Friday, September 7, 2001

Several viable loan options available to students
By Sarah McClellan
Staff Reporter

More than half of all TCU students receive some form of financial assistance from the university, and assistance often comes in the form of student loans.

But the thought of having to pay off student loans is scary, said Bonnie Hardin, a senior marketing major.

“It adds to the stress of finding a job — getting a good one right out of college,”

Hardin said. “It adds to your list of expenses you have to pay.”

Hardin said she receives a $3,000 Stafford Student Loan each semester.

“(Having loans is) frustrating because I know how important loans are,” Hardin said.

“But if that’s how you get through school then that’s what you have to do.”

The Stafford loan is deferred for six months after graduation, and then 5.99 percent interest is charged, said Sandra Tobias, associate director of scholarships and student financial aid. That is the lowest Stafford interest rates have ever been.

The Stafford loan has one of the lowest interest rates on student loans. According to financial literature, other loans range from 7.61 percent to 10.15 percent.

Tobias said the average indebtedness for students with Stafford loans is $14,000.

Loan repayment schedules range from 10 to 20 years. One way to shorten this is to pay the interest while still in school, Tobias said.

However, that isn’t possible for some students.

“I haven’t even considered that,” Hardin said. “I work part time and pay my bills with what I earn. After that, there’s nothing left over.”

Jamey Harris, a junior elementary education major, has loans to cover all of her TCU expenses because she has a sibling also attending TCU, and her father can’t pay both tuitions.

“I think the loans are fair,” she said. “They have reasonable payment schedules to work with, and my father is going to help me pay it back.”

Tobias said the Federal Perkins Loan is the best loan eligible students can receive.

The Federal Perkins Loan is allocated to TCU by the federal government, paid back to TCU and used for other loans. Tobias said she recommends applying for this loan because the interest rate is 5 percent and because students who teach in certain low-income schools or teach special education or other designated teacher shortage areas can get the loan canceled.

Students who become nurses or medical technicians, law enforcement or corrections officers, employees of a public or nonprofit child or family services agency or professional providers of early intervention services for the disabled are also eligible to have the Perkins Loan forgiven, said Lana Maples, loan accounting and collections administrator.

“A lot of students aren’t aware of that or they don’t read the promissory notes,” Maples said. “If they are in one of these fields and can get the loan, they should take it.”

The Stafford Student Loan is the next best loan to get, Tobias said. It is borrowed from various lending institutions but guaranteed by the federal government.

One other choice is the College Access Loan, Tobias said. The CAL has a 9 percent simple interest rate.

Another loan option is a parent loan, Tobias said.

“If a parent can’t qualify, there are other options for students but you get into more expensive loans,” Tobias said. “I would like to see families not go beyond these options but sometimes parents can’t pass the credit check for the parent loans.”

Sarah McClellan
sarahlmac@hotmail.com