You Can Afford to Go To College And Get an Education
If you are one of those that believe a college education is out of your reach, you really need to think again. A tremendous number of financial aid resources can help fulfill your dream of a college degree a reality. The key is educating yourself about the financial aid programs and the process you need to take to obtain them.
Start with familiarizing yourself with some of the most common kinds of financial aid. There are two basic categories; gift financial aid assistance in the form of scholarships and grants; and self help financial aid assistance in the form of college student loans and work study programs. Financial aid assistance can be federal or campus based. Most college students use a combination of the two.
How do you Apply for Financial Aid Assistance?
If you are in need of Uncle Sam or your college to help you pay for your education, you will have to complete the Free Application for Federal Student Aid (FAFSA). When a college has accepted you, they will use this application to put together a personalized Financial Aid Package.
Once you have received your financial aid assistance award letter and have made your decision about which school you will attend, you can accept the financial aid offer as is, reject it entirely, or accept some features and reject others. You can also request a reevaluation of the financial aid package.
Why Types of Financial Aid Are Offered
Federal and campus based college student financial aid consists of:
• grants, free money that does not need to be paid back
• college student loans, which allow you to borrow money for school under federal aid loan programs
• work study programs, which allow you to earn money while attending school.
Grants
• Federal Pell Grants are based on a combination of financial aid need, college costs, and your enrollment status (full or part time). Pell Grants will not have to be paid back.
• Federal Supplemental Educational Opportunity Grants (FSEOG) are campus based grants awarded to college students with exceptional need. They range between $100 and $4,000 per year and do will not need to be paid back.
Loans
The US Department of Education administers Stafford College Student Loans and Federal Perkins College Student Loans (for students), and PLUS Loans (for parents of the college student). Some college student loan funds come directly from the federal government and others will come from a bank, credit union, or other lending institution.
1. Stafford College Student Loans can be subsidized or unsubsidized. You can receive both types of Stafford College Student Loans for the same school year, but the total is limited based on what year you are in and whether you are a dependent or an independent college student. The interest rate on Stafford College Student loan will never exceed 8.25%.
2. PLUS Loans will allow a parent with good credit to borrow money at a favorable interest rate to help pay for there students educational. PLUS Loans are limited to your cost of attending college minus your other financial aid assistance. They are not based on financial aid need.
3. Federal Perkins College Student Loans are campus based, low interest, fixed rate college student loans of up to $4,000 per year for those with exceptional financial aid need. As long as you are attending school at least half time, you will not have to begin repayment for nine months after you have graduated, leave school, or drop below half time status. No interest will be charged until repayment has begun.
4. Private College Student Loans are obtained from a private lender or financial institution for college costs not covered by federal and campus based financial aid. They will usually include higher interest rates than federal student loans and they do not require federal forms (FASFA).
