Single Parent Student Loan Programs
Financial Assistance for Non-Traditional Students
Single parents, if you are juggling kids, job and college, we applaud you. Up until recently students like you—non-traditional, beyond college age--have been among the most disadvantaged in higher education. You are frequently beset with fierce constraints: access to college programs, time limitations, and student loans designed for college age students. Once upon a time if you chose to have children other than going to college, that was your choice. There was no turning back. But times have definitely changed.
Many more post secondary programs are now geared toward adult learners, working adults and parents:
- Traditional colleges and universities.
- Online universities.
- Institutions that offer a combination of traditional and distance programs.
You’re not a kid anymore; here is the financial lowdown on the state of student loans and financial aid for single parents and non-traditional professionals, just like you.
Making Student Loans Work for You
Guess what? The student loan market is no longer the exclusive realm of undergraduate college students, that slim slice of borrowers is no longer an overwhelming majority. Working adults and non-traditional students: flex your muscles and grab some of the same federal, state-based loans and private loans that have traditionally been earmarked for the 18-24 year olds.
Here’s how:
Federal Student Loans for Adult Learners
Federal student loans are a must for any brand of college student. They are affordable and accessible. Enroll in college at least half-time and you could be eligible for federal loans, either through the Direct Federal Loan Program or the Federal Family Education Loan Program (FFELP). Stafford Loans, subsidized and unsubsidized, are hands down the most popular guaranteed student loans.
Tip: One of the best benefits of a Stafford Loan is its usefulness for students with questionable financial situations. Worried about your bad credit history? One of your best bets for borrowing a loan with no credit check is the Stafford program.
Find out exactly what federal loans may suit your education by asking your college or university if they participate in the Direct Loan program or the FFELP.
Here are some questions you might still have about student loans:
- What if you attend college less than half-time, or in the evening or on the weekend?
- What if you are in a career-training program or pursuing a professional certificate?
Private Student Loans Suit Many Non-Traditional Students
What happens when the federal loans for which you qualify fail to cover the real cost of attendance? Or worse: your program of study makes you completely ineligible for federal loans. You’re a single parent trying to go to school; you can’t sacrifice your savings to cover the balance.
Here’s a solution:
Private student loans offer express approvals with a quick turnaround on funds, borrower benefits and just about all the financial aid you may need to pay for any type of college program or course. And since they fill a growing need for an intensifying population of students, you might expect to see more and more like them.
Private student loans are a double-edged sword: they have benefits and drawbacks. When you have no other student loan options and have planned carefully they can cover more than the cost of your tuition. When you use them arbitrarily they may be a bad financial decision. Many feature high interest rates and rigid loan repayment terms.
Solution for Poor Credit
Lenders require borrowers have quite good credit, so you’ll have to agree to a credit check. If you have poor credit you may still be able to borrow the money you need: apply with a creditworthy co-signor.
Here’s a little-known student loan fact: if you ever declare bankruptcy your student loans don’t qualify for dismissal. They stand.
Popular Private Student Loans
If your post-secondary education includes using private student loans, here are some examples of the most popular loan products for single parents, professionals, and adults studying online.
Sallie Mae, one of the most recognized names in student loans, has created a couple of loans products that might suit the financial and lifestyle needs of single parent students:
- Career Training Loans give you the flexibility to put low-interest funds toward technical or online degree programs that you pursue at your own pace. If your credit is not so good, you may find a co-borrower to sign with you. Qualified applicants may borrow up to the balance of program costs including auxiliary funds for materials and “related expenses,” which means you can get a computer if you need to.
- Continuing Education Loans are similar to the career training loans, but are tailored for students who may be taking courses unrelated to a degree or for those who actually are seeking a degree, but who are not able to attend more than part-time.
The Chase Education One Continuing Education Loan is similar to the Sallie Mae products and also is ideal for those non-traditional students whose personal schedules only allow them part-time access to studies. In most cases single parents will fall into this category. Students without good credit may use a co-borrower to apply and approved applicants may borrow up to $40,000 each academic year.
Alternative Forms of Financial Aid for Non-Traditional Students
What if you were eligible for alternative student aid? Wouldn’t you want the information? Outside the federal and private loans you could qualify for loan forgiveness or tuition reimbursement programs. Here’s how each works:
- When you study in a high need field such as nursing or teaching, you may be eligible for programs that offer you a practical option: exchange your professional service for loan repayment. Find a program willing to repay your loans in exchange for, let’s say, your nursing skills in a high need health facility for a year or two. Loan repayment or forgiveness programs are particularly popular for nurses and teachers.
- Have you checked with your employer to see what, if any, type of tuition repayment or reimbursement you may get on your education? You could be missing out on a partial or fully funded college education. Many employers consider a highly educated employee an asset. In exchange for tuition money you may be expected to adhere to minimum GPAs. Chances are good you’ll also have to sign on for a certain number of years with the company: not many employers will pay for your education just so you can leave and go work for the competition.
Paying Back Non-traditional Student Loans
For working adults, single parents and professionals with limited financial means, repaying student loans can create a financial problem.
Consolidate Your Loans
If you struggle with loan payments, here’s your best bet:
Federal loans and private loans can be consolidated. The federal loan program has a consolidation loan among its stable of products. Private lenders also offer their own brands of consolidation. In other words, no lender wishes bankruptcy on you.
When you take practical steps to head off student loan default, pat yourself on the back for your maturity and ability to manage your financial situation, good or bad. Loan consolidation makes good sense when student loans threaten to spiral out of control. You’ll be left with one low monthly payment, albeit a longer repayment term.
Terms of Loan Repayment
Under normal circumstances your loan repayment varies based on the type of program and the repayment term you’ve chosen, standard, graduated, extended, or income sensitive/contingent:
- Stafford Loans come with a six-month grace period following graduation. The federal government pays the interest on Subsidized Stafford Loans until your grace period is up. Not the case with unsubsidized Staffords: you begin paying the interest as soon as the loan is disbursed, unless you opt for loan deferment until after graduation, a common strategy.
- Private loans enter repayment as soon as they are completely disbursed; there is no grace period.
The new studies in adult learners have brought about a renaissance in higher education that promotes the success of those students who’ve been displaced from college for one reason or another, including children. Single parents are seeking new formats for studies that are giving them a taste of financial freedom. Distance and online programs, continuing education programs through traditional colleges and universities, and community colleges are all realizing the profitability of expanding their curriculum to include non-traditional students.
