Attending college is expensive, even at MATC where the costs are relatively low compared to other major universities. In terms of discussing college affordability there is even more to consider beyond the cost of tuition, with cost of living, eating, and transportation more expensive than ever we often find ourselves struggling to continue to afford the investment in our education.
The FAST Fund was established understanding the financial difficulties that students face, and finding ways to assist through those times. However there is only so much that we are able to help with directly, whether it is tuition, rent or otherwise we want to help students understand their options.
If the FAFSA is not able to cover expenses (non-US Citizens, those who have exhausted FAFSA or programs that do not qualify,) and you aren't receiving grants and other funding resources you MAY be interested in applying for a private loan. There are some drawbacks to this process, and should by no means be your first option for funding! But if you find yourself with no other options it is best to approach private loans with the most knowledge possible.
First and foremost private loans are unsubsidized, that means that you may begin paying them back almost immediately after receiving them. This also means that they may begin to accrue interest before graduation (as opposed to federal student loans, that remain fixed until you graduate.)
Not all private loans are created equal! Some of them have higher interest rates than others, or have fluctuating interest rates (as opposed to fixed interest rates.) Some loans have penalties for early repayment, and these are all details that are important to consider when assessing your loan.
A cosigner may be required if your credit is below a certain threshold. This is incredibly common as upwards of 90% of private student loans require a cosigner. This is a unique kind of social contract in which you utilize your personal relationships to prove to an institution that you are not going to run away with the money and not pay it back. The cosigner is not liable to take on the responsibility of debt, UNLESS the student neglects to make payments.
If you have a cosigner and you do not make payments, you are only hurting the ones who have trusted you to make good on your obligations.
Private loans should be your last option to pay for school. Period. But if you still need extra funding to cover your tuition, I recommend reading over this list.
That entire website was foundational for my understanding of my own financial situation and deserves a once over if you have questions about how to finance college. Furthermore, you may decide that college is not the proper avenue for you at this time! If you are struggling to afford college taking some time to go to work before attending classes may be the best option for you.