Hey guys,

First off let me congratulate any readers who have recently received acceptances into college, that’s awesome! It’s a great feeling to rip open that envelop from the school you’ve been waiting to hear from and reading the word “Congratulations!” But now it’s time to understand that the application season is transitioning into financial aid season.

This is often the time that students stop doing the work in the process and they rely much more on their parents. Parents and students should both be involved in this process. Obviously your parents are probably your financial support right now, but hopefully in the future, you will be able to rely on yourself. Smart financial decisions about your future start right now!

Most students will have to take out loans in order to pay for some portion of their schooling. Many of these loans will be federal loans, but some students and their parents will also take out what are known as private loans to make up the difference. I’ll blog later about what’s available with the different types of loans but I wanted to talk more about why these decisions are important.

A big reason students go to college is so that they can make good money, have a great job, and live the proverbial “American Dream.” But if you are not wise about college affordability, the way you pay and how much you pay for college can actually impact that dream.

A survey done by the New Hampshire Higher Education Assistance Foundation (NHHEAF) found that out of 1,500 student loan borrowers surveyed, 73% delayed buying a home after they graduated because of high student loan payments. Another 65% surveyed said that student loan debt delayed them in purchasing a new car. Click on the link to read the complete results of the survey, "Borrowing for a Brighter Future," NHHEAF, March 2007.

If those are some of your goals for after you graduate, you should start planning now. It’s never to early to learn how interest rates work, what the consequences are for not paying a loan, and what things make a loan a “good loan.” Visit NHHEAF’s "Why Borrowing is Important" site for more information.

That’s all for now, but make sure to check your colleges’ website for financial aid deadlines because they are fast approaching. And remember you and your parents can file your Free Application for Federal Student Aid (FAFSA) after January 1, 2009 at www.fafsa.ed.gov

Stay Educated,

Rich