Lesson Two: If You Have to Borrow, Do It From Uncle Sam, Not Uncle Sammy, the Shady Loan Shark.

Introduction:

If your Federal Stafford loans have not been enough to cover your college costs -- don't take out private loans! -- there is good news. Good ol' Uncle Sam recently made two -- that's right two changes in how you get more of those tasty, safer, Federal Stafford Loans.

Unsubsidized Stafford Loans

University undergrads can now add $2000 a year to the amount of loan money they have previously been allowed. Unsubsidized means that interest accumulates while you're in school. Not as good as subsidized, but better than private. The fixed interest rate is 6.8%.

TEACH Grant Program

If you're thinking about becoming a teacher, this is the grant for you. You get a grant (money not borrowed, but given) of up to $4000 per year if you teach four academic years in a "high-need" public or private elementaries. This means low-income school districts. If you fail to meet your teaching obligations, however, the $4000 per year becomes an unsubsidized Stafford loan. Read more about these programs here.

This grant program also comes with a special bonus, the Stafford Loan Forgiveness Program for Teachers. Read the details at the link, but basically, after graduation, if you teach full-time, for five consecutive academic years in these "high-need" and "low-income" schools, you can have up to $17,500 dollars of your student loan debts forgiven... forgotten... poof... gone.

Conclusion:

There are ways to get through college without borrowing from private lenders. These are just a few. Go to the Financial Aid office at your university to see how Uncle Sam can help YOU.