting a new career isn’t just filling out an application. It takes time and effort. It’s a road that is often filled with lots of paperwork and lots of financial decisions. When making your decision, don’t be fooled by the numbers that are placed in front of you. Let us help you make that investment into your future easier and stream-lined so you can make the best decision for you and your family. Here in this blog, we have compiled a list of what to look out for when making that decision.
- Don’t let federal grants trick you.In schools that accept federal student aid, something that is always seen as “bait”, is the federal grant money. These schools tempt you into going to their program by telling you about the “free” money you can receive. What they don’t tell you, is the grants may not pay for the entirety of the school’s cost. Depending on what amount you qualify for, it may pay for a fraction of the total tuition and books, leaving you with an additional $10,000 to $14,000 balance. You may also need to take a federal student loan out to pay for the remaining balance, or in some cases the entire balance of the tuition if you don’t qualify for the grant.
- Federal student loans are often perceived as a great idea when applying to accredited schools.They offer low interest rates and small minimal payments. There are a few things that are left out when accepting these loans. For one, all loan payment amounts are based on a 10 year term. What they also don’t tell you, is over a minimal 10 year span, your interest on your loan will often result in a 4-5 thousand dollar interest gain alone. Your new student loan of $10,000 could very well end up being $14,000 and that “free” grant money you were awarded, you are paying back in interest.
- Minimal payments with federal student aid loans are often based on $50 a month payment.Don’t be fooled by this. By simply paying the minimum amount, you have not even begun to pay the principle, or beginning balance, of your loan. Which means you are simply just paying off the interest. This will result in the extension of your loan, often by 10-15 years, which also means you are paying nearly double of what your original amount would be!