Still too much...

Alright kiddies we're back and here to discuss federal student loans *dun dun dun* Many of us have them, so lets get it all out and into the open.

There are two main types of federal students loans: Stafford Subsidized Loans and Stafford Unsubsidized Loans. The biggest difference between the two of these is the interest on subsidized loans, students only pay the original amount of the loan whereas the original loan plus whatever interest has accumulated over time must be paid back with the unsubsidized loan. Although subsidized loans are better, they usually yield less money that unsubsidized. In either case, students have 10 years to fully pay back their loans after graduating or dropping out of school.

There are also Parent Plus Loans, which parents can take out to help their children pay for college. Although the loan is not need-based and has a low fixed interest rate (currently 7.9%), it must be paid back more quickly than Stafford loans.

Before any loans can be dispersed, a Master Promissory Note must be filled out. This is essentially a contract between you and the government saying you know what your doing and your going to pay the money back in a timely fashion. A huge buzz-kill for the MPN is you must complete a quiz about the types of loans and payment systems and achieve a satisfactory score before any money can be shelled out. Luckily, however, one MPN is good for ten years (woo-hoo!).

Luckily for us MSU Spartans (Go State!), our Office of Financial Aid has posted some great videos to walk students through any questions they may have about loans, scholarships, grants, and financial aid. Oh yes; be jealous.

That's all for now y'all cause I'm tired. Till next time...

Why So Much?

Today, my dears, we're going to talk about the importance of a college education; aren't you excited? Yay!

First thing you need to fill out to get any sort of government aid is your FAFSA, or Free Application for Federal Student Aid. This application determines how much money you and your family can pay out-of-pocket for your education, and also how much money the government is willing to shell out to you.

Next you send your FAFSA along with your test scores and applications to the college of your choice. Without the FAFSA, colleges aren't able to provide you with aid and then you'll be straight screwed.

 Now if the government decides your worthy of their money, there are a variety of things that must be accomplished, depending on what kind of money they decide to give you.

If your lucky enough to have the government give you free money, all you really need to do is nothing. These are usually reserved for ridiculously intelligent people that make you feel bad about your life when they tell you their majors. However for those of us who have work study, effort is involved. Most colleges require to find an on-campus job before they pay out the scholarship. A small price to pay for free money, if you ask me.

Now for those of us who aren't lucky enough to receive scot-free money from the government, there are always government loans. Yes, I know they suck, but society wants us to have an education but wants to pay as little as possible for it. Screw society.

Next blog, we'll talk about everything you ever wanted to know about federal loans. Exciting right? Oh yeah; you know you want to read about it...