Loans, grants and scholarships are options for students

In the current economic climate, students and their parents might feel the pinch more than ever when it comes to funding tuition.

Brenda Noblitt, assistant director of financial aid at MU, said circumstances often change for students during college.

The process of obtaining aid is based primarily on a student’s financial situation, determined by the income of their parents or guardian.

The first important step to securing aid is completing the FAFSA or Free Application for Federal Student Aid form. It can be accessed online. Students may be eligible for grants, loans and work study.

“Students should complete the FAFSA each year before our March 1 priority filing date," Noblitt said. “They can also complete the general scholarship application before MU’s priority filing date."

Here's an overview of the process of securing financial aid through loans, grants and scholarships.

Loans

There are two types of student loans: A subsidized loan is where the federal government pays the interest while a student is enrolled in school. An unsubsidized loan accrues interest, and students can choose to either pay monthly or defer it.

After submitting a FAFSA, eligibility to receive either a subsidized or unsubsidized loan is determined by the university.

There are also Federal PLUS loans for parents to assume, and interest is charged during all periods. When both students and parents have taken out loans for tuition, they can be combined into what’s known as a direct consolidation loan.


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With Credit Card Rates on the Rise, CreditLoan.com Suggests Consumers Now Consider Debt Consolidation

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Creditloan.com suggests taking advantage of payday loans. Such loans are easy to acquire. The borrower often does not have to go through a credit check and is approved right away. Home equity loans are another option. The interest rates are much lower, however, if payments cannot be made, the borrower risks losing their home as a result. Regardless, borrowers are better off weighing all options before making a decision on how to reduce their debt.

"When people are in serious debt, they tend to seek quick solutions," said Wesley. "At CreditLoan.com, we provide a portal offering expert advice on how people can reduce and manage debt, as well as solutions by bringing borrowers and lenders together. Financial recovery can be long and difficult and we try to clear up the misconceptions on debt consolidation and personal finances the best we can."

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