Government Assistance Available for Schooling
So, you have decided on your college. The programs they offer are exactly what you are looking for, the location is perfect, and the faculty is top-notch. The only thing left to figure out is how you are going to pay for your education. There are in fact, several ways to do so. You could opt for self-funding or assistance that is privately funded or government aided.
Government funding is available to college-bound students who are looking for assistance with their schooling costs. The government has set up several federal and state aid programs that offer billions of dollars each year to students in need. Of this, nearly 70% of all student financial aid is provided by the Federal Student Aid (FSA) program of the U.S. Department of Education. Financial aid that is government backed comes in three forms - grants, loans, or work-study.
A grant is a form of funding that does not need to be repaid. This money can be used for tuition, room and board, books, and other school expenses. You could visit studentaid.ed.gov for more information on the different types of grants available and the eligibility criteria for each.
Student loans can be subsidized or unsubsidized. While you are in school, the interest on subsidized loans is paid by the government. This can often be extended to post completion of your education as well with some loans. With unsubsidized loans you, the student, have to pay the interest. Qualifying for either type of loan would depend on your needs and financial status.
A work-study program will allow your tuition to be deferred if you plan to work while attending school.
The government also offers campus-based financial aid for college students such as the Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS), and Federal Perkins Loan programs. These are administered directly by the financial aid office at respective participating schools. Not all colleges participate in all three programs so please check with the financial aid office at your college to find out which programs are available.
There are a number of factors that will determine the amount of aid you will receive from each of these programs. These include your financial need, any other aid you are receiving, and the availability of funds at your college or school. Campus-based programs provide only a specific amount of funds for each participating school to administer each year. Thus, once the money for a program is finished, the school can no longer hand out any more awards from that program for the rest of the year. In lieu of this, ensure that you apply for federal student aid as early as you can. Each school has its own timeline for campus-based funding so check in advance to avoid any disappointment.
The Federal Supplemental Educational Opportunity Grants (FSEOG) are available for undergraduates who prove their exceptional financial need. Federal Work-Study (FWS) aims to provide part-time jobs to undergraduate and graduate students in need. This allows them to earn money to offset their educational expenses. A Federal Perkins Loan offers a low-interest (5 percent) loan for students in need of financial assistance. These are made through the financial aid office of your school and the repayment of the loan has to be made through your school as well.
In addition to the Perkins Loans, the USDE has the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Schools normally participate in either of the programs and only sometimes in both. With the Direct Loan Program, your loan funds come from the federal government. With an FFEL, funds come from a bank, credit union, or other lenders. The repayment plans for both programs differ, though eligibility rules are identical. Both these programs consist of Stafford Loans (for students) and PLUS Loans for parents.
Stafford loans are expected to be paid back when the student has completed his or her education. They have a lower interest rate than normal bank loans. Your parents can borrow a PLUS Loan to help pay for your school expenses. To qualify, you have to be a dependent undergraduate student enrolled in an eligible program for at least half-time at an eligible school. Your parents will also need to prove an acceptable credit history to be eligible for a PLUS loan.
To apply for government financial assistance, you need to fill out a free application called the FAFSA (Free Application for Federal Student Aid). The USDE will then evaluate this form after it has been completed and submitted and send a report to the student indicating what types of financial aid for college are available for him or her.
There are ways and means to pay for your college education. At the end of the day, it comes down to persistence and commitment and the desire to achieve more. Paying off your student loan will never be an easy task, but for most students who choose to save to see themselves through college, the benefits they receive after earning their degrees are worth the sacrifices they made to pay for it.