The Lowdown On Student Financial Aid
"Student financial aid has been expanded for the neediest students"
Unless you’re rich, getting student financial aid may be the only option in getting the money to attend an college. The good news is that with the advent of the internet, locating sources of funding has become alot easier.
It doesn’t matter if you’re planning to attend an online school. As long as your your school is accredited, you’ll be able to access financial assistance.
Of course, it would be best to get a scholarship that doesn’t have to be repaid. However, getting such an award is extremely competitive and most students take out student loans or get federal grants.
Unfortunately, the large network of student financial aid and the poor financial advice many students get, have resulted in they getting burdened with more debt than is necessary.
The following Q&A however, will help to clear up some key issues surrounding college financial aid and help keep students’ debts down.
Q: What are the main student financial aid options?
A: There are employer tuition assistance programs, Federal and State student aid, scholarships, self-financing, assistance from friends and family, private loans, loan forgiveness schemes and tax breaks.
Q: Where should I first go to find out about student financial aid?
A: Without a doubt, FAFSA (Federal and State Student Aid) should be your first stop for college financial aid. It is perhaps the quickest way to get college financial aid. The US government provides aid on more favorable terms than those provided by private institutions.
Q: What are the basic eligibility requirements for college financial aid?
A: US citizens and eligible non-citizens who can demonstrate financial need (except when applying for some loans) and have certain post-secondary qualifications.
Many people don’t apply for Federal aid because they think they aren’t eligible. The truth is that they might be and since filling out a FAFSA is free, there is nothing to lose. This great source also offers college financial aid for immigrants.
Q: How do I apply for Federal College Financial Aid?
A: You can get the college financial aid application form at FAFSA.
For the 2007-2008 academic year, you need to submit your application between January 1, 2007 and June 30, 2008. Your college must have your correct, complete information by the last day of enrollment in the 2007-2008 academic year.
Q: What are the chief grants and loans on offer?
A: The chief Federal student financial programs are the Pell Grant, which doesn’t have to be repaid and the Stafford loan, which must be repaid.
Q: I’ve borrowed all I can from the Federal programs and my parents - can I get student financial aid elsewhere?
A: Loans from private institutions are an option. Colleges have a list of preferred lenders who offer lower rates and clearer loan policies than external lenders.
Be careful with external lenders that offer very attractive rates initially. After a while, the rates may increase and your debt could balloon out of control. Seek the help of a qualified professional to advise you on the best loan option.
Another option is your parents may be able to borrow money through the Federal Plus loan program.
Q: How to get the most college financial aid?
A: Ideally, you should borrow as little as possible. It is important to draft a budget so that you know how much to borrow without overspending. In this way, your debt repayments will be limited and you’ll be able to save more early on in your career. The rule of thumb is not to borrow more than your expected first annual salary.
Q: Do I need to pay for information on where to get student financial aid?
A: No! You can get free information on Federal and Non-Federal loans and scholarships. Nonetheless, there are reputable private scholarship search services available.
Stay away from potentially scam scholarship search services. Check with your State Attorney General’s office or Better Business Bureau to verify that the service you’re going to use is legitimate.
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