Five Financial Aid Tips

A rite of passage for any college student involves learning how to manage finances. Not only does this apply credit cards, but also to a huge source of concern: financial aid.

Despite higher education's insatiable thirst for offering more and more knowledge, little is provided for you as a student in terms of financial self-reliance. It's unrealistic to expect a college to spend time trying to hold your hand-especially when each undergraduate has a different financial profile. It's up to you to forge your own path. Here are some key financial aid tips for you to follow:

1. Consult your school's financial aid office for advice

There's been no shortage of bad press for financial aid offices in the wake of recent scandals. The campuses of major educational institutions were receiving "gifts" from lenders, thereby tainting the objective advice that they were giving to students. Nevertheless, the bulk of the guidance handed down by a financial aid officer has merit. Always keep in mind, however, that a college is a business. Most of the advice it provides is designed to benefit the school in the long run. Always be sure to get a second opinion.

2. Look everywhere for advice

Where should you go for a second opinion? The Internet is a vast resource of information, although you'll need to be sure that the information you're reading is accurate. You can also crosscheck data with friends and family, especially people who have received financial aid in the past.

3. Go public before you go private

Before you take out a private loan, look to Uncle Sam and his repertoire of federally subsidized loans. This includes Stafford and Perkins loans, both of which have lower interest rates than private ones. Explore all your options.

4. Scholarships and state assistance

Have you checked out all the potential scholarship and grant funding options available? There are an amazing number of programs out there, many of which dole out money for some pretty obscure reasons. The time that you spend doing research could really pay off.

5. Track your paperwork and details

Most of the loan documents that you sign are heavily regulated and won't include any sleight of hand. However, you need to know what you're signing. Be sure that you're not paying any fees that weren't discussed at the beginning of negotiations. Making yourself familiar with the specifics of the contract will help you immensely in the long run.

College is a great time to learn lessons beyond the textbook. Hopefully, you'll develop self-discipline, social skills, and a true sense of self. You should also develop your own resourcefulness, especially when it comes to financial aid. Get smart about how to save money, and you'll come out ahead when it comes to financial transactions down the road. Getting an "A" in finances in college can lead to rich rewards in your adult life.