Wednesday, 3 February 2010 09:02
Hi everyone! Some of you may be in the process of deciding which college you'd like to go to this upcoming fall. This also means you're probably thinking about finances and how you and/or your parents will pay for schooling.
For those who qualify, the federal government provides financial aid to assist in paying for college expenses. This includes the Pell Grant, Perkins Loan, Stafford Loan and work-study programs. A Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded to undergraduate students who have not earned a bachelor’s or a professional degree. These are given based on need.
The Perkins Loan is a need-based, low-interest loan given to students, not their parents. The student is held responsible for the repayment of this loan. Repayment does not begin until after the student graduates, becomes less than a half-time student, or leaves college. After graduation, the student typically has nine months before interest begins to accrue. The loan must be repaid within 10 years.
The Stafford Loan is also a need-based loan given to students rather than their parents. The amount of the Stafford Loan is determined from the family’s expected contribution. Repayment is not required until after graduation; however, if the loan is unsubsidized interest will accrue before graduation. Subsidized Stafford Loans do not accrue interest until after graduation.
Federal Work-Study programs provide part-time jobs for students with financial need. This allows them to earn money to help fund their education expenses.
Applying for federal financial aid is free and can be done online. Submit the Free Application for Federal Student Aid (FAFSA) online at http://www.finaid.org/fafsa/fafsa.phtml. Before beginning the application process, check out www.finaid.org to gather information on the options available, what is required, and application deadlines.
Have you looked into Financial Aid before? Can you offer any tips to the other readers of this blog?
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