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MILLIGAN COLLEGE, TN (July 2, 2003)-Yesterday’s drop in federal student loan interest rates is good news for students and parents looking to invest in higher education. The U.S. Department of Education dropped federal student loan interest rates to a historic low 3.42 percent, effective July 1.
This announcement will greatly help those looking to further their education at a private institution, says Nancy Beverly, director of financial aid at Milligan College and current president of the Tennessee Association of Financial Aid Administrators (TASFAA).
The new interest rates certainly make loans a more attractive means of acquiring funding for higher education, explains Beverly. Lowering the student loan interest rate results in significant savings for borrowers. Beverly suggests that potential borrowers should explore their loan options.
“Students who receive assistance through unsubsidized loans will receive the immediate benefit of this rate decrease,” says Beverly. “Accrued interest on unsubsidized loans will be calculated at the low 3.42 percent rate, while need-based loans begin accruing interest at the scheduled rate once the student has graduated or is no longer at full-time status.”
Prior to seeking funding from alternative loan programs, Beverly encourages students to utilize federal loan programs, such as the Stafford and Perkins loans, which are designed for student borrowers.
Ability to pay student loans back is an important consideration. Beverly says that graduates of private colleges, including Milligan, traditionally fall well below the national average for loan defaults, an encouraging statistic for those considering private education.
Other means of financial assistance should also be considered, says Beverly. Most colleges and universities offer very competitive financial aid packages. In addition to holding its annual tuition increases to a national average of five to six percent in recent years, for example, Milligan budgets nearly $4 million annually in institutional scholarships and grants. About 92 percent of students receive some form of merit and/or need-based financial aid, before even considering loans.
“It’s important not to shop by ‘sticker price,'” says Beverly, who said the average financial aid package at Milligan brings a private college education within reach of many families of various socio-economic levels.
Institutional scholarships at Milligan include honors, merit, fine arts and music, athletic, and special scholarship packages for regional students.
“The college is very interested in helping those from our region make a Milligan education a reality,” says vice president for enrollment management David Mee. “The state’s anticipated lottery scholarship program, set to begin in 2004, and other Milligan initiatives should continue to bring more families within reach of a quality private college education.”
For information about student loans and college financial aid, contact Nancy Beverly at (423) 461-8949 or toll-free (800) 447-4880.
“The benefits of higher education far exceed the investment,” says Beverly.