Lately, I have been fielding a number of questions about the differences between  subsidized Stafford Loans and unsubsidized ones. Given how frequently this topic seems to come up, I thought I should post a quick synopsis of my answer here on the blog. Here’s the deal: If you get your financial aid award and it says you have been approved for a student loan, odds are it is the Stafford Loan. (Far less common is the Perkins Loan, which provides low-interest loans to low-income students.) There are two different kinds of Stafford Loan: Subsidized and unsubsidized. With a subsidized loan, the government subsidizes the cost of your daily interest payments as long as you are enrolled in school at least half-time. Meanwhile, the lender freezes your principal repayments until you gradu...

CNN Money reported today that President Obama’s Stimulus Plan is set to help college students worried about how to pay for tuition, room and board. While the plan, known as the American Recovery and Reinvestment Act of 2009, still needs to be approved by Congress, some of the most student-friendly changes would include: >> Increasing the HOPE Scholarship tax credit First and second year students are eligible for the HOPE scholarship, which makes tax credits available to all students (and their families) during their first two years of college. Originally, the credit was equal to 100% of the first $1,000 in tuition and fees and 50% of the second $1,000. Under the President’s plan, the credit would be bumped up to $2,500 and would be eligible to cover not only the cost...

April 17, 2008 by Mara Strom If you’re a recent college grad straddled with a sizeable chunk of student debt, you’re in good company. In fact, a study by The National Center for Education Statistics indicates that 50% of all college grads have an average of $10,000 or more to pay back on their college loans. Let’s say you’re a little better than average and take out $18K in loans. Here’s what you’ll be looking at: $207 per month for 10 years, if you’ve got a Stafford Loan with a (relatively low) fixed interest rate of 6.8%. And P.S. On the original principle, you’ll be paying back another $6,900 in interest. If you want to see the breakdown for your specific loan, check out the nifty student loan calculator at finaid.org. Now consider that the average starting s...