Financial Aid

Embarking on a community college experience can be overwhelming for many students. After all, rising costs of education can quickly eat away at your savings or your earnings from a part-time job. For this reason, a loan may be just the answer you've been looking for. An educational loan can help you pay for community college, allowing you to work towards your degree without the added stress of wondering how you will pay for it. A student loan can be repaid over time, once you've completed your education.

It is important to keep in mind that borrowing money is expensive, even if it is in the form of a government-subsidized loan at a relatively low-interest rate. If you have any money saved or are able to work and attend community college part-time, these may be some great options to avoid having a large amount of debt upon graduation. Only you, your parents, and possibly a financial advisor can determine the borrowing/savings scenario that is ideal for you.

Types of Loans

There are a number of different education loans available, each one uniquely tailored to address the needs of certain individuals. When the federal government offers loans to students, these loans usually have low- interest rates. The Stafford Loan is the main vehicle by which the government loans money to students. Stafford Loans are further broken down into two subcategories:

• Subsidized - In this case, the interest on your loan is paid by the government while you are still

Embarking on a journey of higher education can be exciting, confusing, and stressful all at the same time. To help with the financial aspect of education, current and prospective community college students are in a unique position to choose from various forms of student aid available. As you navigate your way through the myriad of financing options out there, let this overview help you in making the right decisions about financing your education.

While the average college tuition rates are rising fast across the country, you may be pleased to learn that the average cost of tuition at a community college is just under $2,300 per year (American Association of Community Colleges 2007). Although this cost is relatively low when compared to 4-year institutions, many students still find themselves looking for ways to finance their community college education. Unfortunately, it is also a fact that most parents are either unwilling or unable, for various financial or personal reasons, to finance all of the costs of sending their child to a community college.

This video offers tips on how to pay for a college education.

You may be surprised to learn that there are over 1,200 community colleges across the country. In fact, 11.6 million students, just under half of all U.S. undergraduates, attend community colleges. Of those students, 47% receive some sort of financial aid (American Association of Community Colleges 2007).

The federal government alone