Financial Aid

Obtaining a degree can be an expensive prospect.  However, there are many available options for financial aid to help pay for college.  Scholarships, grants and loans are popular options for today’s students but with all the options available, it is easy to become overwhelmed.  We have put together some information on various financial aid options that will be helpful.

Loans

Loans are sums of money that will be repaid.  Many loans are low interest and do not have to be repaid until after you graduate.  This helps allow the student to get a better paying job to be able to afford the low monthly payments.  There are various types of loans available from federal loans to private sources.

A Federal Stafford Loan is the most popular loan available for both undergraduate and graduate students.  They can be subsidized where the government pays interest during the course of study or unsubsidized where you are responsible for interest payments from the onset of the loan.  Subsidized loans are granted based on need.  Both loans have requirements such as citizenship and student attendance and do not require a credit check.

A signature loan is a loan that requires certain criteria to be met.  You must be enrolled in school at least half time, be a resident of the United States and have good credit.  These loans are repaid after graduation and are generally at a low interest rate. 

Federal Perkins loans are available only at participating colleges and can be hard to come by.  There is a limited number of these loans given based on need and the selection process is very stringent.  Payment of this loan begins after graduation at a five percent interest rate.

Scholarships and Grants

Scholarships and grants are forms of financial aid that does not need to be repaid.  It allows the student to pay for college and concentrate on their studies without having to worry about getting a job or repaying a loan.  If you are able to qualify for a scholarship or grant, this is a great way to fund your college course studies.

Scholarships and grants are generally awarded based on scholastic excellence or financial need.  They awarded by colleges and private entities.  There are a variety of scholarships available and they change often.  Requirements for scholarships vary according to the type and the selection process is very strict.  There is also usually attendance and grade point average restrictions that will need to be maintained throughout the course work. 

Check with the college you are considering to see if they have scholarships or grants available and what requirements need to be met.  Other sources of scholarships and grants include employers, ethnic groups, civic clubs and special interest groups.  Using the Internet to search for opportunities from private sources is also a great way to research scholarship and grant opportunities.  Choose a scholarship or grant in which you are most qualified and for which you can maintain the requirements. 

College is expensive.  Finding the best possible funding to assist with paying for course work can be challenging.  However, using the Internet and financial aid representatives at your college will help you in finding funding sources that will suit your needs.  Many students opt for a combination of scholarships or grants and loans.  This will help offset tuition, books and residence while allowing the student to focus on obtaining the best education possible.