To the Rescue!!!...
Financial aid can be a frustrating subject for many students, but they can help themselves by taking an active role in managing their applications.
Paul Blake, director of financial aid, said student’s financial eligibility is based on data from their family situation collected by the Fafsa form. Financial aid is based on an individual judgment in regards to family assets, if they have one or two parents, or if they have one or three children in school, he said. A common mistake, he said, is when students do not apply in a timely manner, which will influence how much money they receive.
“If any student turns in a completed form and they are eligible for financial aid by April 15, they are guaranteed to get the money,” Blake said. “By waiting until June or July to turn in their paperwork students are putting themselves at a disadvantage, once the money runs out it is gone. The money is distributed on a first-come basis.”
Veronica Camarilo, a lead account processor at the Financial Aid Office, said the most common problem students have in regards to financial aid is not understanding what they are actually receiving in their award package. A lot of the information is not clear on Techsis, she said, so it would be in the student’s best interest to come into the
Financial Aid Office so they can have the package explained and broken down for them.
Blake said 24,000 students applied for financial aid last year, with 15,000 students choosing to receive the money and loans. The financial aid office communicates with students through their Texas Tech University email accounts, he said, some students do not read their email on a regular basis and it is often to late for them to receive any money by the time they do. It would be beneficial for students to respond and take care of the issues that are addressed in the email immediately, he said.
The average undergraduate will graduate from Tech with an average debt of $17,000, Blake said. The standard amount of time it takes to pay off the loan is ten years, he said, however, federal loans can be consolidated and can be paid off in 30 years, which he said he does not recommend.
If the student chooses to pay back the $17,000.00 loan over a 10-year period at an interest rate of 7.5 percent, they will pay back a total of $42,788.33. This price includes interest in the amount of $25,788.33. They will make 359 monthly installment payments of $118.87 and one final payment of $141.
If the student chooses to pay back the $17,000.00 loan over a 30-year period at an interest rate of 7.5 percent, they will pay back a total of $42,788.33. This price includes interest in the amount of $24,215.20. They will make 119 monthly installment payments of $201.79 and one final payment of $202.28. The total payment for a 10-year loan is $24,215.29 and $42,788.33 for 30 years.
With 55 to 60 percent of students taking out loans, it is important to submit applications early, Blake said. Students need to be diligent and check on their financial aid, the department wants to help students but they need enough time, he said.