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Author: jairod Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8138  
Subject: Starting a college fund and financing education Date: 6/10/1999 4:07 AM
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OK, its the first time i post a message so directly to the grain. I got a little one who's 1 and a half yrs. old. I opened him a savings account with $135 and am automatically having $35 deposited into his account each month. Now that's a start i figure. What kind of decent funds would be a good idea to invest in for a college fund with a low minimum initial investment? Is a roth IRA adecuate for a college fund?, or is there something called educational IRA?
Now for the late part, i want to go to college myself, or actually a virtual university, what is a good source of funding for poor people like me, are stafford loans the most direct and easiest approach? What about perkins?, what about pell grants? Is there an expert out there? I will really appreciate all the good ideas from all the good people out there. Tank you.
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Author: DigitalDurga One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 845 of 8138
Subject: Re: Starting a college fund and financing educat Date: 6/10/1999 9:24 AM
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jairod caught my attention and said:
<<Now for the late part, i want to go to college myself, or actually a virtual university, what is a good source of funding for poor people like me, are stafford loans the most direct and easiest approach? What about perkins?, what about pell grants? Is there an expert out there?>>

Yes, there are experts, mostly they're at the financial aid department. I'm not sure how a virtual university handles it, but if they have a financial aid department with for real, breathing human beings, start there. I'd say in order of preference (starting with the best), Scholarships, Pell grants, Staford subsidized, Perkins, Staford unsubsidized.

Why? Easy, Scholarships & Grants are money you do not have to pay back. No interest, no muss, no fuss, congratulations, here's your money. Unfortuantly, you have to be very poor to get those. And, often they aren't enough to cover everything. If you're lucky enough to get your costs covered with these, consider yourself blessed.
Staford subsidezed loans are, IMHO, the best type of loans if you're going to go there. They tend to be low interest rate, and the government pays the interest while you are in school. Plus, they don't require payback until you are six months out of school.
Perkins loans are next best loans. They also are subsidized (the interest is paid while you are in school). However, this is a federally backed institutional loan. That means that your school is paying the interest on the loan, and payback on the loan starts anywhere from four to six months (be very careful. On my Perkins I started counting the six months from when I left the school, august. They started counting from the end of the *semester* I left the school, may.) This means if you transfer, you still have to payback loans while you are at your new school. (yes, you can get a deferment while you are still a *full* time student.)
Last in good ideas is the Unsusidized Stafford. Simply becuase you have to pay the interest on the loan while you are in school, or it can be capitalized into your loan. Hmm.. looks a lot like a governemental credit card. No thanks.

::looks up over the post:: hmm, this was supposed to be short. Ah well. As a student myself, in the middle of paying back 2,800 ish of Perkins loans and looking at only two years to go before facing 8,000ish in Stafford, I can sympathize. Try to find as many sources of aid from the financial advisors as you can. Never overlook school and departmental scholarships, and please, don't pay money for a scholarship finder. I can think of five free ones on the web. Heck, I've even written a few "I think coke/calgon/whomever should give me money because" essays. And if your employer has educational benefits, look into that as well.

More power to you for going back to school. May you find worthy instructors and amusing students, as well as the most amazing part of our brains. ::grin::

Okay, okay, I'm a philosophy major (as well as other things). Leave me alone. ;}

Digital Durga

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