Most of us are so excited that summer is almost here. Summer is that time of the year where people plan their vacations and think about relaxing and spending quality time with their families. Ahhh, vacations, vacations, vacations ... but wait! I am not trying to sound like a party pooper here, but before you go frolicking in the beach (no matter how deserving you are) … take a moment and think back if all is set with your student’s finances for the next enrollment schedule. And for those of you who are looking for some financial assistance, here are a few information that might help.Did you know that there are different types of loans available to students, specifically student loans that are guaranteed by the government? The Federal Family Education Loan Program (FFELP) and Direct Loans (DL) are among the programs offered by the government to assist students and parents with the cost of tuition, books, room and board, and other school related expenses. Otherwise known as Stafford Loan, the loans under these programs can be categorized as either Subsidized or Unsubsidized. Stafford Subsidized loans are need-based loans. “If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study.” (http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp). What this means for students is that their loans will not start earning interest until 6 months after they leave school (this is called the grace period). Payments can also be deferred for a maximum of 3 years upon request.

Unsubsidized loans on the other hand are not need-based loans. The amount for this type of loan is determined by the school where they “subtract the total amount of your other financial aid from your cost of attendance to determine whether you're eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full." (http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp). Although the maximum amount per year that a student can avail through these programs is limited, one will often find that it is sufficient to attend school.Students are generally advised to apply and utilize first their Stafford Loans before getting a private loan. The goal of the government is to provide the students with the source of funding to finish school at low interest rates to ease payments. Remember the benefits - low interest rates, option for loan deferment or forbearance when faced with financial hardship, and six months grace period for qualifying situations before repayment starts. Help is here, and both the government and private agencies are working together to give every student the opportunity for education. To get you started with your student loans, you can inquire at your local school or visit www.studentaid.ed.gov or www.fafsa.ed.gov. The posted deadline for application for the upcoming school year is midnight central daylight time on June 30, 2008. There, now you can go back to planning your vacation. Next stop ... to the beach!!!