Financial
Aid Overview
Most student financial aid comes from federal government
programs, which the U.S. Department of Education's Federal
Student Aid (FSA) office administers.
Financial aid provides help if you're enrolled in an eligible
program as a regular student at a school participating
in our federal student aid programs.
Federal aid covers school expenses, including tuition
and fees, room and board, books and supplies, and transportation.
Student Aid can also help pay for a computer and for dependent
care.
There are three categories of federal student aid: grants,
work-study, and loans. Check with your school to find
out which programs your school participates in.
How do you apply for federal student
aid?
Complete the Free Application for Federal Student Aid
(FAFSA)—the online version (FAFSA on the Web) or
the paper FAFSA. For more information on applying, click
here.
For FAFSA on the Web, go to www.fafsa.ed.gov (or to www.studentaid.ed.gov
and get general student aid information as well). Using
FAFSA on the Web is faster and easier than using paper.
Please see our information on Federal
Pell Grants
For a chance to win free money for
college, register for our $5,000 Semi-Annual scholarship
contest!
www.FreeScholarshipGuide.com
offers the largest scholarship
directory online and offers an opportunity to win
free money for college to help supplement financial aid,
grants, reduce student loans or to add to an existing
scholarship. |
| |
| |
| |
Financial
Aid Eligibility
An education loan is a form of financial aid that must
be repaid, with interest.
(Scholarships
on the other hand, do not have to be repaid.)
Eligibility for federal student aid is based on many factors,
but primarily on financial need. We suggest contacting
the financial aid administrator at the college or career
school you plan to attend will determine your eligibility.
To receive student aid from federal programs, you must
qualify for financial need (except for certain loans)
and meet the following requirements:
|
Have a high school diploma
or a General Education Development (GED) certificate,
pass a test approved by the U.S. Department of
Education, meet other standards your state establishes
that the Department approves, or complete a high
school education in a home school setting that
is treated as such under state law.
|
|
Be working toward a degree or certificate
in an eligible program. |
|
Be a U.S. citizen or eligible non-citizen.
|
|
Have a valid Social Security Number
(unless you're from the Republic of the Marshall
Islands, the Federated States of Micronesia, or
the Republic of Palau).
|
|
Register with the Selective Service
if required. You can register at www.sss.gov. |
|
Maintain satisfactory academic progress
once in school. |
|
Certify that you are not in default
on a federal student loan and do not owe money
on a federal student grant. |
|
Certify that you will use federal
student aid only for educational purposes. |
Please refer to the Free Application for Federal Student
Aid website at www.fafsa.ed.gov
Please refer to the Financial
Aid Overview section for more information
For a chance to win free money for
college, register for our $5,000 Semi-Annual scholarship
contest!
Remember to investigate scholarship opportunities in your
area. See our Finding
Out about Scholarships for tips!
www.FreeScholarshipGuide.com
offers the largest scholarship
directory online and offers an opportunity to win
free money for college to help supplement financial aid,
grants, reduce student loans or to add to an existing
scholarship. |
| |
|
|
| |
Federal
Pell Grants
A Federal Pell Grant, unlike a loan, does not have to
be repaid. Pell Grants are awarded usually only to undergraduate
students who have not earned a bachelor's or a professional
degree. Pell Grants are considered a foundation of federal
financial aid, to which aid from other federal and nonfederal
sources might be added.
How
much can I get?
Pell Grant amounts for the 2005-2006 award year (July
1, 2005 to June 30, 2006) will range from $400 to $4,050.
How much you get depends on your Expected Family Contribution,
your cost of attendance, whether you're a full-time or
part-time student, and whether you attend school for a
full academic year or less. You may receive only one Pell
Grant in an award year, and you may not receive Pell Grant
funds from more than one school at a time. See http://www.fafsa.ed.gov for more information.
If
I am eligible, how will I get the Pell Grant money?
Your school can apply Pell Grant funds to your school
costs, pay you directly (usually by check), or combine
these methods. The school must tell you in writing how
much your award will be and how and when you'll be paid.
Schools must disburse funds at least once per term (semester,
trimester, or quarter). Schools that do not use semesters,
trimesters, or quarters must disburse funds at least twice
per academic year.
Please also see our information about General
Scholarship Information as well as our Financial
Aid Overview section for additional information.
Register with FreeCollegeScholarshipGuide.com
to win $5,000!
www.FreeScholarshipGuide.com
offers the largest scholarship
directory online and offers an opportunity to win
free money for college to help supplement financial aid,
grants, reduce student loans or to add to an existing
scholarship.
Perkins
Loans and Stafford Loans
What
is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest loan for both
undergraduate and graduate students with financial need.
Your school is your lender. The loan is made with government
funds with a share contributed by the school. You must
repay this loan to your school.
Is
there a charge for this loan?
A Perkins Loan borrower is not charged any fees to take
out the loan. However, if you skip a payment, make a payment
late, or make less than a full payment, you might have
to pay a late charge.
How
will I be paid?
Your school will either pay you directly or credit your
account. Generally, you'll receive the loan in at least
two payments during the academic year.
When
do I pay back this loan?
If you're attending school at least half time, you have
nine months after you graduate, leave school, or drop
below half time status before you must begin repayment
(you may have longer than nine months if you are on active
duty with the military). If you're attending less than
half time, check with your financial aid administrator
to determine your grace period. At the end of your grace
period, you must begin repaying your loan. You may be
allowed up to 10 years to repay.
What
is a Stafford Loan?
It’s a loan made under the Federal Family Education
Loan Program (FFELP) to an eligible student. The interest
on the loan may be subsidized by the federal government
or unsubsidized.
The Stafford Loan program is by far the most popular form
of financial aid offered in FFELP. It is available to
both undergraduate and graduate students.
This is a form of financial aid that must be repaid. Currently
Stafford loans are experiencing historically low interest
rates, but this program has a cap so that the interest
rate can never exceed 8.25%.
Subsidized
and Unsubsidized Stafford Loans
There are two categories of Stafford loans: subsidized
and unsubsidized. The difference between the two is the
amount of interest you pay on the loan.
Subsidized loans are those loans for which the government
pays the daily interest your loan builds while you are
enrolled on a half-time or greater basis and during any
approved periods of deferment or forbearance. The government
distributes subsidized loan amounts based on financial
need.
Unsubsidized loans are those loans for which you, the
borrower, have to pay all accrued interest. The government
does not offer any assistance relating to interest payments
for unsubsidized loans.
How
will I be paid?
Your school will disburse your loan in at least two installments;
no installment will be greater than half the amount of
your loan. If you're a first-year undergraduate student
and a first-time borrower, your first disbursement can't
be made until 30 days after the first day of your enrollment
period.
Whatever your loan type, your loan money must first be
used to pay for your tuition, fees, and room and board.
If loan funds remain, you'll receive them by check or
in cash, unless you give the school written permission
to hold the funds until later in the enrollment period.
How do I Apply?
| 1. |
The first step to finding
out whether you qualify for a Stafford loan or
not is to complete the Free Application for Federal
Student Aid (FAFSA ) . See http://www.fafsa.ed.gov for more information.
The results of your application will tell you
whether you qualify for a Stafford and what your
loan limits are.
|
| 2. |
Once you know that you qualify for
a Stafford, the next step is to apply for one.
Luckily you can apply for a Stafford loan online,
and if you have your Personal Identification Number
(PIN) from the Department of Education, you can
sign your application electronically as well,
speeding up the processing time even more. |
When do I pay back my Stafford
Loans?
After you graduate, leave school, or drop below half-time
enrollment, you will have a six-month "grace period" before
you begin repayment. During this period, you'll receive
repayment information, and you'll be notified of your
first payment due date. You're responsible for beginning
repayment on time, even if you don't receive this information.
Payments are usually due monthly.
How
do I pay back my loans?
You’ll repay your FFEL Stafford Loan to a private
lender. You’ll repay your Direct Loan to the U.S.
Department of Education’s Direct Loan Servicing
Center. Both the Direct Loan and FFEL programs offer four
repayment plans you can choose from, but the terms differ
slightly. You will receive more detailed information on
your repayment options during entrance and exit counseling
sessions your school will provide. To read more now about
repayment plans under both programs, go to the Repaying
section of this Web site. |
| |
| |
| |
|
|
