After completing your FAFSA, you’ll receive a financial aid award letter from the colleges you listed on the form. The timing on these letters can vary from college to college. However, if you’ve already received admissions acceptance from a college but no financial aid award letter, you can call their financial aid office to inquire about the letter’s status.
Loan tip#9: Since the Department of Education sets virtually no student loan borrowing standards to vet would-be borrowers, and outstanding student debt is now reported to be 1.3 trillion dollars, many bad-actors in the business of education have been for years falling over themselves attempting to gain access to this seemingly endless taxpayer funded pot of gold. Isn’t it past time that the DoED became more seriously proactive in protecting the hoards of naive student borrowers on the front-end before they fall victim to many post secondary schools that spend more on marketing than insuring that retention and graduation rates along with educational standards do not perpetuate the moral hazard of not having to perform to be enriched. The quid pro quo for schools that derive 80-90% of their revenue from these loans should not be measured arbitrarily in ever changing arcane regulations but in the firm expectation that graduation rates of 3% or even 30% (over a six year allowable tabulation period) are clearly unacceptable. Without this firm line in the sand drawn, there is no impetus for these businesses to effect positive change. Good, bad or indifferent, they know they will get a payday. Until strictly quantifiable measures are undertaken, the department’s purported advocacy for for the underserved student will continue to be gamed by some ingenuous students and many avarice colleges alike.
Federal student loans offer borrowers protections and alternative repayment options that private loans may not, such as income-based repayment and forgiveness programs. Federal student loans also have flat interest rates set by Congress, while the interest rate on a private student loan depends on your or your co-signer’s credit. Without a credit score of at least 690, you'll likely pay a higher interest rate for a private loan than you would for a federal loan.

Elaine Rubin is the Senior Contributor and Communications Specialist at Edvisors. Ms. Rubin is responsible for maintaining content, responding to press and media inquiries, as well as serving as the lead contributor for the Edvisors blog and the Ask the Edvisor column. Ms. Rubin volunteers in the local Las Vegas community to help students and families understand the importance of education for success. Ms. Rubin has worked in higher education finance for more than 10 years, including seven years with the U.S. Department of Education's office of Federal Student Aid, and provides information and advice from both personal and professional experiences. She holds a Bachelor of Arts degree in Political Science with a concentration in Public Policy and Administration from Northeastern University.
Capitalized interest on student loans happens when your loan servicer adds unpaid interest to your total loan balance. This makes your balance increase and then accrue even more interest. To put it simply, you pay interest on your interest and it can cause you to owe more than the amount you originally borrowed. This happens when you defer or forbear your student loans.
If it turns out that you do need to borrow to pay for college, rest assured you are not alone. According to the Sallie Mae “How America Saves for College 2019” study, more than half of families borrow to cover college costs. In the 2018-19 academic year, parent income and savings only paid $7,801 (on average) for college costs which in total averaged $26,226.
Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing.
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