Federal College Loan Interest Rate Doubled, But Its Not Too Late To Lower Your College Bill

Interest rates on federal Stafford loans DOUBLED as of July 1, significantly increasing the future cost of college for students across the country. One organization calculated that this could add $5,000 to the final tabs of students just starting college. But if you haven't taken the S.A.T. for the final time yet, it’s not too late to save potentially tens of thousands of dollars in college tuition. Here's how to do it.1. Get More Merit Money by Raising Your S.A.T. Score

One of the best ways to get substantial scholarship money that will be renewed each year is to earn high S.A.T. scores and be awarded Merit Scholarship money by your college.  Many colleges have charts that indicate how much Merit Scholarship money a student will get based on his or her S.A.T. scores.  Colleges look at this as a fair way to allocate scholarship money, since students are taking the same test.  So a little (or even more than a little!) S.A.T. preparation can pay huge dividends! My own daughter gave up her job at Starbucks one summer to prepare for the GRE (graduate school version of the S.A.T.) and ended up with a score that earned her a full scholarship to Duke University.....which was WAY more money than she would have earned making frappes all summer! So prep diligently on your own, or visit www.SATsmart.com for a list of local prep courses.2. Apply for Scholarships at Your College and with Local Organizations To get more scholarship money and have less need for loans, some of the best places to start are at the college you plan to attend and with groups right in your hometown. Most colleges have a list of scholarships that they offer each year.  Some require an essay, some require a commitment to community service, some are only available to students with a particular major....all students should check with their financial aid office to be sure they are aware of any that might be available to them.  Likewise, many communities have local organizations that provide scholarship money to graduating high school students to be used for college.  (e.g. Rotary, Kiwanis, Lions, Knights of Columbus, Chamber of Commerce)  There are usually applications for all of these local scholarships right in the guidance offices of the local high schools. Many of these organizations likewise consider S.A.T. scores in making their selections -- yet another reason to boost your score this summer! It can pay huge dividends.