Do you need help paying for your college education? You may be eligible to get financial aid or a scholarship.
An academic financial aid is funding intended to help students pay for their education expenses like tuition and fees, room and board, books, supplies and a whole lot more for education in colleges, universities and private schools. Financial aid basically helps make up for the difference of what your family can pay for and what college actually costs. Should you feel like it is a bit of a challenge to get financial aid, scholarships, loans and grants, then the following details about such might be of help.
Those who came up with the financial aid system believed that all students should be able to attend college, regardless of the family’s financial situation. The idea is if your family cannot afford to pay for your college, the government will assist you through scholarships, grants and loans.
The student loan is a form of financial aid that must be repaid with interest. There are three major categories for education loan:
- Student Loan – where in students rely on federal government loans to finance for their education. This type of loan has low interest rate and usually does not require credit check or any collateral. They also offer a variety of deferment options and extended repayment terms. The student loan includes the Federal Stafford and Federal Perkins Loans.
- Parents Loan – The federal Parents Loan for Undergraduate Students or PLUS allows parents to loan money to pay for costs not covered by the student’s financial aid package where there is no cumulative limit. The Parent PLUS loan is the sole responsibility of the parents and not the student. Should the student agree to pay for the PLUS loan but fails to do so, the parents will be held responsible for it. This type of loan is now known as the Parent PLUS or Grad PLUS loan.
- Private Education Loans – also known as the Alternative Education Loans helps cover the difference between the actual cost of a student’s education and the limited amount the government allows students to borrow in its programs. This type of loan is offered by private lenders and there are no federal forms to complete for it. The eligibility for private loans usually depends on the credit score of the borrower.
Since July 2010, all new federal education loans have been made through the Direct Loan Program and these loans are coursed through the college’s financial aid office with funds provided for by the U.S. Department of Education. This is for the Federal Parents PLUS Loans and the Student Loans.
These are the types of academic financial aid that you can choose from and the education loans offered depend on the student’s level of study. Whatever type of academic financial aid you will choose, it will definitely be of big help in paying for your college education.
Getting a grant is very helpful because this would mean you wouldn’t have to pay anything back to the federal government. The federal government gives out money to foundations to pay for those who are in need of financial assistance.