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Financial Glossary


 


 

Alternative Student Loans for College Financial Aid

 

Private Student Loans

In this day and age there is a variety of different types of financial aid options that are available to you. In this regard there are both need based financial aid options (including student loans, grants and scholarships) as well as non-need based financial aid options (also include private loans, grants and scholarships). Through this informational article you are provided with an overview and a comparison of non-need based alternative loans for higher education.

The first step that you should take in the federal financial aid process is determining what you might qualify for in the way of need based options. In this regard, there are some elements of the need based financial process that you need to be familiar with. Through this article, you are provided with an overview of this process and the different elements of the process as established by the U.S. Department of Education.

Need
The difference between the COA and the EFC is the student's financial need -- the gap between the cost of attending the school and the student's resources. The financial aid package is based on the amount of financial need. The process of determining a student's need is known as need analysis.
Need Analysis
The process of determining a student's financial need by analyzing the financial information provided by the student and his or her parents (and spouse, if any) on a financial aid form. The student must submit a need analysis form to apply for need-based aid. Need analysis forms include the Free Application for Federal Student Aid (FAFSA) and the Financial Aid PROFILE.
Need-Based
College Financial Aid that is need-based depends on your financial situation. Most government sources of financial aid are need-based.
Need-Blind
Under need-blind admissions, the school decides whether to make an offer of admission to a student without considering the student's financial situation. Most schools use a need-blind admissions process. A few schools will use financial need to decide whether to include marginal students in the wait list.
Once you determine what you may (or may not) qualify for in the way of need based student financial aid, you can next more on to consider what you should try and obtain through private student loans. You need to keep in mind that a need based student loan will carry a lower interest rate than will a private student. Therefore, it makes economic sense to fully ascertain what you will be able to obtain in the way of need based financing before you more onward to obtaining private student loans to round out your educational financing needs.


Copyright 2014