Edulantern.com - The cost of college has risen so high which increasing at 6 percent a year. More and more, the ability to go to college depends on how much financial aid you can get. Financial aid is a broad term encompassing all the different ways to pay for higher education. Financial Aid falls into three broad categories: Scholarships and Grants, Federal Student Loans, and Private Student Loans.
This form of financial aid is the best one among the other categories, because you never have to repay the money you receive. Scholarships usually are awarded based on demonstrated financial need or applicant's merits, while grants are awarded based on field of study or focus.
2. Federal Student Loans
Federal Student Loans are student loans that are backed by the U.S. Government. Typically, they have lower interest rates and more flexible repayment plans than private student loans. There are two types of this loans: subsidized and unsubsidized. Subsidized loans are awarded based on financial need, don’t accrue interest while you’re in school while unsubsidized loans are not need-based and accrue interest while you’re in college.
3. Private Student Loans
Just like Federal Student Loans, this form of financial aid must be repaid for certain period. Private Student Loans have variable interest rates and usually have less favorable terms than federal student loans. They are backed and issued by private companies. If you’re considering private loans, contact your college’s financial aid office to get more information. Many schools work with a preferred lender to get special interest rates.
Now that you know all the types of financial aid info you need, it’s your turn to uncover which opportunities are right for you. Here we give you some Useful Tips to Get Financial Aid for College:
EFC stands for Expected Family Contribution and is the number that drives the need-based financial aid system. You only eligible for need aid (subsidized student loans, grants, work study) if your EFC less than cost of attendance. If your EFC is more than the highest cost college on your list, plan to apply for aid.
2. Contact the college financial aid counselor
An important note about financial aid offices: your college’s financial aid office is one of the best, most underutilized resources for finding information about all types of
financial aid.
3. Fill out the FAFSA
Free Application for Federal Student Aid (FAFSA) is a form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the US to determine their eligibility for student financial aid. Filling out the FAFSA is relatively easy as long as you’ve done your taxes. You can do it online (www.fafsa.ed.gov) and complete the worksheet before entering your numbers.
4. Meet the deadlines
When should you file your application form? As early as possible. Every college has a limited aid budget, and when the dollars run out, they stop giving aid. Also, the opening date for turning in the FAFSA has been moved up, and it's important to get that thing in within about a month of opening day. If you plan to start college in the fall of 2019, that means turning in the FAFSA starting Oct. 1, 2018.
5. Make sure the school/college knows about all special circumstances
Besides the volumes of information the FAFSA asks for, you can also include a letter explaining your family's circumstances — in many cases, you should. For instance, if you have a disabled sibling who needs expensive care, or another challenging circumstance, let the school know so it can take that into account when calculating your family's ability to pay.
What is Financial Aid?
1. Scholarships and GrantsThis form of financial aid is the best one among the other categories, because you never have to repay the money you receive. Scholarships usually are awarded based on demonstrated financial need or applicant's merits, while grants are awarded based on field of study or focus.
2. Federal Student Loans
Federal Student Loans are student loans that are backed by the U.S. Government. Typically, they have lower interest rates and more flexible repayment plans than private student loans. There are two types of this loans: subsidized and unsubsidized. Subsidized loans are awarded based on financial need, don’t accrue interest while you’re in school while unsubsidized loans are not need-based and accrue interest while you’re in college.
3. Private Student Loans
Just like Federal Student Loans, this form of financial aid must be repaid for certain period. Private Student Loans have variable interest rates and usually have less favorable terms than federal student loans. They are backed and issued by private companies. If you’re considering private loans, contact your college’s financial aid office to get more information. Many schools work with a preferred lender to get special interest rates.
Now that you know all the types of financial aid info you need, it’s your turn to uncover which opportunities are right for you. Here we give you some Useful Tips to Get Financial Aid for College:
5 Successful Tips to Get Financial Aid for College
1. Know your family's EFCEFC stands for Expected Family Contribution and is the number that drives the need-based financial aid system. You only eligible for need aid (subsidized student loans, grants, work study) if your EFC less than cost of attendance. If your EFC is more than the highest cost college on your list, plan to apply for aid.
2. Contact the college financial aid counselor
An important note about financial aid offices: your college’s financial aid office is one of the best, most underutilized resources for finding information about all types of
financial aid.
3. Fill out the FAFSA
Free Application for Federal Student Aid (FAFSA) is a form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the US to determine their eligibility for student financial aid. Filling out the FAFSA is relatively easy as long as you’ve done your taxes. You can do it online (www.fafsa.ed.gov) and complete the worksheet before entering your numbers.
4. Meet the deadlines
When should you file your application form? As early as possible. Every college has a limited aid budget, and when the dollars run out, they stop giving aid. Also, the opening date for turning in the FAFSA has been moved up, and it's important to get that thing in within about a month of opening day. If you plan to start college in the fall of 2019, that means turning in the FAFSA starting Oct. 1, 2018.
5. Make sure the school/college knows about all special circumstances
Besides the volumes of information the FAFSA asks for, you can also include a letter explaining your family's circumstances — in many cases, you should. For instance, if you have a disabled sibling who needs expensive care, or another challenging circumstance, let the school know so it can take that into account when calculating your family's ability to pay.
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