With rising costs of tuition, college financial aid is more and more important for students wishing to continue their education. College financial aid comes in many forms and a student's past performance and financial needs will determine how much aid they receive.
Types
There are several types of college financial aid programs available for qualifying students. The basic loans include Stafford Loans (subsidized and unsubsidized), Perkins Loans and PLUS Loans. These loans are often based on a student's financial needs. Other then the three basic loans, there are federal and state grants available as well as scholarship and institutional awards. These may be based on need and a student's grades and academic performance. There are also scholarships and awards based on a person's heritage, field of study and other factors. Several colleges also have work-study programs and payment plan options for you to choose from.
Types
Almost all high schools and colleges offer a form called a FAFSA, or Free Application for Federal Student Aid. If you can't find one at your school, you can download a copy from the Internet for free. This application will decide what each student will qualify for. Deadlines depend on the school, but they usually follow the same time frames. For students entering college for the fall semester, the FAFSA should be done by February. For returning students, applications should be done around March if applying for aid for the following fall. For students who are entering spring sessions, application should be done by December. The FAFSA has a list of deadlines and instructions on the application for exact dates regarding your state and school of choice.
Features
Subsidized Stafford Loans are strictly based on financial need. The government pays the interest of the loan while you are in school, during a grace period after leaving school and during the deferment periods. Unsubsidized Stafford Loans are not based on financial need. Therefore, the government will not pay the interest. However, the student may defer interest payments until repayment begins. A Perkins Loan is a low-interest rate, long-term loan which will help pay for any expenses you accrue during your education. These are given based on need through the college of your choosing. For eligibility you must be enrolled at your school full-time. PLUS Loans are loans given to parents with outstanding credit history for the use of paying for educational expenses. The student must be a dependent enrolled at least part-time in the college of their choice as long as it is pre-approved.
Federal grants are types of college financial aid that do not need to be repaid. Federal grants have very strict eligibility requirements that must be followed or the grant will be canceled. In most cases, students must be enrolled at least 12 credit hours to be eligible for these grants. State grants are based upon need and each state has their own set of rules regarding requirements. To find out what the requirements are, you can visit your state's website regarding state grants. Other types of college financial aid such as scholarships and institutional awards are strictly based on following certain criteria. You may apply for scholarships through your high school or through the college or university of your choice.
Finally, some colleges have federal work-study programs which provide part-time employment for students in financial need. This is strictly based on your FAFSA results and will be offered to you if you qualify. Employment positions can be offered on school premises or off campus. Payment plans vary from school to school. If you are interested in setting up a payment plan, you will need to do it through your college's financial aid department. Payments can be set up based on need and eligibility.
Identification
Applying for student aid can be very overwhelming. There are so many different types of college financial aid out there you may not know where to start. The best direction to go in is to first fill out a FAFSA. After you've filled out your FAFSA, you will be guided in the right direction. The FAFSA will direct you in identifying which college financial aid program would be best for you.
Warning
The most important thing to remember about getting a loan is to read the small print. Make sure you are able to pay back what you owe and try not to borrow more than you can afford to pay back. The loans come due six months after graduation and the interest accrues even if you are in deferment.
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