How to Get Financial Aid

Last year, private college tuition rose to nearly $25,000. Public colleges, especially community colleges, charged far less, but costs there are rising as well.

In fact, college costs are increasing at between 4% and more than 6% annually, but the good news is that financial aid is increasing as well.

Some of that aid can probably be yours.

Two of three students currently receive federal student aid. Federal aid comes as both grants and (subsidized) loans. The average student attending a community college received $2,040 in such aid last year while the average student at a four-year public university was awarded more than $3,500, and students at four-year private colleges were awarded, on average, $9,300 in federal aid.

The exact amount of federal grants and subsidized loans for which an individual student is eligible is determined by a formula which uses the information provided on the FAFSA (Free Application for Federal Student Aid) form all applicants for aid are required to complete.

There are other kinds of scholarships and grants available from states, colleges, and various organizations which require a student to have a completed FAFSA, so be sure to take care of the FAFSA as soon as you can.

College and university financial aid offices will gladly help you apply for federal, state, and other kinds of financial aid. And, don’t forget the wealth of financial aid and scholarship information you can find on the internet. Just try a search for “financial aid”, “college scholarships” or “scholarships” and you’ll see.

When filling out your FAFSA, you’ll be asked to provide information on income and assets. If you are a dependent student, you’ll also need to answer questions about your parents’ finances. Either way, the questions are very straightforward.

You can fill out your FAFSA online or use the paper application which is available in any high school guidance office in the country. Submitting the FAFSA online is probably the better idea, as it allows you to make changes, if necessary, more quickly and easily.

Be accurate and be on time. There is nothing else to know. That’s not too hard, right?

Applying for Financial Aid: Not Hard at All

In 2007-2008, tuition at independent colleges averaged nearly $24,000 a year; public university tuition was about a quarter of that (for in-state students), and community college tuition cost most students a little under $2,500 annually.

In fact, college costs are increasing at between 4% and more than 6% annually, but the good news is that financial aid is increasing as well.

And, you should apply for some of that aid.

Approximately 2/3 of students receive federal aid each year. This aid comes in the form of grants and subsidized loans. The average student attending a two-year institution received $2,040 in such aid in 2007-2008. The average student at a four-year public institution received $3,600, and students attending four-year colleges were awarded, on average, $9,300 in federal aid.

The amount of federal grant aid and subsidized loans for which a student is eligible is calculated after an analysis of the information provided on the Free Application for Federal Student Aid (FAFSA), which students applying for federal aid programs are required to file.

There are other kinds of scholarships and grants available from states, colleges, and various organizations which require a student to have a completed FAFSA, so be sure to take care of the FAFSA as soon as you can.

College and university financial aid offices will gladly help you apply for federal, state, and other kinds of financial aid. And, don’t forget the wealth of financial aid and scholarship information you can find on the internet. Just try a search for “financial aid”, “college scholarships” or “scholarships” and you’ll see.

When filling out your FAFSA, you’ll be asked to provide information on income and assets. If you are a dependent student, you’ll also need to answer questions about your parents’ finances. Either way, the questions are very straightforward.

You can fill out your FAFSA online or use the paper application which is available in any high school guidance office in the country. Submitting the FAFSA online is probably the better idea, as it allows you to make changes, if necessary, more quickly and easily.

That’s it. Forget about the horror stories you may have heard. Just complete your FAFSA carefully and on time and you’ll have no problems at all.

Explaining Student Loans

Selecting the most appropriate college loan(s) will help students for their education and avoid an unpleasant experience when repayment becomes due. Failure to comprehend the options, conversely, may well lead to unpleasant surprises and serious financial difficulties.

Two kinds of loans are available to studentssubsidized and unsubsidized.

Subsidized student loans are available to students who demonstrate significant financial need. There is a ceiling on the amount of subsidized loan money students can borrow, however the government pays the interest on such loans while students are enrolled and during the first six months thereafter.

Unsubsidized loans are available to all students, regardless of financial need, and are available in far larger amounts. But, students, not the federal government, assume responsibility for the interest payments.

In most cases, students who qualify for unsubsidized loans need the maximum they are allowed to borrow. If they require funds beyond the subsidized loan maximum, they may turn to unsubsidized loans for additional assistance.

Students can apply for the Perkins Loan or the Stafford Loan. Repayment of both begins six months after a student has graduated, stopped out, or dropped out. When there is good reason, lenders will frequently extend this six month grace period, although they are not obligated to do.

Parents may also take out PLUS loans for their sons or daughter. PLUS loans offer fairly low interest rates, but require repayment to begin within 30 days.

Please be aware that student loans must be repaid, without exception. Even bankruptcy does not free borrowers of the obligation of full repayment. Generally, lenders will work with anyone making a good faith effort to repay their loans, but those who avoid contact with lenders or simply refuse to make payment may be subject to harsh penalties which including wage garnishment and the withholding of income tax refunds.

Students and their families should not fear student loans. They are a great way to help people get the education they need to have a meaningful career and earn far more than they would with only a high school diploma. But, it pays to shop for and fully understand your options and to avoid borrowing more tahn you really need.