Student Aid For Beginners

As you start to look for financial funding to help you pay for a College Education, you will soon see words like Grants, Loans, and Scholarships. It can be very overwhelming. This is a guide to help you understand what each term means and what they entail. This may help you decide which direction to go in when obtaining your student aid.

FAFSA: Free Application for Federal Student Aid is an application that most students filing for Federal Aid have to complete. Most Colleges use this application as a guideline as to how much the students needs for school. There is a deadline for this application so when you file online you can read about the deadlines. Each year may differ on when the deadline is. Filing online would be your best bet to get the application in early.

Grants: Grants are given to students who really need the money. Grants do not have to be paid back. These grants are commonly Federal Grants; the most popular is the Pell Grant and the FSOEG, which stands for the Federal Supplemental Education Opportunity Grant, which can be applied for at your College. Some grant resources are Colleges, Private Organizations and even some businesses off these grants.

Scholarships and Fellowships: These awards do not have to be paid back but there are some requirements of these scholarships that must be followed in order to keep your scholarship. Fellowships are often given through Companies and given to their employees’ children.

Work Programs: These are workstudy awards that often come with your financial aid. This will let you work on a part time basis while you are attending school. These jobs are given by the College and the jobs are found on but not limited to the College Campus. Talk to your high school guidance counselor and find out how you can be awarded the workstudy award.

Federal Loans: These are loans provided by the Federal Government. These come in the form of Stafford Loans William D Ford Direct Loan and Perkins Loan. These loans are given to students despite what their financial situation is. These federal Loans are subsidized; this means that the Federal Government will cover the interest for you while you are attending College. When you graduate and the loan becomes due you will be responsible for the interest.

Private Loans: These are loans given by banks and credit unions. These loans will have higher interest rates attached. They are not subsidized loans. These loans are given out based on credit history. Parents have a better chance of getting these loans than students on their own. The interest rate is higher and the terms may be different. Find out all of the information you can before signing on with a private loan.

There is just so much funding out there; it can be hard to decide which type to apply for. Just use the old rule: Apply for anything you can even if you think you won’t get it. There is funding out there for all students you just have to know where to find it.