Maroon

              THE MAROON VOL. 79, NO. 09 TUESDAY, OCTOBER 17, 2000 MAROON.LOYNO.EDU Loyola University Neiv Orleans Students with loans must soon pay the piper By Ellen Pivach Staff writer BUDGET MATTERS I These totals reflect gifts received for the past 12 months of the 1999-2000 fiscal year, which runs Aug. 1 — July 31. Tuition accounts for only 63% of a Loyola education. There is a j Annual Fund 37% gap between tuition and expenses. Parents and Friends $382,480 1998-1999 tuition made up about 70% of the university's total Alumn', $569,767 revenue, Endowment contributed 18% and 12% came from other j & Organizations sources. Loyola also takes a 10% cut of all cash sales on campus, j Total $i,584,420 Sources: Offices of Student Activities, Business and Finance and loyno.edu/annuaifund/index.html Your tuition dollar at work As Loyola's tuition continues to rise each school year, many undergraduate students find it necessary to take out loans to finance their education. Students may not have to repay their lenders immediately, but finding money for repayment can be a concern after graduation. While in school, some students don't think about their financial situation realistically, according to Cathy Simoneaux, director of Scholarships and Financial Aid. "Students have trouble keeping track of the money they've borrowed and don't think about repaying it in terms of what their career salary is," Simoneaux said. Undergraduates with federal loans have a 10-year period from the government to pay back the money. Simoneaux said most students are able to pay off their debts in this time frame. There are also programs that allow students to extend their repayment period to almost 20 years; but the interest rates are significantly higher. "The government offers a grace period for the first six months |after leaving school) that is interest-free," Simoneaux said. "Students should try to pay off as much as they can during this time." Susan Eccles, history junior, took out loans to pay for her education, but said she isn't worried about repaying them yet. "I'm not concerned about them right now, but 1 know I will be," Eccles said. According to Simoneaux, each student handles his or her loans in a different way. Some fare better than others. "It depends a lot on family background. Some parents prepare their children by teaching them how to budget. Other students have never had to budget themselves," Simoneaux said. "They are less prepared." Students do not have to wait until after graduation to prepare for paying off a loan. Simoneaux said that the best thing for students who have loans or are considering them is to "borrow as little money as possible." Students ought to also consider their starting salaries for the careers they wish to pursue and determine if a loan is realistically repayable. "I hope I'm going to make enough money so that I don't have to worry about it," Eccles said. The three main types of loans taken out by Loyola students are the Federal Parental Loans for Undergraduate Students (PLUS), the Federal Stafford Loans and the Federal Perkins Loans. Once a student is approved and a loan is guaranteed, the lender sends money electronically to the university and the student's account is credited, according to the Office of Scholarships and Financial Aid Web site. The Web site also states that before a school can make a student's first disbursement, it must inform him or her of the full amount of the loan, the interest rate, when the repayment period begins, any list of charges and some other information. Before graduation, the school notifies the student of the amount of total debt, the interest rate, total interest charges and where to send payment. The interest rate for PLUS loans in 2000 is 8.99 percent. Interest rates for Stafford Loans in 2000 are 7.59 percent during school and 8.19 percent in repayment. Simoneaux said the Office of Scholarships and Financial Aid tries to educate students as much as possible about private lenders due to a growth in private loans. "People sometimes pick up the flashiest brochure or one with a familiar name. "We want to make information available so students and parents can compare private loans and see a difference," Simoneaux said. The Office of Scholarships and Financial Aid updated its Web site for the 2000-2001 school year and will continue to do so as new information becomes available. There is more information on the loan programs and payment options on the Web site. "Loans are a necessary evil if attending a private school," Simoneaux said. "Students need to think realistically." www.loyno.edu/financialaid SPECIAL MONEY ISSUE GROWS, ENVELOPES MORE FRIDAY: Lobbying - Part 1 of 4 ofnews series on politics