By MELISSA WALKER

Staff Writer

If a good time to take out a loan for school is possible, the time is now.

Student loan interest rates have lowered this year. Roger Vick, director of financial aid, said this will add to the appeal of the popular means of financing significant costs, such as college tuition.

Actual loan recipients break the stereotypical mold.

"Loans are not tied to an income level," Vick said. "A lot of families do not want to break their lucrative banking funds that they are earning interest on. The solution is to take out a loan."

According to an article posted on CNN.com June 2, the upper-middle class families are finding they are paying more for college than lower income families. This can be explained by the amount of scholarships and grants given to students through financial aid.

In contrast to the article, the higher income families have to pay more for college. These high income families, whose average income is said to be $124,600, do not necessarily have the funds to support the full tuition amount.

Vick said, "These high income families, in addition to some lower income families, are turning to loans."

The Federal Stafford Loan interest rate is set for 2.77 percent for the 2004-2005 school year.

"This is relatively low and attracting more and more families to seek loans as an option," Vick said.

Aimee Baxter, an assistant director of student financial aid, said loans are a good investment.

"Interest rates are down, and tuition prices are up. I would guess that over 50 percent of Tech students are here on loans," Baxter said.

There were 6,932 loans awarded to students for the year 2002-2003. It totaled over $20 million, according to Louisiana Tech Financial Aid office.

Alicia Ball, scholarship coordinator, said loans are prominent on campus due to scholarships being awarded for academics.

Students who do not qualify for academically based financial aid can look to grants. These students can use the Free Application for Federal Student Aid form.

Baxter said receiving loans is difficult for most students.

"Normally, low income students do not even qualify for the loans," Baxter said. "Unlike the stereotype would imply, low income families are actually the minority rather than the majority in taking out loans."

Vick said now may be a good time to take out a loan, but students still have to pay it back.