Student Loans Personal Finance
Paying for College • Parents pay 48 percent of college costs. • 32 percent comes from income and savings. • 16 percent comes from loans. • An average student covers 33 percent of college costs. • 10 percent comes from income and savings. • 23 percent comes from loans. • The overall amount of borrowing is close to 40 percent. • Higher-income families pay more from savings. • Middle-income families (those with incomes between $50,000 and $100,000) depend mostly on loans. • Lower-income families receive more scholarships and grants.
Local Tuitions • University of Wisconsin-Milwaukee: • Student body-30,000 • Tuition: $8,600-$11,000 • Marquette University: • Student body: 11,000 • Tuition: $30,000 • Cardinal Stritch • Student body: 6,900 • Tuition: $22, 750 • Concordia University • Student body: 7,500 • Tuition: $22,150 • Alverno • Student body: 2,800 • Tuition: $20,060 • MSOE • Student body: 2,600 • Tuition: $29,520
Available Loans • Perkins Loans are need-based loans. • They are awarded to students with the greatest financial need. • The interest rate is very low, at five percent. • Students do not have to make interest payments while in school. • Stafford Student Loans are offered through two programs. • Stafford Loans allow students to borrow money from various kinds of lenders, including banks, colleges and the federal government. • Stafford Loans can be subsidized or unsubsidized. • Subsidized loans are need based with a low interest rate; the government pays the interest while the student is in school. • Unsubsidized have lower interest rates but the student pays interest while in school.
Available Loans • Parent PLUS Loansare available for parents of dependent college students. • The lender is a bank or other private lender. • Interest and payments are the responsibility of parents who borrow the funds. • Private student loansare not subsidized and carry a higher interest rate than subsidized loans. • College-sponsored loansare given by some colleges who havetheir own loan funds. Interest rates may be lower than federal student loans. • Federal Work-Study provides part-time jobs for undergraduateand graduate students with financial need, allowing them to earn money to help pay education expenses.