-- PLUS loans for parents -- Not based on need; applications are available through school financial aid office. It may be a "direct" loan (7.9 percent interest) or FFEL Plus loan (8.5 percent interest), depending on your school. The yearly limit is the cost of college, less any financial aid received.
-- Private loans -- The student gets the loan, and the parents co-sign. Rates are higher, and loans may be more difficult to get.
Those are the basic sources of money for college. And the burden for both students and parents could be overwhelming, both now and in the future. But there is still hope. The first step is to contact the financial aid office.
It's not too late to appeal that "unappealing financial award letter," says Aresty. If you explain that you're having trouble meeting the balance of your financial need, they may be able to come up with additional resources to fill the gap.
Aresty offers to review financial aid award letters for readers of my column who send him an e-mail to Reecy@PayLessforCollege.com, and mention this column.
Simpler financial aid forms in works
SPECIAL NOTE: It may be easier to apply for financial aid next year.
Under a new proposal by the Obama administration, the "dreaded" FAFSA (Free Application for Federal Student Aid) would be shortened by about two-thirds, from its current 153 questions. And it will be easier to sync the application form with tax returns submitted to the IRS.
The proposal needs to be passed by Congress before becoming law.