Lil Spears Gets Her GED

Jamie Lynn Spears isn’t going to let a pregnancy stop her from heading to college.  The 16 year-old star of Zoey 101 recently passed her GED and friends say that college is in her future. "She's already got her diploma. She wants to take her ACT. She's not wasting any time," a friend of the Nickelodeon (VIAB) star told People.com. "People don't know her. When she gets something in her head, she'll make it happen. Everybody is so supportive of her."

Jamie Lynn, who is pregnant with boyfriend Casey Aldridge’s baby, reportedly passed her high school equivalency exam with particularly high scores in reading comprehension. Jamie Lynn has said she would like to stay in her home state, Louisiana, to complete an advanced degree. "I haven't thought anything about what I might study. I'll have to look more into that. But if I went anywhere, I think it would be fun to go to LSU."

Now, with a new baby on the way, she may want to think about what college will cost her. Okay, so Jamie Lynn probably has enough money stashed from her television career, but her reality is not the same for most teens. Approximately 80% of undergraduates receive some sort of tuition assistance for college. And the cost of tuition at both public institutions like Louisiana State University, and private universities, is rapidly on the rise. That is why understanding your student loan options, is important for all future college students.

Beth Guerard, a spokesperson for Sallie Mae (SLM), the nation’s leading student loan company, says that finding the right way to pay for school “is as easy as get[ting] the cheapest money first.”  Families should first look for money in scholarships and grants. Then they should explore federal student loans. And, finally, after those resources have been tapped, they can fill any gaps with private loans. 

There are a variety of loan options available to students and their parents. The government offer loans called Stafford loans and PLUS loans; Stafford loans are to students and PLUS loans are to parents. Stafford loans are available to both graduate and undergraduate students, although the amount dispersed is limited, and depends on grade level in school, and the dependency status of the student.  For parents, however, the PLUS loan has no dollar-amount limit. The loan is simply determined by the cost of attendance at the student's school subtracted by any other aid received by that student.

Any government-subsidized loans generally have below-market interest rates and more flexible repayment options, says Guerard. These loans provide consumer-friendly loan rates, benefits, and repayment options for students and parents. “After you've pursued free and federal money, private loans can help cover any remaining unmet need for college,” she says.  Private loans are offered through most banks and credit unions, all with different requirements and features.  

Through companies like Sallie Mae people can take out private student loans like the Signature Student Loan and Tuition Answer Loan.  These provide people with funding beyond what is allotted from the government.  The Tuition Answer Loan allows people to borrow as much as $40,000 while the Signature Student Loan allows students at community colleges to borrow as much as $50,000, and undergrads at four-year schools to borrow up to $100,000.

It is important to remember that all the loans, both private and federal, must be paid back. Jeffrey Coghan, assistant vice president at The Hartford (HIG), says that in order to avoid heavy debt come graduation, it is a good idea to start saving before college.  “People get into trouble because they think of financial aid as ‘free money’ but if as a parent you are not doing something to save for your children’s education early, then you are falling behind,” says Coghan. Guess that means Jamie Lynn should be starting two college funds.